Leveling

Join Teachers.Net

Chatboards

Recent Groups

NC Teachers

MEMBERS

16 Members

+ Join Group

Pinned Posts

ALLAll Teachers

Teachers.Net LIVE CHAT Support group - Tues eve!

Featured Jobs

Full-timeMontessori Teacher

Maple Ridge, British Columbia, Canada

TemporaryTeachers, rural schools

Peace River North School District

Full-timeHead Teacher: 2nd/3rd Grades – Mills College Children’s School

Mills College

Teaching Jobs on Teachers.Net

Featured Job special only $39!

https://teachers.net/jobs

Become a Teachers.Net sponsor!

North Carolina Teachers Chatboard

Leveling

by Trudy

Mar 22, 2018

I took the leveling option but I have continued to work part time and pay in to Social Security. If I opt to take Social Security at 62 won't I get more than I'm drawing now with the leveling? I'm assuming the amount was calculated based on what they thought I would draw from Social Security 3 years ago.

Comment

(6)

report post

view previous comments

beenthere Also - you do know there's a limit on how much you can make working between the ages of 62-65 without losing some of your benefit?

Mar 22, 2018

report post

4moreyears Yes, your actual SS will be more than the state figured when you retired -- they couldn't have known you'd continue to work /continue to build your SS.

Mar 22, 2018

report post

4moreyears Comment to anyone who's considering taking the Leveling option: Think long and hard about this choice. Do a calculation of what you'll receive with each option over a hypothetical 30-year retirement ... you give up a lot of money if you go with the leveling.

Start with the assumptions that I'm retiring at 56 (which I will) and that I will...See MoreComment to anyone who's considering taking the Leveling option: Think long and hard about this choice. Do a calculation of what you'll receive with each option over a hypothetical 30-year retirement ... you give up a lot of money if you go with the leveling.

Start with the assumptions that I'm retiring at 56 (which I will) and that I will collect benefits for exactly 30 years ... and assume that I will begin to collect SS at age 62.

If I opt for my maximum pension from the state, I'll receive $2,379.59/month ... that's $856,652.40 in pension over 30 years. $2,379.59 isn't all that much per month, so I'll probably need to work part time for 6 years until I turn 62. ... PLUS when I'm 62 I'll start to collect about $2000 from SS ... so my income will increase to $4,379.59 for the rest of my life. Over the course of 30 years, I'd collect a total of $1,432,652.24

On the other hand, if I take the Leveling option, the state will pay me (at age 56) $3,588.99 until I turn 62 ... then they will drop my payments to $1,588.99 . However, since my SS will kick in at that point, and SS will pay me about $2000, my total income will not change ... I will still continue to draw $3,588.99; it'll just come in the form of two checks instead of one. Here's the kicker ... over the course of my 30-years, I'd collect a total of $1,292,036.40 ... or $140,615.80 ($390.59/month) LESS than I would if I don't take the Leveling option.

These are my real numbers (though I did kind of round off with the $2000 SS number, but since I was consistent between the two scenerios, it comes out the same). I'd much rather work part-time for six years and collect that extra $140,615.80 from the state.

And, of course, if I wait 'til I'm 67 (full retirement age for a person my age), the difference would be greater. That would mean working part time for 9 years after leaving teaching. Remember, I'm retiring at 56 ... so working part time until 65 doesn't sound so bad.

On the other hand, if I were from a family with short-lived genes, or if I were fighting some sort of disease and thought I wouldn't live 30 years in retirement, I'd look at the numbers differently.

Please, please, do some serious number crunching before you decide what you're going to do.

Mar 22, 2018

report post

beenthere 4more- you did a good job and presenting the scenario. Of course, anyone who CAN would love to put off making less for more. But- some of us could only retire with that option. Some of us just could not go on and it was a God-send. Everyone is different. Some of us didn't have the 30 years.... so it depends on what you have, what you need, and what...See More

Mar 22, 2018

report post

4moreyears Everyone's needs and circumstances are different -- absolutely true. However, it seems that a lot of teachers look at Leveling in just the way you're describing: you either take the Leveling, or you aren't able to retire. I have to disagree. Most of us have multiple options: Take the pension + work part time (or seasonally) in another field is prob...See More

Mar 25, 2018

report post