Originally Posted by devildog2067
Even if the fund has a few underperforming years, the higher yield years will make up for them. The stock market has highs and lows. The 7% return will fund a 75% retirement with no adjustments for 31 years. Inflation adjustments start after 3 years of retirement. The pension amount is based on the top 3 consecutive years of salary and the contributions the employee and employer both make are always a percentage of the employee's salary (11.5% each).
I don't know anyone who has retired for 31 years. As a matter of fact average life expectancy for a cop after retirement is about 5 years. So should his family get a refund of the rest of his contributions? It averages out and it's not without risk, but the pension has been very prudent about balancing their portfolio.
Let me guess, all your money is socked away in gold ingots under your bed?