This is a bit embarrassing to ask, but I'm having a hard time understanding the benefits offered to me at my new job. It's a variable time position, so that may have an impact on some of it- the 1,000 hrs per year part I guess.
"XYZ company match is 33 cents for every dollar the employee defers up to and including the first 6% of covered income. The Company match vesting is 20% per year (minimum 1,000 hours required annually)."
I get the first part, about the match (and am quite excited about it). But what does company match vesting mean? I found an article that says:
Any money you contribute from your paycheck is always 100% yours. But company matching funds usually vest over time - typically either 25% or 33% a year, or all at once after three or four years. Once you're fully vested, you can take the entire company match with you when you part ways with your job. If you're not fully vested, you'll get to keep only a portion of the match or maybe none at all. To find out your vesting schedule, check with your company's benefits administrator.
So does that mean I would have to stay for 5 years to take all the company matching with me? But I keep everything I contribute, right?
If you make $100,000 and put 5%($5,000) into your 401k your first year, the company will put in $1666.66.
If you leave before working 1000 hrs in 1 year, you will only get the $5,000 you put in back and the $1666.66 will not be yours
If you work 1000 hrs in 1 year, then leave the next year, you will get 20% of that $1666.66 + your $5,000 so you'll get $5,333.33
After 5 years you would get the full $1,666.66 from your first year.
I would say standard match for engineers is full match up to 3-5%
I don't think 1/3 match up to 6% is all that great, it's basically a 2% match with fancy lingo, but employee match is a much elss important factor than most things, like the base pay, if you like the location, the company, the people, the work, etc.
My company has an ESOP (Employee Stock Ownership Plan), they give me 15% of what I make in company stock, and I have the exact same vesting as you, every year that I work 1000 hrs it increases 20%. Sure it's risky having that much stock invested within 1 company, and they don't let me sell the stock until I leave the company, but it's basically free stock, so I'm not complaining.