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JustWondering's avatar

JustWondering

San Diego City Employees pension fund ailing

I love how Johnny always gives us HIS part of the truth and not the whole truth. In the article he cites above: http://ecoworld.com/blog/2009/02/08/calculating-e… Johnny skips over the private sector analysis... "In the private sector, this “overhead” that is actually compensation that directly benefits the employee can vary, with the 10% figure representing the low end of the spectrum. At the higher end, a private sector worker who makes, for example, $65,000 per year, may also have several benefits that increase their actual compensation. They will earn the employer’s payments on their behalf, which amounts to an additional 10% for social security and medicare. They will also potentially have their health insurance paid for, adding as much as another $12,000 per year or more. Sometimes there is an employer’s matching contribution to a 401K plan, possibly adding up to another 5%. If you add this all up, these lucky employees actually earn not $65,000 per year, but $86,750 per year ($65K times 115% plus $12K). In addition, the private sector employee may not work 2,080 hours per year - they may have 10 paid holidays and 10 vacation days, meaning they only work 1,920 hours per year. If you normalize this for a full year that totals 2,080 working hours ($87K divided by 1,920 times 2,080), you get a real annual compensation of $93,979 per year, or an “overhead” of 46%." You see I can pick and choose too. In reading the paragraph above it sounds like private and public sector compensations are comparable as cited by the author. I have concerns about "comparable" i.e. job tasks, between private and public jobs. But the point is they seem to be within the ballpark. With that said, I strongly suggest each of you follow the link above, read it for yourselves understand it and reach your own conclusion taking into account whatever bias the author may add. For me, I agree with our President when he says, "Change is coming". As we've seen in Vallejo, two of the four labor groups, have reached new agreements. Starting down the road of responsibility, while reining in, what others have called unsustainable costs. This will happen in San Diego too.
— February 12, 2009 6:51 a.m.

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