So, are government employees overpaid … or at best treated better than average workers?

I have written several times about public employee pensions and other benefits, the point being that they are paid well at the expense of taxpayers who have pensions and other benefits nowhere as generous as public employees. Pay is comparable for the most part with a few outliers, but pensions, time off and health care benefits are overly generous and unfair to the taxpayers.

Take a look for yourself. This chart was prepared by Employee Benefit News magazine based on government data.

20131203-080341.jpgLook at total compensation, health insurance, paid leave and especially defined benefit retirement plans. Note that the highest costs are in areas least subject to cost management. Total compensation is 36% higher than the private sector. And by the way, there is very little in the way of meaningful performance evaluation in the public sector.


  1. It certainly looks like public employees cost more than private employees according to the chart. The question I have is about the defined benefit plans. Did money actually go into the pension funds or is it all IOUs. Public sector workers and retirees in Detroit and soon to be other States and municipalities are just figuring it out now. I wonder if you are better off with a 401K that is transparent and that you control is better than a defined benefit plan that is opaque and controlled by agents (politicians and pension board members) who don’t necessarily have retirees best interests at heart.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s