Comparing Public and Private Employee Compensa7on and Re7rement Benefits in California Capitol Matrix Consul7ng May 5, 2011 FixPensionsFirst.com
Largest California Pension Funds Face Major ShorIalls Public Pension System
Recent Recent Assets Funded Status
Public Employees’ Retirement System
$231
61%
State Teachers’ Retirement System
$141
63%
University of California
$45
73%
Los Angeles County Employees’ Retirement Assn.
$40
69%
San Francisco City and County Retirement System
$16
74%
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Key Findings: Chapter 1. Re7rement Systems • Public re1rement benefits are much richer than private sector benefits for career employees. • A key excep1on is teachers, who earn less generous benefits than other public sector employees. • Re1ree health subsidy is a large benefit. CapitolMatrixConsulting.com
Comparison  of  Re7rement  BeneďŹ ts  Full  Career  Employee  Re7ring  at  Age  57 Â
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Comparison  of  Re7rement  BeneďŹ ts  Full  Career  Employee  Re7ring  at  Age  62 Â
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Comparison  of  Re7rement  BeneďŹ ts  Par7al  Career  Employee Â
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Comparison  of  BeneďŹ ts:  CHP  Mid-Ââ€?Career  Employee Â
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Key Findings: Chapter 2. Compensa7on • Public sector and private sector wages are, on average, similar for comparable jobs. • Complica1ng factors: job security, unique occupa1ons, produc1vity, and greater wage varia1on in private sector. • Re1rement benefits for long-‐term public employees oFen push total compensa1on costs higher than private sector counterparts. CapitolMatrixConsulting.com
Comparison of Total Compensa7on: Long-‐Term Employee State Employee
Private Sector Employee
$60,000
$65,000
-
-
Employer-paid health
$12,381
$11,475
Paid leave
$10,385
$9,570
$4,590
$4,972
$19,136
$5,720
$106,492
$96,737
Category of Compensation Wages Benefits
Social Security & Medicare Retiree pension & health Total Compensation
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