"Knowledge will forever govern ignorance

 and a people who mean to be their own governors

 must arm themselves with the power which knowledge gives."

Tuesday, March 13, 2007

The Can’t Lose New Jersey State Worker Contract

Last Saturday, we explained what a great deal Governor Jon Corzine has negotiated for New Jersey’s state workers. The average worker will receive a 35 percent increase in salary over the four-year contract - 13.6 percent in wage scale increases, the balance in incremental salary increases.

Yesterday, we explained how the “major concession” on health insurance benefits was actually another Corzine giveaway to the unions. Some employees, those enrolled in the NJ Plus medical insurance plan, will have to start contributing towards their health insurance. Workers currently enrolled in the state’s indemnity (Traditional) and HMOs plans already make contributions. Now all workers accepting health insurance from the state will pay 1.5 percent of their salary for medical benefits. Where’s the concession?

As we’ve explained before, state workers are “contributing” towards their benefits with the extra money the state’s giving them in four straight years of wage scale increases. As the union explained to state workers, “We made them raise the overall wage package in order to pay for the 1.5 percent cost.” The wage scale increases of 3 percent in each of the first two years and 3.5 percent in both of the final two years of the contract more than covers the new employee contribution requirements.

Still, there are state workers who feel this is a bad deal for them, especially in the long run because of the precedent setting health insurance contribution. They fear future increases to employee contributions for medical benefits in subsequent contracts. They fail to realize the 13.6 percent wage scale increases are locked in forever and there’s no way they lose in the long run with this new contract.

Let’s look at several scenarios to prove our point – it’s better for state employees to take the offered wage scale increases (across-the-board raises) now and contribute toward health insurance. In the short and long run, the state worker comes out ahead even if he never receives another salary increase and the state ratchets up the percent of salary for medical coverage in future contracts.

The following scenarios use the average salary for a New Jersey state worker of $54,742 for 2006. To make things less complicated, we’ll also assume the employee is at the maximum salary for his position and not eligible for any incremental salary increases - ever.

Scenario #1
He receives no across-the-board salary increases, but he never contributes towards his health insurance. He retires in 2050.

He will have earned a total of $2,408,648.00 and contributed a total of $0 for health insurance from 2007 through 2050. His net total salary is $2,408,648.00.

Scenario #2
He receives the across-the-board salary increases per the 2007-2010 contract of 3%.3%, 3.5% and 3.5% and pays 1.5 percent of his salary for health benefits. He never receives a salary increase of any type for the rest of his working years. He retires in 2050.

He will have earned a total of $2,725,552.23 and contributed a total of $40,883.28 for health insurance from 2007 through 2050. His net total salary is $2,684,668.94.

The employee is ahead by $276,020.94 under Scenario #2.

Scenario #2a
In the 2011-2014 contract he’s forced to start paying 3 percent of his salary for health insurance and there are no across-the-board salary increases. No incremental raises either.

He will have earned a total of $2,725,552.23 and contributed a total of $78,210.63 for health insurance from 2007 through 2050. His net total salary is. $2,647,341.60.

The employee is ahead by $238,693.60 under Scenario #2a.

Scenario #2b
Under the 2015-2018 contract he has to start paying 6 percent of his salary for health insurance. Still no raise.

He will have earned a total of $2,725,552.23 and contributed a total of $145,399.85 for health insurance from 2007 through 2050. His net total salary is $2,580,152.38.

The employee is ahead by $171,504.38 under Scenario #2b.

Scenario #2c
It’s now the 2019-2022 contract and it’s still bad news for our employee – no salary increase and he’s forced to start paying 9 percent of his salary for health insurance.

He will have earned a total of $2,725,552.23 and contributed a total of $205,123.60 for health insurance from 2007 through 2050. His net total salary is $2,520,428.63.

The employee is ahead by $111,780.63 under Scenario #2c.

Scenario #2d
We’re now in the 2023-2026 contract and still no salary increase. He now has to start paying 12 percent of his salary for health insurance.

He will have earned a total of $2,725,552.23 and contributed a total of $257,381.88 for health insurance from 2007 through 2050. His net total salary is $2,468,170.35.

The employee is ahead by $59,522.35 under Scenario #2d.

Scenario #2e
It’s now been 20 years and the 2027-2030 contract is not good to our employee. Still no salary increase and he has to start paying 15 percent of his salary for health insurance.

