Chief
Related Posts
Conversation Starter
Pro
More Posts
Any fish still awake and working? 😀
How much medical coverage should one have?
Looking for some book recommendations :)
Additional Posts in Consulting
EWR; best of the worst? EWR>JFK>LGA?
Good or bad time to head out on parental leave?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Your age + plus years of service translates to a % of your annual comp that is deposited into your pension fund. For example, I’m 25 and been here for 2 years. So 25+2=27 and below 30, the % is 2.5%. 2.5% of my comp every year is put into my pension fund. There’s a 10 point range and the %s go up 1% point I believe
A few things on the pension formula.
1. Take your age at the start of the year plus your years service. If you are joining and age 25 then 25+ 0 = 25. If you are 40 and have 10 years experience with the firm then 40+10=50.
2. Whatever that number is map it to 20-29, 30-39, 40-49, etc. If you are in the 20’s you will get a 2% match. 30’s means 3% match, etc.
3. In year 1, regardless of salary or % above, there is a min $5k distribution but only for year 1.
4. Distributions put into the pension once a year in June.
5. You dont vest until 3 years service, no partial vesting.
6. Each year your number in 1 changes as you have 1 more yr experience and are 1 yr older.
If your an M you are probably 30 or up. So you will get 3% or better immediately and vest at 3 years. Stick around a long time and it can be lucrative.
Following. I started at Deloitte 10 years ago at age 26. Rollover value for my pension is now 28K. It’s so low I have pretty much ignored as comp, but would be interested if someone actually understands the formula.
Started as C; currently M.
The difference must be age and salary amt — I would have been getting 2% when I started, you would have started at 4%.
This is from memory so the amounts may be slightly off, but it should be close. It's a formula that takes age + years at Deloitte into account. If that total is in your 20's, Deloitte vests 2k, 30's 3k, 40's 4k, etc... So if you're 27 and have been at Deloitte for 3 years, the total will be in the 30's and vest 3k.
Example: Person joins Deloitte when they are 28
Year 1 - $5,000 added by Deloitte (regardless of age + experience)
Year 2 - $5,000 + 3% interest from last year + 3k (age + experience = 29+1 complete year = 30). So total balance is $8,150
Year 3 - $8,150 + 3% interest from last year + 3k (age + experience = 30+2 = 32). So total balance is $11,394.50
Etc...
Reading D2's comment above, I believe they are right - instead of a flat 2k, 3k, etc... vested by Deloitte it's 2.5% of your base (20s), 3.5% (30s), 4.5% (40s), etc...
Chief
The offer is for a M1 level. I have heard it’s a combo of age and length of service after the first year but I’d like to know what that translates to in terms of percent of salary so I can compare total comp from my current employer. Thanks in advance!
Came in as a C and about six years later I have about $20k
How old were you when you started?
In addition to the % of your salary that everyone has mentioned as a factor of age and creditable time, there is interest paid on your balance. It has a floor of 3.5% but can float higher. But it will stay at 3.5% when rates go higher until you make up for the time you got 3.5% when rates were below that. Then it'll go up again after that. As you can imagine we've been getting 3.5% while real rates have been below that for quite some time.
They have a pension center to help with these kind of questions.
Can you take it in lump sum when you leave?
There's a cap. 30k I think. Below that you can take the lump sum if you want. Above you can't
Is this happening automatically? I called when I started and they said we needed to call back at year 1. Close to hitting year 1. What do I need to do?
Also it's after one year and then only during two open seasons. So you could end up needing a year and a half before being enrolled.