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City Employee Pay Is Outpacing Private Sector, Report Says

Started by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008
Discussion about
Bolstered in part by Mayor Michael R. Bloomberg’s spending, the average New York City employee cost the city $107,000 a year in wages, health insurance, pension and other benefits in the 2008 fiscal year, an increase of 63 percent since 2000, according to a new report. City worker compensation grew twice as fast as that of employees in the private sector and elsewhere in the public sector during... [more]
Response by bjw2103
over 17 years ago
Posts: 6236
Member since: Jul 2007

I don't know; I don't just buy that argument out of hand without seeing what the average private sector worker costs. Just because the rate of compensation growth was faster doesn't mean the spending is actually higher. You could well be right, just need more data to be sure.

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Response by condojake
over 17 years ago
Posts: 64
Member since: Jun 2008

Much of this is due to pension payments, which you can't cut out. Take that out and you have a different picture. City is mandated to have a pension by state law.

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Response by inthehouse
over 17 years ago
Posts: 19
Member since: Jan 2009

many city workers were really underpaid under Giuiliani. I am all for fiscal restraint. But I love that Mayor Mike is actually paying the people who work for the benefit of the rest of us!!!

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Response by w67thstreet
over 17 years ago
Posts: 9003
Member since: Dec 2008

Stevie... pls offer up a funnier last spanish name than that... my HS spanish is way too rusty...

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Response by w67thstreet
over 17 years ago
Posts: 9003
Member since: Dec 2008

inthehouse... have you ever dealt with the buildings dept? A $1/year would be paying them too much... :)

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Response by lowery
over 17 years ago
Posts: 1415
Member since: Mar 2008

So I guess this means you will be applying to work for one of those great City jobs now, steve?

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Response by julia
over 17 years ago
Posts: 2841
Member since: Feb 2007

Bloomberg...another great businessman who is made of straw

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Response by nyc10022
over 17 years ago
Posts: 9868
Member since: Aug 2008

I saw on NY 1 that the average compensation for a firefighter is $186k and for a policeman $164k.

Go unions!

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Response by mets2009
over 17 years ago
Posts: 87
Member since: Oct 2008

Do all city workers still have the ability to retire after 20 years and if so, at what percentage of their pay (at retirement) do they get.

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

Great, another article attacking city workers. My father used to be a subway conductor. Yeah, we had it really good thanks to his "excessive" salary when I grew up. A classic 6 on Park Ave. A house in the Hamptons. Private jet trips to Aspen. A maid. Yeah, we had all of these luxurues in OUR DREAMS.

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

Only police and fire department workers can retire after 20 years. So before you criticize that program, please ask yourself who you want to rescue in if your trapped in a burning building: a 23 year old fire fighter or a 63 year old fire fighter?

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

"I saw on NY 1 that the average compensation for a firefighter is $186k and for a policeman $164k."

No, it's not, you fool. According to the NYPD's own website, the top salary for a cop is $73,000.

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Response by mets2009
over 17 years ago
Posts: 87
Member since: Oct 2008

Alpine, I was referring to occupations such as mechanics, garbagemen/women and others that don't have physically taxing and dangerous careers, not firemen. I agree with you though they should be able to do their jobs until 50. As for police officers, most can work well into their 50's. Therefore, do you know if these other groups can retire after 20 years
The bigger issue is pension payout. Instead of a defined benefit, it should go to defined contribution which is how corporate America works. The current system is not sound on an actuarial basis. The city can no longer afford the existing pension plan.

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Response by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008

"the top salary for a cop is $73,000."

Not. That's the base pay. Total pay is over $90,000.

That doesn't include overtime, which is considerable.

It doesn't include the fact that they can retire with full benefits after 20 years, tax free in New York.

"Estimated pension of $58,000 per year for 35 years" PLUS an additional $12,000 supplement.

http://www.nypdrecruit.com/NYPD_RetirementBenefits.aspx

$70,000 a year. Retired for twice as long as they actually work for.

F*CK. OVERPAID. OVERPAID. OVERPAID.

Don't even get me started on the teachers - they're even MORE overpaid.

