Author Topic: Maternity Leave Optimization Equation  (Read 2502 times)

Student loan stomper

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Maternity Leave Optimization Equation
« on: December 31, 2015, 11:53:17 AM »
Hello!

My husband and I are trying to work out what to do after our baby comes this summer.  With daycare rates what they are, and our families too far away to help with child care, we would like my husband to stay home with the baby after my maternity leave is up.  Then we plan on moving closer to family next summer.  (We are open to this happening sooner, but I have to turn in my maternity leave plan in the next couple weeks.) 

I will receive about $2500 in disability over the summer along with my regular paycheck and we could potentially use this to help make the transition smoother in the fall/winter or invest it (or help replenish the HSA) as I will still receive my regular checks from this school year through August.   

I am a teacher and my pay for next year will be figured using this formula:

Contract days (187) - {Leave taken (60 days max) - days in sick leave bank (30)} * daily rate (is $195 is after deductions)

First day of school for teachers is August 15th.

My husband brings home about $13 an hour and his health insurance is covered through his work.  After he quits our HI premiums will go up $175 a month.  We are not sure what kind of leave or adjusted schedule he might be allowed, right now we are working on worst case scenario.

We are trying to decide how much time I can take off of work while he is still working before he quits to stay home (he will need to find some kind of part time evening work but that is for another post)

What I am trying to figure out is:
  • How much maternity leave can I take before it is cheaper for him to quit.

  • How much will our monthly income be for Sept 2016, Oct, Nov, and then Dec-September 2017.

  • Is there anything else I am neglecting to consider

I am pretty sure there is a not too complicated equation to figure this out, but alas I cannot seem to remember how to do it. 

Thanks!
« Last Edit: December 31, 2015, 01:14:32 PM by Student loan stomper »

MDM

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Re: Maternity Leave Optimization Equation
« Reply #1 on: December 31, 2015, 01:08:04 PM »
I am a teacher and my pay for next year will be figured using this formula:

Contract days (187) - {Leave taken (60 days max) + days in sick leave bank (30)} * daily rate ($195 is is after deductions)

My husband brings home about $13 an hour and his health insurance is covered through his work.  After he quits our HI premiums will go up $175 a month.

How much maternity leave can I take before it is cheaper for him to quit.

How much will our monthly income be for Sept 2016, Oct, Nov, and then Dec-September 2017.
If I read this correctly,
- you may take up to 90 days leave and still remain employed
- any more than 90 days leave and you have to quit
- each day of leave costs you $195 in missed income
- husband's work pays $104/day
- increased HI cost will be ~$175/30 = $6/day

If the above is correct, you lose ($195 - $104 - $6) = $85/day not teaching.

Monthly income calculation will depend on who works when.

Student loan stomper

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Re: Maternity Leave Optimization Equation
« Reply #2 on: December 31, 2015, 01:28:41 PM »
Sorry, error in original post, is fixed.

I can take up to 60 days off.  I will have 30 days saved in sick leave (as long as I don't take more than 10 days between now and June) the daily rate changes depending on how many days I take off after the 30 days of paid leave is up as it is my annual salary/ number of days worked. 

Either way,  perhaps I was just trying to make this way more complicated then it needed to be... that is my usually problem...

I think even with my mistake It still makes since to compare daily rates between the two of us...   Thanks for simplifying for us!

MrsPete

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Re: Maternity Leave Optimization Equation
« Reply #3 on: January 01, 2016, 10:54:09 AM »
- you may take up to 90 days leave and still remain employed
- any more than 90 days leave and you have to quit
I don't think so:  I think the Family Leave Act says you can take off more than that ... BUT it's unpaid leave.  Essentially it's a matter of having your job held for you.  Your husband can also take time off through the Family Leave Act (instead of quitting). 

You say the baby's coming in the summer, and you're a teacher.  Do you work a traditional school year?  Are you due early or late summer?  That makes a difference. 

About day care:  I know of several day cares that cater to teachers.  They're only open on school days, so you don't have to pay for summer months and holidays -- and the workers in these places work fewer days. 

Pay attention to how much of this school year (if you might be leaving early) and next school year (if you're coming in late) ... and your years toward retirement.  In my state, if you work less than 50% of a school year, you do not accumulate a year of service towards your pension.  This might affect your return date.  Of course, this is state-specific. 

You say you're planning to move.  Will you leave your current school system?  If so, study up on how many years you need to be vested in your pension plan and make your move strategically.

Student loan stomper

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Re: Maternity Leave Optimization Equation
« Reply #4 on: January 01, 2016, 08:34:58 PM »

I don't think so:  I think the Family Leave Act says you can take off more than that ... BUT it's unpaid leave.  Essentially it's a matter of having your job held for you.  Your husband can also take time off through the Family Leave Act (instead of quitting). 

You say the baby's coming in the summer, and you're a teacher.  Do you work a traditional school year?  Are you due early or late summer?  That makes a difference. 

About day care:  I know of several day cares that cater to teachers.  They're only open on school days, so you don't have to pay for summer months and holidays -- and the workers in these places work fewer days. 

Pay attention to how much of this school year (if you might be leaving early) and next school year (if you're coming in late) ... and your years toward retirement.  In my state, if you work less than 50% of a school year, you do not accumulate a year of service towards your pension.  This might affect your return date.  Of course, this is state-specific. 

