Finally, someone did an analysis reported by the Wall St. Journal that describes what the true differential is between Public and Private Workers, and calls the Public workers on the Gravy Train... The study was based on California public workers, and also identifies missing components not described in another study from Berkeley. Here is an overview: - Actual wages are below private workers in BIG corporations by about 4%, but just about even if you compare all private worker pay (small and large employers). - Value of defined benefit pensions is about 4% higher for government workers because they are promised SPECIFIC levels based upon 8% earnings vs most corporations use 401k programs where the employee gets maybe 4%, and it is not a promised amount (defined benefit). - Retiree health benefits - about 90% of public plans offer retiree health benefits while pirvate sector employees rarely get them, AND government workers can start getting them when they retire in their 50's, while private sector plans rarely cover anything until a much later retirement age. State actuarial reports for California indicate the retiree health benefits could another 8% in compensation value. - Adding the values of the above pension and... Read more →
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