|
 |
6/25/2008
Frank Lasee: State pensions better than Las Vegas
Last week, I wrote about the Wisconsin Retirement System (WRS). The good news is that the system is fully funded. The WRS has $87 billion invested by the state. It pays 132,000 retired state, university, school and local government employees about $2,000 per month, nearly all receive social security as well. There are 263,000 current employees expecting future pensions from it.
WRS is one of the best pension systems in the United States, both in terms of benefits paid and by being fully funded. It is a generous defined benefit plan (401K plans and IRA’s are defined contribution plans, more on this another time). The payment is the average of the three highest years of pay, times a multiplier, times the number of years employed in the system. If a government employee can get three really big years of pay, they can often retire at more than they ever earned during their working life (except for those three big pay years).
Under the state’s union contract, the government managers have little input into who does overtime and how overtime is managed. By contract, the most senior employees get to take the lion’s share of overtime hours. They often use sick leave and vacation time to pad their overtime.
Under federal law, employers are required to pay overtime when actual hours worked exceed 40 hours per week per pay period. Under the state collective bargaining contracts, an employee can use vacation or sick days in a pay period. Regardless of the number of hours that are actually worked. These contracts are designed this way. I have heard of employees colluding to up their overtime dramatically.
An audit by the non-partisan Wisconsin Legislative Audit Bureau revealed that state agencies paid nearly $200 million in overtime during the last three years. This is an increase of 15% since 2005. Fifty-nine state employees were paid more than $100,000 in overtime according to the Audit Bureau. This really increases the cost of the WRS payment our taxpayer-funded employers must make to the WRS.
The state is not the only WRS employer dealing with this issue. Two Madison bus drivers earned over $100,000 each. In the last five years, Sheboygan overtime payments have risen about a half million dollars, to nearly $1.2 million. Sheboygan County’s overtime pay rose $200,000 to $2 million. La Crosse reported overtime up by 14% from 2006 to 2007, now about $1 million. There, the top ten overtime earners included a payroll clerk.
The Journal Sentinel has a database of all employees’ overtime in Milwaukee. Take a look at the 101 employees making more than $30,000 in overtime last year.
Why should we care? When payments are dramatically increased, contributions must be increased. WRS checks are paid by the state, university, school district and local government taxpayers (government employers).
These contributions have ranged from 12.9% of employees’ pay to 10.3% in 2000. In addition, 7% of payroll is contributed to Social Security on the employees’ behalf. Last year the state paid $420 million into the WRS for employees and another $250 million for social security. Total WRS payments last year were $1.3 billion. If the employers (taxpayers) would be able to fund it with 9.8% instead of 10.8% payment, we would save $120 million.
Now, I think everyone should be prepared for retirement. Work hard, prepare for old age. Great idea. I don’t believe you should be able to game the system by using sick leave and vacation. Or having positions created just for overtime. Or having your co-workers help you out by calling in sick. Remember state employees get 16 sick days a year and can bank them.
What isn’t fair is that our taxes support government employees that can expect more than their private sector counterparts. When government compensation is looked at, it must include the very generous benefits, as well as pay. We don’t do that now, but we should.
Frank Lasee is a Republican and represents the 2nd Assembly District.
COMMENTS
Although the three highest years are used in the calculation, gaming the system is a stretch- unless you include Breske and Roessler. They are of the few who can double their salary in the last years of their employment. Would like to know what Doyle owed them and why.
Hear, hear. Jo E.
Ron (Wed Jun 25 09:11:34 2008)
The City of Appleton has done much to address overtime issues over the past years for the few who have in the past played the system to take advantage of the benefit calulation. The City has, just like any employer, those employees who will play the system. If not in the venue mentioned, some other. It is a small minority though as we have many hard working employees who work to make their community a better place to live and not necessarily for the overall employee benefit package attained. Its easy to point out the negative - it sells papers, its politics and it in some perverse way, it helps people feel good about themselves pointing out others weaknesses. Simple fact of life. The negative aspepcts in our workplaces need to be addressed, but its the positive attributes that need to be supported and encouraged. This is where our community has benefited the most for the least cost - from the unsung acts of many dedicated employees.
As the Finance Direcgtor for the City, I can tell you the total package is sold whenever I need to go out and fill a vacant position in my department, most significantly at the professional level. If it wasn't, I wouldn't have the highly competent staff that make our department successful. They make the wheels turn - I just help guide it.
