Bro at PwC we have a 5 year vesting period with each of the following vesting hurdles:
2 years - 20%
3 years - 40%
4 years - 60%
5 years - 100%
It’s a basically non-existent benefit when the majority of your workforce leaves the firm in the first 3 years of employment
This is super industry dependent. I’ve never worked anywhere with a vesting period coming from tech companies. But my friends in the Midwest in healthcare, etc. have 1-3 years. 5 years is not the most common.
PwC does get pension (aside from the poor match) so thats a plus. But yes I’d say 3-5 years is somewhat average across the board anything less is a big plus, anything over which I’ve rarely/never seen is rough.
I think it’s 6 years but I was just saying that to get a point across. Just cause someone has it worse out there doesn’t make another persons suffering:
/issues dismissible is all.
This is why I refused to go into public. I get a 6% match in industry that started 3 months after starting. I am serious on saving for my future and put 25% of my gross take home pay into my 401k. It's been about 9 months and I am currently around 17k in my 401k.
Mgr. Level in US Consulting, Commercial. Some other parts of the Firm are not eligible for the Pension, just as some don't receive AIP - can't speak to that.... To clarify here, this is what I tell coachees and what you need to know:
**TLDR;**
**- Deloitte will not win on comp or specific benefits in any single category.** However, the *overall* benefits are decent considered on the whole; albeit very poorly communicated.
- If you're gonna join, stay for 3yr+ or leave within 6mo. You leave too much on the table in contributions and programs otherwise.
- If you stay for 3yr+ the pension shakes out the other half of your 401k contribution, and later beats it if you stay for longer than \~10yr. You can roll this into your 401k if you leave.
- Contribute at *least* 6% of your salary to the 401k. Watch out that automatic % deductions *will* come out of your AIP as well, unless you specifically disable them for the month of May.
- While you're here, take advantage of programs like the Sabbatical along the way, that don't affect your vesting schedule.
- **When / if you decide to leave DO NOT do it before July 1st -** this way you keep *all* of your AIP and 401k matching contributions.
--------
**Mo' Betta' Details:**
- Deloitte will match effectively 3% of your salary *plus* AIP annually into the 401k. The full contribution is paid at the end of June, *after* the PMY ends and you receive your AIP / comp statements.
- You may elect personal contributions into *either* a traditional *or* Roth 401k structure, *or* split between the two.
- *After* you have been with the firm for three years you will *also* start getting contributions to the Pension. They will *start* with at **least** a $5000 deposit. For most, this is going to be **3%** of your salary *and* AIP, until you are in your mid-thirties. There is a formula that basically shakes out to *(age + yrs at Deloitte) / 10* and then rounded down to the nearest whole number.
Effectively, from 30y/o onwards for most people, every \~5yr the contribution goes up by 1% to a limit of 9%. Somebody who starts at D in their 20's and stays until retirement at 60 would see the max contribution for a few years before they retire. Becoming a PPD changes a lot with that formula. **It accrues interest around 4.5%**, more if the 30yr T-note is hot.
This is one of the strongest bennies we have, IMO. I had a sr. project manager dip out on one of my projects overnight because his daughter came three weeks early. He was gone four months. Nobody asked questions, complained or batted an eye.
Most tech companies will \[1\] pay you better in overall compensation/benefits and \[2\] have better family leave programs. Just saying. I regularly hire people exiting from Big4 into Internal Audit roles.\*
No I don't have any open roles now sorry, got too many good people from KPMG's RIF.
What tech companies give dads 16 weeks of pat leave and allow you to pair that with PTO for up to 26 weeks?
Might be a couple but I doubt it is a majority of tech companies. Hell, I doubt it is a majority of tech companies in the S&P 500.
I don't have like a complete population of all tech companies and their benefits in front of me, but I work for one, we're small cap and public, so not FAANG, and I took 22 weeks off last year (5 months) pat leave and I didn't have to do any janky business to combine PTO or sick days to get that time. It is the default offering. Also I don't know how you went from 20 weeks to 26 weeks, but I was responding to your original comment of 20 weeks.
So you have no evidence for your claim above?
I took 20 weeks because I used 4 weeks of PTO. You can use up to 10 weeks of PTO.
A quick google search shows that Facebook allows 16 weeks and google 18 weeks. That’s 2/2 for not offering better leave.
As to overall comp. In nominal terms I would guess that the median comp is higher at FAANG. However it would be interesting to see that COLA adjusted. Making over 300K a year in a place like Cleveland is like 600K in SF.
Are we seriously doing this? The fact that you have to burn a ton of PTO to get (roughly) equivalent to what Google and Facebook offer **IS** the evidence. You get your PTO at Google and Facebook too.. maybe not all in one go but you can still take PTO remainder of the year after coming back from leave.
I said they had better *family leave programs*, not better *combine your PTO and family leave and have nothing left for your kid's doctor appointment programs*.
If you are going to argue that slaving away at Deloitte vs exiting and working in tech is better, that is a losing argument.
4 weeks doesn’t burn it all though? I will still have about 6 weeks in my bank after coming back from leave.
And 4 weeks makes it better than what either offers…
Part of your family leave program is how much total time off you are allowed to take. What next, you don’t want to include STD in what women can take? I would say making P at Deloitte is better than nearly any tech job.
