Anonymous wrote:

Anonymous wrote:MD State employee here. I would do the 401k. If it's like MD's there is no vesting (100% at 5 years, 0% anytime before 4 years 364 days). I think that is a huge gamble which is why I went with their optional retirement plan. I also like that I have control over the investment (within the options available) and can leave at any time and take it with me. Also, at a prior job that had a pension, I realized at year 3 I HATED it but sucked it up and was beyond miserable for the next two years. I wasn't willing to take that risk.

Couldn't OP just do 401K for a year or two until they decide they like/don't like the job and then switch or is it a one time irrevocable election?

Can't do that - once you choose there is no changing.

^^^Thank you. At some point I want to learn how to make those calculations!

^^^That's really helpful, can you do the same for me with FERS? I realize we don't have a choice to participate but I'm curious just how good FERS is. I think if I retire at 62 my numbers would be 30 yrs service * 0.0011 * $150K (although I suppose pay rates could go up by then).

Your numbers:
Assumed Years of Service 30
Multiplier 0.011
Salary $150,000

Annuity $49,500

Equivalent to savings of $1,237,500


I calculate the savings equivalent based on a 4 percent withdrawal rate. You should also have TSP savings. and Social Security. The combination of each of these should make you fairly financially secure, assuming you don't spend more than your income. You should be getting an annual summary of what these are all worth.

Comparing FERS with the VA system, the multiplier for the VA pension is really good - bumps the numbers way up.

Also, the VA system is already changing for the worse starting for those hired on or after 1/1/14. Get in now and you are guaranteed the larger pension.