Since I only taught for one year ($8K salary with minimum contributions to retirement), my North Dakota teacher's retirement paid out as a lump sum in 1991. I worked in IT (programmer, Business Analyst, etc.) for 16 years, with annual salary ranging from $40K to $100K+ depending on overtime, where I always contributed the maximum to my 401K. I've kept both in separate IRAs over the years, though they've been invested in the same market with the same funds, just out of curiosity: Public vs private retirement benefits. I wondered if there was a difference regarding what one "put in" (contributions and years of service) vs the benefit received. I have several years before official retirement, but I've noticed a great disparity - $11K+ in my account for the teaching year and about $85K for my IT years; Granted, in today's economy, my totals are down 30-40% from a few years ago, but these numbers still drive home the point:
For 1 year of teaching and about $200 in contributions, I now have $11K
For 16 years of IT and about $80K (avg of $5K ea year) in contributions, I now have $85K
So return on investment, in years: $11K/year vs $5,312.50/year
and in % increase: 5500% vs 6.25%
Interesting, huh?
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