Want to get rich? Work for feds

For decades, public sector unions have peddled the fantasy that government employees were paid less than their counterparts in the private sector. In fact, the pay disparity is the other way around. Government workers, especially at the federal level, make salaries that are scandalously higher than those paid to private sector workers. And let’s not forget private sector workers not only have to be sufficiently productive to earn their paychecks, they also must pay the taxes that support the more generous jobs in the public sector.

Figure 1 looks at average wages. In 2008, the average wage for 1.9 million federal civilian workers was $79,197, which compared to an average $50,028 for the nation’s 108 million private sector workers (measured in full-time equivalents). The figure shows that the federal pay advantage (the gap between the lines) is steadily increasing.

Figure 2 shows that the federal advantage is even more pronounced when worker benefits are included. In 2008, federal worker compensation averaged a remarkable $119,982, which was more than double the private sector average of $59,909.

Data compiled by the Commerce Department’s Bureau of Economic Analysis reveals the extent of the pay gap between federal and private workers. As of 2008, the average federal salary was $119,982, compared with $59,909 for the average private sector employee. In other words, the average federal bureaucrat makes twice as much as the average working taxpayer. Add the value of benefits like health care and pensions, and the gap grows even bigger. The average federal employee’s benefits add $40,785 to his annual total compensation, whereas the average working taxpayer’s benefits increase his total compensation by only $9,881. In other words, federal workers are paid on average salaries that are twice as generous as those in the private sector, and they receive benefits that are four times greater.

The situation is the same when state and local government compensation data is compared with that of the private sector. As the Cato Institute’s Chris Edwards notes in the current issue of the Cato Journal, “The public sector pay advantage is most pronounced in benefits. Bureau of Economic Analysis data show that average compensation in the private sector was $59,909 in 2008, including $50,028 in wages and $9,881 in benefits. Average compensation in the public sector was $67,812, including $52,051 in wages and $15,761 in benefits.” Those figures likely underestimate the true gap on the benefits side because the typical government employee gets a guaranteed defined benefit pension under very generous terms, while the private sector norm is a 401(K) defined contribution plan that is subject to the ups and downs of the economy.

With the federal deficit and national debt heading into the stratosphere, taxpayers can no longer afford to support such lucrative government compensation. Public sector pay and benefits at all levels should be reduced to make it comparable to the wages and benefits earned by the average working taxpayer. The first politician to propose a five-year plan for this purpose is likely to be cheered mightily by taxpayers.!

source: washingtonexaminer.com and cato-at-liberty.org

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Career of the week: Flight Attendant

Flight Attendant Salary Comparison Chart:

(Top 10 rankings for first, sixth and best year)

These charts show base earning potential (domestic flying only). Since allowable flight hours per monthvary with each flight attendant contract, for purposes of this comparison, 75 hours is shown per month.

Actual earning capacity will vary by airline. International pay,lead flight attendant and purser pay, flex pay, overtime pay and other forms of incentive pay not included in pay calculations. Annual totals will increase by $3,000 – 8,000(average)annually depending on other factors such as additional flying, incentive pay and per diem. Current rates as of October 18, 2001 only; future contractual pay increases not included.

First Year Salary Rankings Sixth Year Salary Rankings Highest Year Salary Rankings
  1. American $18,215
  2. Northwest 18,018
  3. World 18,001
  4. US Airways 18,000
  5. Delta 17,700
  6. United 17,487
  7. Continental 16,740
  8. Midwest Express 16,074
  9. AirTran Airlines 16,056
  10. TWA 15,948
  1. Delta  $32,586.00
  2. US Airways  31,041.00
  3. United  30,159.00
  4. Aloha  29,781.00
  5. American  29,078.88
  6. Northwest  27,621.00
  7. Continental  26,991.00
  8. Hawaiian  26,829.00
  9. World  26,136.60
  10. Sun Country  25,020.00
  1. Delta   19th yr. – $44,601.00
  2. American   31st yr. – 42,745.80
  3. Southwest   14th yr. – 42,687.00
  4. Alaska   13th yr. – 41,958.00
  5. Northwest   15th yr. – 40,644.00
  6. Continental   15th yr. – 39,870.00
  7. US Airways   14th yr. – 38,763.00
  8. United   14th yr. – 37,656.00
  9. Aloha   20th yr. – 36,324.00
  10. Continental Micronesia   15th yr. – 36,000.00

source: cabincrewjobs.com

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The Navy Compensation Package: Few things can compare

