Comparing

 Public  and  Private  Employee  

Compensa7on  and  Re7rement  Benefits  
in  California  

Capitol  Matrix  Consul7ng  

May  5,  2011  

FixPensionsFirst.com    
 Largest  California  Pension  Funds  
Face  Major  ShorIalls  

Recent Recent
Public Pension System Assets Funded Status

Public Employees’ Retirement System $231 61%

State Teachers’ Retirement System $141 63%

University of California $45 73%

Los Angeles County Employees’ Retirement Assn. $40 69%

San Francisco City and County Retirement System $16 74%

CapitolMatrixConsulting.com

 Key  Findings:  
Chapter  1.  Re7rement  Systems  

•  Public  re1rement  benefits  are  much  richer  

than  private  sector  benefits  for  career  
employees.  
•  A  key  excep1on  is  teachers,  who  earn  less  
generous  benefits  than  other  public  sector  
employees.  
•  Re1ree  health  subsidy  is  a  large  benefit.  

CapitolMatrixConsulting.com

 Comparison  of  Re7rement  Benefits  
Full  Career  Employee  Re7ring  at  Age  57  


 




   



    











  

 

 

   



           
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CapitolMatrixConsulting.com

 Comparison  of  Re7rement  Benefits  
Full  Career  Employee  Re7ring  at  Age  62  


 




   



    











  

 

 

   



           
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CapitolMatrixConsulting.com

 Comparison  of  Re7rement  Benefits  
Par7al  Career  Employee  


 




   



    











  

 


 

   



           
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CapitolMatrixConsulting.com

 Comparison  of  Benefits:  
CHP  Mid-­‐Career  Employee  













 

  



 
 






 
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!" #$$%&%'

CapitolMatrixConsulting.com

 Key  Findings:  
Chapter  2.  Compensa7on  

•  Public  sector  and  private  sector  wages  are,  on  

average,  similar  for  comparable  jobs.  
•  Complica1ng  factors:  job  security,  unique  
occupa1ons,  produc1vity,  and  greater  wage  
varia1on  in  private  sector.  
•  Re1rement  benefits  for  long-­‐term  public  
employees  oFen  push  total  compensa1on  
costs  higher  than  private  sector  counterparts.  
CapitolMatrixConsulting.com

 Comparison  of  Total  Compensa7on:  
Long-­‐Term  Employee  

Private Sector
Category of Compensation State Employee
Employee

Wages $60,000 $65,000

Benefits - -

Employer-paid health $12,381 $11,475

Paid leave $10,385 $9,570

Social Security & Medicare $4,590 $4,972

Retiree pension & health $19,136 $5,720

Total Compensation $106,492 $96,737

CapitolMatrixConsulting.com