State employees sacrifice pay for better pensions

State employees sacrifice pay for better pensions

EDITOR,

One of our Youngstown members forwarded a copy of your June 26 editorial, “Budget debate shows gap between public and private.”

Did the writer ever hear the adage, “You must compare apples to apples?” State employees receive their compensation in a different package than private sector employees. For the most part, state workers receive a smaller pay scale for similar work in the private sector. State workers pay into a pension system that was established prior to the federal government establishing Social Security. State workers put 10 percent of their earnings into the pension fund, and the state 14 percent. Why would the state agree to pay so much? The answer is quite simple: the 14 percent amount is a lot lower than the comparable salary rate for private sector jobs. It is a win, win situation for the taxpayers and the workers. Taxpayers hire competent employees to get the work done for fewer dollars, and workers take less pay to reap better benefits at retirement.

Once the payments are made to the retirement system, the taxpayer liability is done. They have hired competent workers for less pay, even including the 14 percent, and have no future liability for them. The pension system invests the employee and employer deposits, and over the years generates enough income to provide a better pension and benefit package than Social Security and most 401Ks.

The private sector workers receive their compensation package in a different format. They receive higher pay. The worker and company each pay 6.2 percent of their salary into Social Security, and some workers have the option of paying additional monies into a company pension. Some companies will even contribute matching funds, so long as the employee purchases company stock. Private company employees receive their compensation up front, and have the option of additional investments for their future. What they don’t have is any just cause to be jealous of our public employees who have sacrificed higher income through the years for the benefit of a decent, and might I add, a well deserved pension at retirement.

WILLIAM I. WINEGARNER, Administrator

Public Employee Retirees Inc.

Westerville

Follow the business model

EDITOR:

I see our Gov. Strickland is having problems getting the Ohio operating budget to balance. I have a suggestion: Why doesn’t he play “private enterprise” and cut. He could start with a 5 percent to 15 percent compensation cut for all state employees and then require a 20-to-25 percent contribution to their health care.

I would guess if these were invoked, the budget would be balanced and fewer than 5 percent of the employees would leave their jobs.

GORDON WILLIAMS

Canfield