THE TRUTH HAS TO BE STOPPED...

[Norm_Peterson 10]

Ok, my friend's parents are in a bind here, their retirement is up in the air, and Jimmy Macpherson is ruining it all because of his rants on WVVA news because of his misinformed and irrational thinking.

 

Ok, here is how it goes, the teachers of WV decided to go to a new system for retirement about 16 years ago that is based on the stock market. However, this system is so bad that WV teachers want out, and the state will let them as long as they have a 65% vote across the state. Here is where Jimmy Mac comes in, he gets on the news and preaches about how dumb this would be, but has no facts or warrant to back it up. I am here to tell you the straight facts based on the papers given by the state. These facts are not exaggerated in any way or form, you have my word. In fact, my friend's dad's entire school voted yes for the old system to come back, to tell you how easy a decision this is.

 

According to the paper I have here, in the new system this person has over a $100,000 in their retirement, and only 2% of the teachers in the state have this much.

 

In the new system whenever a person retires, that is all the money they will get for the remainder of their lives. Also this system fluctates on the stock market, which we all know is going down.

 

However, in the old system, the one the teachers want to go back to, the risk is not in the stock market, but in the State. This means the stock market will not have anything to do with the money. However, if the system is changed to the old, people have the oppurtunity to buy back the years they lost in the old system, or not to at all. Also, the more people who change back, the less money has to be paid. Also, the retirement is a continual fund, and can never be exhausted like the new system.

 

Right now, people have to pay 4.5% to the retirement fund, if it is changed, people have to pay 6%, a difference of 1.5%.

 

In addition, when it comes to buying back years all it takes is to stay in the system 25% of the time you were in the new system. So if you were in it for the max 16 years, you may have to work 4 more years.

 

Now lets look at the numbers, once again these are FACTUAL NUMBERS, if you wish to see these you can at any time:

 

If this person was to stay in the new system, under a low inflation assumption, they would recieve at 60 $1,646 a month

 

If they went back to the old, AND DID NOT BUY BACK ANY YEARS, they would recieve $3,516 a month

 

If they choose to buy back years, $5,176 a month.

 

Now lets say there is a HIGH inflation assurance, and teachers get a 6% pay raise, (which will never happen):

 

In the new system at 60, they would recieve $2,900 a month.

 

Old system WITHOUT buying back they would recieve $4,698 monthly.

 

If they chose to buy back, they would make $5,273 monthly.

 

There are also numbers for 65, but i will not bore you with statistics, but if you want to see them i will provide them.

 

Now, Jimmy Macpherson, AKA the_truth, says we will have to pay everything back and it will end up hurting us. But you dont have to pay it back at all!

 

Here are the groundbreaking stats for you:

In HIGH inflation, in the NEW system the best a person can do is make $2,900 a month. If you DO NOT PAY BACK ANY MONEY AT ALL, IN THE LOW INFLATION ASSUMPTION, in the old system you make $3516 a month.

 

So best case scenario for the new system WILL NOT BEAT the old system in worst case scenario.

 

Another friend, with an MBA from DUKE, said it was rediculous not to go back to the old system, the payback is immense. He commented that also the risk is out of the teachers hands and into the states, noting that a stock market crash or recession CAN NOT break the teachers back like before.

 

THE_TRUTH NEEDS TO BE STOPPED!!! HE IS MAKING PEOPLE BELIEVE WRONG INFORMATION!!!

[SCHMITT35 10]

hmmmmmmmmmm, I've heard that you would have to pay a lot to get those years back. If it wasn't all at once, it would be worth it. I can't say that I know much about it other than what I've heard here and some on the local news. I know that teachers have harder jobs than most professions, all things considered. They deserve the best retirement available.

[hokie07 11]

[ QUOTE ]

I know that teachers have harder jobs than most professions, all things considered. They deserve the best retirement available.

 

[/ QUOTE ]

 

I agree but I don't think that is applicable to every teacher in the MCBOE, much less the state or country. Just as often as not, teachers are glorified babysitters. Most of the teachers that are in Mercer County are not in it for the money or to better a child's education. Their significant others are making enough to support them they are just along for the ride with the employee benefits and/or (paid) summer vacations...

[Norm_Peterson 10]

[ QUOTE ]

hmmmmmmmmmm, I've heard that you would have to pay a lot to get those years back. If it wasn't all at once, it would be worth it. I can't say that I know much about it other than what I've heard here and some on the local news. I know that teachers have harder jobs than most professions, all things considered. They deserve the best retirement available.

 

[/ QUOTE ]

 

You DO NOT have to pay it back, as i stated earlier, worse case scenario WITHOUT PAYING IT BACK in the old system is better than the new system IN THE BEST CASE SCENARIO.

 

After doing the math it seems as if you would make 800 dollars more a month, thats about 11 thousand sfter 1 year, the same amount that would have to be paid back.

 

But once again, you DO NOT have to pay anything out.