Quote Originally Posted by Unregistered View Post
LOL; so true. What an ungrateful crybaby. The amount of work, growth and money pouring into this city we definitely deserve whatever increases we can get, “six figures” or not. It kinda sounds like you don’t agree with our salary and you have some delusion that we are rolling in dough. It’s 2020 and I hate to be the one to tell it to you but we really don’t make that much compared to the private sector. Sure, we have a pension, a pension that we pay out the @SS for, just as they have employee matched 401K and other benefits. My kid brother is making what I make with a lot less stress. Don’t get me wrong, I’m not complaining, enjoy my chosen career and live well within my means, but don’t think we are all buying second homes and fancy cars. I am happy with what we get and don’t need to work extra duty to pay my bills, but don’t act like “six figures” is some big deal. Maybe in some areas, but not a city like this that puts up high rise luxury condos like lemonade stands. Condos that 99% of TPD officers could not afford without being a courtesy officer or having some other outside funding source (ie family money or high earning spouse). Why do you think so many of us live outside of the city? Oh, and for the record, I don’t make “six figures” here so, if you do, I’m glad for you and I hope to be there one day!
Yeah, defined benefit pensions and defined contribution 401ks are pretty much the same...

Let's say your brother automatically gets raises like you do- even if he doesn't deserve them, and his pay matches yours during his career. If he contributes 10% of his salary to his 401k, and the average private sector match is 4.7% (forget the fact that the City contributes about 12.5% to our 10, that doesn't happen in the real world), we'll say his total annual investment averages $13,000 during his 25 year career. If he puts it in risky investments at first, then safer as he approaches retirement, he might average an 8% return. At 25 years your brother's retirement account would be worth about $1M. Not bad. But he only worked for 25 years, and he might not even be 50 yet. He needs that money to last 30 more years. The only way to be sure that it will is to take a percentage out annually that is small enough that it will DEFINITELY be made up in investment gains. That's maybe 2.5-3%, or $25,000-$30,000 annually. Quite the kick in the balls for someone accustomed to $100k per year at the end of their career.

If you contribute 10% for 20 years, never get promoted, don't pay out any holidays, have no shift diff, overtime, or education incentive, etc., and during that time the city contributes almost three times the average private sector 401k match, you'll see a pension of about $63,000 in today's dollars (or at least 2021 dollars according to the new contract). During your last 5 years you put the 10% that you're no longer paying into the pension into your brand new $0 balance deferred comp account, still contributing 10% annually for 25 total years, just like your brother. Meanwhile your DROP begins accumulating (with COLAs). You cash out 240 hours of annual time and a very reasonable 1,000 hours of sick on your way out the door. Assuming the same 8% return as your brother on DROP and deferred compensation, you'd walk with $515,000 in the bank for five years of "effort" that didn't change your budget by a single dime- half of what your brother spent 25 years accumulating, and a pension for the rest of your life that starts at $68k after those five years of COLAs while you were in DROP, and increases on average $1,200 annually until you die.

Go see how much a $68k annuity with $1,200 COLAs is for a 50 year old, and you'll have some idea of how much your pension is worth.

We are well compensated. Everyone would love to make the most money possible, but we need to be reasonable and look at the big picture. The OP IS an ungrateful crybaby whining about half a percent.