I recently got a job working for the state of Massachusetts' transportation system. Technically I do not work for the state as we are "quasi" state employees. I am now part of a union which negotiates on behalf of us with the state. In this union I have the option of a 401k with 8% match or a pension in which you must complete 25 years of service and be at least 55 years old in which I can get 72% of my highest three years earning in perpetuity.
As I am only 27 years old I would have to do 28 years to receive this pension, whereas if I started working at 45 and retired at 55 I would have 10 years and get something like 25% in perpetuity. If I leave before the 25 years I get nothing, just my contributions back (8.08%) plus 3% interest.
Most people I talk to think I am insane if I do not take the pension (Which I am leaning heavily toward doing) but there's something about essentially being handcuffed to one company for 25 years that bothers me. Also another big concern for me is if the pension will still exist in 25 years, or am I going to get screwed in the end? It's basically set up like social security so no guarantees.
Am I dumb for not taking the pension? Or is it too risky? Please advise!
Submitted November 11, 2018 at 10:46AM by rpablo23 https://ift.tt/2z3WlJN
