State and local government workers preparing for retirement: Do you understand your plan formula?

Source: Natalie Kramer and Jesus Ranon-Hernandez, Bureau of Labor Statistics, Beyond the Numbers, Vol. 7 no. 6, May 2018

The National Compensation Survey (NCS) publishes information on the coverage and provisions of employer-sponsored benefit plans for private industry and state and local government workers. For workers approaching retirement age, trying to make sense of retirement options can be daunting. The NCS can provide answers to questions such as the following:

– How much of a benefit will I receive at retirement?
– If I retire early, will my benefits be reduced?
– Will my benefits be increased if I work a few more years?

This issue of Beyond the Numbers describes basic retirement formulas by using different retirement scenarios and formulas to illustrate the monthly retirement benefit. Two examples are provided for specificity…..