Retirees Face Lifetime Hit in the Hundreds of Thousands

Retirement Benefits Comparison:

SDEA Current Contract vs. Tentative Agreement

Using the CALSTRS Retirement Benefits Calculator, we calculated what educators retiring in the next few years will receive as their estimated unmodified monthly benefit.  We wanted to contrast the benefits retiring members will receive from our current, closed, 184-day contract and salary restorations against the benefits they would receive under the TA if the Governor’s tax initiative does not pass and we are forced to take an additional 14 furlough days. We immediately hit a problem when we discovered that the CALSTRS calculator will not calculate benefits for a contract that is less than 170 days. If the tax initiative fails, then our year will be cut to 165 days (184 days – 5 furlough days -14 additional furlough days = 165 days).  Given the restraint, the TA calculations below are done based on 170 days of service for the 19-furlough day model. (Try this yourself at

Someone planning to retire at the end of 2013-14 with 30 years of service could lose $345 a month for the rest of his or her life. After 30 years of retirement, that’s $124,351!

The TA offers the first 300 teachers to retire this year or next an “incentive” of $25,000.  Sounds like a cynical way to “encourage” educators that were already retiring anyway to vote yes and pick up some extra money on their way out. But for members retiring in 2013, that doesn’t come close to covering the lifetime loss of income should this TA pass. And what about the teachers that will be retiring in 2014 or beyond, who will take more furlough days than anyone and receive no incentive? The proposed TA will have damaging, permanent, lifetime financial consequences for anyone who retires after this year, and $25,000 before taxes is a pittance when compared to the lifetime loss of income. This TA creates more problems than it solves.

VOTE NO and tell SDEA that we can do better.

2 thoughts on “Retirees Face Lifetime Hit in the Hundreds of Thousands

  1. I am not sure where to put this post, but I guess this is as good of a place as any. I have worked for SDUSD since 1989. Now if you count up those years in haste, you might think, so this incentive is a good thing right? Not so fast. If I could get over the big tax hit, and manage to scramble to be among the first 300, I still would not qualify, because at the end of next year I would have 24 years. There is no incentive for me to even consider voting yes. There are other reasons, but they have been well covered here. I can’t understand why our union would negotiate for this kind of a deal. The incentive given out 3 years ago didn’t discriminate, and this shouldn’t either. I went on strike in 1996 to earn fair wages. Now I think that was all for not. Teaching was never all about the money. Any dedicated teacher knows that. At some point though it does have to be about respect. I am sorry that so many people have been pink-slipped, but in no way do I feel it is my responsibility to make it right. It is the Union’s responsibility., and I think they let everyone down.

  2. Not to mention that during the last two furlough years I had to eliminate saving into my 403b. If the TA passes I’ll never be able to put another penny into my 403b. That 403b account is supposed to cover my healthcare after I retire. So this T.A. is taking a lot more than $400 a month for life. It’s also taking my retirement account and my healthcare.

    I’ve already voted no.

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