FREE e-Newsletter
Important News - Hot Topics
Get them Now!
Randy Sutton

Randy Sutton

Randy Sutton is a 33-year law enforcement veteran, a trainer, and the national spokesman for The American Council on Public Safety. He served 10 years with the Princeton (N.J.) Police Department and 23 years with the Las Vegas Metropolitan Police Department, retiring at the rank of lieutenant. He is an author who has published multiple books on law enforcement.
August 2017 (1)
May 2017 (1)
April 2017 (1)
January 2017 (1)
November 2016 (1)
September 2016 (1)
June 2016 (2)
May 2016 (3)
April 2016 (2)
March 2016 (1)
February 2016 (3)
January 2016 (1)
December 2015 (1)
November 2015 (5)
October 2015 (1)
September 2015 (3)
August 2015 (3)
July 2015 (6)
June 2015 (3)
May 2015 (2)
April 2015 (3)
March 2015 (5)
February 2015 (1)
January 2015 (1)
December 2014 (9)
October 2014 (2)
September 2014 (2)
August 2014 (2)
July 2014 (1)
June 2014 (2)
May 2014 (2)
April 2014 (4)
March 2014 (2)
February 2014 (3)
January 2014 (3)
December 2013 (2)
November 2013 (2)
October 2013 (3)
September 2013 (5)
August 2013 (3)
July 2013 (3)
June 2013 (3)
May 2013 (4)
April 2013 (3)
March 2013 (5)
February 2013 (3)
January 2013 (3)
December 2012 (5)
November 2012 (2)
October 2012 (4)
September 2012 (2)
August 2012 (5)
July 2012 (4)
June 2012 (3)
May 2012 (5)
April 2012 (6)
March 2012 (5)
February 2012 (3)
January 2012 (5)
December 2011 (5)
November 2011 (3)
October 2011 (3)
September 2011 (3)
August 2011 (2)
July 2011 (2)
June 2011 (3)
May 2011 (4)
April 2011 (3)
March 2011 (5)
February 2011 (3)
January 2011 (3)
December 2010 (2)
November 2010 (4)
October 2010 (4)
September 2010 (5)
August 2010 (4)
July 2010 (4)
June 2010 (4)
May 2010 (4)
April 2010 (3)
March 2010 (3)
February 2010 (1)
January 2010 (3)
December 2009 (4)
November 2009 (4)
October 2009 (2)
September 2009 (3)
August 2009 (4)
July 2009 (5)
June 2009 (3)
May 2009 (5)
April 2009 (4)
March 2009 (4)
February 2009 (3)
January 2009 (2)
December 2008 (4)
November 2008 (3)
October 2008 (3)
September 2008 (3)
August 2008 (2)
July 2008 (3)
June 2008 (4)
May 2008 (5)
April 2008 (5)
March 2008 (4)
February 2008 (5)
January 2008 (3)
December 2007 (2)
November 2007 (5)
October 2007 (4)
September 2007 (4)
August 2007 (5)
July 2007 (4)
June 2007 (4)
May 2007 (5)
Patrol

The Reality of Police Retirement: Live Lean or Keep Working

Don't count on your pension to keep you afloat and don't count on the public to have any sympathy for you.

September 22, 2014  |  by

It’s no secret that police pensions are under attack from all sides. The media, politicians, and select uninformed members of the public think officers are retiring to a life of luxury. As a 30-year officer getting ready to retire, I can tell you that such talk makes me sick. I am, quite frankly, scared I won't be able to make ends meet after I leave the job. Healthcare is the number one expense that will be sapping my limited cash reserves. I’m not unlike most every officer I’ve known in my career. All of us either work a second career or learn to live lean.

A quick Google news search for "police retirement" will get you recent news articles that have headlines such as, "pension spiking," "retirement boosts unconstitutional," and "retirements to shrink," and that's just in the past week or so. In these articles so-called "expert sources" say that officers are taking the public to the cleaners, gouging the system, taking advantage of the public dollar, and so on. Nothing could be farther from the truth.

