Friday, July 11, 2008

Important Financial News in the Mail Today

Went home for lunch and got a whole bunch of financial news. I guess it may be the end of the fiscal year for retirement funds, so here's what I found out:

Over 0.85 years of service credit in my Pension Plan, I have accumulated $1, 051.92! Pretty awesome considering I don't even realize I am contributing. But just like David Bach says, making savings automatic is the best way to do it. It's one of the few perks of my job. I also found out some more details of my pension which corrects anything I may have said in my last post about it:
  • After five years, I am considered VESTED in the pension and am eligible for a monthly benefit depending on my years of service.
  • After ten years, they stop deducting the three percent out of my paycheck. I am also eligible to apply for a non-job related disability benefit at this time as well as an out-of-service death benefit. I am no longer able to receive a refund of my contributions at this time.
  • After twenty years, my annual benefit will "increase significantly." Wonder what that means?
  • With 30 years of service credit, reductions of early retirement between ages 55 and 62 will be eliminated. Good thing because after 30 years I will only be 57. Sweet.
  • Once I retire I am eligible for annual cost of living adjustments to my monthly benefit which will begin no earlier than five years after retirement.

So anyway, that's all pretty exciting. It's hard to look thirty years into the future but I have good reason to believe I will at least get to ten years of state service. At least someone is doing the saving for me in the meantime.

AND I also got a statement from my Roth IRA. I have $11. Hehe. Contributing to that is not a priority right now since I realized I should be contributing to my Deferred Compensation Plan instead.

I added this info as well as the reduction of Boyfriend debt to my Networth IQ. It's good to see that thing go up, if ever slightly. Note that I'm not updating the Student Loan amounts there for now. It's rather time-intensive and annoying to figure out how much of my payments go towards principal and how much towards interest. For now, I am paying them all I can.

4 comments:

shelbug99 said...

Isn't State retirement wonderful? Someone, somewhere takes it out of my check and in 35 years, I'll receive 80% of my final salary.

Congrats on paying back the boyfriend. I'm sure that is quite a relief.

Jill said...

That's exciting news! Paying "Aunt Sallie" is quite painful. I'm still in my grace period for most of my loans and I'm dreading the day when I have to start paying back ALL of them.
Btw, I added you to my blogroll.

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