Hi JonathonnI work for the public school system in Georgia, so ours may be different from your state if other than Georgia, but how ours works, the retirement takes a mandatory 5% off the top of your gross every month. Then after being 100 percent vested in the retirement system (10 years) you gain 2% pay back for the years of service you work in the school system, up to 40 years. What this boils down to is I can qualify to retire after 30 years of service. By doing this I would receive 60% of the average of my 2 highest paid years. If I work 40 years I would get the maximum of 80% of the average of my 2 highest paid years. This is okay, but when you look at benefits of other investments it really is not what most people think its cracked up to be. But most people don't think about retirement (unfortuantly) or if they do they "assume" this will be plenty to retire on. Until the day comes and they figure up how much they would receive each month, and it isn't what they were expecting. So in my case, I also have some mutual funds, an annuity, and some long term stocks to suppliment the Teachers retirement, Not to meantion my wife's 401K from where she works.
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