I treat a pension as worthless until it's vested. If you quit the job before vesting you won't get any of the benefit.I am considering a job with a state pension. At 55 this pension would be worth 37k/yr with 8 yrs of service and 46k with 10 yrs of service. There is discounted medical care available at retirement price of 700-800 per month. There is a 3% automatic compounded annual increase. The pension is state funded and unfortunately funded in the 40% range.
I would work at this employer for the next 3-5 yrs (or more). How much is this worth on top of my salary? I am trying to compare to my current job to the future job.
Once vested, then it's subject to rule changes and formula changes for beneficiaries. Under funding can also be a problem. Maybe start there. Consider 40% of the value you expect to receive, then discount it back to the present.
Regards,
Statistics: Posted by retired@50 — Sun Jul 21, 2024 7:42 am