Jun 30, 2021
Do you understand how your employer's pension plan works? How many years do you have to wait to get your full retirement amount? Are there advantages to retiring later? Are they worth the wait? To help you get a better handle on your retirement and specifically what you need to know about the Connecticut Teachers Retirement Pension, I’ll be covering three things that you need to know before you retire as a CT public school teacher. This particular subject is near and dear to my heart, as many of you know I have family members who are educators in the state of Connecticut - I hope this helps you as much as it helps them as well!
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You will want to hear this episode if you are interested in...
- Understanding the Connecticut Teachers Retirement Pension [1:45]
- How benefits are calculated [4:00]
- What it takes to qualify for early retirement [8:00]
- How proratable retirement works [11:00]
- What makes the most sense for you? [15:00]
- Closing thoughts [20:20]
Connecticut’s Retirement Program for Teachers
In the state of Connecticut, teachers are a part of the Connecticut Teachers' Retirement System (CTRS). The system was established in 1917 and is the largest public retirement system in the state. A teacher’s contributions and those made on their behalf by the state or school district do not determine the value of the pension at retirement. Contributions are invested in the market, and often managed by private equity and hedge funds, however - a teacher’s pension wealth is not derived from the returns on those investments. Instead, it is determined by a formula based on their years of experience and final salary. Additionally, it is important to note that the state assesses an educator’s final salary based on the average of their highest 3 years of salary.
At the end of the day, the value of the pension is derived from a formula. A teacher pension is calculated in Connecticut with the following formula. 2% Multiplier x Avg. 3 years of highest salary x Years of service.
Join me on this episode as I dive even further into this topic so you have the information you need to make the right decision - you don’t want to miss it!
What makes sense?
Too often I see savvy men and women who are doing the best they can to make the right financial and retirement decisions only to miss critical data that could make all the difference. Not only do I want to give you the right information, but I also want you to check my work! Make sure to follow up on any of the topics discussed in today’s episode by visiting the links in the resources section at the end of this post - it is my hope that these resources will empower you as you take control of your future. As always, don’t hesitate to leave a comment and let me know if there is a topic that you’d like me to address!
Resources Mentioned on This Episode
- https://portal.ct.gov/-/media/TRB/Content/ActiveInactive/AI_HANDBOOK.pdf
- https://portal.ct.gov/TRB/Content/Active-and-Inactive/Active-and-Inactive-Menu/Retirement-Information/Payment-Plan-Options
- https://portal.ct.gov/TRB
- https://portal.ct.gov/TRB/Content/Active-and-Inactive/Active-and-Inactive-Menu/Retirement-Information/Estimate-Your-Benefit
- https://forms.office.com/Pages/ResponsePage.aspx?id=-nyLEd2juUiwJjH_abtzi3KO9GYeqiNIh3YmimD1brlUNU9MVUJCRkdIVlJRNkNUSEhJOEJVQzYzUi4u