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Babhadfad12 t1_j0bb1tf wrote

Reply to comment by Zeugitae in Vacancies imperil city services, comptroller’s report concludes: Suggests hybrid option would help stem personnel exodus by arrogant_ambassador

I would rather have a nice 401k match than stay tied to NYC for my whole life and then have to bet on them being able to pay me for 20+ years after retirement.

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Zeugitae t1_j0bb848 wrote

Yeah the advice is pretty much: "get the pension but also open up another retirement account" not that the city will match those of course 🙄

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Babhadfad12 t1_j0bbpfr wrote

I have always seen the options as:

City/state government job: low pay, low volatility, but if you show up you get rewarded with an annuity when you are older. Previously, this annuity was worth a lot, and it started a lot earlier. Now, the annuity will not buy you anywhere near as much, and you will have to work longer. And the city might cut the benefit if it gets into financial trouble over the next 60+ years, like Detroit.

Non government job: higher pay, higher volatility. As long as you stay valuable and are open to moving, earning potential is higher. Can invest in equity index funds, so your retirement is effectively guaranteed by US federal government reliably bailing out stock market, but you also get full control over your funds and the huge advantage to you is you can tell your employer to fuck off without losing any potential retirement benefits.

For example, when the world changes to offer remote work, and your city employer asks you to waste time commuting, you have to decide if it’s worth giving up potential retirement benefits. But if you have a 401k, you can move on to better employers.

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bluethroughsunshine t1_j0blzk4 wrote

The city already has this option through the VDP but it's for non union workers making above $75,000. You also only have 30 days upon hiring to enroll in it. I believe the contribution is at 8% or your salary. I think it should be an option for all. If you want a pension, stay. If not leave with 8%

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