Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I started my new job with Cook County (Chicago area) this week. I moved here from Texas. During orientation, the HR lady mentioned 10% of my salary goes to pension! I feel misled because in the on boarding documents, there was not a single mention of this pension deduction. I read through the HR manual provided during orientation and there is no mention either. Another new hire who was at the orientation with me was also surprised. Though they take the 10% for pension, they don't take anything for social security (FICA exempt). The retirement benefit (403b) is also terrible because the county does not contribute or match anything. The state/local govts I worked for in Texas weren't even this bad with their retirement packages.
I am in the running for a job in Texas, that has no such pension deduction, and plus there is no income tax in TX like there is in Illinois. If I get that job I'm going to quit the Chicago one. Like I said, there was no mention of this 10% deduction anywhere - the HR lady casually bought it up during orientation ("oh by the way, 10% goes to pension"). My question - are these pension deductions common in other states? No such thing in TX.
I had considered all expenses (income tax, higher cost of living, moving costs) before taking this job!
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,936 posts, read 36,989,150 times
Reputation: 40635
Yes. State employees at least here in MA, and every other state I lived, deduct a percentage for the pension. That is how it is paid for.
Did you expect the pension just to be a unpaid for benefit?
Even with these fundings, because the benefits are fixed, if the market returns aren't adequate the taxpayer has to cover some... that's enough to me. Not having to pay anything for your pension is rather rare in this day and age and those systems will need to be changed.
NO..I didn't expect it to be an unpaid benefit...way to stretch my concern, Lol. My concern was the 10%, PLUS the zero matching/contribution. At my previous job the govt deducted 6% and matched it.
I started my new job with Cook County (Chicago area) this week. I moved here from Texas. During orientation, the HR lady mentioned 10% of my salary goes to pension! I feel misled because in the on boarding documents, there was not a single mention of this pension deduction. I read through the HR manual provided during orientation and there is no mention either. Another new hire who was at the orientation with me was also surprised. Though they take the 10% for pension, they don't take anything for social security (FICA exempt). The retirement benefit (403b) is also terrible because the county does not contribute or match anything. The state/local govts I worked for in Texas weren't even this bad with their retirement packages.
I am in the running for a job in Texas, that has no such pension deduction, and plus there is no income tax in TX like there is in Illinois. If I get that job I'm going to quit the Chicago one. Like I said, there was no mention of this 10% deduction anywhere - the HR lady casually bought it up during orientation ("oh by the way, 10% goes to pension"). My question - are these pension deductions common in other states? No such thing in TX.
I had considered all expenses (income tax, higher cost of living, moving costs) before taking this job!
You lose 7.65% for social security and medicare, so you aren't talking about a huge difference if you aren't paying those expenses.
Quote:
Originally Posted by tx09
NO..I didn't expect it to be an unpaid benefit...way to stretch my concern, Lol. My concern was the 10%, PLUS the zero matching/contribution. At my previous job the govt deducted 6% and matched it.
The IL pension system is a mess, they likely are matching, but still need more.
Yes. State employees at least here in MA, and every other state I lived, deduct a percentage for the pension. That is how it is paid for.
Did you expect the pension just to be a unpaid for benefit?
Even with these fundings, because the benefits are fixed, if the market returns aren't adequate the taxpayer has to cover some... that's enough to me. Not having to pay anything for your pension is rather rare in this day and age and those systems will need to be changed.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,243,006 times
Reputation: 57825
I have never heard of an employer that provides a pension without some percentage contribution by the employee. Just as they will withhold for part of other benefits such as medical, dental, vision, life insurance, long-term care insurance, 401k, credit union savings, and others that are either mandatory or optional. We have enough optional benefits that a person could easily end up with a $5,000 paycheck being zero net take home.
I have never heard of an employer that provides a pension without some percentage contribution by the employee. Just as they will withhold for part of other benefits such as medical, dental, vision, life insurance, long-term care insurance, 401k, credit union savings, and others that are either mandatory or optional. We have enough optional benefits that a person could easily end up with a $5,000 paycheck being zero net take home.
Illionis and the city of Chicago are in a world of hurt with pensions. They are the most underfunded state pensions in the country. Chicago is one step away from going bankrupt. It's going to be a sticker shock when you see how expensive it is to live there.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
