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Started By
Message
Pay Cut v. Government Pension
Posted on 5/24/15 at 9:22 am
Posted on 5/24/15 at 9:22 am
After a rough few years of bouncing around between dead end jobs and getting behind in student loans with a meaningless degree I've finally gotten my debt under control and have 2 pending offers for careers.
Option A: Government pension 2.5% of the average of your last 5 years x years of service and I could easily work another 25-30 years.
15 days vacation/15 days sick
10 holidays
Option B: A relatively new company with a 10% pay increase and a 401k that matches 50% up to 3% of my salary.
15 days PTO/Sick days at managers discretion
8 holidays
Aside from that the jobs are relatively the same although the government job is about 10 miles closer and I think I would enjoy the actual work more.
So is the pension + the extra time off worth the 10% pay cut?
Option A: Government pension 2.5% of the average of your last 5 years x years of service and I could easily work another 25-30 years.
15 days vacation/15 days sick
10 holidays
Option B: A relatively new company with a 10% pay increase and a 401k that matches 50% up to 3% of my salary.
15 days PTO/Sick days at managers discretion
8 holidays
Aside from that the jobs are relatively the same although the government job is about 10 miles closer and I think I would enjoy the actual work more.
So is the pension + the extra time off worth the 10% pay cut?
14
Posted on 5/24/15 at 9:32 am to DayBowBow
Take the gov't job and moonlight on the side
Posted on 5/24/15 at 11:45 am to DayBowBow
That government job from a financial standpoint easily is superior. Stability, pension and time off easily kill the new job and are worth well over 10% of your paycheck more in salary
Just keep in mind working for the gov steals your soul.
Just keep in mind working for the gov steals your soul.
Posted on 5/24/15 at 12:35 pm to DayBowBow
quote:
Option A: Government pension
Posted on 5/24/15 at 4:12 pm to DayBowBow
I'd take option B aint no doubt about it, Pensions will be non-existent in the next 10 years. All those that have current pensions will be receiving a letter in the next 5 years for their pension to be bought out. The higher pay will equal a higher social security later in life as well.
Posted on 5/24/15 at 4:18 pm to DayBowBow
Take the government job. The pension is worth so much more than that 10%.
Posted on 5/24/15 at 4:27 pm to DayBowBow
I'm not staying at a job long enough for a pension so I'm taking the 10%
Other job is going to look better on your resume too
Other job is going to look better on your resume too
Posted on 5/25/15 at 8:13 am to DayBowBow
Option A is your best option. Personally though as a taxpayer, all government workers hiring in today, should not have a defined pension, they should be moved to a 401K just like non governement workers.
It used to be that private sector paid better, but govt got better overall long term benefits. Now that's not true at all.
It used to be that private sector paid better, but govt got better overall long term benefits. Now that's not true at all.
Posted on 5/25/15 at 3:12 pm to DayBowBow
Not sure which state the OP is referring to, but I would certainly be leary of the state job still being around 20yrs from now, especially if its LA.
Posted on 5/26/15 at 2:06 pm to lsu xman
I took a similar cut 5 years ago for a govt job and feel like it was a good choice. I have 5 years in, can retire at 53 (with 28 years) and will make roughly 60% of my salary. At 53....that's not too bad.
Posted on 5/26/15 at 2:48 pm to DayBowBow
State government or feds?
How much value do you put into the pension? Will it actually be there?
Do you value time off more or a bit of money more?
What about other benefits, health insurance, etc?
Will you like being a government employee working with a bunch of dead-end lazy government employees?
How much value do you put into the pension? Will it actually be there?
Do you value time off more or a bit of money more?
What about other benefits, health insurance, etc?
Will you like being a government employee working with a bunch of dead-end lazy government employees?
Posted on 5/26/15 at 6:34 pm to LSUFanHouston
It's Urban/County governement, all county employees in Kentucky are part of the state retirement.
I've actually been in a temp position at option B for the last couple months and its an awesome place to work but I really don't think I would enjoy the position they're offering. I think the "coolness" would wear off after a while.
I've actually been in a temp position at option B for the last couple months and its an awesome place to work but I really don't think I would enjoy the position they're offering. I think the "coolness" would wear off after a while.
Posted on 5/27/15 at 11:26 pm to kywildcatfanone
quote:
It used to be that private sector paid better, but govt got better overall long term benefits. Now that's not true at all.
Depends on what what job it exactly is for the government. I would say in my profession I definitely do not make close to what the private sector makes. So the pension is the only thing that keeps me around.
Posted on 5/28/15 at 5:17 am to Shepherd88
I love the way shepherd assumes pensions are goin to hire the dust while also believing social security will be around in 25 years in its current form.
Posted on 5/28/15 at 7:11 am to TheHiddenFlask
You can bet the guberment will raise SS tax and increase the full retirement age to adjust itself over time.
Pensions on the other hand... LINK /
Pensions on the other hand... LINK /
Posted on 5/28/15 at 7:15 am to Shepherd88
Governments at all levels need to abolish pension for new hires immediately. It's not sustainable in a continually shrinking taxpayer base. Put all new hires on a 401K type plan with a fair match by the govt, similar to private sector options, then figure out a way to move existing employees with less than 10 years of service to a similar plan. Determine value of pension somehow and make that switch.
Posted on 5/28/15 at 7:37 am to kywildcatfanone
quote:
It used to be that private sector paid better, but govt got better overall long term benefits. Now that's not true at all.
Do what now? Government pays way lower than private sector. At least in my field and related ones that I've seen.
Posted on 5/28/15 at 7:58 am to DayBowBow
Which ever one will be more enjoyable....
You will work 8 hrs+ a day, for 40 hrs+ week for 52 weeks year, for 25-30 years...
Unless you have a lot of personal freedom a government job can be very mundane, and bureaucratic burdensome.
You will work 8 hrs+ a day, for 40 hrs+ week for 52 weeks year, for 25-30 years...
Unless you have a lot of personal freedom a government job can be very mundane, and bureaucratic burdensome.
Posted on 5/28/15 at 10:05 am to LNCHBOX
quote:
Do what now? Government pays way lower than private sector. At least in my field and related ones that I've seen.
This 100%. I make atleast half of what I could make in the private sector. Only thing keeping me from moving, pension.
Posted on 5/28/15 at 10:11 am to tigeraddict
Switched from government job to private about 2 years ago. No regrets yet. I do miss all the holidays but enjoy my current job much better and pay is better.
Definitely have to put a lot more into retirement without the pension to count on but I was planning on doing that even if I stayed with the state. It seems like both of your jobs are very similar so I would really just pick the job you think you would enjoy more.
Definitely have to put a lot more into retirement without the pension to count on but I was planning on doing that even if I stayed with the state. It seems like both of your jobs are very similar so I would really just pick the job you think you would enjoy more.
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