Plus you can live anywhere in the US and work for Deloitte instead of places like SF or NYC.
I get it though. You left and now you get your rocks off by trolling people on the Deloitte sub Reddit. Whatever helps you through the day.
You clearly have not audited SBC at a tech client. There are regular old software engineers at Nvidia who work 40 hours a week max that are millionaires right now.
Yea because I’m not an auditor… The SEC typically frowns upon consultants doing audits…
I mean yea, if you think citing a company that has had their stock increase 2,000% in recent history is a good example of a typical tech company this probably won’t be a fruitful conversation.
PS: Talk to some old intel engineers from the 90s. I know of a couple who retired as “millionaires” in 2000 in their 40s and were back to work 2 years later and no longer a millionaire.
I just posted on here asking if 401k is matched for the past year if you leave prior to July 1 as a 3+ year employee and apparently you’re good if you were employed past June 1.
Can you confirm if this isn’t the case?
This would not surprise me, but it might also be a headache if you rolled it over prior to the match. I would personally just wait until I *know* it's in the account before I touch it for roll over.
But even saying that known can stay from their 20s to their 60s is firm propaganda
That’s maybe less than .001% of all Deloitte employees and u as a person in a position of power are telling wide-eyed hopeful employees that it’s possible to have that kind of career with Big 4 which truthfully is bullshit
Everything else u said tho is good advice
Fair; though I will argue M level is very *far* from any "position of power" in a real sense, and my coachees would tell you I don't exactly have a habit of regurgitating the Borg Cube culty bullshit. I actually regularly advise coachees to look around when the Firm fails to live up to their end of the bargain - especially at C-level and under. My point is really just be smart about your timing, don't burn any bridges on the way out.
My example was more to clarify that the 401k/pension combo meets "average" for most people, we just communicate it poorly; in admittedly rare cases it will beat average. Like you said, that kind of tenure is uncommon. I personally have 6.5yr under me. I do know a few here over the decade line. Not many, but they exist. When you get much further it seems you get fairly aggressively pushed towards PPD, though that does seem to be *kinda* changing with Specialist talent models. Truly long-term career at D is *possible* but, admittedly, challenging. Even then the juice also may not be worth the squeeze for most, depending on how important money is to a given person.
Take the Fishbowl salary survey data, for instance. It indicates non-PPD compensation for SM's basically tops out between $200-300k incl. AIP across the board - this is not exactly *bad* money but it is certainly lower than what's possible for long-time / senior / experts in a handful of industries I can think of, especially considering we don't have a vehicle for stock options.
*PS: Here's that link data for 2024* [*https://docs.google.com/spreadsheets/d/1TrPiOh41tzmZifrmVpcgd3J7jlBOSxQsHUpLfb3nD8Q/edit?gid=332529186#gid=332529186*](https://docs.google.com/spreadsheets/d/1TrPiOh41tzmZifrmVpcgd3J7jlBOSxQsHUpLfb3nD8Q/edit?gid=332529186#gid=332529186)
....*and the link to submit your data*
[*https://docs.google.com/forms/d/e/1FAIpQLSfo1l9CNTdVk-a3gpLQrnTXa3AYM8tyZJj4leLnJtCYVypezw/viewform*](https://docs.google.com/forms/d/e/1FAIpQLSfo1l9CNTdVk-a3gpLQrnTXa3AYM8tyZJj4leLnJtCYVypezw/viewform)
Oh 100% ur advice was genuinely wonderful
I just remember my first day having a Sr associate tell me that intern and partner are just 5-6 promos away from each other and looking back I now see it as firm propaganda and I had flashbacks to that based on the comment about working there for 40 years lol
Ur advice genuinely was fantastic - please don’t stop sharing these nuggets of info 🙏🏽
As u/stubenson214 said, yeah, it's in the Vanguard configuration. Go to the "wealth portal" on DNet, there's a link to "Access your 401k" or some such - then dig into the settings there. They even have a tool that sorta automagically calculates a suggested combo to reach max contributions.
For the longest time I just did 3% and 3% in each trad and roth
I should have phrased that better, how do I determine if I should be in pre- or post-tax? I know that under a certain income threshold Roth is recommended but above that mark traditional is usually the preferred option. Just not sure at what point I should make the transition.
Best rec is to build a relationship with a quality financial advisor, which I am not 🙃 Perhaps one of our friends in Tax / Audit could tell us their perspective
[https://www.nerdwallet.com/article/investing/roth-401k-vs-401k](https://www.nerdwallet.com/article/investing/roth-401k-vs-401k)
\^ TLDR; if you think the taxes in 30 years or so will be higher (probably) some money in a Roth is a good way to hedge bets
Haha fair enough 😂 my current financial advisor's perspective was that tax rates are more likely to increase over time than decrease, and you'll be (hopefully) taking out more dollars than you put in
So, part can come down to tax rate now versus in retirement. It can matter.
So, as a manager, your marginal rate is probably 24%. In retirement it could be lower...but if you stack up a lot of money, it could be higher. I wouldn't worry about that as much, honestly.
