Paterno’s Penn State Retirement – $13 Million…

[no_such_reality]

LOL, with a $10 million lump sum pay at the beginning by end of May.

Yea, yea, all the State Retirement apologist, I know, he paid the 6.25% into the Penn State system and he worked 60 years. Whoopie.

[ucodegen]

Salary in 2007 = $512,664.. in 2006 = $490,638. Just factoring in 2007 salary and 6.25% contrib flatlined for 60 years, does not add up to $13Mil.

http://news.yahoo.com/paternos-penn-state-pension-top-13-million-012704813–nfl.html

Looks like the $13.4mill is on top of $5.5mil from employment contract and $3mil career bonus due at retirement… Total $21.9mil.

Just dug this up..
http://deadspin.com/5857629/joe-paternos-annual-compensation-is-200000-higher-than-the-psu-presidents-and-other-grotesqueries
From 2007@512,664 to 2009@1,022,794 ummmm…..

Kept digging:
http://deadspin.com/5857531/how-penn-state-sucks-up-taxpayer-money-and-hides-its-ugly-behavior-from-taxpayers

[desmond]

I was never a big fan of JoePa, especially with the Sandusky thing, but you are way off if you are trying to say the guy was overpaid or did not deserve that pension payment. He was the biggest bargain in college sports considering his annual salary (compared to his peer coaches) and what he brought in to Penn State over his tenure:

“As background, the football program at Penn State brings in yearly revenue of close to $75 million, with more than $50 million of that in profit. It is the only sports program at the university that earns a profit according to Forbes magazine, with other departments losing approximately $30 million per year.

Penn State gets a bargain and obviously an old-timer’s discount by paying Joe Paterno a bit more than $1 million a year in salary. He’s never expressed an interest in holding out for more, threatening to leave or retire, until today”

btw, either they pay his family the big retirement package or get sued, basically it is hush money imo.

[blahblahblah]

I wonder how many professors make that kind of money at Penn State? Says something about our collective system of values.

[Coronita]

[quote=CONCHO]I wonder how many professors make that kind of money at Penn State? Says something about our collective system of values.[/quote]

But most professors can’t be a good coach….And sports is where the money is (except maybe soccer)… I don’t have any issues with that. I’m just jealous because I wish I was special..

[no_such_reality]

I didn’t intend to debate the merits of his compensation, I instead would like to understand how a ‘retirement’ benefit geared to 2.5% per year of service, capped at 110% for extended service on a 3 highest years of service of ~$550K (seen articles saying retirement was based on a mere $240K) turns into a lump sum payout of $13 million after death.

That is a post death payout of 25X his highest income.

While extreme, it’s a good example. The retirement program that lead to this payout is the same style retirement program that many California State employees have, 2.5%/year times the average of the highest 3 years of service. It’s a defined benefit plan, so how does it turn into such a large lumpsum payout?

And by understand, I’d love to see the actual contributions to the plan he made each year to compare to what a private sector person would get with those same contribution. Because in the private sector, if I made $100K, 40 years ago, got a 5% raise every year, I’d be making $600K/yr now and would need a total contribution to retirement of 25%/year to have a value of $13Million assuming an 8% return every year.

[desmond]

If you are going by numbers alone on this payout you mights as well pretend you are going to get the money.

[no_such_reality]

Ah, the Penn State retirement.

http://www.budget.psu.edu/publicaccount/psuretirement.asp

So it could be a wide range of plans under TIAA CREF, but those look like independent style accounts. Basically, looks like the State has a 180% match.

The SERS plan isn’t as lucrative, don’t know which one he was in.

[ucodegen]

[quote=desmond]”As background, the football program at Penn State brings in yearly revenue of close to $75 million, with more than $50 million of that in profit.[/quote]I though Penn State was a University, or supposed to have been, a Center of education. I didn’t think it was supposed to be a sports franchise. I also wonder if the sports operating costs of 19.5M included facilities amortization costs.

Either way, I am commenting more on the retirement package and the salary increases (%). Also commenting that effectively, the sports ‘franchise’ was actually in charge of the University, not the University head.

I do think that ‘JoePa’ is being made a scapegoat on the child abuse issue. He did report the child abuse incidents when it occurred, to both his superior and University Police. People claimed that he should have reported it to the State Police. NEWSFLASH: The Police at State Universities ARE State Police. The Police on Campus at UCSD are California STATE Police as opposed to San Diego Police. Pennsylvania State Police dropped the ball (to re-use a coined phrase).

NOTE: SDSU police are also California State Police. http://en.wikipedia.org/wiki/California_State_University_Police_Department

[bobby]

why would this story even matter?
I thought Joe Pa is dead. Can you still get retirement after going through the pearly gates?
https://www.google.com/search?q=joe+paterno&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

[ucodegen]

I think his wife may be able to draw on his pension…

[briansd1]

How much is Sandusky’s pension?

edit:

I looked it up myself:

According to the Harrisburg Patriot-News, Sandusky took a nearly $150,000 lump-sum payment at retirement and still gets almost $60,000 a year.

Read more: http://www.foxnews.com/us/2011/11/13/former-penn-state-assistant-coach-reportedly-continues-to-receive-monthly/#ixzz1vtvWzBYV

[CardiffBaseball]

[quote=CONCHO]I wonder how many professors make that kind of money at Penn State? Says something about our collective system of values.[/quote]

I’d rather see the football coach paid well than some of these Penn State “Climate Ethics professors” and frankly I can’t stand their football team.

http://psu.campusreform.org/group/blog/video-climate-ethics-prof-global-warming-skeptics-guilty-of-crimes-against-humanity

[sdrealtor]

I’d like to see how meteorology majors there are on the PSU football team

[CardiffBaseball]

[quote=sdrealtor]I’d like to see how meteorology majors there are on the PSU football team[/quote]

Ha Ha probably not too many. Still I’d hate to see these professors earn a decent living, they should be paid what the common man makes since clearly that’s what they want for the larger world.

One of these bozos suggested that speaking out against man-made global warning ought to be a crime against humanity. Yes right up there with Hitler and Napoleon I’m sure.

[Author]

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