Cronin gd 072304-1.jpg | Disability Pensions

Factoids

Pensions rise $360 per year

Public employee pensions in Massachusetts increase by a maximum of 3 percent on the first $12,000 of a retirement allowance each year. That’s $360 per year.

The number of private employers who match their employees’ contributions to 401(k) plans is shrinking. Those that still do typically contribute 50 cents for each dollar contributed up to the first 6 percent of an employee’s pay.

Numbers flip-flop

In 1983, 62 percent of American workers were covered by a defined benefit retirement plan and 12 percent had defined contribution plans. By 2007, the numbers had flip- flopped, with 17 percent covered by defined benefit and 63 percent by defined contribution plans.

Social Security disabilities

Social Security paid disability benefits to more than 9 million people in 2008, about 90 percent of them were considered disabled workers. Mental disorders was the diagnosis for about a third of the people considered unable to work.

Private sector numbers

Private sector employees contribute 6.2 percent of their gross pay to Social Security and their employers contribute another 6.2 percent. Self-employed workers contribute 12.4 percent.

Paying into the system

Depending on when they were hired, public sector employees in Massachusetts contribute between 5 and 12 percent of their pay into the local or state retirement system. Since 1979, public employees have contributed at least 7 percent plus 2 percent on any earnings over $30,000. Since 1996, they’ve contributed at least 9 percent plus 2 percent on any earnings over $30,000.

Workers pay 9% on average

The average state worker pays 9 percent of his or her salary and the state kicks in more than $1 billion per year to pay for about 12 percent of public employee retirement benefits. The remainder is paid for with pension fund returns.

10-year guarantee

Massachusetts has a defined benefit retirement program for its municipal, county and state workers. Public employees who work 10 years or more are guaranteed a retirement allowance consisting of a pension and at least a portion of what they paid into the system over the years plus interest, the annuity. They also get lifetime health benefits.

Heart disease a top killer

Heart disease caused 45 percent of the deaths that occurred among U.S. firefighters while they are on duty between 1994 and 2004, according to a study from Harvard University. Heart disease caused 22 percent of the on-duty deaths among U.S. police officers during that same period.

$13,500 on Social Security

The average annual benefit to people collecting disability through Social Security was about $13,500 in 2008.