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- Sep 15, 2008
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Which would be a better option in the long-run financially?
A. A 401a pension plan where the employer gives 11-12% with no employee contribution required?
B. A pension plan that is calculated in following way: .0145% x 173.33 x highest average hourly salary (averaged over 5 years) x number of years of service. (This would be about $4k a month for 25 years service at today's rate).
In addition to the pension they also offer two other smaller retirement matches with a 401k, etc (might give another $2-4k annually)
Both companies are great places to work. One has a much higher starting salary (around $8/hr higher), but they will both even out after about 5 years in salary to the way the union structures increases.
Of course, no one can guarantee that either the pension plan or the 401a program will have the same terms in 25 years. But I am curious what the more correct answer would be financially.
A. A 401a pension plan where the employer gives 11-12% with no employee contribution required?
B. A pension plan that is calculated in following way: .0145% x 173.33 x highest average hourly salary (averaged over 5 years) x number of years of service. (This would be about $4k a month for 25 years service at today's rate).
In addition to the pension they also offer two other smaller retirement matches with a 401k, etc (might give another $2-4k annually)
Both companies are great places to work. One has a much higher starting salary (around $8/hr higher), but they will both even out after about 5 years in salary to the way the union structures increases.
Of course, no one can guarantee that either the pension plan or the 401a program will have the same terms in 25 years. But I am curious what the more correct answer would be financially.
