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It's a defined benefit annuity, not a defined benefit pension. -Anyone- can invest in a tax deferred annuity, including people employed in the private sector.
What it comes down to is that the FERS annuity was adjusted downward specifically to make it comparable in value to private sector retirement benefits.
Good luck finding a tax deferred annuity that pays anywhere near FERS. It's not comparable at all to the private sector.
It sounds (or at least seems like) that you have been offered a position that you think that you should seriously consider.
But is it really a good offer? No, not at all. You have been offered a job that pays 10% more than your current salary. At an organization that has far less stability and poorer benefits than you currently have. Why would you even think of such a move? You have done remarkably well where you are but you aren't being offered anything like that kind of career path in this new job.
With this gov't contractor (or even big 4), you are being offered the going rate. And really, without even a real consideration of your accomplishments or academic background. A couple of degrees? Check. Three-five years experience? Check. Security clearance? Check. A natural for a standard offer given, at standard pay.
Chances are highly likely your work life will be identical to what you are currently accustomed to. But at a lower level. A much lower level. As a GS13 you have the potential to do far more with the gov't than as a lower level contractor. Lets face it, you aren't being paid for who you know (sorry, you haven't been around that long) at this new job, just as a cog that can be checked off on a needs list.
Can you afford a possible layoff in the next few years? How long could you remain unemployed before accepting a job making half your current pay? Become unemployed (a distinct possibility in these times) and you will find yourself in competition with thousands of others with your same (or better) qualifications and might have no choice but to accept less (if you can find anything).
Its not to say that at some point down the road that you might be offered something that would be very tempting and difficult to turn down. Particularly after you've gained experience and have a wide network of contacts. But this offer isn't it. Its not even close.
OP, also consider healthcare. It's pretty damn good working for the feds. I get med/dental/vision for my entire family for roughly 180 a check pre tax. My private sector friends pay double that and that is if they're lucky.
You're also a relatively high GS for your age. The grass isn't always greener. I worked in consulting when I left the military and it's not what it seems. There is plenty of boring tasks that need to be done and someone has to do them. I took the job in private industry because I was also jaded after the military. I came back to the government because I realized that there is BS in every job and you need to learn just deal with it (that's what I did).
OP, if you receive an offer from the other organization, the only reasons I can see to take it would be:
1. Gain new experiences you want to have
2. Take advantage of much better advancement opportunities
The mid to upper management at many government contracting/consulting firms is often made up of senior retired military and civil service people, so there may not be as many opportunities to move up there as you think.
You WILL have less job security, worse retirement benefits, and less time off when you leave government.
Whether or not you will make more in a year or two depends on a lot of things, beyond your own performance.
I made the same transition you are considering, and don't regret it. Before you do it you really need to have your eyes wide open and understand all the things you are giving up, not just the greater potential upside in the private sector.
In my field noone in their right mind would leave a fed job for the private sector. Most companies absolutely rape their science staff. The pay is much worse, the benefits are often nonexistent, and job security doesn't even exist in science nowadays in the private sector.
In my field noone in their right mind would leave a fed job for the private sector. Most companies absolutely rape their science staff. The pay is much worse, the benefits are often nonexistent, and job security doesn't even exist in science nowadays in the private sector.
Not sure job security exists for science positions in the fed.. At least the research ones.. They Are mostly 100% soft money, I.e. grant funded.
I agree with the responses thus far... consider the better job security, flexibility, and long term benefits vs. more pay, more exciting environment.
If possible, let us know how you went.
I had an uncle who worked as a civil engineer at an US Army base. Retired after decades of doing that. He gets around $60K a year just on his pension alone. I hear the gov't is cutting down, so while current gov. employees still get good benefits, it doesn't seem what it used to be.
A friend who works in the State Dept. had a "mid life crisis" and considered switching work. I told him while that's not a bad thing, consider giving up furthering your gov't benefits, and that the economy ain't good and won't likely get that much better. The only way it'd really get better is if a portion of the population dies off, as it seems we're in a crowded world. He's continuing it so far, as part of the reason was the ppl he worked with (new assignment to a new place, he's got new coworkers now). He also recently accepted an assignment to Iraq, so that's gonna be scary, yet exciting at the same time.
It's an interesting situation. I've only known one person, at or over GS-13, who did this and he was successful at moving from being a project analyst/manager into private sector contract research. I know two bright people at lower levels who made the hop, straight across, with mixed results. One has become a Sr. VP, while the other seems stuck two levels below this, although he's smart, hard working, and a good business developer. I recruited them both and I'm not sure i can put my finger on the causes, except that the one who is successful is more laid back and doesn't limit himself to the kind of research he markets and is located in DC, close to business.
I made the opposite switch after I recruited these two and am very happy I did. It was just too stressful for me: too much work when the economy was thriving; too little during recessions, when companies and governments would cut back on environmental economics research.
I can understand the OP being young, and wanting to spread her wings, etc.- It would seem that her age has a lot to do with that, which, again, is understandable. However, having been around for quite a lot longer than she has been, I've seen the economy do all sorts of things good and bad- and I have to say that the feeling I get from the economy now is scarier than any I remember in the past. I thought maybe age had something to do with it, but I honestly don't think it does- things are different now, and on a much larger scale- and it just seems to be getting worse.
My husband works for the gov-and although he doesn't make a load of money, the job itself is about as secure as it could get in this economy. The benefits are good- I just think in the private sector, there is a much better chance of having a business go under, massive layoffs, etc.- and there isn't always the guarantee that someone leaving the fed to go into the private sector could easily get back in. That's not to say that the fed couldn't do massive layoffs, or that it is 100% guaranteed-but the chances are much better of being able to hang on to the job, as opposed to the private sector, IMO. And for the amount the OP makes at her job, I would be thanking my lucky stars to have a position making that much, especially with the fed!
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He's continuing it so far, as part of the reason was the ppl he worked with (new assignment to a new place, he's got new coworkers now). He also recently accepted an assignment to Iraq, so that's gonna be scary, yet exciting at the same time.