Lisa Maertz (Wed Jun 25 10:14:05 2008)
Once again, Frank does a great job of highlighting and analyzing yet another cost excess in our Wisconsin system of controlling Government expenditures. The Wis. Prison Union situation is a classic example. When confronted, he defended the practice! Clearly, they simply "pump up" final three years earnings to scam the system. In many cases Employees in many areas of public service retire with greater benefit, net-after-tax, than they would if they continued to work. DAH! That's why most "jump" at 58-60 (or earlier, in case of police/Fire).
Contrast that with the Private Sector, in Wisconsin, where pension plans are typically designed to provide 30-35% of pre-retirement income, after 30 years of service, at age 65.
As usual, the Txpayer is stuck with the bill, with the unfortunate result that the "Public Servants" who work for the Taxpayer get a richer deal than the Folks paying the bill. Sad! Sad!
PS: How bout the departing Green Bay School Supt. He's leaving a $150M job for $200M in Madison, but under the "Emeritious" Program GB is paying him an extra $50m/year for 3 years. Thus, his final average earnings for pension benefit calculation becomes $200M ($150M $50M) or a nice 33 1/3%
increase in Pension Benefit. Guess how long he'll stay in Madison before he "jumps"???
GL Schilling (Wed Jun 25 10:58:26 2008)
|
|
Blog Archives
| 2010 |
  December
|
November
|
October
|
September
|
August
|
July
|
June
|
May
|
April
|
March
|
February
|
January
• Solberg: Healing After an Abortion
• Basketball fans eyeing extension of Miller Park sales tax
• Nanny sex-ed bill goes to Doyle
• A first. Village limits pension contribution for employees
• Nanny State update: Toothbrushing mandated
• Obama pushes education inflation
• WI Investment Board votes to borrow to juice up returns
• So Republicans have brought nothing to the table?
• You have got to be kidding me
• Nygren: Governor Continues Terms of Failure in State of the State
• Sen. Fitzgerald: Governor down the wrong track at high speed
• Phosphorus is the new CO2. $Billions in Wisconsin
• More Obama giveaways
• A reprimand? Would you keep him on the job?
• Burri: Sarah Palin for Prez troubles me
• Quote of the Day – Obama after the pie-eating contest
• Populism, abused and trampled
• Fitzgerald: Senate Republicans Propose Real Job Creation Agenda
• Stripped down health insurance – it’s about time
• Ok GOP, scrap the Party of NO; time to lead
• No way Feingold is a Coakley. Is Wall a Brown?
• Burri: Conservatives off the chart for a RINO?
• Paltry quid pro quo?
• Doyle says ARRA has ‘created or retained’ 44,000 WI jobs
• Does most of the public fall for this stuff?
• When you get signatures, always get a couple extra
• Blame it on the outmoded computers
• Scott Brown victory does not scuttle health bill
• 8th Congressional Candidate Forum, Jan. 25
• Scott Walker Meet-and-greet, Monday, Jan. 18
• Aren’t consumers taxpayers too?
• MORE taxes on investment income - dreadful and wrong
• Join the blaze orange army and say ‘Enough is Enough’
• The future of government-run health care
• Tax on banks is a really bad idea
• Roth, Savard on the stump, grassroots style
• Savard speaking in Appleton, 8 PM, Wed., Jan. 13.
• Rahmlow: Savard, Bies frontrunners for State Senate
• Burri: Failing Political Correctness 101
• School contracts and Race to the Top
• Senator Feingold worrisome and big red flags
• Psephological?
• This is really important. Contact Rep. Kagen. Now. Please.
• This is exactly what we need from Governor Doyle
• This guy is my hero
• Why am I not surprised?
• Talk health reform with Feingold (Th), Petri (today)
• Give the Mayor power over MPS - if he can break contracts
• Burri: Yup, Dems really are going to bypass a conference
• The $2.7 billion Wisconsin deficit no one told you about
• Walker launches county accountability website
• Rahmlow: Why is Van Hollen dodging the Nebraska deal?
|
| 2009 |
December
|
November
|
October
• The Lawton-Bader files
• Yup, it’s the TAX LEVY, not the tax RATE
• Ellis: costly automobile insurance laws must be rolled back
• If not Barrett, who?
• The subsidy game
• Burri: Bailouts, Banks, Health Care, and the Mob
• Attend Appleton Schools budget meeting tonight
• A public option WON’T increase costs? That’s delusional!
• Appleton Schools budget meeting Monday
• Wisconsin should be screaming for accountability
• Burri: If anything, we need more obstructionism around here
• WI on the leading edge - in the wrong direction
• Rep. Montgomery: Utility Customers Join State’s Crime-Fighting Efforts
• Public Conservation and Recreation Lands Total 16.5% of State
• In the crow's nest of the Titanic, shouting 'Iceberg!'
