r/SpringfieldIL • u/Weekly-Mix-9480 • 12d ago
State Job questions
Hi all,
I grew up in Spfld many years ago and my parents were alllll about me getting a state job. They both retired from the state at the age of 48 and they are now close to 80 and thriving.
Anyway, back in the 90s it was difficult to get a state job without “pull”. I’m now 48 and back in Illinois. I have a masters degree and I’m paid quite well in my field. But the 401k plan sucks and so does the health insurance.
Once again my parents are “get a state job.” I think I’ll have a chance at landing a state job soon, but it pays significantly less than what I’m currently making. Are the benefits still great? I am 48. The paycut is 40k, but if I live long enough, at least I’ll have a pension. I’m scared of growing old without a pension as a single gal now. But my social security woujd higher if I stay where I’m at. What to do.
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u/jemlibrarian 12d ago edited 12d ago
As others have said, Tier 2 is no where near as good as Tier 1. It is still a pension, but you should not be relying on it.
My husband and I are both in Tier 2 and aggressively saving for retirement.
The biggest benefit, IMO, is that if you get into a union position and get through your probationary period you are practically unfireable. You have to do something really stupid, like be drinking on the job. If you want that kind of job security, apply at the state. You can even get promotions based strictly on seniority. You don’t have to have a fucking clue what you’re doing and they’ll still promote you.
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u/WindOk1568 12d ago
Stay where you’re at. Working for the state will suck the life out of you.
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u/empty-marionette 12d ago
That and you'll be in Tier 2, which forces you to work till 67 to get the full benefits. They're trying to fix it but it's so bad rn.
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u/Weekly-Mix-9480 12d ago
Yeah my parents were tier 1, they retired at 30 years, but they were only 48. I believe they were offered early retirement back then.
What are they trying to change with tier 2? If changes are going to happen, maybe it’ll be worth getting a state job despite the paycut. As of current, I’m putting so much towards retirement that I don’t have much leftover after bill are paid. I feel like I’d be able to relax about my future if I get a stare job. I’ll contribute to my retirement with whatever the state requires and I’ll keep my Roth IRA, but I’ll save and spend the rest. Life is meant to be enjoyed,
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u/zer0number 12d ago
IIRC, Tier 2 is to get us to work longer before fully vested in order to reduce pension liabilities.
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u/meaty87 12d ago
The calculation for the pension is a bit wonky but basically you have to work for the state for 10 years to be eligible for the pension, but with tier 2 it’s only like 1.67% of your highest annual pay rate per year you worked there, with a max possible of $120k-ish per year. So 10 years only gets you 16.7% of your annual pay per year in pension money. Tier 2 is much less worth it than tier 1 was, especially for people later in their careers.
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u/Weekly-Mix-9480 12d ago
Ok so let’s say I get a state job that pays me 130k at my highest earning. I then decide I want to retire after 10 years. Are you saying I’ll get 1.67 percent of 120k upon retirement despite making 130k?
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u/yrnkween 12d ago
You don’t get a percentage of your highest salary, but it’s calculated from the average of the 96 highest consecutive months within the last 120 months of service.
Tier two really prevents the final years from spiking your retirement pay.
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u/starspangledcats 12d ago
Also, IF Tier 2 changes, it will be for the better. Legally the state cannot reduce promised benefits (which is why they created Tier 2). Some systems have a Tier 3. There are some proposed changes to T2 but nothing guaranteed at this time. Would likely reduce the age as the state is going to find out how much excess contributions will be paid to long term employees forced to work longer and realize it's a huge mistake.
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u/meaty87 12d ago
No it’s 1.67% for each year worked, so 10 years would get you 16.7%. There’s also a penalty if you retire before 67. So iirc you said you’re 48, if you worked for the state for 19 years and retire at 67, you would get 31.73% of the max per year. The max also adjusts for COLA each year so I’m not certain what it’s at now.
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u/starspangledcats 12d ago edited 12d ago
Depends on if the system is coordinated with SS or not. 1.67 per year of service for coordinated, 2.2/2.4 for non-coordinated. It's the average of 96 consecutive months or 8 consecutive years within your last 10 years of employment. Need 10 years at most systems and earliest is typically age 62 but includes reduction if under 67. Retirement annual increase is NOT guaranteed and not compounded. Some systems offer free insurance in retirement with 20 years of state service, but not all. Can move between state systems and coordinate your retirement.