Pay & Health Care

When it comes to financial benefits, the Navy amounts to much more than a competitive paycheck. Like significant tax incentives. Retirement income. And, of course, comprehensive health-care coverage. When you add it all up, the entire package is tough to beat – from nearly every angle.

Pay

Enlisted Pay

In the Navy and all branches of the U.S. Armed Forces, pay is dependent upon rank (known as rate for Enlisted personnel in the Navy) and years in service (see the chart below). Promotions depend on performance and time in service, and an Enlisted Sailor has to earn an increase in rate. In general, you will be eligible for advancement from E-1 to E-2 after nine months, E-2 to E-3 after another nine months, and from E-3 to E-4 after a subsequent six months.

click here for Enlisted Pay chart
This graph shows the monthly salary for each of the Enlisted ranks commonly reached in the first four years of enlistment. This graph is based on the pay scale effective January 1, 2010.

Numbers shown are monthly pretax earnings and do NOT include the value of housing or other allowances or benefits.

Taxes can vary; you will be taxed at the rate of your official state of residence, and some states offer special tax rates to military personnel. Housing and food allowances are not taxed.

In certain circumstances, promotions up to E-3 can come faster. One way to accelerate your Navy career is to get others to join. If you refer friends or other acquaintances to join the Navy, you can be eligible for advancement up to E-3. Contact a recruiter for more details.

Officer Pay

Officer salaries are based on rank and years in service. The monthly pay for an Ensign (O-1) upon receiving commission is $2,745.60 plus allowances and benefits. This graph shows the monthly salary for typical Officers based on rank and years in service.

click here for Officer Pay chart
When considering salary, be sure to take into account the value of housing and other allowances – plus outstanding Navy health-care benefits – which adds thousands of dollars to the value of your compensation.

In addition, Congress generally authorizes a military pay raise every year to reflect cost-of-living increases.

Vacation

Sailors and Officers enjoy generous vacation time (in the Navy it’s called leave). You can earn up to 30 paid days each year. If you don’t take all 30 days in one year, you can bank up to 60 days to use in the future.

Housing, Meal and Tax Benefits

Many states offer significant tax breaks to Navy personnel. In addition, each service member receives a monthly allowance for housing and food – completely tax-free.

What’s more, in the Navy you may qualify for a VA (Veterans Affairs) home loan, which typically offers better interest rates and qualification requirements than you’ll find as a civilian. Find more information at the VA web site.

Health Care

These days, a good health plan is increasingly rare. Rising medical costs and skyrocketing insurance premiums can make it difficult to afford quality medical care. In America’s Navy, we pride ourselves in providing world-class medical care to each and every Active Duty Sailor and Officer – as well as their families.

This full, comprehensive coverage is available at all military hospitals and dental facilities.

And if any one kind of specific service is unavailable, Navy service members receive referrals to necessary providers. This also is covered by the Navy health-care plan.

In the case of a medical emergency or concern, visiting your local medical facility is also covered.

This level of high-quality health-care coverage is getting harder and harder to find in the civilian sector. In the Navy, it remains standard issue.

Get more detailed information about Navy health-care coverage.

Life Insurance

The Navy provides all its service members with superior life insurance coverage. A $250,000 life insurance policy costs only $16 a month. A $400,000 life policy is only $26 a month.

source: navy.com

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