Tenure for kindergarten teachers. What is it about finger painting that requires tenure?

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Response by nyc10022
over 17 years ago
Posts: 9868
Member since: Aug 2008

> No, it's not, you fool. According to the NYPD's own website, the top salary for a cop is $73,000.

Hey, if you are going to be an ass... be correct...

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

Cops do not make $160,000 a year. Your all ignoramuses.

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Response by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008

According to here:

http://www.nypdrecruit.com/NYPD_PromotionalOpportunites.aspx

The top pay for NYC police officers after 5.5 years is $91,000. That is base pay, "longevity pay," "uniform allowance," and holiday pay. It DOES NOT include overtime.

Their retirement benefits are tax-free and amount to over $2 million PER OFFICER excluding health benefits.

$53,000 per year in retirement. The New York City personal income tax is about 3.2%. That would require $1.7 million in wages to generate enough tax to pay the retirement benefits for a single New York City police officer. The median household income is about $40,000. It requires FORTY households to support 1 retired police officer without counting medical benefits.

There are about 23,000 police officers today. It would take 1 million households to support the retirement benefits of all active police officers. That number will grow exponentially over time, whereas the city's population won't.

That's just cops.

It's not sustainable.

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

It is stupid to count the uniform allowance as a salary. If your going to make cops wear a uniform, then it is only right that the city pay for it. It's not like cops have the option of wearing plain clothes anytime they want to.

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Response by nyc10022
over 17 years ago
Posts: 9868
Member since: Aug 2008

> Your all ignoramuses.

Now if THAT isn't the quote of the year, I don't know what is...

;-)

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

And I should mention that suburban police departments, the Port Authority, the NY State Police, and the NJ State Police all pay their cops MORE than the NYPD does, and they are not going bankrupt.

The top salary for a NY State Trooper is $77,000, while the top salary for a NJ State trooper is $93,000.

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

CORRECTION: Top pay for a NJ State trooper is $97,000.

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Response by oldbuyers
over 17 years ago
Posts: 190
Member since: Dec 2008

current NYPD Police Officer pay

after 5.5 years (top pay) :
base pay $73,546
longevity pay $4,220
Holiday pay $3,277
Uniform allowance $1,000
EQUALS $82,043

Right now, only 34% of the NYPD police officers are at top pay.
They only collect 50% of their pension upon their 20 years, not full pay, stevejhx.

and of course they pay taxes on their pensions, if they live in NYS. If they live in FL or NV, no state taxes.

the average NYPD police officer has only 3.5 years experience, as they have had a huge retention problem until this very year.

3.5 year NYPD pay:

base pay $51,221
Longevity: 0
Holiday pay: $2,183
Uniform allowance: $1000
EQUALS $54,380

that's not a lot of money, and not worth any criticism. Not easy work.

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

The Bergen Record recently ran a series of reports called "Runaway Pay" about state and muncipal workers making huge salaries (some cops in Fort Lee made more than the county DA), but the series is no longer on the website. I guess someone high up did not like it. In NJ, people who complain about excessive government salaries have bene known to get phone calls at 2 in the morning.

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

• $100K Club -- Police officers in northeast New Jersey routinely make more than $100,000 in total pay. They are among more than 10,000 government employees in New Jersey who earn that much, according to state payroll and pension records.

* * *

• Overdosing on overtime -- Overtime lifts police pay well above $100,000 in even middle-income communities. Police in Butler earn base salaries $10,000 less than many of their counterparts in wealthier areas of North Jersey, but they make up for it with time-and-a-half. Their average total pay in 2005 exceeded $100,000.

• Rewriting Genesis -- For police in Alpine and other towns, the week isn't seven days, but six -- four days on and two days off. The result is 17 extra days off a year, beyond holidays and vacation.

• Golden years -- Ridgewood police Sgt. Paul Gilard retired on June 30, 2005. His total compensation for the year was $187,115, including a retirement payout of nearly $130,000. He'll receive an annual pension of $73,000 for the rest of his life. He's 48 years old.

http://www.myshortpencil.com/schooltalk/messages/2522/5261.html

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Response by oldbuyers
over 17 years ago
Posts: 190
Member since: Dec 2008

Once again, stevejhx manipulates his data to fit his own agenda. I really feel sorry for the guy. No wonder he can't keep a job.