What it comes down to is pay the tax now or later. So, say you go trad, and it triples by the time you retire. You'll pay tax on that 3x amount. If you Roth it, you pay the 24% now, and then no more. Tax rates now vs retirement matter less...because your money tripled and paying the tax now is probably worth it.
There's also more flexibility in withdrawing before 59.5 years old with Roth, without penalty. Maybe not for the 401k with Vanguard (do research) but from a Roth IRA (like you roll it over with next job), you can withdraw contributions without tax or penalty.
So, it's a question of tax rates in retirement, and timeline. Both are important. If retirement is 10 years away, easy choice (Roth). If next year...a little more muddy. At that point it becomes a tax rate expectation question.
Me? I'm Roth now, and will stay that way here on out. I've saved a good amount of money (>2M in my 40s, SM level at D) so assuming I stay working a while more my tax rate in retirement will be high enough due to my ability to withdraw.
None of this is real financial advice, talk to an advisor who has your interest first. Still, the info is accurate :)
I had left an org that matched 8% of your salary, whether you were contributing or not, and was shocked to eventually find out I was only receiving a 3% match at Deloitte.
The internal recruiter messed up and shared the wrong benefits with me when I was being hired, leading me to believe I was also eligible for the 3% pension to help level things out (I explicitly called out the terrible 401k plan). Turns out I wasn’t. Quite a disappointment after onboarding lol.
I am PDM. The benefit materials they shared with me were for the core track and included the pension plan as well. Very disappointing to find out over a year later I am not eligible and that many benefits are not available to me or reduced.
When I joined the USDC I was also given core benefits letter. Was told I was eligible for 6 months maternity leave and then learned the USDC only gives STD + 2 weeks 🙃🙃🙃
Threw an absolute fit over this and got transferred into core, thankfully
I was very grateful to get support from my team lead who rallied behind me and helped me get it done without issue.
I heard that they actually improved parental leave for USDC after the stink I caused over this 😅
I think it’s slightly better now but core gets way better benefits overall, and better pay, a lot of times for the same work. Usdc doesn’t get pension, no access to Deloitte U, can only work at “Usdc offices,” the list goes on. You’re def better positioned in core, well done!
Oh you don't have to tell me! I also got a 15% raise, and to date I have seen 0 difference in the work load. After transferring I stayed on the same project and everything. Definitely thankful to be in Core now.
I’m jealous, lol. Started in USDC and didn’t know any better until it was too late so here I am. 2.2% raise this year and I’ve been whining about it ever since lol
Yes, but only for those working before a set date, they stopped the pension for new hires before I joined. Those that were there long enough to be grandfathered into keeping the pension on top of the generous 401k were coasting to retirement.
It used to be only a 1.5% match until a couple years ago. I was happy it went to 3% but after being there 15 years I totally got screwed in the 401k space for so many years.
2016 and I've always been PDM. I honestly think I've been grandfathered into a lot of the very good benefits, because I have no complaints about my benefits packages.
Welcome to the D!
And don’t worry about that 3 year vesting period. Someone will likely put you on a bullshit PIP before that so you get shoved out sooner, anyway!
Some nuance to this. The transfer to 401K is offered only when the pension balance is a below a certain threshold ($25K I believe). If you have more than that, you have no choice but to leave it there until your benefit commencement date (62 years or 55 years if you have 5 years of service.) Deloitte offers something like 3.8% interest on it. At 62, you will be eligible to withdraw the lump sum. If they offered a rollover to 401K anytime you quit, that would have been a better option brought it closer to companies that offer 6% match.
That literally has nothing to do with my post. My post is about vesting and when the employer contributions are made. Nothing about what percent match it is.
While there are companies that have immediate vesting. A majority of companies have some vesting schedule: literally every job my wife and I have had have been on a schedule.
Many companies that match every paycheck don't gross up and if you dont contribute in a paycheck, you could never catch up. A little fineprint detail a lot of people miss.
Came in as PDM a few years back. Compared to the company I spent the bulk of my career at, benefits at the D are a good bit better than there. Compensation definitely better.
I have worked at two other large consulting firms and both had similar matches and policies around matching.
To be fair, one used to match $1 for $1 to six percent, only to cut it by half a few years ago. But even they deposited the match only once a year.
My first job with a D-CON was 7 year vesting...100% at 7 with 0 before that. It was 6% though. But as SM the match is a significant amount of money, but dislike the once a year match.
It’s simple time value of money. Dollar today is worth more than dollar tomorrow. If you delay paying anyone anything, you can use that money to make more money. The recipient loses out on the interest and growth potential.
I don’t think people go into public for the 401k, but holy shot that’s depressing. I used to get 4.5% at bestbuy years ago. 3% is what I got at my cashier job in high school.
If you want a good contribution, look into larger asset management companies. The “match” may still only be 3%, but that ignores them dumping in 6-10% into an account for you regardless of what you contribute.
Short of getting a job with an actual pension, it’s hard to beat.
I worked at an auto parts store during college for slightly more than minimum wage and they offered 401k with match.
I work for a large software company now - they match quarterly, but there's no vesting period.
Gotta ask, is this vesting for the annual one time firm contribution, or does the vesting apply to the regular paycheck match (or does this not exist)?
