Retirement...or Not

When I left Wakefield High School on January 20, 2006, I had a feeling then that I would likely never return to teaching in a high school setting.  However...because I'd vested with the State of North Carolina in the Teachers and State Employees Retirement System, I chose to leave my contributions in the system so that they could A) grow, and B) be there in case I return to the classroom, or some other full time form of government employment. 

Well kids...it's the dawn of a new day.  In my family, there are three of us who were employees of the State of North Carolina at some point...my dad (as a district court judge), my brother (as local law enforcement) and me (as a teacher).  We were all part of the same system, pretty much.  My dad and I had long conversations about not withdrawing funds once you leave the state.  But...those conversations were had in a very, very different time.

When I started teaching in 1999, the State provided employees and retirees who'd vested with 'free' health insurance through the State Health Plan.  At that time, the basic deductible was $250; and there was an 80/20 copay, which was at the time $500.  So...to get to 100% coverage, you had to spend $750 out of pocket.  Now, mind you, 13 years ago that was a chunk of money - especially when I was only making $27,500 a year.  Also, in that mix, was the fact that until 2000, there wasn't a prescription drug plan on the 80/20 PPO.  Then, things began to change.

When I left teaching in 2006, the deductible was $500, and the 80/20 copay was $2000.  In doing a little research, I discovered that now, the deductible is $700, and the 80/20 copay is $3200!!!  I won't file retirement with the State of North Carolina for another 25-30 years...so at this rate, the deductible then would be $1,500, and the 80/20 copay would be over $6,000!  In looking at my retirement proejctions...I'd only actually bring home $250 a month from my little bit of State retirement.  Couple that with the worsening health insurance from the State...and I made a decision.

I put the final nail in the coffin of my State service today at about 3:30pm.  I sent in my paperwork to withdraw my retirement contributions, as well as my old State 401(k).  Why?  Re-read what I wrote above.  It weight heavily on my heart.  I purposely left it untouched for six years.  But...seeing how things are going...I know it's not going to get better, and that money will allow Ed and I to finish the house, pay a bill or two, and...breathe.  So...sayonara State retirement.  You've served me well.