At a time when workers' pay and benefits have
stagnated, federal employees' average compensation
has grown to more than double what private sector
workers earn, a USA TODAY analysis finds.
Federal workers have been awarded bigger average
pay and benefit increases than private employees for
nine years in a row. The compensation gap between
federal and private workers has doubled in the past
decade.
Federal civil servants earned average pay and
benefits of $123,049 in 2009 while private workers
made $61,051 in total compensation, according to
the Bureau of Economic Analysis. The data are the
latest available.
The federal compensation advantage has grown
from $30,415 in 2000 to $61,998 last year.
http://www.usatoday.com/money/economy/income/2010-08-10-1Afedpay10_ST_N.htmIt depends public employees pay is not monolithic. It varies - look at the various states. For example California public employee are very well paid, so much that... California Pension Promises May Top Taxes by Fivefold, Milken Study Finds
By Michael B. Marois - Oct 19, 2010 10:22 AM PT
California, which has the largest U.S. public-pension fund, faces liabilities that may exceed its annual state-tax revenue fivefold within two years unless lawmakers rein in benefits, according to a study.
To keep their promises to retirees, the California Public Employees Retirement System, the biggest plan, the California State Teachers Retirement System, the second-largest, and the University of California Retirement System may have combined liabilities of more than 5.5 times the state’s annual tax revenue by fiscal 2012, according to the study released today by the Milken Institute. Levies are forecast to reach about $89 billion in the year that began July 1.
Debts to government retirees including those in California, the biggest state by population, have grown into a national crisis as pension plans strive to meet obligations to more than 19 million active and retired firefighters, police officers, teachers and other state workers. Fewer than half the plans had assets to cover 80 percent of promised benefits in fiscal 2009, according to data compiled for last month’s Cities and Debt Briefing hosted by Bloomberg Link.
“California simply lacks the fiscal capacity to guarantee public-pension payments, particularly given the wave of state employees set to retire” in future years, said researchers Perry Wong and I-Ling Shen in the Milken report. “Structural shifts, coupled with the financial design and the accounting practices of state pension funds, all point to the fact that reform is imperative.
http://www.bloomberg.com/news/2010-10-19/california-pension-promises-may-top-taxes-by-fivefold-milken-study-finds.htmlMost of us don't make the kind of money to afford paying five time more in taxes to pay for this, nor do we have a money trees in our backyards. So what is the solution?