• Is Rep. Nelson a political hack?
• Health care: The road ahead will be brutal
• Kagen's pandering again
• Birthers - good stuff for you
• How much do we bend over backward for seniors?
• The trouble with health care is paying for it
• Two-parent families: The Gold Standard
• Burri: Kids... the joys and blessings
• Very, very worried about health care
• Rep. Huebsch: Wisconsin is proof government health care isn’t the answer
• School district contracts push up tax levy
• What? Obama, the Peace Prize?
• TODAY - hearing on Campaign Finance Reform
• Appleton School District tax levy up way too much
• CBO report is out - and the bill isn't even written yet?
• So, how much do YOU budget for health care?
• Burri: Copenhagen trip was amateurish
• “Sotomayor, you have blood on your hands...”
• Cap and Trade. Always follow the money
• Rep. Kagen gets (almost) free health services
• I actually agree with Rep. Kagen
• Future Wisconsin Conference for Conservatives, October 10, Wauwatosa
|
September
|
August
|
July
|
June
|
May
|
April
|
March
|
February
|
January
|
| 2008 |
December
|
November
|
October
|
September
|
August
|
July
|
June
|
May
|
April
|
March
• Important votes Tuesday, including Appleton Common Council
• Democrats are becoming supply siders??
• Further debunking Hillary myths
• WEAC has created an unsustainable monopoly
• From Mark Gundrum: One of the greatest honors an American can experience
• 'Operation Chaos' working?
• Joe Martin the best candidate in Appleton's 8th
• State programs to cut? - Volume II
• Oh the naivete of youth
• Not just disingenuous - flat wrong
• Steve - you will be missed
• Make cuts only AFTER you're elected....
• Getting serious: What programs can we cut?
• Rep. Steve Kagen joining me on Jerry Bader Show today
• Rep. Van Roy: Dental Care Pilot Program
• Has Dave Obey turned the corner on earmarks?
• Speaker Huebsch: Governor turns down Federal Aid?
• Mark Rahmlow: "We're Broke."
• As taxpayers, how do we know if it's a Chevy or a Lexus?
• This is trash talk - about a veteran
• Frank Lasee: Take time to get the Compact right
• 'The Gableman Ad' - is it racist?
• Roth thankful, Kagen shaking money tree
• Gov. Doyle's office not enamored with Freedom of Information
• Governor Doyle will never do it
• Leadership on smoking ban? Not Hanna
• Rep. Van Roy speaks out about smear ads
• You're threatening me about potholes?
• Losing the Hastert seat is NOT a trend and NOT curtians for the GOP
• First suggestion for 'slashing' programs
• Big money-saver for municipalities
• More one time fixes. Nuts.
• Any chances???
• I'm doing the Jerry Bader Show, today, the 11th
• Representative Frank Lasee: Final Waltz of the Season
• Guest Blog: It's not the county's business to be in the nursing home business
• Yup, Hillary won Texas and Ohio
• Gableman/Butler race featured - and it isn't pretty
• Lies from Planned Parenthood and NARAL
• He who sacrifices liberty.....
• Duh.
• The Troha sentencing, Doyle and that $200K
• Guns, passion and "originality"
• How hard is it anyway, to shut down a government program?
• Voting is a PRIVILEGE. And so are property taxes....
• Guest Blog: Governor Doyle, cancel your Ireland trip
|
February
|
January
|
| 2007 |
December
|
November
|
October
|
September
|
August
|
July
|
June
|
May
|
April
|
March
|
February
|
January
• Lots of ideas. No money.
• The Cigarette Tax - "Poor Policy Instrument?"
• School budget Lite?
• Frankenstein - not in the library, but in the legislature
• A librarian, a legislator, a president
• $1.25/pack - NO, NO, NO, and NO
• Kagen and Reagan in the same breath?
• Menasha: behind the 8-ball, but not biting the dust
• Any way you slice it, Wisconsin government wants (further) in on health care
• The World is Flat...what about health care?
• The PAC - too precious to fail. Day 3
• News follow-ups: Appleton West, Kagen at the White House
• Fox Cities PAC - too precious to fail - Day 2
• Fox Cities PAC - too precious to fail
• New Transit Tax coming your way
• Rep. Petri has his finger in the dike - I guess
• AASD Retirement Costs Burdensome
• Health care, health care, health care, health care
• Water rate increase was no slam dunk
• Education for all is just a bad dream
• New Year's resolutions from a parade snob
|
| 2006 |
December
|
November
|
October
|
September
|
| 2000 |
May
|
|
