Posted by Tim Stobbs on June 4, 2010
I figured I should give you all an update after my previous post when I mentioned I was thinking about dropping down to 80% time at my day job. It was an interesting meeting with my boss to discuss what I was looking for and what I would be willing to accept. Strangely enough, we barely discussed why I was looking to doing it. Apparently my feeling stretch thin is obvious even to my boss.
The short answer is my boss didn’t say no. He also didn’t say yes. Which was to be expected, I had started the meeting saying this was just preliminary discussion and I didn’t expect an answer right away. There are a few more complicated items going on in the company that would be required to be sorted out prior to me dropping down (long story, don’t ask). Yet overall he was supportive of the idea which made me very happy.
I also learned some interesting items. One was he seemed to be leaning towards me having a full extra day off each week rather than working reduce hours five days a week. This surprised me as I thought work would have preferred to have me five days a week while I prefer one full day off each week. I also had a few discussions with others who already are on reduced hours and I found out a few interesting facts about our benefits. Apparently when you are working at least 75% or more of the time you continue to keep full dental, health and family leave benefits. I would lose 20% of my vacation, banked days off, salary and pension.
So overall the time score would look something like this:
- Gain: 52 days off a year
- Lose: 4 days vacation, 2.6 bank days off
- Net Gain: 45.4 days a year
On the money side I would be losing salary and pension money, yet I would also be also having less tax to pay. I’ve done some crude estimates of money lost and I’m comfortable with that number. It would slow down my mortgage paydown plan, but not that badly since I’m now already under $100,000 owing. I’m waiting for a full breakdown and estimate from HR before I model the impact this will have on my retirement plans.
So this might take a while, but at least the discussion has started. I’ll keep you all posted on how this turns out.