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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%

CapitolMatrixConsulting.com


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   

  





   





    









            

    





           

  

     

    

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CapitolMatrixConsulting.com


Comparison  of  Re7rement  BeneďŹ ts   Full  Career  Employee  Re7ring  at  Age  62   

  





   





    









            

    





           

  

     

    

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CapitolMatrixConsulting.com


Comparison  of  Re7rement  BeneďŹ ts   Par7al  Career  Employee   

  





   





    







            

    





           

  

     

    

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CapitolMatrixConsulting.com


Comparison  of  BeneďŹ ts:   CHP  Mid-­â€?Career  Employee   

   

 

 

     



     

 

     

   

    

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CapitolMatrixConsulting.com


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

CapitolMatrixConsulting.com


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