Pension Commenced!

October 1, 2010 marks the first pay which my employer starts my pension.  It's a defined contribution pension plan which means that the contributions are set in stone, not the benefit.  The benefit (after I retired) will be based on how well the money does with the investment profile I've selected.

My employer matches 5% of my gross pay, so a total of 10% - I'm pretty pleased that I'm finally putting 10% away (even if 5% of it is from my employer).  Two years after the plan starts, it will be vested - which means no matter what happens with my employment, I have 100% rights to my company's contriubtions on my behalf.  If I leave any sooner (for whatever reason) - my company will keep it's share.

While all of this is fantasitc - it puts a bit of a hitch in my pay, and the budget that I posted yesterday.  My take home pay is going from about $1450/bi-weekly to $1320/bi-weekly - a take home reduction of $260/month.  Now, don't get me wrong, I've been wanting this for a long time, it just means some re-planning.

As you can see at the bottom, we're going to be down about $220. We already wrote our mechanic the cheque, and I defn. want to pay our credit card bill off in full.

We do have about that mutch in the wedding fund - and as the c/c bill is mostly my ring anyways - I'm thinking I may pull money from there to cover the overage.

I know that we could fiddle with some of the planned spending/savings - but everything is automated, so it would be a big pain to have to stop all payments and then restart them again.

What do you think?


  1. I think that it's never a good idea for people to put the name of their employer on their blog ... even if you don't say anything negative (which you didn't), it's still not a good idea.

  2. That's a bigger drop than I would have expected, given that its before tax money. But if you are pulling from HF anyway, I would just adjust my auto transfer for one month down by the $200

  3. @ Anon - Thank you for catching that!! I've removed it right away. I must have been more tired than I thought this morning. It's the first time I've done that :(

    @ Mom - yea... me too - but we'll figure it out. I may just do that...adjust the auto transfer instead of transfering money over.


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