Early Retirement Help
L1: Early Retirement HelpOk, first post, here we go.
I plan to retire next May at 51 on a defined benefit (CalPERS) and PARS (defined benefit 401a public agency retirement service) non-public safety, non disability. With both plans, I will be taking the payments over my life and my beneficiary’s life. Both plans have a monthly payment benefit (pension) based on age at retirement (separation from employment), years of service, and beneficiary age. These monthly $ figures have already been established as my benefit by the plan providers. Once the payment stream starts, I can’t change it. It is locked in. Each year I will receive a %2 cola if the CPI has gone up accordingly.
Do these plans meet 72t? Are the amounts I will receive going to meet the SEPP rule? What do I do at this point?
Thanks in advance2010-12-27 22:14, By: badwater, IP: [220.127.116.11]
L2: Early Retirement HelpNO.
While those payments are “equal monthly payments”, and ” over life expectancies”, the 3rd factor recent federal interest rate” is not part of the calculation by these plans, which required for SEPP 72-T plans.
GFW or Alan can give you a more complete answer.2010-12-28 01:33, By: dlzallestaxes, IP: [18.104.22.168]
L2: Early Retirement HelpI’m not really familiar with the types of plans (CalPERS, PARS)that you are asking about, but if they are defined benefit plans as you indicate with a defined early ornormal retirement age of 51 and a benefit payable over your life expectancy or the joint life expectancy of you and your spouse,you shouldn’t have a problem and they shouldn’t be subjected to teh 10% pre-age 59.5 10% penalty. Start by checking with your Plan Administrators, but you probably have no problem.2010-12-28 14:53, By: Gfw, IP: [22.214.171.124]