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Most of us would like a change of scenery (location, duties, or co-workers) from time to time. But you don't need to leave the Federal Government to get that. There are accounting and finance-related jobs in just about every Federal agency, spread all over the country.
My suggestion? Take the bump to GS12 (or equivalent) that your supervisor offered, work another year to establish time in grade, and then start applying for other Federal jobs in other organizations (within the same agency or in other agencies). Start monitoring SEC/FDIC job announcements.
But can you leave? No! You have the infamous "golden handcuffs".
What's this golden handcuff you guys CD mention? I'm not sure you guys understand what FERS is or think it is more. After five years, you are vested, so you can take the healthcare at retirement. The only other thing is the pension. Aside from people who make the bad investment plans, a pension isn't all that much of a handcuff
What's this golden handcuff you guys CD mention? I'm not sure you guys understand what FERS is or think it is more. After five years, you are vested, so you can take the healthcare at retirement. The only other thing is the pension. Aside from people who make the bad investment plans, a pension isn't all that much of a handcuff
FERS is not as much a golden handcuff as CSRS, but it is still there, depending on your age and years of service. At 5 years, no, not much of a handcuff. At 25 years, they're showing up. At age 55 they're on tight. Run the numbers. Do the math based on years of service and age.
When you're young or have few years of service you don't have a big percent and your high-3 is low so a good private sector job can outdistance FERS. But by a certain point, you're too young to retire and too old to start over. That's when you start to feel the handcuffs. So you see a lot of churn in the workforce at the early age, few years. But a large percentage of older workers who can just about see the return on their years.
A good paying job on the beach in the deep south. (Hotel management, something like that)
Federal- Useless lazy employees you can't get rid of. Coasting to a retirement they don't earn
Private/Corporate- Most of the same, but greedier, corrupt, all the money filtering the top, off your hard work. Filled with corrupt scumbags, Rampant abuse of employees
FERS is not as much a golden handcuff as CSRS, but it is still there, depending on your age and years of service. At 5 years, no, not much of a handcuff. At 25 years, they're showing up. At age 55 they're on tight. Run the numbers. Do the math based on years of service and age.
When you're young or have few years of service you don't have a big percent and your high-3 is low so a good private sector job can outdistance FERS. But by a certain point, you're too young to retire and too old to start over. That's when you start to feel the handcuffs. So you see a lot of churn in the workforce at the early age, few years. But a large percentage of older workers who can just about see the return on their years.
No, I get that CSRS was different, but since it isn't around any more, when people refer to golden handcuff, they usually mean FERS or a state/local pension.
25 years of a lower paying job isn't really any better though, at 25 years FERS would pay out 27.5%. If someone can make 27.5% more, and invested (not spent) the difference, even if the investment was made after tax, they would come out with just as much "money" as the FERS pension would on a 4% swr. I'm not going to argue the 4% swr, some feels it is too high, others don't. Just like how some feel like pensions aren't properly funded or if they are.
Not all govt jobs pay 27.5% less, but I'm just saying that for jobs where people can get paid at least that much more, then the FERS isn't really that big of a handcuff.
dont' get me wrong, I enjoy my job, I work for the fed, but it isn't because of FERS that i enjoy it. I like the work and the people and goals <-- this would be the real handcuff to me, not because of "money" at retirement. I can plan and make money countless number of ways. Money is and should never be a form of "handcuff" because it's so easy to get.
Quote:
Originally Posted by DorianRo
Federal- Useless lazy employees you can't get rid of. Coasting to a retirement they don't earn
Private/Corporate- Most of the same, but greedier, corrupt, all the money filtering the top, off your hard work. Filled with corrupt scumbags
for as much as you call federal employees lazy, you don't sound like you aren't as lazy in the private jobs either... all your rants about your horrible job experiences
Dont put the golden hand cuffs on as your expenses mysteroiusly rise to meet your income and it becomes MUCH harder to go back the other way when crap starts hitting the fan in the private sector. Unless you have a very specific dream or reason for needing the extra money (dream of starting a buisness and need the start up money, etc) then its not worth the stress of going to company meetings to hear about the latest round of lay offs and how its such a happy time becuase you made it this time and have another 6 months to year of employment lol.
