Don't discount the value of a pension. If they make $50k/yr + 2% inflation adjustments for 20 years, they would retire making $75k/yr. Their pension would pay them roughly half that, plus the value of their TSP (401k).
If you're a 45 year old programmer and feel like you're nearing the end of your valuable career, it might make sense to take the pay cut and make the transition. The pension alone is the equivalent of adding another $1MM to your retirement portfolio (assuming 4% safe withdraw rate).
As a person who is scared by the prospect of programming into my 50s, I could see making this move. A 50% reduction in pay until retirement sounds more appealing to me than a sudden 100% reduction in pay at some indeterminate point in the future.
If you're a 45 year old programmer and feel like you're nearing the end of your valuable career, it might make sense to take the pay cut and make the transition. The pension alone is the equivalent of adding another $1MM to your retirement portfolio (assuming 4% safe withdraw rate).
As a person who is scared by the prospect of programming into my 50s, I could see making this move. A 50% reduction in pay until retirement sounds more appealing to me than a sudden 100% reduction in pay at some indeterminate point in the future.