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Most people do not talk about total compensation in the U.S. when discussing salaries. My total compensation is around $65,000. It is much less than anyone I
by yequalsx 16y ago
Most people do not talk about total compensation in the U.S. when discussing salaries. My total compensation is around $65,000. It is much less than anyone I know in the private sector with comparable education and experience. And this while comparing my total compensation with just their salary.
Most professionals do get health coverage and some sort of pension coverage (usually 401K matching funds). I don't think it's fair to include these things when talking about teacher pay unless one does this for non-teachers as well. As a society we usually don't include these things when talking about non-teacher pay. Heck, most people think that they only pay half of FICA and that the employer pays the other half.
Given the hours worked, emotional stress, and grief that many teachers experience I think teachers are underpaid. Very much underpaid. I'm a teacher and have an obvious bias. At my school our contracts are being negotiated right now. It's clear we are going to take a pay cut. I haven't had a pay raise in 2 years and will be taking a pay cut over the the next two years.
The job is becoming less and less desirable. I strongly encourage anyone who will listen to me to not go into teaching. It's a bad career choice in my opinion.
- gsmaverick 16y agoRegarding pension, matching 401k is not comparable with a government backed defined benefit pension.
- yequalsx 16y agoActually it is. There is an easy way to compare them from an actuary point of view. Both types of systems have a present day value and both are calculable expenses to the employer. Some 401Ks are much nicer than my pension. Some are much worse. But they are comparable.
- georgieporgie 16y agoDoes your pension carry the risk of losing its entire value as a result of a stock market crash?
- yequalsx 16y agoYes. All pensions invest in the stock market. Well run ones invest in government bonds too and other safe instruments. Right now my pension is around 80% funded as a result of the market crash.
- georgieporgie 16y agoAll pensions invest in the stock market I believe that statement is untrue. Regardless, let me rephrase my question: are you guaranteed a certain retirement benefit regardless of market performance? It is my understanding that pension programs typically guarantee some percentage of your highest salary, with a multiplier for length of service.
- yequalsx 16y agoI like to know of an example of a pension system in the U.S. that does not invest in the stock market. I'm in a defined benefit pension system and regardless of how the stock market does my benefit is guaranteed by the state. Of course, the actuaries who set up the pension devised it so that it the guaranteed benefit would very likely be able to be met by the contributions I make to it. There is a push by some politicians to get states to declare bankruptcy so that they will be able to renege on their guarantee.
- georgieporgie 16y agoI like to know of an example of a pension system in the U.S. that does not invest in the stock market Social Security, as mentioned in the Wikipedia link. Additionally, there is no reason a private pension couldn't be directly funded. I'm in a defined benefit pension system and regardless of how the stock market does my benefit is guaranteed by the state Which is what I meant when I asked about being invested in the stock market. While your pension may be funded via stock market investments, for all intents and purposes, your pension is unrelated to the market. With my 401k, I am very much at the whim of the market. If I hit 65 and my anticipated returns don't materialize, there's nobody for me to sue. Thus, pensions are not directly comparable to 401ks. There is a push ... guarantee. Given the unrealistic contracts that were agreed to, in light of our near-term economic realities, bankruptcy or mass firings and re-hirings are literally the only way this problem can be addressed.
- access_denied 16y agoTeachers are totally underpaid. I challenge anyone who thinks otherwise to just work 1 week as a teacher in front of more than 25 students aged 10 - 16. Then we talk again. (I am not a teacher, nor something close to it.)