(06-23-2017 01:04 PM)jjj Wrote:  Extremely simple example of hypothetical NIU employee who works 30
years and has a salary of 40k per year...(tier 1). No raises.

Employee puts away $3200 per year in pension (8 percent), state
matches 7 percent, thus, employee is putting away 6k per year.

Assume the investment grows at 8 percent year (stock market average) and employee will have 678k for a balance at retirement. (Annuity factor is 113).

Employee gets 80 percent max of top pay since they put in 30 years. Pension is 32k per year plus cola of 3 percent. 678k/32k is about 21.6 years the NIU persons money.....Throw in the COLA and maybe it is 17 years of the NIU persons money.....

I don't know what current matches are for 401k in corporate world but know my brothers company is 100 percent.....up to x amount....

100% match is extremely rare in the private sector. Your brother is fortunate. 50% is fairly common, but the most common is no match.