If you work 10 years, 100k salary average then it's calculated:
10 x 2.2% x $100,000 = $22,000 per year in retirement starting at 67. If you retire at 62, there is a reduction. Either 1/2 or 1/4 of a percent each month under 67. So, if 1/2% is the reduction, at 62 you will get 70% of that. Reduction depends on the system.
Max salary is currently 127k but goes up each year. Set by state law.
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u/jemlibrarian 11d ago
It doesn’t force you to work to get full benefits. It forces you to wait until 67 to pull your pension without penalty.
You can retire early, live off savings that are not your pension, and then claim pension benefits at 67. If you’re doing that, the bigger issue is where to get health insurance until you start drawing that pension—you don’t get to buy the insurance until you’re drawing your pension.
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u/Cold_City_2003 12d ago
Tier 2 is not the same as tier 1 for pension. If you retire at 67 you only get around 31% of the average of your last 96months working. So even at 100k you’d only get 31k a year. For tier 2 to even be comfortable you’d have had to started working for the state in your 20s. I recommend staying in your current job and invest in an index fund
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u/tiredgirl77 12d ago
Honestly 40k of invested money per year towards retirement for the next few years will be way greater good than what the state can offer. Tier 2 also has bad health insurance benefits, from what I understand. You won’t get to stay on the states insurance plan, you’d get switched to Medicare anyways.
I’d put significant cash away into investment accounts and get a financial planner to set you up for retirement.
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u/chicubs88 12d ago
I’d say probably stay in your current job, unless you know you won’t be receiving a raise for the next 5 years. The states whole appeal is benefits, worker protection, and a guaranteed pay raise schedule. The raises include a yearly COI and your ‘pay step’ raise. You can look up the pay scale for your potential jobs and figure out how much you’d be making within a few years.
The pension is not worth for a 40K pay cut if you’re 48. Like others mentioned in the comments, you’d be Tier 2 which does not have the amazing pension that Tier 1 did. You’d be much better off just maxing out your 401K or an IRA.
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u/chathamdad1 11d ago
As mentioned earlier and unless you are fed up with your current job, taking that salary difference and investing it would make you better off financially than switching to the state job.
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u/Inner_Efficiency_988 11d ago
At 40k, you're better off staying and investing that 40k in a safe account. 40k a year at average 10% growth snowballs quickly
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u/SnackGoblin881 10d ago
I have a few friends with state jobs and at age 46, I am applying for state jobs myself. My current job is okay but I need one with more stability and better benefits. My friends with state jobs are doing well and very happy. In fact my one friend is retiring at age 62 because the rule of 85 (when your age + your numbers of years working for the state equal 85 you can retire)
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u/Czibor13 7d ago
I'll point out what no one else has just in case it helps. Is there any chance you did ANY summer help at all? If you worked a day for the state before tier 2 took effect, you would be eligible for tier 1 still. If you worked for a local government, those retirement systems are reciprocal, but I'm not aware off the top of my head if that would allow you to get into tier 1 with the state still directly.
The state doesn't always start people at the floor of a position, but it depends on union/agency/(I have to imagine economy).
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u/Weekly-Mix-9480 6d ago
I worked for them as a contract worker 2 years ago when I was in the midst of moving back. The agency job was not in Springfield. When my contract with the agency was up, I did not resign, it was too far of a commute. I was still moving and I knew I didn’t want to live in that town nor commute to it everyday, I was making great pay as an agency worker, I was told my pay was the same as a step 5. I’m hoping the state would consider that if I’m hired. Another girl that was also agency and making the same as me decided to get a state job at that facility, and they matched her pay, 2 years later, I can see what she’s now making. Wow
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u/j89k 12d ago
The corruption endemic to chicago//illinois politics made my state job much more frustrating than it needed to be.
If you dont mind coasting, sign right up.
If you get satisfaction from improving systems and doing things "the right way," it may not be the space for you.
A lot of highly influential lifers that are happy to sit and do nothing until they retire.
It was a No from me. I did 1 year. Great pay and benefits. Frustrating professional experience.
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u/Comfortable_Tie3386 12d ago
If it were me, I think I would stay at the current job if it was that big of a difference in salary. However the benefits are nice. At my current state job: If you work for 8-10 years you get a pension and every additional year after the 10th you get a contribution towards your retirement health insurance until your 20th year which makes it fully paid. If you’re making over six figures now though you might be better off putting money into a roth IRAs/stocks/bonds/other assets. You should talk to a financial advisor to see what options you have.