Recently got called for a job with the city, it's union.
I was doing some research into it but i've gotten as far as understanding 5/63 and the rate calculation. How is the pension actually paid out?
Also does anyone have any insight into PTO, holidays etc? This would be with Dept of Health IT.
Posted Feb 19, 2023, 8:20 PM UTC
Here is a good explanation for the 64/5 pension: https://www.nycers.org/sites/main/files/file-attachments/993.pdf?1671625738
As for the other parts :
Health Insurance: All new employees start off with the same plan and then in following years pick out of a few options. I think the premium is totally covered by the city and most (if not all) in-network usage is low-cost. However, I think the out of network coverage is non-existent so if you have a doc you like that doesn't take the plan you will likely pay a lot out of pocket.
Non-Pension Retirement: 401k doesn't have a match but you have the opportunity to also contribute to a 457. So basically doubling your pre-tax savings. Also, a 457 can be used immediately after you leave the job without a penalty (just pay taxes).
PTO/Holidays: The longer you are there the more you get. You don't start out with much (I think 17 PTO and then 5 sick days?), but they can be rolled over year after year. Also, I think you'd get all federal holidays off.
Overtime: Depending on the position (if it's non-manager) you may qualify for overtime. Usually capped at 10 extra hours a week.
PSLF: If you have student loans and you work for the city (or any other non-profit) for 10 years (and make payments during that time) you qualify for student loan forgiveness.
There are a few other benefits like education scholarships and I think commuter benefits. I think the real draw though is trading that extra salary you'd get in the private sector (or equity/RSUs) for retirement savings/benefits. WLB is also usually better working for the city than the private sector, but that depends on teams, agencies, and departments. For DOHMH I know COVID was extremely rough for them (just check out how much OT was spent during that time).
Pension is separate from 401/457K deferred savings plan.
Contribute into a 401/457K. You will more than likely not be able to survive on just a pension. Plus who knows if you will stay long enough to retire from city service. At least with these plans, they are transferable to other private 401K or government sponsored 457K.
My current plan if no better offers come through is to stay in for 5 years to vest then jump ship to another company or something. Currently in the Air Guard so that pension + ~6k/yr into TSP and whatever else I get from other 401k/IRAs in the future is my retirement plan. Being able to get access to Tricare makes the health benefit from the city job a bit less sweet since the prices for Tricare Reserve Select is basically free for the coverage you get.
The city pension will just be another guaranteed safety net if I manage to retire before the collapse of civilization lmao.
Many thanks for the holiday calendar and time accrual rate. Do you think the hybrid work schedule would actually come into effect?
Mayor Adams did a 180 on hybrid/remote work. He was originally against it and ordered all workers back to the office. But with people leaving city service in droves and not able to hire people to fill them, he has no choice but to accept it.
Hybrid work for the long term?…. Who knows. Keep an eye out on the private sector. They are making it enticing for municipal workers to jump ship.
I for one would like to see 4-day work weeks.
And by the way, even though people are leaving city service, see it as an opportunity to secure a job. Plus you might move up pretty damn quick.
Since you are in IT, you can be an asset in any city agency.
Side note - if you ever end up going active duty during city service, you will be protected with a job when you get back. If you ever did active duty prior, you can add those years to city service if you contribute and buy back that time.
I know all about that. There are people who are on NYPD and Long Term Federal Guard orders accruing both Military and PD pension time as long as they come back once every 4 or 5 years.
I don't plan on buying back my military time for now, hoping to get 2x pension from military and city but let's see life has a funny way of changing.
Currently waiting on response from a couple other private sector companies before I fullsend into the city but just wanted to see how it is since I won't get a response until Tuesday and I'm impatient.
The NYC Jobs Pension 5/63 is a retirement plan for employees of the City of New York who joined the workforce on or after July 1, 2012. It is a defined benefit plan, which means that the retirement benefit is calculated based on a formula that takes into account the employee's salary, years of service, and a benefit multiplier.
Under the 5/63 plan, the benefit multiplier is 1.67% for each year of service. This means that for each year of service, the retirement benefit is equal to 1.67% of the employee's final average salary. The final average salary is typically calculated as the average of the employee's highest five years of salary.
For example, if an employee works for the City of New York for 30 years and has a final average salary of $100,000, the retirement benefit would be calculated as follows:
30 years of service x 1.67% benefit multiplier = 50.1% 50.1% x $100,000 final average salary = $50,100 annual retirement benefit
The retirement benefit is then paid as a monthly annuity over the course of the retiree's lifetime.
It is important to note that the retirement benefit is subject to adjustments based on changes in the cost of living, and there are different options for selecting a payment plan and designating beneficiaries. Additionally, there are certain eligibility requirements for the plan, such as minimum years of service and age requirements.
Awesome thank you so much, I got as far as the retirement benefit calculation but was unsure if it was the annual benefit or the entire benefit a la 401k style.
Would you recommend working for the city?