The pension’s worth depends on how long you and your spouse live. The new 4.4% contribution would not be worthwhile to me, but it’s a great deal for someone who came in prior to 2012.

Anonymous wrote:My sibling is jealous of our health insurance for life post retirement.

I’m only jealous of the part from retirement to 65. After 65 I can purchase quality Medicare supplements.

Salary and savings wise we’ve been much better off in the private sector. It’s just spectacularly unfair that we can’t retire early (on our own dime) and purchase quality healthcare at a reasonable price that employed people would pay.

im 45. been with feds for 20 years. just made SES this year. I got 17 more years (will retire at 62). then then salaries will approach or cross $300k. that means I'll have a six figure pension!!!

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

Nope. They get the 1+ pension and also 1.2m+ thrift (that included good matching). Also get the healthcare for life and can retire well before 65.

Anonymous wrote:I work in a non-profit, so arguably, really serving--not faux "public service" that government employees claim. So I probably make less and do not get a pension. So please spare me the "years of public service." We're all working hard, so there's no argument there. You are not changing the world, and you didn't go into government work to make the world a better place, you did it for security, the fact that it's nearly impossible to get fired, and for the pension. Public service. Please.

It is your choice to work for non-profit organization. STOP complaining.

The job security and work/life balance in the fed world offsets the perceived or even real difference in income in the private sector. I've been laid off twice over the last 22 years due to my companies being sold and was unemployed for almost 18 months in total and had to relocate each time. That lost income and the cost of relocating was huge.

Few in the private sector have pensions though most have 401ks. Pensions should not be richer for feds and should be based on the traditional formulas for years of service and salary.

Anonymous wrote:If you have a federal government pension, do you get nasty talk from neighbors or family about it? For example, do they say that their tax dollars are supporting you. Or, the pension is too rich?

If so, do you try to explain your years of service, lower-than-private pay, and monetary contributions toward your pension? Do these arguments make a difference?

This ... just isn't a topic of conversation.

My sibling is jealous of our health insurance for life post retirement.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

1/3 of their pension is taken out of their check? I paid in somewhere around 1%, and I know it has increased since then, but 1/3?

You also left out healthcare benefits, which is worth a nice chunk of change. And don't forget that a lot of feds are in low level positions and those workers wouldn't do any better in the private sector.

I pay 0.8% of salary. Trust me, no one is giving me a 1.5M future value guaranteed pension in 22 years for the measly $2200 I contribute annually right now. And it was only something like $650 contribution when I started in govt 13 years ago! Over 13 years, I think I've maybe contributed $25K total to my pension.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

1/3 of their pension is taken out of their check? I paid in somewhere around 1%, and I know it has increased since then, but 1/3?

You also left out healthcare benefits, which is worth a nice chunk of change. And don't forget that a lot of feds are in low level positions and those workers wouldn't do any better in the private sector.

Anonymous wrote:

Anonymous wrote:In addition to the pension, federal employees also have generous sick leave and annual leave.

Good for them. Generous sick leave is something all employees should have. The US is the only developed country that doesn’t offer any guaranteed sick leave.

Note also that feds don't get paid STD and LTD which is standard in most corporate jobs so the sick leave is somewhat of a substitute for that. You can buy those coverages but they are expensive.

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

OP— your tax dollars support you to. So tell them that must mean you are self-employed.

If you are in the private sector and wisely plan your retirement, you will be fine. I worked for the fed for 15 years before moving to the private sector. I wished I had moved sooner. My salary is significantly higher and it allows me to save a lot for retirement and was able to buy couple of investment properties.

Pros of govt work:
‘Investing’ 4% of your annual salary guarantees you 20-30% of you high 3 salary annually when you retire, depending how long you work.

Really generous annual leave, sick leave, paid holidays

3 months paid parental leave (for moms and dads)

Not having to track billable hours (though some folks in some agencies do since they work on specifically funded projects)