His "facts" are from a NYPD recruitment site...where they quote what their top pay will be in 2011, working midnights to allow for full night shift differential.

He disregards reality and posts what his world is.

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Response by nyc10022
over 17 years ago
Posts: 9868
Member since: Aug 2008

"Firefighters, whose contracts call for built-in overtime and 20-year retirements, "cost" an average of $186,464 each.

Cops, with similarly generous benefits, came in at $164,045. Teachers and other instructional personnel averaged $98,505. The remaining civilian workers brought up the rear at $83,279."

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

You guys are all idiots. Your sad that you have crummy jobs and are taking it out on city workers.

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Response by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008

"they are not going bankrupt."

Actually, yes they are.

"Right now, only 34% of the NYPD police officers are at top pay."

That will always be the case, at any given time. But they will get there, and retire.

"They only collect 50% of their pension upon their 20 years, not full pay"

No. They collect 50% of their last 3 years' salary as tax-free retirement. They collect 100% of that immediately.

"where they quote what their top pay will be in 2011, working midnights to allow for full night shift differential."

No. It specifically says 2010, and that it DOES NOT include any differentials.

"He'll receive an annual pension of $73,000 for the rest of his life. He's 48 years old."

How long is that sustainable for?

Do the math. 1 million median households in NYC to support the retirement benefits just of today's police officers.

Can't be done.

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Response by oldbuyers
over 17 years ago
Posts: 190
Member since: Dec 2008

stevejhx, you REALLY are an idiot.

they average their top 3 years worth of pay and then get 50% of that....do you even know any cops? My brother is one, and I had the contract right in front of me. They do not collect 100% of anything, except their health coverage. Plus, they contribute 3% into their own pension.

They only get 50% of their top 3 years averaged, not 100%.

The $90,829 you quoted is as of Jan 2011, with that $4262 of it being FULL night differential, meaning full midnights.

And their health care and pension have been that way for a very very long time now. It is not a recent phenomenon. Considering the stress being a police officer puts on their body, most of them do not get to enjoy very long into their retirement. You act like this is breaking news. It's very old news.

Leave the civil servants alone, Mr. Republican. They work very hard for this city, unlike you.

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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008

Perhaps steve will be happy when cops only make minimum wage?

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Response by w67thstreet
over 17 years ago
Posts: 9003
Member since: Dec 2008

... hate civil servants... those were the B/C grade kids that didn't go to college... but nothing "physically" wrong with them? I am not trying to start a fight... no I'm not.. .no seriously i'm not... Cops are as dumb as nails! They literally spend hours a day talking to one another to "game" the system and what's the cushiest jobs etc... Yep you can quote me on that...

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Response by w67thstreet
over 17 years ago
Posts: 9003
Member since: Dec 2008

uh oh... oldbuyers may have access to firearms... :)

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Response by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008

"do you even know any cops?"

My uncle is one and my cousin is one, so yes. I do.

"They do not collect 100% of anything, except their health coverage."

No. They collect 100% of their pension, which is 50% of their earnings, immediately.

"Plus, they contribute 3% into their own pension."

No. They USED to, but they don't anymore.

"their health care and pension have been that way for a very very long time now"

What does it matter?

"Considering the stress being a police officer puts on their body"

For the past 10 years I've lived within 1 block of a precinct. They're not very stressed. I buy lunch at the same bodega with them.

"most of them do not get to enjoy very long into their retirement"

Really? The website quotes 35 years of retirement.

"Leave the civil servants alone, Mr. Republican."

Not a Republican, sorry. It's not about them, it's about the inability of the New York City workforce to pay those benefits in the long-term. It's not personal - it's actuarial.

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Response by julia
over 17 years ago
Posts: 2841
Member since: Feb 2007

No one I know could go through day after day what the cops and firemen go through....whatever they make is fine with me.