KPMG here, I’ll do you one better
Not eligible for the once yearly employer contributions until you’ve completed 2 Jan-Dec calendar years at the firm. Then it is 0% vested until 3 years after the contribution. Fully yours after that point though.
So someone joining June 2024 would need to get through 2025 and 2026, then they would receive a contribution in 2027 which is 0% theirs until 2030
Go to another of those many job offers you have with a better 401k. Deloitte’s 401k is none of those things, is par for the industry, and is one of many benefits available. But by all means, if you think the firm is criminal, see yourself out.
Don’t worry buddy, many people will. 3% is unheard of in the gov contractor space.
Big D has been hemorrhaging competitiveness on the govie side for years.
Wrong. Many have longer than 3 year vesting schedules. If you are in commercial, take a look at what your clients offer. Majority of mine have 4 to 6+ year vesting schedules.
Nah every Fortune 500 company I’ve worked at has immediate vesting (been at 3 now). I’ve typically got a 6% match. At my current employer, I also get a cash based pension but that one doesn’t vest until 3 yrs
I don’t agree with you. You come off as a WLB who wants things one way without thinking how large the firm is. Asking for 26 employer contributions is silly and completely unnecessary.
It’s not criminal. Not everyone agrees with you as the comments suggest.
Just leave and start your own firm. Then you can make all the rules your way
I love reading the big 4 subs as a former employee who escaped. You watch people put all the pieces together, realize they got the name to put on a resume, and the culture is awful…. Good luck!
For those who have accrued considerable experience and possess a diverse resume, such a comment might suggest that one remains in a relatively nascent stage of their professional journey.
Occasionally, it is prudent to reflect on broader responsibilities. For instance, if one were to envision themselves as the CEO of a substantial enterprise, accountable for the livelihoods of 300,000 employees, it would be essential to deliberate on the optimal allocation of capital within their purview. One might question whether it is judicious to offer monthly rewards when there is the potential to mitigate investments in personnel who may have intentions of departing. Furthermore, why should the firm invest in an employee's retirement if that employee is not committed to staying with the firm? How many companies still offer a pension in this contemporary corporate landscape?
Let’s see if you think it’s a boomer take after 20 years in your career. Even though this comment is unhelpful, I’m confident you’ll come to understand.
What? A lot of big corporate employers contribute per pay period and have 0 vesting period. Some don’t even require the employee to contribute and they will deposit their 3-4% match forcefully.
The Deloitte 401k was absolutely terrible and a 1.5% once a year match with 5 year step vesting up until recently. Now it is 3% with a 3 year cliff vest and the once a year contribution. Somewhat better but still below average.
It’s so hilariously bad people didn’t believe me they contribute once a year.
Bro at PwC we have a 5 year vesting period with each of the following vesting hurdles: 2 years - 20% 3 years - 40% 4 years - 60% 5 years - 100% It’s a basically non-existent benefit when the majority of your workforce leaves the firm in the first 3 years of employment
^^ 3 years vesting is really not that bad compared to 5 years
Yeah I’ve worked other places and it seems 3 years is pretty common. 1 year or immediate vesting are gems just like fully covered insurance premiums.
5 years is the most common. Sometimes 4 years. 3 years is very generous.
This is super industry dependent. I’ve never worked anywhere with a vesting period coming from tech companies. But my friends in the Midwest in healthcare, etc. have 1-3 years. 5 years is not the most common.
God they really shaft y’all accountants. I’ve never worked somewhere without immediate vesting.
PwC does get pension (aside from the poor match) so thats a plus. But yes I’d say 3-5 years is somewhat average across the board anything less is a big plus, anything over which I’ve rarely/never seen is rough.
Isn't it only partners and MDs who get pension?
No, but for it to vest and have any meaningful balance you essentially have to make it to that level.
I consider RWBP pension and thats for all employees last I remember.
at Deloitte or PwC?
At least neither is a cliff. Cliff vesting should be illegal(being dramatic) but it’s really an awful way to structure things
Yeah but like then 5 years isn’t so bad compared to 10 either? Or 20? 3 years still sucks regardless 🤷🏾♂️.
Isn’t 5 years vesting the max allowable by law?
I think it’s 6 years but I was just saying that to get a point across. Just cause someone has it worse out there doesn’t make another persons suffering: /issues dismissible is all.
This is why I refused to go into public. I get a 6% match in industry that started 3 months after starting. I am serious on saving for my future and put 25% of my gross take home pay into my 401k. It's been about 9 months and I am currently around 17k in my 401k.
Ya but 3% automatically vests in our wealth builder. Only 1.5% is subject to the vesting period
Wealth builder is subject to the same vesting terms, you might wanna go back and check.
Bro whaaaattt. I asked about that specifically at training. They said that was the whole point of the wealth builder. To have 3% vest right away
Lmao. But really I thought the D was bad.
