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re: How much would having a pension keep you at your current job.
Posted on 9/17/17 at 10:44 am to KillTheGophers
Posted on 9/17/17 at 10:44 am to KillTheGophers
Less than 18% of companies today still offer a pension...most have changed over to a 401k plan
0
Posted on 9/17/17 at 1:10 pm to KillTheGophers
quote:
once rates increase
Interest rates increasing is the best thing that could happen to pension solvency
Posted on 9/17/17 at 9:25 pm to tigereye58
Just be sure the pension is backed by the PBGC. There are limits but generally they are pretty high.
All things equal, pension that are accruing benefits are much better than 401k. If you have both, well then thank your lucky stars.
All things equal, pension that are accruing benefits are much better than 401k. If you have both, well then thank your lucky stars.
Posted on 9/17/17 at 10:36 pm to GenesChin
quote:
Interest rates increasing is the best thing that could happen to pension solvency
exactly - as soon as the businesses can get close to whole on the pensions, they are out.
Posted on 9/17/17 at 11:34 pm to KillTheGophers
quote:
exactly - as soon as the businesses can get close to whole on the pensions, they are out.
So? They either pay you the regulatory determined actuarial present value of benefits or they buy annuities to cover the pension liabilities in which nothing changes for pension participants.
quote:
All things equal, pension that are accruing benefits are much better than 401k. If you have both, well then thank your lucky stars.
Depends. Some companies are now doing cash balance pensions, which is basically buying a deferred annuity and not a traditional pension at all. Essentially the company puts X% of salary into an account that has interest credited to it. Your "payout" is the Account Value at retirement and not some monthly pension. Typically they offer an annuity conversion of the account value, which should be significantly cheaper than what you could buy due to stripped out commissions/sales expenses
This post was edited on 9/17/17 at 11:49 pm
Posted on 9/18/17 at 12:41 am to tigereye58
I have no desire for a pension. Job mobility is extremely important to me and the day of sticking with a single company for 20+ years is a rarity now.
I care more about RSUs / options than a pension.
I care more about RSUs / options than a pension.
Posted on 9/18/17 at 2:18 am to lynxcat
quote:
I have no desire for a pension
I feelgood about my career path with my company, so a pension would have been huge.
The old pension plan had people in my field retire at 51 on full pension (~25% Salary) then job hop (typically into consulting) and double dipped. Let's just say they did very very well for themselves
This post was edited on 9/18/17 at 2:19 am
Posted on 9/18/17 at 8:51 am to GenesChin
Double dipping is potentially a great setup as long as you didn't actively have to pass on external opportunities that would have increased the cash flow earlier in someone's career.
Government is one of the few areas I hear about pensions (and sometimes defined benefit pension rather than defined contribution) still exist.
Government is one of the few areas I hear about pensions (and sometimes defined benefit pension rather than defined contribution) still exist.
Posted on 9/18/17 at 9:51 pm to lynxcat
Those who've been at my company longer than 10 years or so have our company's pension. It's an absolute joke what they get paid for the rest of their lives. On top of their DB, they also get access to the company's DC plan (401k w/ 6% match). And they'll get social security. Do they have it made? Yes. Does it seem like borderline theft? Also yes.
We've since done away with it. The only thing more infuriating than the employee pension is the legacy executive pension (which we've also now done away with). Talk about some major entitlement syndrome.
Pensions in the corporate setting breed an absolute toxic corporate culture devoid of meritocracy and wholly dependent on "how long you been sittin in your chair" like a union shop or something. Good riddance.
We've since done away with it. The only thing more infuriating than the employee pension is the legacy executive pension (which we've also now done away with). Talk about some major entitlement syndrome.
Pensions in the corporate setting breed an absolute toxic corporate culture devoid of meritocracy and wholly dependent on "how long you been sittin in your chair" like a union shop or something. Good riddance.
This post was edited on 9/18/17 at 9:54 pm
Posted on 9/18/17 at 11:13 pm to RedStickBR
quote:
RedStickBR
Preach.