To those experts I say, "Come pin that badge on and try it out for a few years." Come try to be part of the thin blue line and try to get rich. Then, tell me how we're all working to take advantage of the retirement system. News flash: We’re working to keep your ass safe, keep your precious stuff from being stolen, dealing with society's mentally ill, and breaking up your family fights. Guess what? We're not doing it for the money. We're doing it because we want to serve and protect.

I’ve been through many pay and benefit battles in my 30 years. I started my career with a promise that I’d have a reasonable retirement and a decent healthcare benefit when I was done serving. Now that it’s time to retire, that isn't the case. My employer, like many others, has cut benefits to make ends meet. Seeing benefits slashed over the past years, I'm getting sick of hearing how I’m gouging the system, getting rich, etc. The reality is that I’ll be paying about half my monthly pension benefit for healthcare and I’ll have to keep working a modest job to have a few dollars of discretionary income.

Now there may be a very few officers who have been able to leverage a good pension by working their asses off for 20 years, taking all the overtime and extra duty they can get, but that’s their prerogative. I will tell you that I’ve known a few officers like that and they are not happy people. They have no life outside of work and spend more time in uniform than out of uniform.

But should they be punished for taking on work that needed to be done? In my view, they sacrificed some of their happiness to keep their community safe. They chose to pack more hours into their 20- or 30-year careers than other officers. Good for them. Now they can go fishing or camping, or whatever their chosen hobby is. So don't hate them because they worked their asses off. Encourage the overachievers to go forth and enjoy retirement.

Now that the rants are over, I want to talk about retirement planning. Not from a financial advisor's perspective, but from an officer's perspective. How many officers do their retirement planning through an open patrol car window, chatting with a neighboring beat officer, parked facing opposite directions? That's what I did. I got all kinds of advice like buy property in Mexico, flip houses, or work security for an airline so you can travel. Ha! You need money for that. Bad idea.

The best advice is not found in the briefing room or in the patrol car. It's found through competent advisors who know about police retirements. Yes, you have to find someone who knows your state's public safety retirement system and has some sense about planning for retirement from a police career. It's not enough to consult your brother-in-law because he sells life insurance. You need more expertise than that; you need someone who knows your particular retirement system, inside and out.

I am fortunate here in Arizona to have an advisor who knows police work and knows about police pensions. Mike Galloway, of Galloway Asset Management, is a retired police lieutenant and financial advisor. He has also served on the state's public safety retirement board, so he's very familiar with our public safety retirement system.

Galloway’s first question for his new clients is, "Are you looking forward to life after police work?" The answer better be yes, or you should be looking for a different type of counselor. You survived your police career and now it’s time to enjoy your retirement. But you can’t enjoy your retirement unless you have financial peace of mind.

Galloway says that there are several common mistakes police officers make that cost them money. The number one mistake is waiting until the last second to develop a retirement plan. "If you're the type of person who puts more effort into one shift of police work than into a plan for your retirement, then you’re in trouble." Galloway says.

The main reason you want someone with a good understanding of your retirement system is that many decisions you make pre-retirement cannot be reversed after finding out you made a mistake or checked the wrong box.

I found out after a few short minutes with Galloway that my retirement system is complex with obscure rules that have big consequences. I would have made some huge mistakes if I had done it alone. Technical issues in police pension systems are as vast as the IRS tax code. You have to know the issues that affect your pension, like divorce and marriage, survivor benefits, tax penalties, and cost of living adjustments, just to name a few.

Galloway says, "If you are not fully aware of your pension's policies, then you're leaving money on the table, or worse, giving too much of it to the government."

With all the unwarranted attacks on your police pension, it is a wonder that anyone joins the police force at all. Everyone knows you can spend 30 years in the private sector and make a heck of a lot more money moving up the corporate ladder. But that’s not our calling.