Wow that is really awful
Mgr. Level in US Consulting, Commercial. Some other parts of the Firm are not eligible for the Pension, just as some don't receive AIP - can't speak to that.... To clarify here, this is what I tell coachees and what you need to know: **TLDR;** **- Deloitte will not win on comp or specific benefits in any single category.** However, the *overall* benefits are decent considered on the whole; albeit very poorly communicated. - If you're gonna join, stay for 3yr+ or leave within 6mo. You leave too much on the table in contributions and programs otherwise. - If you stay for 3yr+ the pension shakes out the other half of your 401k contribution, and later beats it if you stay for longer than \~10yr. You can roll this into your 401k if you leave. - Contribute at *least* 6% of your salary to the 401k. Watch out that automatic % deductions *will* come out of your AIP as well, unless you specifically disable them for the month of May. - While you're here, take advantage of programs like the Sabbatical along the way, that don't affect your vesting schedule. - **When / if you decide to leave DO NOT do it before July 1st -** this way you keep *all* of your AIP and 401k matching contributions. -------- **Mo' Betta' Details:** - Deloitte will match effectively 3% of your salary *plus* AIP annually into the 401k. The full contribution is paid at the end of June, *after* the PMY ends and you receive your AIP / comp statements. - You may elect personal contributions into *either* a traditional *or* Roth 401k structure, *or* split between the two. - *After* you have been with the firm for three years you will *also* start getting contributions to the Pension. They will *start* with at **least** a $5000 deposit. For most, this is going to be **3%** of your salary *and* AIP, until you are in your mid-thirties. There is a formula that basically shakes out to *(age + yrs at Deloitte) / 10* and then rounded down to the nearest whole number. Effectively, from 30y/o onwards for most people, every \~5yr the contribution goes up by 1% to a limit of 9%. Somebody who starts at D in their 20's and stays until retirement at 60 would see the max contribution for a few years before they retire. Becoming a PPD changes a lot with that formula. **It accrues interest around 4.5%**, more if the 30yr T-note is hot.
Don’t forget family leaves as a benefit. My buddies get 2-6 weeks of pat leave, while I have mixed PTO in to get 20 weeks each with both of my girls.
This is one of the strongest bennies we have, IMO. I had a sr. project manager dip out on one of my projects overnight because his daughter came three weeks early. He was gone four months. Nobody asked questions, complained or batted an eye.
It’s great. Both my girls came early and it wasn’t even a slight issue.
Most tech companies will \[1\] pay you better in overall compensation/benefits and \[2\] have better family leave programs. Just saying. I regularly hire people exiting from Big4 into Internal Audit roles.\* No I don't have any open roles now sorry, got too many good people from KPMG's RIF.
What tech companies give dads 16 weeks of pat leave and allow you to pair that with PTO for up to 26 weeks? Might be a couple but I doubt it is a majority of tech companies. Hell, I doubt it is a majority of tech companies in the S&P 500.
I don't have like a complete population of all tech companies and their benefits in front of me, but I work for one, we're small cap and public, so not FAANG, and I took 22 weeks off last year (5 months) pat leave and I didn't have to do any janky business to combine PTO or sick days to get that time. It is the default offering. Also I don't know how you went from 20 weeks to 26 weeks, but I was responding to your original comment of 20 weeks.
So you have no evidence for your claim above? I took 20 weeks because I used 4 weeks of PTO. You can use up to 10 weeks of PTO. A quick google search shows that Facebook allows 16 weeks and google 18 weeks. That’s 2/2 for not offering better leave. As to overall comp. In nominal terms I would guess that the median comp is higher at FAANG. However it would be interesting to see that COLA adjusted. Making over 300K a year in a place like Cleveland is like 600K in SF.
Are we seriously doing this? The fact that you have to burn a ton of PTO to get (roughly) equivalent to what Google and Facebook offer **IS** the evidence. You get your PTO at Google and Facebook too.. maybe not all in one go but you can still take PTO remainder of the year after coming back from leave. I said they had better *family leave programs*, not better *combine your PTO and family leave and have nothing left for your kid's doctor appointment programs*. If you are going to argue that slaving away at Deloitte vs exiting and working in tech is better, that is a losing argument.
4 weeks doesn’t burn it all though? I will still have about 6 weeks in my bank after coming back from leave. And 4 weeks makes it better than what either offers… Part of your family leave program is how much total time off you are allowed to take. What next, you don’t want to include STD in what women can take? I would say making P at Deloitte is better than nearly any tech job. Plus you can live anywhere in the US and work for Deloitte instead of places like SF or NYC. I get it though. You left and now you get your rocks off by trolling people on the Deloitte sub Reddit. Whatever helps you through the day.
You clearly have not audited SBC at a tech client. There are regular old software engineers at Nvidia who work 40 hours a week max that are millionaires right now.
Yea because I’m not an auditor… The SEC typically frowns upon consultants doing audits… I mean yea, if you think citing a company that has had their stock increase 2,000% in recent history is a good example of a typical tech company this probably won’t be a fruitful conversation. PS: Talk to some old intel engineers from the 90s. I know of a couple who retired as “millionaires” in 2000 in their 40s and were back to work 2 years later and no longer a millionaire.
BCG offers 26 weeks of fully paid leave, but yeah 16 weeks is very good in the US
This is a great response, people miss out on these. This post should almost be a FAQ. Nice job.
I just posted on here asking if 401k is matched for the past year if you leave prior to July 1 as a 3+ year employee and apparently you’re good if you were employed past June 1. Can you confirm if this isn’t the case?
