Public sector employees continue to receive better health, retirement benefits
According to the latest Labor Department release on employee benefits, public sector employees continue to receive better benefits that their private sector counterparts. As of March, 88% of state and local government employees received employer-sponsored healthcare benefits, while in the private sector, the percentage was 71%. For individual policies, public sector employees had 89% of their premiums for covered by their employer, where public sector employers paid 80% of their employees’ premiums. For family policies, the percentage covered was very similar, with public sector employers covering 73%, compared to 70% in the private sector. Among employees in the lowest quarter of earnings, 69% of public employees had access to healthcare benefits, while only 38% of private sector employees received healthcare benefits. The disparity also existed with retirement plans. Approximately 90% of public sector employees had access to a retirement plan, compared to only 65% of private sector employees. The budget crises currently affecting state and local governments could lead to cuts to these generous benefits, according to Gary Burtless, an economist with the Brookings Institution.
Murray, S. (2010, July 28). Public employees get more benefits. Wall Street Journal.