And So I Go: Yesterday, Today and Tomorrow

The Millionaire Cop Next Door. Believe it!

Posted on: June 18, 2010

The Millionaire Cop Next Door « Digital Rules – Forbes.com.

Joe Guarino has a post about the Council of  Churches now backing government employees right to unions.  Ken Hill commented and suggested we all read this article.  Thank you Ken

The Millionaire Cop next Door is a fact!  It is also why California, New York City and several other states and many other cities are going bankrupt. Public employees were permitted to unionize and their demands escalated to the unreasonable level where the tax payer will not be able to care for their own families with their after tax dollars.

It is said that government workers now make, on average, 30% more than private sector workers. Put that fantasy aside. It far underestimates the real figures. By my calculations, government workers make more than twice as much. Government workers are America’s fastest-growing millionaires.

your average California policeman who retires at age 55. Typical cities in California have a police officer’s retirement plan that works as follows: 3% at 50. As the North County Times of Carlsbad, Calif., explains:Carlsbad offers its police and firefighters a “3-percent-at-50″ retirement plan, meaning that emergency services workers who retire at age 50 can get 3 percent of their highest salary times the number of years they have worked for the city.

City officials have said that in Carlsbad, the average firefighter or police officer typically retires at age 55 and has 28 years of service. Using the 3 percent salary calculation, that person would receive an annual city pension of $76,440.

That does not include health benefits, which might push real retirement compensation close to $100,000 a year.

Who are America’s fastest-growing class of millionaires? They are police officers, firefighters, teachers and federal bureaucrats who, unless things change drastically, will be paid something near their full salaries every year–until death–after retiring in their mid-50s. That is equivalent to a retirement sum worth millions of dollars.

So when you hear that government workers now make, on average, 30% more than private sector workers, you are not getting the full story. Government workers make more than twice as much as private sector workers, on average, when you include the net present value of their pensions.

I want to point out that the Armed Forces  are not included in this group.  Some of the generals retire as millionaires but not the the rest of the officer corp and certainly not the enlisted personnel (non-officers).  However they are government workers but they can not unionize.  Can you imagine a soldier striking and refusing to protect our country?  Take this a step further and imagine our police striking and letting criminals go free, or any other the government services just closing their doors because the workers are on strike.  This is the reason government workers unions always get their demands:  their jobs are vital to the running of the economy.  (Tho I sure do think there are far too many of them for the job they are doing.  It’s like one of those Polish jokes asking how many Pols it takes to screw in a light bulb.  I don’t know about Pols but I believe it takes at least three government workers!  BB)

It used to be that government workers were prohibited from unionizing because their jobs were considered  secure.  They then accepted lower wages  for this security.  They were not subjected to lay offs and even the company going bankrupt and closing all together.  Now that they are unionized we are seeing more and more strikes and demands for higher wages and better benefits.   Their jobs are still secure since governments do not go out of business and their unions prohibit  their being fired.  Good work if you can get it!, as they say.  BB

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