He will have earned a total of $2,725,552.23 and contributed a total of $302,174.69 for health insurance from 2007 through 2050. His net total salary is $2,423,377.54.

The employee is ahead by $14,729.54 under Scenario #2e.

Even under these worst case scenarios, no salary increase for 40 years and health insurance contributions rising to 15 percent of salary, the employee is still be ahead of the game. We all know this won’t happen. Between now and 2050 most state workers will receive incremental salary raises and additional wage scale increases in future contracts. There is no way for a state worker to lose under this new contract. Taxpayers are another story.

Labels: , , , , , ,



3 Comments:

At 9:53 PM, Blogger jicnacho said...

check this web:
fairsalaries.com allows employees to anonymously share information about their salaries and jobs.
Find out if your salary is fair.

 
At 7:14 PM, Blogger sempr said...

WHERE DID THEY GET THE SALARY INFORMATION? THE STATE OF NJWOULD HAVE BEEN BROKEN A LONG TIME AGO IF THESE SALARIES WERE TRUE, BUT THEY ARE NOY. THE AVERAGE STATE WORKER MAKES BETWEEN 30.000 & 40,000 PER YEAR. THERE IS NO INCREASE OF 13%. I WISH I COULD GET A JOB WITH THOSE SALARIES,WHERE DO I SIGN UP...OH THEY ARE JUST SOMEONES IDEA PROBALLY BASED ON THE SALARY THAT THEY MAKE...I BELEIVE THAT STATE WORKERS PROVIDE A BENEFIT TO THE GENERAL PUBLIC. I REALLY WOULDLIKE TO KNOW WHICH STATE EMPLOYEE MAKES THE SALARIES, PLEASE SHOW US.

 
At 1:47 AM, Anonymous Buy Generic Viagra said...

The contract also preserves incremental salary increases for all workers receiving a “satisfactory” performance rating and who have not reached the maximum salary level for their position.

 

Post a Comment

<< Home


 Contact Us

  • Email Us
  • Blog Roll Us!

    Search

    Syndication

  • Atom Feed
  • Bloglines
  • Feedburner
  • Feedster
  • Add to Google
  • Add to My MSN
  • Add to My Yahoo
  • News Is Free

    Recent Posts

  • New Jersey State Union Worker Contact: Health Care...
  • New Jersey State Workers To Get Average 35 Percent...
  • The New Politics NJ.com
  • Carla’s Brand of Commie Chic
  • The Jon Corzine, Carla Katz Timeline
  • How Does Carla Katz Do It?
  • Testing, Testing
  • Corzine Admits He Gave Additional Gifts To State E...
  • U.S. Attorney Christopher Christie Has Democrats R...
  • When Property Tax Relief Means More Spending, High...

    Archives

  • November 2004
  • December 2004
  • January 2005
  • February 2005
  • March 2005
  • April 2005
  • May 2005
  • June 2005
  • July 2005
  • August 2005
  • September 2005
  • October 2005
  • November 2005
  • December 2005
  • January 2006
  • February 2006
  • March 2006
  • April 2006
  • May 2006
  • June 2006
  • July 2006
  • August 2006
  • September 2006
  • October 2006
  • November 2006
  • December 2006
  • January 2007
  • February 2007
  • March 2007
  • April 2007
  • May 2007
  • June 2007
  • August 2007
  • September 2007
  • October 2007
  • November 2007
  • December 2007
  • January 2008
  • February 2008
  • April 2008
  • November 2008
  • January 2009
  • August 2009
  • September 2009
  • February 2012

    Online Journals

  • National Review

  • Opinion Journal

  • Real Clear Politics

  • Weekly Standard


  • Blog Roll

  • A Blog For All
  • Althouse
  • Ankle Biting Pundits
  • Barista of Bloomfield Avenue
  • Betsy's Page
  • Blue Crab Boulevard
  • Blogs For Condi
  • Bob the Corgi
  • Brainster's Blog
  • BuzzMachine
  • Captain's Quarter's
  • Cinnaman
  • Coalition of the Swilling
  • CWA-NJ
  • Dino's Forum
  • Daily Mail
  • Don Surber
  • DynamoBuzz
  • eCache
  • Exit 4
  • Fausta's Blog
  • GOP Bloggers
  • Instapundit
  • Joe's Journal
  • Kate Spot
  • Kausfiles.com
  • Little Green Footballs
  • Michelle Malkin
  • More Mnmouth Musings
  • Parkway Rest Stop
  • Patrick Ruffini
  • Polipundit
  • Power Line
  • Right Wing News
  • Roger L. Simon
  • The Blue State Conservatives
  • Riehl World View
  • Red Jersey
  • Right, Wing-Nut!
  • Sid in the City
  • Tiger Hawk
  • The Truth Laid Bear
  • Tim Blair
  • Wizbang


