4 ms·

Plus, there isn't any stock/equity/etc. And less perks (for example, free food can easily be effectively raise your salary by a couple grand).

• nerfhammer 12y ago
  the lifetime value of a pension will ultimately totally dwarf the value of free lunch and snacks
  • kngspook 12y ago
    True, forgot about that.
  • pmorici 12y ago
    Government employees that were hired since the 1986 don't get a "pension" any more they are under a new retirement system called FERS that consists of Social Security, an IRA like retirement savings plan called the Thrift Savings Program, and very small basic benefit plan which only pays a fraction of their salary and isn't indexed for inflation.
    • Roboprog 12y ago
      FERS website says the annuity rate is 1% per year of service of the average of your highest 3 years of service. Sounds like a defined benefit to me. (even if percent-per-year is higher in some local agencies)
      • pmorici 12y ago
        True, but is isn't a good one, for that "privilege" employees are forced to pay 4.4% of their salary per year into the fund. If you work out the math depending on what assumptions you make it's only worth about $5k-$10k per year in compensation so it doesn't really make up for the huge disparity in pay between private contractor and government employees. You would be hard pressed to convince me that as it is presently structured that it presents some great value to the employee.