Please help evaluate job offer

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Topic Author
maximo
Posts: 5
Joined: Sun May 17, 2015 9:55 pm

Please help evaluate job offer

Post by maximo » Tue Jun 11, 2019 9:09 pm

Please help me and my wife evaluate a new job offer. Her current job is at a very large company. She was not actively looking but a recruiter reached out to her and she interviewed and got the job, which is also at a large company. The biggest issue is her giving up her future pension and the poor maternity leave policy. Is it worth it for her to take the new job based off the numbers below? Thanks so much for everyone’s advice!

Current Job:

Base Salary $135,000
Bonus $35,000

4.5 weeks vacation
1 week sick leave

Maternity leave: 4 months paid

Pension: 15% of all earnings/year – need to 2 more years to be vested and the amount at that time will be $138,000

401k: match 0.75cents of every $1.00 up to 6%



Potentional Job:

Base Salary $164,000
Bonus $40,000

Plus $30,000 signing bonus

4 weeks vacation (including sick leave)

Maternity leave: 2 weeks paid + 10 weeks unpaid (after 1 year of service)

401k: contribute up to 60% or IRS maximum, company matches 100% of first 3% and 50% of next 2%

umfan11244
Posts: 66
Joined: Sat Feb 09, 2019 11:06 am

Re: Please help evaluate job offer

Post by umfan11244 » Tue Jun 11, 2019 9:22 pm

maximo wrote:
Tue Jun 11, 2019 9:09 pm
Please help me and my wife evaluate a new job offer. Her current job is at a very large company. She was not actively looking but a recruiter reached out to her and she interviewed and got the job, which is also at a large company. The biggest issue is her giving up her future pension and the poor maternity leave policy. Is it worth it for her to take the new job based off the numbers below? Thanks so much for everyone’s advice!

Current Job:

Base Salary $135,000
Bonus $35,000

4.5 weeks vacation
1 week sick leave

Maternity leave: 4 months paid

Pension: 15% of all earnings/year – need to 2 more years to be vested and the amount at that time will be $138,000

401k: match 0.75cents of every $1.00 up to 6%



Potentional Job:

Base Salary $164,000
Bonus $40,000

Plus $30,000 signing bonus

4 weeks vacation (including sick leave)

Maternity leave: 2 weeks paid + 10 weeks unpaid (after 1 year of service)

401k: contribute up to 60% or IRS maximum, company matches 100% of first 3% and 50% of next 2%
Considering you specifically mentioned maternity leave and left out nearly all other details, I'm thinking this is a pretty big deal to you. If you're planning on having a kid or two in the near future, this is invaluable and will make transitioning back to the workforce after children much easier. My wife had six weeks and it wasn't nearly enough, but back to work she went. On top of this, I'm going to go out on a limb and say that she could get an offer like this again, and waiting until A) you have kids, and B) she is vested in the pension, seems like a prudent move.

z3r0c00l
Posts: 1398
Joined: Fri Jul 06, 2012 11:43 am
Location: NYC
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Re: Please help evaluate job offer

Post by z3r0c00l » Tue Jun 11, 2019 9:23 pm

Presuming no pension at the new place (?) the first is still more attractive. That pension is going to be worth quite a bit if she can stay for a solid stretch. It is a rare thing these days and worth keeping.

dlrkw9mu
Posts: 10
Joined: Mon Apr 27, 2015 12:01 pm

Re: Please help evaluate job offer

Post by dlrkw9mu » Tue Jun 11, 2019 9:32 pm

Am I understanding the pension correctly? Current employer contributes 15% of her pay annually?

If yes, and accounting for the bonuses (which aren't guaranteed in either job):
Current Job = 135k base + 35k bonus + $25k pension + $8k match = $203k annually
Offer = 164k base + 40k bonus + 8k match = $212k annually

Accepting the new job would mean forfeiting $138k unvested pension for a $30k sign-on bonus and a 4.4% ($9k) pay increase. Would break-even after 12 years (not even accounting for the differences in vacation, maternity leave, etc).

From a purely financial standpoint, it would take more than that for me to give up my current job. But there's a heck of a lot more to a job than just the numbers....

Topic Author
maximo
Posts: 5
Joined: Sun May 17, 2015 9:55 pm

Re: Please help evaluate job offer

Post by maximo » Tue Jun 11, 2019 9:50 pm

Thanks so much for the responses.

That is correct - there is no pension at the new company and yes her current employer contributes 15% of her pay annually towards her pension.

Walking away from the pension before she’s vested is one of the major issues with the new offer.

User avatar
Watty
Posts: 16168
Joined: Wed Oct 10, 2007 3:55 pm

Re: Please help evaluate job offer

Post by Watty » Tue Jun 11, 2019 10:35 pm

You didn't mention how the commute compares between jobs, and the amount of expected overtime.

If you will be having kids that becomes a lot more important.
maximo wrote:
Tue Jun 11, 2019 9:09 pm
Current Job:
....

401k: match 0.75cents of every $1.00 up to 6%
One thing to check on is if the employer match is fully vested with the current employer.

If not she may lose part or all of the match she has gotten so far.
maximo wrote:
Tue Jun 11, 2019 9:09 pm
Pension: 15% of all earnings/year – need to 2 more years to be vested and the amount at that time will be $138,000
I would guess that it might be worth something like $70K now. How much of that would she lose if she left the job?

15% of her salary and bonuses is around $25K a year. When you add that into her total compensation that brings it pretty close to the total compensation of the new job. Current:135+35+25=$195K, new job:164+40= $204K. The taxes on her current $25K pension contribution would be tax deferred so after paying taxes they would be nearly equal.

I didn't try to crunch all the other numbers but with that it sounds like a more or less lateral move. Unless there are other factors, or I missed something, I don't see a lot of financial incentive to take the new job. There could be some non-financial factors you would want to factor in though.

quantAndHold
Posts: 3310
Joined: Thu Sep 17, 2015 10:39 pm

Re: Please help evaluate job offer

Post by quantAndHold » Tue Jun 11, 2019 11:46 pm

It sounds like a lateral move financially.

Which job has better career potential?

Unless I hated the current job, I would probably stay at the current place until the pension vests and you’re done having children. If she got this offer this easily, she can get another offer in a couple of years.

Thegame14
Posts: 1037
Joined: Mon May 07, 2018 11:53 am

Re: Please help evaluate job offer

Post by Thegame14 » Tue Jun 11, 2019 11:49 pm

I assume that means you want to have at least one more child, so might as well stay and take advantage of the generous maternity leave policy and vest in the pension and then if something comes along in the future, evaluate it then...

ponyboy
Posts: 703
Joined: Fri Feb 06, 2015 10:39 am

Re: Please help evaluate job offer

Post by ponyboy » Wed Jun 12, 2019 6:16 am

I wouldnt take the "bonus" into account at all. They're never guaranteed. Giving up that pension is brutal. Like others said...whats her current commute? Does she hate her current job? The paid maternity is cool but its not like you're going to have 15 kids...most people would only use that once or twice. (which again...is a nice perk but not earth shattering.)

Just looking at the numbers...theres no benefit in taking the new job.

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