Hope you and the wife are well, RSBR!
Posted on 9/19/17 at 8:10 am to lynxcat
quote:
Double dipping is potentially a great setup as long as you didn't actively have to pass on external opportunities that would have increased the cash flow earlier in someone's career.
Besides this weird pension vs 401k debate, this is the OPs exact question. How much would that external opportunity need to be that he should give up his pension?
Not sure if OP is still following, but if can you provide any details on your pension plan?
Pensions alone do not breed an entitlement mentality in a company, nor does it reward seniority. I wouldn't argue against unions doing this. Pensions certainly reward a long term employee, but have nothing to do with respect or position. It's just simply another form of compensation. I'm speaking from the professional side (non-govt), as non-professional pension jobs tend to be Govt/Union.
I view my pension as simply another form of retirement compensation. It has no more bearing on my seniority or job mobility than a 401k match.
Posted on 9/19/17 at 8:48 am to LSUtigerME
Our pension takes 10 years in which to vest. If you leave any time before then, you're leaving money on the table, not to mention the lost opportunity cost of the potential years of lost match from a traditional retirement plan. Once I hit 7 years, I started to realize this, and I basically quit considering other jobs...Now that I'm vested, I've been considering other positions. It really boils down to knowing how your pension plan is structured so you can know just what you're walking away from in order to determine how much additional salary makes it worth it.
Posted on 9/19/17 at 9:02 am to AUjim
3 years to be vested in ours. They put in 5% in the first 15 years and 7% after that. We also have a 401K matching up to 5%(1% mandatory and the other 4% if the company is profitable).
Posted on 9/19/17 at 9:27 am to AUjim
quote:
Our pension takes 10 years in which to vest. If you leave any time before then, you're leaving money on the table, not to mention the lost opportunity cost of the potential years of lost match from a traditional retirement plan.
I don't disagree. I'm sorry yours takes 10 years. Mine is also only 3 years.
However, the only lost opportunity would be if he received no 401k match (he does). Otherwise, he's only missing out on the potential increase in compensation by exploring other job opportunities. But this could be said for anywhere, regardless of pension or not.
Just to be clear, I'm referring to OP's and many others situations where there's both a Pension and 401k. If someone is only receiving a pension, the conversation becomes much, much different.
Posted on 9/19/17 at 9:32 am to RedStickBR
quote:
Pensions in the corporate setting breed an absolute toxic corporate culture devoid of meritocracy
You need to add "Poorly designed" at the beginning of this.
I am a big believer in pensions as a component of retirement package. Even I hate on these over the top pension programs though
Posted on 9/19/17 at 10:48 am to Ray Finkle
quote:
3 years to be vested in ours. They put in 5% in the first 15 years and 7% after that. We also have a 401K matching up to 5%(1% mandatory and the other 4% if the company is profitable).
I think I used to work with you. This retirement plan sounds very familiar. I've since left the company and tried to roll my pension balance over, but no es bueno. Have to wait until I'm 59. It was kind of funny setting that google reminder.
Pensions are nice to have, but its just another part of the compensation package to consider.
Posted on 9/19/17 at 11:10 am to ljd4662
Anyone has experience with VA pension/ Fers? Is is better than the average private retirement program?
Posted on 9/19/17 at 11:42 am to barry
The downvotes were probably because your advice was to get a job that you love that also pays well. 
It's easy to say chase your passions when you don't have to worry about money.
It's easy to say chase your passions when you don't have to worry about money.
This post was edited on 9/19/17 at 11:43 am
Posted on 9/19/17 at 12:25 pm to LSUregit
quote:
Anyone has experience with VA pension/ Fers?
You talking military pensions? Or pensions that are someway tied to military service?
I can talk to my dad, he retired recently after some 34 years. He knows just about everything there is to know about pensions + medical pensionss from the guv'ment
Posted on 9/19/17 at 12:25 pm to lynxcat
Thanks brother. Same to you. Let's catch up soon - would love to hear how life is treating you.
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