No, I get that CSRS was different, but since it isn't around any more, when people refer to golden handcuff, they usually mean FERS or a state/local pension.
25 years of a lower paying job isn't really any better though, at 25 years FERS would pay out 27.5%. If someone can make 27.5% more, and invested (not spent) the difference, even if the investment was made after tax, they would come out with just as much "money" as the FERS pension would on a 4% swr. I'm not going to argue the 4% swr, some feels it is too high, others don't. Just like how some feel like pensions aren't properly funded or if they are.
...
That's really what I just said. The handcuffs kick in when you have so many years in there isn't enough time left for the higher salary outside to overcome the pension loss.If you are, say 30, with five years in, and can get a job paying 27% more, then certainly it's the better deal. That's why I said we are losing younger folks. But when you're 55, with 30 years already in, that's a whole different story on what you lose vs what you gain. You're getting close enough to see the difference a 1.1 multiplier at 62 means vs 1.0 at MRA.
People I know who work for the Feds are doing great, with lots of future life plans and they NEVER talk about losing their job. Many people I know working in industry are either getting laid off or always stressed out about losing their jobs.
The OP really needs to look at where they think their career and lifestyle will take them. This is coming from someone with a CPA who has spent their career so far in public accounting.
Some things to consider:
1) Does the OP consider Work/life balance far more important than opportunities to make a lot more income? If yes, then stick with the Fed job. If money is a factor at all, Big 4 experience will significantly raise future income potential for the remainder of the career. Even with the better FED benefits and pension, the overall lifetime salary potential would still be significantly higher outside of FED.
2) Does the OP plan to spend the rest of their life in their current city where there are lots of Fed jobs available? If yes, then stick with the Fed job. If the OP wants to relocate to be closer to family after having kids, are there FED jobs there? Most places in the country don't have that many FED jobs so Big 4 experience will give the OP a significant leg up in finding non-FED jobs in places that don't have FED jobs. Big 4 experience will also help in obtaining state and local government jobs at least as much as FED experience will.
3) Is the OP thinking about ever working in public, corporate or not-for-profit accounting? If yes, then Big 4 on the resume will be a huge help to opening opportunity doors, FED experience not as much. You can always go from public accounting to FED jobs, but later in the career it gets much harder to move from FED jobs to public or corporate accounting.
4) Does the 8% salary increase the Big 4 is offering include bonuses/profit sharing contributions/etc that the Big 4 normally offer? If you look at the offer line by line OP, you might find out that the Big 4 offer is actually significantly more than a 8% increase.
5) The OP needs to consider that they have maybe a 5 year window where moving to the Big 4 will be possible; then this window will close and the opportunity will be gone. The Big 4 does not like to bring in new hires much older than 30-35 so the OP won't have too much longer and they'll age-out of the opportunity to put Big 4 experience on their resume.
6) Big 4 doesn't often do layoffs. If they close an office, they typically integrate the affected employees into another nearby office. If anyone does lose their job in a layoff, it's usually support staff and not experienced CPAs (unless there's also job performance issues). Public accounting in general it's rare for an experienced CPA to be laid off. However, it's not uncommon for CPAs to be fired or asked to quit if there's performance issues as public accounting firms don't keep around dead-weight employees like government tends to. Corporate accounting is a different story on layoffs as layoffs are much more common in the corporate environment.
Lots of things to consider OP. If it were me, I would take the Big 4 job as it is a tremendous resume builder and will be a huge help to you throughout the rest of your career. If you decide you hate it, stick it out for a couple of years and then you will have a lot of opportunities to chose from to move on to something else.
Last edited by patches403; 08-22-2016 at 01:08 PM..
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