FD-PD: 10% Should Be 5%

Due to the pension changes that became effective 4-01-2019, the amount withheld at retirement for Tier 2 members should be reduced to 5% from 10%.  The question that should be asked; is the 10% withheld at retirement excessive?  The answer is yes simply due to the lower cost of the pension options.  As many are aware, the FD & PD Pension Funds currently withhold 10% of the gross pension until the retiree’s pension is finalized.  Due to the extended period of time (years) that it often takes to finalize the pension, it would be even better if this was simply optional.  In other words, allow the retiring member to select a percentage to be withheld or no percentage at all.

2 replies
  1. Brian
    Brian says:

    I believe that once retired and if in contract, one can request in a greviance or hardship letter to have the 10% waived.
    Perhaps you can clarify this a bit more?

  2. Tom
    Tom says:

    I understand what you are saying however I like the 10%. There are different forms of money decisions betweew the terminal, overage, annuity and 457/ 401 — the 10% forced savings is nice.

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