SacBee on POFF II

Mar 25th, 2011 | By | Category: Budget, Negotiations
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From the notebook : A change to CCPOA’s tentative agreement

…The state is ending contributions to a retirement fund for Bargaining Unit 6 employees, according to state officials, in exchange for a higher deferred pay raise and to maintain the current leave system for the 32,000 or so correctional and parole officers represented by the California Correctional Peace Officers Association.

Our earlier report, based on a letter to members by union Executive Vice President Chuck Alexander, said that the program, called POFF II (Peace Officer and Firefighter) would be temporarily suspended to help offset the state’s cost to bring CCPOA members’ health coverage even with the rest of the state work force. State payments into the fund — an employer contribution equal to 2 percent of base salary — were to resume in January 2014…(Full text at SacBee)

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12 Comments to “SacBee on POFF II”

  1. Big_E says:

    So giving away everything and getting nothing is a good deal? 2.5 at 55? Good luck recruiting.

    • Advantage2u says:

      good luck recruiting i started 23 years ago and the retirement was 2.5 at 55. you think this offer is bad. wow.

  2. john smith says:

    Go ahead and vote yes……..Good luck ever getting back your holiday credits and POFF. Do you really think the state is going to bargain these back again. Well I guess they might if you want to forgo a future raise or two or three.

    You need to stand up for what you believe and not accept any pile of crap thrown at you…..Unless you want to purchase some ocean front property I have for sale in Neveda. Then maybe we can make a deal.

  3. Harleyman1 says:

    At my place its pretty much yes votes that I’m hearing, everyone wants some of their monies back and we know the power that grievances, mini-arb and 27.01 hold. We hold our administration to the contract language anyone that is or has ever been a union activist knows how we need this back first and foremost then we work on everything else.

  4. Big_E says:

    I believe the consensus is NO! And Fat Mike has got to go. He can take his car with him.

    • CO_wtf says:

      Everyone I talk to/hear (except in this blog) is voting yes, as am I. It’s only a two year contract! In that two years lets clean house in CCPOA; MJ has to go.

  5. Malibu says:

    When will we see the language? The consensus I’m hearing is “vote no”. That doesn’t sound like a prudent move with the budget in such bad shape.

    • 1990 says:

      At my joint the consensus is yes,yes we are tired of getting the shaft but too scared of getting worse.

  6. bulldogger says:

    good question 1990 would be interested to know the same thing

  7. Bing says:

    1990 if the laws are the same you can cash it out and get taxed heavily or roll it over to another 401/457 no charge. I think there are other options also.

    I just took a loan out against my 457 because i want to buy a house and i am only charged a small fee. All the interest payments go back to my account on the five year loan. I could not believe it.

    It all depends on the IRS code. I will do research. I want to put it in my other account.

  8. 1990 says:

    Are we going to able to roll this over to our 457 or given the option to cash this out or is it going just to sit there until we retire???

    • f j says:

      Here is the link to the CalPERS website that talks a bit about the POFF plan and provides a link to more information – http://tiny.cc/sjb0o – The pertinent piece of this, to answer your question, is “The balance of the account is available to the POFF participants only at retirement or upon permanent separation from State employment.”

      From personal experience, you can take it in a lump sum at retirement (or separation from State Service) or roll it over to your existing State 457 or State/Other 401k. If you retire as a peace officer at age 55 or older, it is available to you immediately, without penalty. I believe that if you retire at 50, you would have to wait until you are 55 to withdraw it without penalty (but that is a guess). A word of caution here – if you believe that you will want to access your POFF (or your Deferred Comp 401k plan) earlier than at age 59-1/2, DO NOT roll it into a non-employer sponsored plan. If you do so you will have to either wait until you are 59-1/2 to withdraw it, or face the 10% early withdrawal penalty. It is only employer sponsored plans (your State deferred compensation 401k or POFF) that you can withdraw it at age 55 or older and not suffer the early withdrawal penalty. Your 457 can be withdrawn at any time after retirement or separation from State service without penalty. Be prepared to pay your regular income taxes on what you withdraw. You will receive a 1099 at the end of the tax year showing the amount you withdrew.

      CalPERS invests the POFF plan in their own portfolio, which historically has done a hella lot better than my own.

      So a lot of verbiage to say that – if you are still working for the State, your POFF is not available to you.