Retirement & Benefits Questions - I'm a new Career Changer to Teaching!

Discussion in 'New Teachers Archives' started by willwill02, Dec 19, 2006.

  1. willwill02

    willwill02 Rookie

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    Dec 19, 2006

    Hi All,

    I probably should be studying for the CSET single subject math test now, but I'm pretending that it's 40 years from now, and it's time to retire. (I recently left industry to pursue a teaching career.)

    Some questions about benefits:

    - Typically, in the private sector, you have a large 401k and sometimes a pension to get you by after you end your career with your company. What do teachers have?

    - I know other civil servant positions (like Police), can retire after XX # of years with something like half their salaries for the rest of their life until they die! Do teachers have something remotely similar? For instance, after teaching 30 years, you can retire with half your salary with health insurance benefits until you die?

    - I'm particularly interested in California and New Jersey's retirement plans, as this is where I think I'd be.

    - I'm interested in both public school and private school.

    Anyhow, I know you don't do teaching for the $$$, but was just wondering how it works.

    Thanks!
     
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  3. ddb23

    ddb23 Companion

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    Dec 19, 2006

    California has Calstrs, which is the pension system. After 30 years, you are able to retire with a pension that is approximately 60% or so of your final salary. Money is paid into here instead of into Social Security. The district and state then match a % of your contributions. The money grows at a low but steady interest rate.

    You cannot do a 401(k), but you can participate in a 403b which has the same tax benefits but has more limited investment options and does not have employee contributions. You can also do a Roth, IRA and all the other plans if your income limits allow you to.


    good luck
    dave b
     
  4. Upsadaisy

    Upsadaisy Moderator

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    Dec 19, 2006

    Private school. There is no retirement program at all. Nothing.
     

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