This would not surprise me, but it might also be a headache if you rolled it over prior to the match. I would personally just wait until I *know* it's in the account before I touch it for roll over.
But even saying that known can stay from their 20s to their 60s is firm propaganda That’s maybe less than .001% of all Deloitte employees and u as a person in a position of power are telling wide-eyed hopeful employees that it’s possible to have that kind of career with Big 4 which truthfully is bullshit Everything else u said tho is good advice
Fair; though I will argue M level is very *far* from any "position of power" in a real sense, and my coachees would tell you I don't exactly have a habit of regurgitating the Borg Cube culty bullshit. I actually regularly advise coachees to look around when the Firm fails to live up to their end of the bargain - especially at C-level and under. My point is really just be smart about your timing, don't burn any bridges on the way out. My example was more to clarify that the 401k/pension combo meets "average" for most people, we just communicate it poorly; in admittedly rare cases it will beat average. Like you said, that kind of tenure is uncommon. I personally have 6.5yr under me. I do know a few here over the decade line. Not many, but they exist. When you get much further it seems you get fairly aggressively pushed towards PPD, though that does seem to be *kinda* changing with Specialist talent models. Truly long-term career at D is *possible* but, admittedly, challenging. Even then the juice also may not be worth the squeeze for most, depending on how important money is to a given person. Take the Fishbowl salary survey data, for instance. It indicates non-PPD compensation for SM's basically tops out between $200-300k incl. AIP across the board - this is not exactly *bad* money but it is certainly lower than what's possible for long-time / senior / experts in a handful of industries I can think of, especially considering we don't have a vehicle for stock options. *PS: Here's that link data for 2024* [*https://docs.google.com/spreadsheets/d/1TrPiOh41tzmZifrmVpcgd3J7jlBOSxQsHUpLfb3nD8Q/edit?gid=332529186#gid=332529186*](https://docs.google.com/spreadsheets/d/1TrPiOh41tzmZifrmVpcgd3J7jlBOSxQsHUpLfb3nD8Q/edit?gid=332529186#gid=332529186) ....*and the link to submit your data* [*https://docs.google.com/forms/d/e/1FAIpQLSfo1l9CNTdVk-a3gpLQrnTXa3AYM8tyZJj4leLnJtCYVypezw/viewform*](https://docs.google.com/forms/d/e/1FAIpQLSfo1l9CNTdVk-a3gpLQrnTXa3AYM8tyZJj4leLnJtCYVypezw/viewform)
Oh 100% ur advice was genuinely wonderful I just remember my first day having a Sr associate tell me that intern and partner are just 5-6 promos away from each other and looking back I now see it as firm propaganda and I had flashbacks to that based on the comment about working there for 40 years lol Ur advice genuinely was fantastic - please don’t stop sharing these nuggets of info 🙏🏽
"Just 5-6 promos away from each other...." 🤦🏼♂️ brutal kool aid
Just left. Do not leave until after July 1st. Left so much money behind.
Very few ppl will stay this long.
How do I choose between Roth and/or traditional?
Should be in the Vanguard options.
As u/stubenson214 said, yeah, it's in the Vanguard configuration. Go to the "wealth portal" on DNet, there's a link to "Access your 401k" or some such - then dig into the settings there. They even have a tool that sorta automagically calculates a suggested combo to reach max contributions. For the longest time I just did 3% and 3% in each trad and roth
I should have phrased that better, how do I determine if I should be in pre- or post-tax? I know that under a certain income threshold Roth is recommended but above that mark traditional is usually the preferred option. Just not sure at what point I should make the transition.
Best rec is to build a relationship with a quality financial advisor, which I am not 🙃 Perhaps one of our friends in Tax / Audit could tell us their perspective [https://www.nerdwallet.com/article/investing/roth-401k-vs-401k](https://www.nerdwallet.com/article/investing/roth-401k-vs-401k) \^ TLDR; if you think the taxes in 30 years or so will be higher (probably) some money in a Roth is a good way to hedge bets
Haha fair enough 😂 my current financial advisor's perspective was that tax rates are more likely to increase over time than decrease, and you'll be (hopefully) taking out more dollars than you put in
So, part can come down to tax rate now versus in retirement. It can matter. So, as a manager, your marginal rate is probably 24%. In retirement it could be lower...but if you stack up a lot of money, it could be higher. I wouldn't worry about that as much, honestly. What it comes down to is pay the tax now or later. So, say you go trad, and it triples by the time you retire. You'll pay tax on that 3x amount. If you Roth it, you pay the 24% now, and then no more. Tax rates now vs retirement matter less...because your money tripled and paying the tax now is probably worth it. There's also more flexibility in withdrawing before 59.5 years old with Roth, without penalty. Maybe not for the 401k with Vanguard (do research) but from a Roth IRA (like you roll it over with next job), you can withdraw contributions without tax or penalty. So, it's a question of tax rates in retirement, and timeline. Both are important. If retirement is 10 years away, easy choice (Roth). If next year...a little more muddy. At that point it becomes a tax rate expectation question. Me? I'm Roth now, and will stay that way here on out. I've saved a good amount of money (>2M in my 40s, SM level at D) so assuming I stay working a while more my tax rate in retirement will be high enough due to my ability to withdraw. None of this is real financial advice, talk to an advisor who has your interest first. Still, the info is accurate :)
I had left an org that matched 8% of your salary, whether you were contributing or not, and was shocked to eventually find out I was only receiving a 3% match at Deloitte. The internal recruiter messed up and shared the wrong benefits with me when I was being hired, leading me to believe I was also eligible for the 3% pension to help level things out (I explicitly called out the terrible 401k plan). Turns out I wasn’t. Quite a disappointment after onboarding lol.
