So there are 2 components to the pension , at least here in California
we have calpers. I think they take in about 7% each pay period but they guarantee numbers of years times 2 % of your avg of final three years income when you retire. It is 62 years now, but for linflas since he went into public sector earlier, maybe he has better pension terms
so if you have 10 years in the system and the avg of your last three years is a 100K. Then you get (10*2 )% which is 20,000 a year until you die . This kicks in once you hit 62.
Second is the 457 , similar to 401. My city does not have any matching, but we can invest up to 19,000 a year pre tax and i can invest them into MF's or ETF's. There are some decent ETF's that I am invested into. GIves me a avg of about 8% per year [last 3 years]
So calpers is not doing so great now, but they expect it to become more liquid in the next 5 years.
The 457 is your money and no one can touch it.
The best thing in my opinion is the work life balance. Things do go at a glacial pace, we have a ERP that hasn't really been updated in about 10 years and I am actually going in and enabling functionalities that have been available for 15+ years. So yeah if you are younger and want to travel , then consulting is the way to go. I had my good times with Accenture and kpmg but now i am like fuck it, time to take it easy now.
What does the survivor benefit look like? Many pensions either have you take a reduced initial benefit to have a survivor benefit, or their's gets reduced/eliminated after you die. I'm in a rare plan that gives same benefit to surviving spouse with no reduction in benefit.
I am kind of lucky in that I get 2.5% per for the first 20 (50%), then 2% for up to 10 more (70% max). You can add up to 1 year of unused sick leave for +2%, and three years of military time (I don't have any). So theoretically up to 78% of ending pay. We kick 7.25% of base in from our side, for a total of 34% of annual base compensation going into pension (employer makes up the rest). They will also cover 80% healthcare (85/15 on my current employee plan). I can take that 50% as soon as I have 20 years (in a little over two years from now). But, as I will only be 41 or so (or 40 if I use the 7 months of unused sick I have saved now to get me to 20), I will likely stay for a bit.
Unless I decide to promote again, or we get a COLA I'll be sitting almost exactly at $100k/yr average over last three years as of then. If I wait a year or two, it'll be around $105-109K and 53-55% (extra year or two +1% or so for unused sick as it sits now.) But that also means giving up access to OT I use to travel, make large purchases, etc. (I live off of the base, but when I want something I can usually pick up OT to cover it, and keep debt to one 0% vehicle payment and one mortgage) Recently that would have been somewhere in the $30k/year range, but I hold specialty qualification even among folks of my rank, and a willingness to work on days others don't want to (summer vacation season, Thanksgiving, Christmas, etc). 24 hours of 1.5X time at a shot adds up.
And we're in SS as well, unlike some public pensions (our Police plan is identical but they chose not to enter SS when given the choice many years ago). So 6.2% from my check is coming out, (and 6.2% from employer). So, while we take home less, we're still getting full time and earnings credit towards that once eligible.
Due to not having to kick in our side of pension and SS anymore, many of my folks find they have more spending money in retirement than while working, as other expenses (commute especially) drop also if they go the full 30 years 70%+.
As much as it seems a generous plan, we are well funded and consistently one of the healthier public pensions around, due to trustee board having strong employee representation and not allowing the employer any chance to short their contributions, like some did. Basically when the market was in a boom year(s), other plans used market gains to offset employer contributions, or in lean years cut it and "promised" to make it up later. We didn't allow that. 34% of base in for every employee, every year, no matter what.
Unfortunately, due to heart/lung disease and cancer, average life expectancy in retirement also helped keep the plan funded by limiting the payout term. We've addressed a lot of that, but it will be a long time until we see the benefits. For now, I have presumptive workers comp for heart/lung disease, and several forms of cancer that all occur in significantly higher rates among current/former firefighters.
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