Government employees have average salaries of $65K (Dept. of Education averages around $100K) whereas the private sector averages $49,500. This is an income disparity of close to 24%. I find this especially astounding considering their benefits package (i.e. Dental, Medical, Retirement, etc.) are so much better than what you and I have. As a matter of fact, the Congressional Budget Office just provided a report that states on average federal employees’ benefits are 48% better than private sector employees. I’ll prove to you later that we can make a substantial dent in our debt situation through addressing the wage disparity.
There are variations in pension plans available to members of the House and Senate. The document I reviewed (Congressional Research Service’s Report on Benefits) was sixteen pages long and there were different pensions in place for the year each legislator started their service. Prior to 1984 anyone who retired could make up to $60,972 a year. There are currently 290 retired members of the House and Senate receiving this amount. After 1984 things became more realistic as retirees are now averaging $35,952. From what I could tell, they only have to work five years to be vested and earn the retirement benefits. The biggest thing that stood out to me is that the House and Senate somehow gave themselves a better retirement plan than other Federal employees; I wonder if they know this?
We can change this situation by staging down salaries and benefits during a five year period to where they fall in line with average Americans. I've calculated the impact on our federal budget and it would save us $43.8B annually. I'll provide more insight regarding this when I post my blog on specific political reforms to save our nation.
Keep seeking the truth my friends!