  • Sid in the City



    Majority Accountability Project

    MAP

    New Jersey Blogs

    Enlighten-Carnival-small

  • 11th and Washington


  • A Blog For All
  • A Planet Where Apes Evolved From Man?!?
  • Armies of Liberation
  • Atlantic Highland Muse
  • Attack of the 15.24 Mete


  • Barista of Bloomfield Avenue
  • BeLow Me
  • Big Windbag
  • Blanton's and Ashton's
  • Blue State Conservatives
  • Burning Feathers
  • BuzzMachine


  • Clifton Blogs
  • Coalition of the Swilling
  • Cobweb Studios
  • CoffeeGrounds
  • Constitutional Conservative
  • Confessions of a Jersey Goddess
  • Corzine Watch
  • Crazy Jackie
  • Cresting Acrocorinthus
  • Cripes, Suzette!


  • Daniella's Misadventures
  • Did I Say That Out Loud
  • Dojo Mojo
  • Dossy's Blog
  • Down the Shore
  • DynamoBuzz


  • eCache
  • Enlighten-NewJersey
  • Eye On Hoboken
  • Exit 4
  • Exit Zero
  • Extreme-Psychosis


  • Fausta's Blog
  • Fausti's Book Quest
  • Fractals of Change
  • Frenchtown NJ Blog


  • GiggleChick
  • Gregg Gethard's Amazing Personal Journey
  • goethe re scape


  • Hoboken Rock City


  • IamBillPower
  • If this is paradise, I wish I had a lawn-mower
  • Imaginary Therapy
  • Inadmissible Evidence
  • INCITE


  • Jersey Beat
  • Jersey Perspective
  • Jersey Side
  • Jersey Style
  • Jersey Writers
  • Joe's Journal


  • Karl's Corner
  • Kate Spot


  • Laughing At The Pieces
  • Likelihood of Confusion
  • Liss Is More


  • Mamacita
  • Mary's Lame Attempt at Fame
  • Media in Trouble
  • Michael Carroll
  • Mister Snitch!
  • MucknMire
  • My Life as a Rabid Blog
  • My New Jersey


  • New Jersey Eminent Domain Law
  • NJ Conservative
  • NJ Fiscal Folly
  • New Jersey For Change
  • New Jersey Weblogs
  • NJ Spoken Word
  • Northeast Corridor


  • Parkway Rest Stop
  • Philly2Hoboken.com
  • Poetic Leanings
  • Poor Impulse Control
  • Professor Kim's News Notes
  • Property Tax NJ


  • Rain Angel
  • Riehl World View


  • Shamrocketship
  • Shipwrecks
  • SloppyDawg
  • Sluggo Needs a Nap
  • SmadaNeK
  • Static Silence


  • Tami,The One True
  • Tammany on the Hudson
  • Tequila Shots For The Soul
  • The Art of Getting By
  • The Center of New Jersey Life
  • The Daily Fry
  • The Duc Pond
  • The Jersey Shore Real Estate Bubble
  • The Joy of Soup
  • The Mark(ings) of Zorro
  • The New Wisdom
  • The Nightfly
  • The Opinion Mill
  • The Pink Panther
  • The Political Dogs
  • The Rix Mix
  • This Full House
  • Tiger Hawk
  • Tomato Nation
  • Toxiclabrat
  • Twisty


  • Unbillable Hours
  • Usdin.Net


  • Where Is The Remote
  • Wine Goddess


  • Xpatriated Texan


  • Links

  • NJ Governor
  • NJ Legislature
  • GOP GOTV
  • Bob Menendez Information


  • Blog Rings

  • Blog Explosion
  • Blog Directory
  • Blogsnow
  • Blogwise
  • Blogstreet
  • Blogshares
  • Blogarama
  • Blog Digger
  • Daypop
  • Globe of Blogs
  • Blog Search Engine


  • Ecosystem Status


  • Who Links Here






  •