Can you opt out of retirement plans?

[HockeyMom]

If your employers has both a pension and 403B, can you waive BOTH? I work for a Florida school district. It looks as if they are going to require us to contribute 3% of our salaries to the pension plan. I make $13/hour and will turn 63 in November. I have only lived and worked in this state for 3 years. I need that money right now to live on. What retirement? I also want to move out of state, hopefully within the next year, if I can manage that.

I used to work for a non-profit in another state which had that 403B plan. I do know that I had to actually sign a waiver to not participate in that. If I did nothing, I would have been automatically enrolled. At the school district, it was either/or and I signed for the pension because at time I would not have to contribute to it.

Can I opt out of BOTH plans? If not, is there a minimum contribution to a 403B? If I HAVE to contribute to some kind of retirement plan (dumb at my age), I would rather go with the plan that requires me to contribute LESS of my salary.

[eleny]

1. Your question is best asked of your retirement plan

Here in Colorado we had to participate and contribute a percentage of salary towards our pension plan, PERA. But back in the late 1990s employees were given the option to withdraw all the funds in our plan at retirement - our contribution and also part of the state's contribution.

So, it all depends on what your pension plan offers as options. The laws that govern pension plans aren't national.

Good luck with getting the information!

[MineralMan]

2. Before opting out, consider your future prospects.

Do you think you'll be doing much better than that $11/hr. job within a very few years? If so, then it might make sense to take that 3% now for living. If not, then contribute to the plan.

It's not a simple question at all.