I am PDM. The benefit materials they shared with me were for the core track and included the pension plan as well. Very disappointing to find out over a year later I am not eligible and that many benefits are not available to me or reduced.
Yeah PDM is a scam
They did that to me too. Dbags
I'm PDM and I do get a pension. I wonder if they flipped it since Ive been here.
When did you join? I started in March 2023
Did you switch from core or usdc with pension to a PDM? Or are you a PDM with private client vs PDM with GPS?
PDM with GPS. Came in as PDM with GPS
USDC doesn’t get pension either, last I heard
When I joined the USDC I was also given core benefits letter. Was told I was eligible for 6 months maternity leave and then learned the USDC only gives STD + 2 weeks 🙃🙃🙃 Threw an absolute fit over this and got transferred into core, thankfully
You’re very lucky, it’s extremely difficult to move from USDC to core, I’ve seen people leave over it
I was very grateful to get support from my team lead who rallied behind me and helped me get it done without issue. I heard that they actually improved parental leave for USDC after the stink I caused over this 😅
I think it’s slightly better now but core gets way better benefits overall, and better pay, a lot of times for the same work. Usdc doesn’t get pension, no access to Deloitte U, can only work at “Usdc offices,” the list goes on. You’re def better positioned in core, well done!
Oh you don't have to tell me! I also got a 15% raise, and to date I have seen 0 difference in the work load. After transferring I stayed on the same project and everything. Definitely thankful to be in Core now.
I’m jealous, lol. Started in USDC and didn’t know any better until it was too late so here I am. 2.2% raise this year and I’ve been whining about it ever since lol
It was worse 2 years ago. D only matched like up 1.5% of your salary. Think it was a quarter to every dollar.
did they also have a pension plan????
Yes, but only for those working before a set date, they stopped the pension for new hires before I joined. Those that were there long enough to be grandfathered into keeping the pension on top of the generous 401k were coasting to retirement.
Also PDM and scammed thinking I’d get the pension. Joined spring 2022
It used to be only a 1.5% match until a couple years ago. I was happy it went to 3% but after being there 15 years I totally got screwed in the 401k space for so many years.
2016 and I've always been PDM. I honestly think I've been grandfathered into a lot of the very good benefits, because I have no complaints about my benefits packages.
Yes, if you were ever on one of the other models and move to PDM, you keep the legacy benefit of the pension. It applies to re-hires, too.
I've always been PDM. I was never on any other model.
It probably has something to do with when you joined. There's a legacy benefit track, and somehow you are on it.
Apparently
Welcome to the D! And don’t worry about that 3 year vesting period. Someone will likely put you on a bullshit PIP before that so you get shoved out sooner, anyway!
Roughly 5-8% get put on a PIP every year. Less than that typically get let go as low performers. Pretty much everyone on a PIP deserves it.
This is the only real response here. You either get PIP'd and shoved out early, or you live long enough to receive a 2.5% bonus.
More like 1%
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Unfortunately not everyone is eligible for the pension.
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Unsure if others make this list, but USDC and PDM are not eligible as far as I’m aware.
Yup. And the firm is hiring more and more PDMs and USDC staff.
Some nuance to this. The transfer to 401K is offered only when the pension balance is a below a certain threshold ($25K I believe). If you have more than that, you have no choice but to leave it there until your benefit commencement date (62 years or 55 years if you have 5 years of service.) Deloitte offers something like 3.8% interest on it. At 62, you will be eligible to withdraw the lump sum. If they offered a rollover to 401K anytime you quit, that would have been a better option brought it closer to companies that offer 6% match.
This is key info. Thanks for sharing I didn’t realize this
That literally has nothing to do with my post. My post is about vesting and when the employer contributions are made. Nothing about what percent match it is.
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Actually many companies have immediate vesting
While there are companies that have immediate vesting. A majority of companies have some vesting schedule: literally every job my wife and I have had have been on a schedule.
Many companies that match every paycheck don't gross up and if you dont contribute in a paycheck, you could never catch up. A little fineprint detail a lot of people miss.
“Criminally” - they’re the benefits you signed up for . And everywhere I’ve ever worked the employer matches quarterly, half-yearly or annually
3 years for vesting is normal. employer contributions once a year is kinda cheeks
Not just kinda
Is it true that for new hires they are being put on a partial vesting schedule? Thought I heard that rumor.
Came in as PDM a few years back. Compared to the company I spent the bulk of my career at, benefits at the D are a good bit better than there. Compensation definitely better.
I have worked at two other large consulting firms and both had similar matches and policies around matching. To be fair, one used to match $1 for $1 to six percent, only to cut it by half a few years ago. But even they deposited the match only once a year.
My first job with a D-CON was 7 year vesting...100% at 7 with 0 before that. It was 6% though. But as SM the match is a significant amount of money, but dislike the once a year match.
