Reply to Job with pension versus job without - how heavily should it weigh in your decision?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How long does it take for the pension to vest? DH works for the state of MD, and it takes 10 years. And it requires a mandatory 7% contribution. If you leave before year 10, instead of a pension you are paid out your contributions plus a set amount of interest that in no way attempts to keep up with market rate interest had the money been invested in a traditional retirement account. At your age in the MD system, I would deem the pension to be worth very little. Pensions for a full career in the system aren’t worth that much, so the 15 or 20 years you’d get will be an even less significant pension payout.[/quote]

+1 the MD pension was actually a deterrent to taking a state job for me. Who tf makes employees wait 10 years to vest into any retirement benefits while keeping 7% of your salary locked away?[/quote]

Um, a pension system that desperately wants people to NOT choose the pension. In fact, the state will GIVE you an additional 7.25% into a 403B as long as you do not elect the pension on starting. There is no additional matching, BUT you can participate in multiple plans so that you can sock away up to $45,000/yr for retirement if you choose.

[b]Anyway, when I worked for UMD, I knew I wouldn't stay in for 10 years, so I took the bribe. [/b]

[/quote]

+1. I'm actually so thankful that they had the alternate retirement system, since I knew I wouldn't stay there 10 years. Easy choice. I thought that the additional 7% was a pretty good deal. [/quote]

That's great that they offer that now. When I applied in 2013, the benefits information they provided expressly stated that it was required to enroll in the pension system, and that while the state might elect to provide contributions to 401k/457 plans, there was no guarantee. It was not the only reason I turned down the offer, but was a big part of it. My guess is they were trying to use new employees to fund current retirees, and it wasn't working out for them in terms of recruitment.[/quote]

If you specifically were applying to UMCP, I think you were just confused by the paperwork. I was hired in 2010.[/quote]

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