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Response by julia
over 17 years ago
Posts: 2841
Member since: Feb 2007

I read that nyc cops were quitting and signing to work in nassau because of the low pay in nyc.

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Response by aboutready
over 17 years ago
Posts: 16354
Member since: Oct 2007

Steve, the corporate pension system isn't working right now so well either. And corporations have been counting pension surpluses on their balance sheets, and projecting never-ending increasing amounts. I think this was one of Buffett's major points about the flaws in corporate balance sheets. Actuarially, some companies are doing worse right now than the public sector, which is short about $850 billion in their pension plans (although NYC is not, right now).

We need a new system.

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Response by Oxymoronic
over 17 years ago
Posts: 165
Member since: Dec 2007

oldbuyers...50% of the TOP three years earnings cherry picking where overtime is at it's highest means that the pension is often 100% of Base or more. If someone gets a lifetime annuity of 100% of Base Pay from age 50, this would cost approximately 25 to 30 times Base Pay if we were to buy an annuity in the open market. Call this a benefit worth $2mm to be on the low side of estimates.

An example of cost escalation would be if someone chose to work $25,000 of overtime in each of their last 3 years before retirement, this would result in an additional cost $312,500 using a 25 cost multiplier on $12,500 of additional pension. So the cost is actually $387,500 including the additional pension. So instead of time and a half, someone is actually getting 5.66 x hourly rate for overtime worked in these final 3 years. Is it any wonder that the system is prone to abuse and people there are huge spikes in overtime as employees seek to maximize their pensinoable salary.

Are these pensions funded each year in an actuarially sound manner like any private sector firm must do? Of course not; it's simply another example of government choosing to mortgage our future to the kids who'll have to pay for our profligacy.

I'm not saying that civil servants don't deserve an honest wage but let's be honest the real costs rather than dressing them up as low salaries with enormous hidden benefits costs.

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Response by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008

"whatever they make is fine with me."

It's just not possible to require 1 million households in a city with 3 million households to pay the retirement benefits of 23,000 people.

"corporations have been counting pension surpluses on their balance sheets, and projecting never-ending increasing amounts."

a) that's now illegal, and b) taxpayers aren't paying for it.

"let's be honest the real costs rather than dressing them up as low salaries with enormous hidden benefits costs."

How about high salaries and high benefits?

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Response by lowery
over 17 years ago
Posts: 1415
Member since: Mar 2008

So I guess you'll be applying for a City job, Steve, since they pay so much better than yours does?

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Response by aboutready
over 17 years ago
Posts: 16354
Member since: Oct 2007

Taxpayers aren't paying for it? The next bailout is just tomorrow's news away. Many companies pension funds aren't meeting their funding percentages NOW because they took a bath.

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Response by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008

"since they pay so much better than yours does"

They certainly have better retirement programs, but I don't ever plan to retire.

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Response by lowery
over 17 years ago
Posts: 1415
Member since: Mar 2008

"They certainly have better retirement programs, but I don't ever plan to retire."

The retirement benefit of City jobs is clearly something that seems attractive to you. I suppose it's too late to apply for the Police Academy, and they start at around $35,000, but they're not starting a new Academy class, or graduating one or whatever. However, I'm sure you can find something you're qualified for.

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Response by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008

Leave it to lowery to change the subject. The problem is our ability to afford it, not the absolute cost of it. Pay them whatever - if it's affordable.

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Response by w67thstreet
over 17 years ago
Posts: 9003
Member since: Dec 2008

lowery... mmmmm $35K./yr to maybe pull your revolver once or twice in 20 yrs.. or get shot at on a nightly basis in Irag/Afghanistan? Which would I choose... hmmmmmm.... which would you choose... GET a F'n moral compass... or at least adjust yourz.... :) peace out ...

Oh shoot.. .that goes for you oldbuyers... how many dishes did your wife do today? After like 1000, she getz a coffee break?

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Response by lowery
over 17 years ago
Posts: 1415
Member since: Mar 2008

So I guess that means you're not interested in one of those great jobs, then, Steve?

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