You are blatantly misleading readers and twisting facts!!! Assuming you pay average Ridgewood property taxes of $16,000 a year, and assuming you are, in fact, a soon to retire teacher, then your $16,000 in property taxes helps cover the cost of Village contributions towards your lifetime defined benefit TPAF pension.
Assuming you are a Tier 1 member (enrolled in TPAF before July 2007), you can retire between age 55~60 you will receive full retirement benefits. To calculate how much your annual pension is worth, you divide your service time by 55, then multiple that by your average salary for the three years immediately preceding your retirement. So say 35 years divided by 55 = 63.6% of your average final salary $118,000 = $75,000 in taxpayer protected, defined benefit pension every year until you die which will be more than 25+ years if you retire at 60 and live to the average U.S. lifespan of 85 years. For this you contributed only 6.5% of your base salary but you get a defined benefit amount in retirement plan, i.e. you are insulated from any investment risk and benefit from taxpayer protected pension plan with an assumed annual rate of return of 7.95%. Yes the percentage contribution will gradually climb to 7.5% by 2018, but it’s still less than the 10% that PFRS members contribute and you take no investment risk like the rest of us with defined contribution IRAs or 401(k) plans. Those who enrolled in TPAF on June 28, 2011, or later are won’t be eligible until 65 for a pension, but that is for members who will retire in 35+ years from now, NOT you.
That $16,000 in property taxes also helps to subsidize your “Platinum” level health benefits, as defined by the ACA, which is an annual benefit of up to $28,000 a year depending on family member coverage. This plan covers up to 96% of eligible medial costs with $10 co-pays..TPAF members with at least 10 years of service time also receive a free group life insurance policy payable upon their death to their beneficiaries. You can also choose to purchase an additional group life policy that costs 0.4% of your paycheck. Not bad for $16,000 in property taxes, which is why it means you should be ASHAMED of your comment that “I am Ridgewood tax payer too and suffer just like you when the rates increase.” You don’t suffer, it’s in YOUR beneficial interest because you benefit from increased taxes which help pay for your retirement. Put in $16,000 a year in property taxes and get out over $105,000 in annual benefits. So please tell the whole story here or it truly is “shame on you.”