You say you're planning to move.  Will you leave your current school system?  If so, study up on how many years you need to be vested in your pension plan and make your move strategically.

According to the FMLA I can take up to 12 weeks leave = 60 work days.  I have 30 sick days saved up that I must use during this time and I will be paid regular salary for those days.  I am 90% sure that in my state you have to have worked 90 days in a school year to have it counted towards a year of retirement.  I believe that my sick days count toward that, and even if not 60 days off leave more than 90 in the school year.  but I will check this out and make sure before finalizing our plan!    I do hope DH can take some time off through work, although I am not sure how much they will allow for him.  He will hopefully find out next week when he talks with HR.

I am due right in the middle of the summer, end of June.  Which is good since as long as nothing too crazy happens I won't have to take any time off this school year (except for appointments or sickness).

I am vested in the pension plan, and yes we will be moving school districts if we move, but I may take a year off or so at that point to allow us to have other children if that is what we decide to do (being a teacher you basically get one chance at paid maternity leave unless you wait 6 years between having kids to save up sick days). 

I may also look into daycares for teachers as you suggest.  I don't know any teachers here who have their kids attend such a daycare though, they all have to pay for summers weather or not their kids attend.  And also have to take off for holidays that the daycare is closed and school is open.  Or they have their parent's watch the kids, not an option for us...

Thanks for your suggestions!

muckety_muck

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Re: Maternity Leave Optimization Equation
« Reply #5 on: January 02, 2016, 06:20:49 AM »
Not too sure about the maternity leave bit, as i'm not a teacher... but wanted to chime in on the daycare part. We used an in-home daycare for the first few years, and the teacher mommies kept their kids home w/ them during the summer... the daycare provider just filled those slots by word-of-mouth from other working moms/dads who had school-age kids (ages 5-10ish) that didn't have anywhere else to go during the summer. I think this was common at the centers as well. Daycare is OUTRAGEOUSLY expensive, so I think as long as they know they can fill the slot with a paying customer, it's ok. Ask around. Might be more common at the in-home daycares. I think the teacher mommies received discounts as well, because the dads dropped the kids off around 8am and mom picked them up around 3pm, so shorter days.

Good luck!

Miss Prim

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Re: Maternity Leave Optimization Equation
« Reply #6 on: January 02, 2016, 06:56:24 AM »
Are you sure that your parents will babysit for you?  Have they offered to do this?  I am a grandma and I babysat for my grandson from the time he was born until he went to school, but I could only do one day a week as I was working.  Now I am retired and traveling a lot and my daughter has a newborn.  I told her I will still only sit one day a week, and only when I am in town.  Grandparents need a life too!  My husband and I worked different shifts and only used daycare twice a week for a half day just so I could get the housework done and have a little time to myself. 

I am not sure I would move based on thinking that your parents are going to babysit full time.  Also, if they say now that they will babysit full time, they may change their minds after reality sets in.  There is a reason why we don't have kid when we are old, because it is a lot of work and we don't have the energy we had when we were young! 

Just a different take on the situation.

                                                                   Miss Prim

charis

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Re: Maternity Leave Optimization Equation
« Reply #7 on: January 02, 2016, 07:15:44 AM »
Another take, my mother cried each time we started our two kids in part-time daycare because she wanted to watch them full time.  I know she would love it if we had another kid for her to babysit (we are not).

Student loan stomper

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Re: Maternity Leave Optimization Equation
« Reply #8 on: January 02, 2016, 03:23:58 PM »
Are you sure that your parents will babysit for you?  Have they offered to do this?  I am a grandma and I babysat for my grandson from the time he was born until he went to school, but I could only do one day a week as I was working.  Now I am retired and traveling a lot and my daughter has a newborn.  I told her I will still only sit one day a week, and only when I am in town.  Grandparents need a life too!  My husband and I worked different shifts and only used daycare twice a week for a half day just so I could get the housework done and have a little time to myself. 

I am not sure I would move based on thinking that your parents are going to babysit full time.  Also, if they say now that they will babysit full time, they may change their minds after reality sets in.  There is a reason why we don't have kid when we are old, because it is a lot of work and we don't have the energy we had when we were young! 

Just a different take on the situation.

                                                                   Miss Prim


I don't think I ever said our parents would watch our kid... Only that many of the other teachers I work with have their parents watch their kids.  Both of our parents live too far away(3 hours or so). 

My mother did offer to figure out a way to come down and watch baby.  However, her health and financial difficulties make that impossible (at least to me, the overly practical person).  Also, we live in a one bedroom apartment and have no where for her to stay even if other issues were not involved. 

We do plan to move closer to DH's family in the next year or so, but that has more to do with not liking the city we live in and wanting our kids to have a relationship with them.  Also, once they start school it would be nice to have someone close enough who could pick them up on short notice if they got sick or something which is not currently possible with our current jobs and living location, both of which would hopefully change when we move.

Also, Jezebel, I think my mom is like yours and would love to be a nanny granny, but alas she is not in a place physically, mentally, or financially to do that.  Maybe you could get a puppy for your mom to watch :). One of my piano teachers puppy sat for her grand kids and loved it almost as much as watching the kids.  (Note this is said with a bit of sarcasm, though the story is true)