Check out this new feature produced by the folks at the Manhattan Institute. At calculateyourpension.com/NC/ all of us poor saps in the private sector can calculate the pension you would receive if you were a state employee. For instance, if you worked for 40 years and retired at age 65 with an average annual salary of $90k over the last four years, you would have an annual pension payment of more than $65,000. In other terms, you would have the equivalent of a roughly $1 million lifetime annuity at the time of retirement.
In recent years, the N&O has spotlighted some state retirees making eye-popping pensions.
State lawmakers need to act sooner rather than later to reform this retirement system that continues to put a greater strain on hardworking taxpayers. One such reform that would be a great first step would be to transition from a defined benefit system to a 401(K)-style defined contribution plan for state workers. This would eliminate the practice of state workers padding their final years’ salaries to beef up their pension – the only way to increase their retirement fund would be to increase the amount they contribute from their paychecks (like most of the rest of us).