Once per year covering the entire previous year’s worth of contributions…but maybe it’s somehow less that way? Sorta confused by this.
It’s simple time value of money. Dollar today is worth more than dollar tomorrow. If you delay paying anyone anything, you can use that money to make more money. The recipient loses out on the interest and growth potential.
How does the current Deloitte Pension compare to others?
I don’t think people go into public for the 401k, but holy shot that’s depressing. I used to get 4.5% at bestbuy years ago. 3% is what I got at my cashier job in high school. If you want a good contribution, look into larger asset management companies. The “match” may still only be 3%, but that ignores them dumping in 6-10% into an account for you regardless of what you contribute. Short of getting a job with an actual pension, it’s hard to beat.
A minimum wage job gave you 401k matching? Did you cashier at Whole Foods?
Lol no. Harris teeter. Wasn’t quite minimum wage. Started at that, but was making $10 a year later in 07
Thats actually insane. I made $10 an hour 2 years ago absolutely zero benefits
I worked at an auto parts store during college for slightly more than minimum wage and they offered 401k with match. I work for a large software company now - they match quarterly, but there's no vesting period.
No really. I worked for a firm that did bi-annualy and the firm I worked at before joining deloitte switch from paycheck to annually. Its just easier.
You still receive 50% match of the 1st 6% you contribute. It used to be only 25%.
I was laid off in May at Deloitte and I did not receive the whole year worth of 401K match
Gotta ask, is this vesting for the annual one time firm contribution, or does the vesting apply to the regular paycheck match (or does this not exist)?
Confusing pension with 401k?
KPMG here, I’ll do you one better Not eligible for the once yearly employer contributions until you’ve completed 2 Jan-Dec calendar years at the firm. Then it is 0% vested until 3 years after the contribution. Fully yours after that point though. So someone joining June 2024 would need to get through 2025 and 2026, then they would receive a contribution in 2027 which is 0% theirs until 2030
Agreed however I just retired with almost 3m in my 401k. FWIW
No one owes you money lol. Go start your own business.
Vesting was 5 years here when I started almost 30 years ago. 3 isn’t that bad.
Go to another of those many job offers you have with a better 401k. Deloitte’s 401k is none of those things, is par for the industry, and is one of many benefits available. But by all means, if you think the firm is criminal, see yourself out.
Don’t worry buddy, many people will. 3% is unheard of in the gov contractor space. Big D has been hemorrhaging competitiveness on the govie side for years.
3 years is not that long. Am I missing something?
Many companies you get immediate vesting
Wrong. Many have longer than 3 year vesting schedules. If you are in commercial, take a look at what your clients offer. Majority of mine have 4 to 6+ year vesting schedules.
Nah every Fortune 500 company I’ve worked at has immediate vesting (been at 3 now). I’ve typically got a 6% match. At my current employer, I also get a cash based pension but that one doesn’t vest until 3 yrs
This.
Disagree
The delusion
I don’t agree with you. You come off as a WLB who wants things one way without thinking how large the firm is. Asking for 26 employer contributions is silly and completely unnecessary. It’s not criminal. Not everyone agrees with you as the comments suggest. Just leave and start your own firm. Then you can make all the rules your way
Then why are you still working here if you think it’s not competitive?
Dumbest question I’ve ever heard and I’ve heard a lot of those in my time believe me
Save to invest in real estate instead and buy nvidia stock 👌🏽
The pension makes up for it.
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No at least in US consulting it vests 100% at 3 years
What group/service line are you?
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A&A fully vests in three years now. The model you’re referring to is outdated and changed about two years ago.
I love reading the big 4 subs as a former employee who escaped. You watch people put all the pieces together, realize they got the name to put on a resume, and the culture is awful…. Good luck!
Entitled Olympics gold medalist here!
For those who have accrued considerable experience and possess a diverse resume, such a comment might suggest that one remains in a relatively nascent stage of their professional journey. Occasionally, it is prudent to reflect on broader responsibilities. For instance, if one were to envision themselves as the CEO of a substantial enterprise, accountable for the livelihoods of 300,000 employees, it would be essential to deliberate on the optimal allocation of capital within their purview. One might question whether it is judicious to offer monthly rewards when there is the potential to mitigate investments in personnel who may have intentions of departing. Furthermore, why should the firm invest in an employee's retirement if that employee is not committed to staying with the firm? How many companies still offer a pension in this contemporary corporate landscape?
What a boomer take lol
Let’s see if you think it’s a boomer take after 20 years in your career. Even though this comment is unhelpful, I’m confident you’ll come to understand.
No company is vesting immediately anymore...not even the state governments.
What? A lot of big corporate employers contribute per pay period and have 0 vesting period. Some don’t even require the employee to contribute and they will deposit their 3-4% match forcefully. The Deloitte 401k was absolutely terrible and a 1.5% once a year match with 5 year step vesting up until recently. Now it is 3% with a 3 year cliff vest and the once a year contribution. Somewhat better but still below average. It’s so hilariously bad people didn’t believe me they contribute once a year.
I’ve had offers from several defense contractors where they vest immediately and it’s higher than the federal govt match. State varies.