Category Archives: Benefits

The Union Effect in California

Source: University of California, Berkeley Center for Labor Research and Education, Institute for Research on Labor and Employment, 2018

From the summary:
“The Union Effect in California” is a three-part series exploring the ways in which unions affect the lives of all working people—both union members and nonunion members—in California. The studies were conducted as the U.S. Supreme Court prepares to issue a ruling in Janus v. American Federation of State, County, and Municipal Employees that threatens to weaken public sector unions.  

The first study, Wages, Benefits, and Use of Public Safety Net Programs, shows that by bargaining together through unions, California workers increase their earnings by approximately $5,800 per worker annually, for a combined total of $18.5 billion. Union workers also have more access to health and retirement benefits, thereby reducing reliance on the state’s public safety net programs.
By Ken Jacobs and Sarah Thomason    

The second study, Gains for Women, Workers of Color, and Immigrants, shows that, while all workers in California have higher wages and greater access to benefits when covered by a union contract, those workers who earn the least in nonunion workplaces—women, people of color, and immigrants—gain the most.
By Sarah Thomason and Annette Bernhardt      

The third study, A Voice for Workers in Public Policy, analyzes unions as a countervailing force to corporate power in the state. It explores union-backed policies promoting the rights of workers—union and nonunion alike—and addressing broader issues facing working families in the state. Included are policies in the areas of minimum wage, worker benefits, workplace safety, wage theft, employment-based sexual harassment, whistleblower protections, education, immigration, consumer protections, infrastructure and housing, climate policy, and criminal justice.
By Jenifer MacGillvary and Ken Jacobs

Unintended Consequences: How Scaling Back Public Pensions Puts Government Revenues at Risk

Source: Michael Kahn, National Conference on Public Employee Retirement System (NCPERS), May 2018

The argument that taxpayers cannot afford public pensions has gained traction despite a woeful lack of empirical evidence to support it. Legislators across the nation are contemplating options for the future funding of public-sector worker retirement benefits at a time when competition for finite state and local resources is fierce. The reasons are familiar: the lingering effects of recession and misguided budget priorities have taken a toll. Time and again, defined-benefit pensions for firefighters, police officers, teachers, and other public servants have ended up on the chopping block, even though plan participants have consistently held up their end of the bargain.

Unintended consequences often flow from policy actions that are made with short-term pressures in mind. There is a real risk that reducing or even dismantling public pension benefits will ultimately backfire. Tn this installment of ongoing research on the impact of public pensions on the U.S. economy, NCPERS set out to quantify that risk.

The question we asked is this: How does the payment of defined pension benefits and the investment of pension assets impact state and local economies and revenue generation? ….

Related:
Video blog

Minnesota’s New Pension Bill Is A Positive Step Toward Sustainable Funding

Source: Cora Bruemmer, Eden P Perry, Todd N Tauzer, Sussan S Corson, S&P Global Ratings, June 7, 2018
(subscription required)

Minnesota’s new pension bill is a positive step toward improving funding of the state’s pension plans, but because contributions remained fixed in state statute, there could eventually be a regression in plan funded status, in S&P Global Ratings’ view.

State and Local Government Workforce: 2018 Data and 10 Year Trends

Source: Gerald Young, Center for State and Local Government Excellence, International Public Management Association for Human Resources, and the National Association of State Personnel Executives, May 2018

From the summary:
Since 2009, the Center for State and Local Government Excellence has partnered with the International Public Management Association for Human Resources and the National Association of State Personnel Executives to conduct a study on state and local workforce issues. This year’s report contains both 2018 data on emerging issues like the gig economy and flexible work practices and longitudinal data on recruiting challenges, retirement plan or health benefit changes, hiring, and separations from service.

Illinois (State of) – Pension burden will erode credit without offsetting actions

Source: Ted Hampton, Thomas Aaron, Emily Raimes, Nicholas Samuels, Timothy Blake, Moody’s, Issuer In-Depth, May 30, 2018
(subscrption required)

When fiscal 2019 begins on July 1, the State of Illinois faces a sharp jump in its budgetary fixed costs, which include debt service, retiree healthcare, and pension contributions. These cost pressures are likely to intensify in future years.

State and local government workers preparing for retirement: Do you understand your plan formula?

Source: Natalie Kramer and Jesus Ranon-Hernandez, Bureau of Labor Statistics, Beyond the Numbers, Vol. 7 no. 6, May 2018

The National Compensation Survey (NCS) publishes information on the coverage and provisions of employer-sponsored benefit plans for private industry and state and local government workers. For workers approaching retirement age, trying to make sense of retirement options can be daunting. The NCS can provide answers to questions such as the following:

– How much of a benefit will I receive at retirement?
– If I retire early, will my benefits be reduced?
– Will my benefits be increased if I work a few more years?

This issue of Beyond the Numbers describes basic retirement formulas by using different retirement scenarios and formulas to illustrate the monthly retirement benefit. Two examples are provided for specificity…..

Voluntary Benefits Now Essential, Not Fringe

Source: Stephen Miller, SHRM, April 13, 2018

Student loan help and financial planning aid are among offerings on the upswing.

Employers no longer consider voluntary benefits as simply add-ons but rather as “a way to address a host of employee needs, offer choice and allow employees to personalize their rewards,” said Lydia Jilek, director of voluntary benefits at consultancy Willis Towers Watson.

Voluntary benefits are supplemental to core health insurance and retirement savings plans and are typically employee-paid through salary-deferred contributions. They can be a cost-efficient way to provide additional coverage to employees, who can purchase these plans through their employer at a lower, group rate.

Newly released findings from Willis Towers Watson’s 2018 Emerging Trends: Voluntary Benefits and Services Survey of large employers show that:

– Only a handful of respondents (5 percent) say voluntary benefits will have little importance to the value they offer employees through their total rewards strategy. Five years ago, 41 percent of employers said voluntary benefits would have little importance.

– More than two-thirds of employers (69 percent) believe voluntary benefits will be a very or more-important component of their total rewards strategy in three to five years…..

How Have Pension Cuts Affected Public Sector Competitiveness?

Source: Laura D. Quinby, Geoffrey T. Sanzenbacher, and Jean-Pierre Aubry, ons for the 2014 improvements, according to their, Issue Brief, April 9, 2018

Summary:
State and local data from 2005 to 2014 show the impact pension cuts have on the ability of governments to recruit, retain, and retire talented employees.

Key findings:
One of the central findings is that, especially for new hires, the implementation of pension reform hampered governments’ ability to attract new employees. This is important to note in an environment where governments are experiencing increases in retirements and are competing for talent at a time when unemployment rates, especially for those with college degrees, are relatively low.

An Unequal Division of Labor: How Equitable Workplace Policies Would Benefit Working Mothers

Source: Sarah Jane Glynn, Center for American Progress, May 2018

From the overview:
Most working mothers return home to a second shift of unpaid housework and caregiving after their official workday ends. When paid work, household labor, and child care are combined, working mothers spend more time working than fathers.