Your numbers are different than mine. We get 4% deducted every pay period and if I retire with 30 years in at 62 I will collect 48% of my salary.Really don't see that working out in that fashion...
Average life expectancy is 78 years old, and trending upwards.
I believe the government takes out a little under 0.8% per pay period it seems. For example, last year I had $390 taken out of my pay check for Retirement.
Let's say my pay the past 5 years has been the same, and let's say it never goes up. I can retire at 57, meaning my time in the government would be 32 years total. I would have put in $12,480 dollars over those 32 years.
In year one of retirement I would get the average of my high-3 (which, in this hypothetical, never got higher than what it is now) times my year in service times 1%. This would come out to roughly $15,680 for a year.
So after my first year in retirement, I would come out +$3,200. Every year after I'm now in the positive. If I live to the average life expectency I would end up getting a total of $329,280 over those 21 years. This would be be $316,800 more than I put in or put another way, more than 2600% of what I actually paid.
And that's assuming my salary never increases.
Lets say for the next 5 years my salary stays the same. Meaning for my first 10 years I'm paying in $390 a year. So by the end of year 10, I'd paid $3,900.
The next 10 years my salary goes up to $75,000. That would mean I paid $6,000 over that time span, with a total of $9,900 thus far.
The next 10 years my salary goes up to $100,000. That would mean I paid $8,000 over that time span, with a total of $17,900.
Finally, my last 2 years I go up to $125,000. That would be $2,000 over that two year period, bringing me to a final total of $19,900.
Now, I need to look at my high three average. So that would could out to be $100,000. So my yearly take home for pension this time would be $32,000. By year one, I'm already ahead by more than twelve thousand dollars. By the 21 year mark, I'm up more than $650K.
No, almost any way you do the math, the average government worker will get more back in their first year of pension then they paid in the entire span of time.