I am 53 and a public employee. I make about 80K (+/- 2 K)depending on extra projects.
I have a combination defined benefit (.01 x highest salary x years of employment, which will be 38 years if I retire at 65) and defined contribution pension. I currently put 8% of salary, pretax into that defined contribution account, which is sitting at $310k. I also put $600 a month into an optional pretax 457 (150 K) account. Both accounts are low fee, balanced, primarily index stocks and bonds. Dh, who is a teacher and a bit older than me, has a traditional defined benefit pension and an identical 457.
Our pension rules change in January 2015; whereas before we could alter our defined contribution amount to 5,8,10, or 15% every year, we now will be "stuck" with whatever our rate is in January, 2015, until we separate from employment. I am thinking maybe I want to drop my pension contributions to the lowest possible rate, and make up for it with an increased DCP contribution, in order to maintain some flexibility, but I am not sure of the pros and cons. Thoughts?