Those that point out how rich you're getting from your pension forget the corpulent salaries and bonuses that private sector employees get every year. Yes, they've had lean times, but overall, they do better.

The critics of police pensions don't see how you dutifully say "thank you" for every miniscule raise the politicians begrudgingly approve. They assume that you’ll always be there to protect their community because they know that we always give priority to public service over money.

So whether you're starting your career, planning for the twilight of your career, or planning your life after policing, make sure you do whatever you can now to put your retirement plans in order. You’ll have a better retirement and won’t be in a position where you have to either keep working or live lean.


Comments (4)

Displaying 1 - 4 of 4

KevCopAz @ 10/2/2014 2:41 PM

This appeared to be a advertisement for Galloway! Im in AZ also, my pension was not cut, its the same as I thought that it would be. I do agree that you must plan ahead or suffer. I did everything that I could to invest, do deferred comp and then our D.R.O.P. program. The retirement may change the medical benefits in time but for now I have what I was promised. Many of those who do the complaining here in AZ did not invest, did not work O.T. enjoyed day shift jobs or jobs that paid less in OT and differential and now they are crying that we who did the right thing and worked hard are getting mote hone we deserve, Those folks made their retirement bed, let them sleep in it.

TheRookie @ 10/2/2014 4:40 PM

KevCopAz, You're there so you had better rush on over to Galloway, LOL.

After retiring I realized I couldn't stay & live in Denver and/or the Metro-Area the way I wanted. So, I packed up & moved to a nice clean small town in the heartland of America. It's half the cost of major city living, is patriotic, small town USA morals, parades, & love the High School Sports.
I got the other Obamacare shoe dropped on me two weeks ago. My retirement healthcare/vision insurance has been cancelled effective December 31, 2014. And yes they can do that now with how the ACA laws are written. So, Be prepared for Municipal, County, & State Gov't Agencies to be doing that soon.

Rich Tateo @ 9/4/2016 6:10 AM

Did you not have the opportunity to set up an IRA? Did you have not had the opportunity to save money on your own? Why is it taxpayers are to be encumbered with financing your retirement when you, and every other working adult is capable of saving their own funds for retirement. I am a blue-collar worker and make similar to that of a tenure police officer. I will not receive a pension, few do these days.

I support and intentions for police officers and firefighters. Based on my knowledge, these fields are paid pretty well these days. Certainly enough for you to save your own money like everyone else has to.

Free Pension Review @ 12/27/2016 1:53 AM

Great article, Really useful information. I will bookmark this one.
http://freepensionreview.com/

Join the Discussion





POLICE Magazine does not tolerate comments that include profanity, personal attacks or antisocial behavior (such as "spamming" or "trolling"). This and other inappropriate content or material will be removed. We reserve the right to block any user who violates this, including removing all content posted by that user.

Other Recent Blog Posts

Officer Well-Being Should Come First After an OIS
The suspect’s family, friends, attorney and the media were not there and are not your...

Get Your FREE Trial Issue and Win a Gift! Subscribe Today!
Yes! Please rush me my FREE TRIAL ISSUE of POLICE magazine and FREE Officer Survival Guide with tips and tactics to help me safely get out of 10 different situations.

Just fill in the form to the right and click the button to receive your FREE Trial Issue.

If POLICE does not satisfy you, just write "cancel" on the invoice and send it back. You'll pay nothing, and the FREE issue is yours to keep. If you enjoy POLICE, pay only $25 for a full one-year subscription (12 issues in all). Enjoy a savings of nearly 60% off the cover price!

Offer valid in US only. Outside U.S., click here.
It's easy! Just fill in the form below and click the red button to receive your FREE Trial Issue.
First Name:
Last Name:
Rank:
Agency:
Address:
City:
State:
  
Zip Code:
 
Country:
We respect your privacy. Please let us know if the address provided is your home, as your RANK / AGENCY will not be included on the mailing label.
E-mail Address:

Police Magazine