PUBLIC VERSUS PRIVATE PENSIONS

STATE, LOCAL, FEDERAL VERSUS PRIVATE PENSIONS

INDUSTRY SECTOR

An industry Civil Service worker covered by a Defined Benefit retirement plan working 25 years @$50,000 annually retirement would be $8,309.

A Federal worker covered by Defined Benefit retirement plan working 25 years @$50,000 annually would draw estimated $4,681.

PRIVATE SECTOR

Worker covered by defined benefit plan with 25 years @$50,000 retirement would be $2,786.
Worker covered by social security plan with 25 years @$50,000 retirement would be $1,534.
Worker covered by defined contribution with 25 years @$50,000 retirement would be $1,907.

1996-2005 Comparsion of Average Pensions

Pensions 1996 2005 INCREASE OVER 9 YEARS
Private $26,582 $40,505 +34.4%
State $31,397 $42,249 +25.7%
Local $28,320 $37,718 +25.0%
Federal $40,414 $59,864 +32.5%

Source: 2007 AFT Public Employees Compensation Survey: www.bls.gov