Arizona Education Association

Advocate Summer 2012

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Despite the Realities You Know All Too Well, Some Say Public Employees Are Overpaid by Randy Carter If you feel that you're not making economic progress, you're absolutely right. In the last 20 years, the average teacher salary has gone up $22,580. When adjusted for inflation, that amounts to a negative $4.00 or 0%. Despite the realities you know all too well, corporate interests fund studies to lead the public to believe you're overpaid. Jeffrey H. Keefe of Rutgers University's School of Management and Labor Relations conducted a thorough review of a recent report by the Heritage Foundation and the American Enterprise Institute. He found that these think tanks misrepresented the facts to push their political agenda. Read the full report at the National Education Policy Center website nepc.colorado.edu/ node/2709. It is never fun to discover you're underpaid, but it is good to know how to counter those who claim you're overpaid. Here's a quick summary of Keefe's findings. • The report claims that teachers' benefits equal 100.8 percent of their salaries. The actual figure is no greater than 31.7 percent, and less for those who don't receive retiree health benefits. • To compare compensation between teachers and other professionals, the report measures teachers' education levels not by college degrees, but by scores from the Armed Forces Qualification Test. • The facts show that after adjusting for time off in the summer, public school teachers' total compensation is 19 percent lower than other similarly qualified professionals. • Private sector professionals with similar education and experience receive slightly more benefits than teachers, according to the U.S. Department of Labor. Teachers are slightly more likely to receive retiree health coverage. The end result is a wash, with public school teachers on average receiving comparable benefits packages to professionals in the private sector with similar qualifications. ✒ Defending Your Retirement: Barnes v. State of Ariz. by Samantha Blevins AEA is leading a coalition of public union members challenging the increase of the employee contribution to the Arizona State Retirement System (ASRS). Historically, employees and employers paid an equal amount every pay period to ASRS. However, SB 1614 changed that 50/50 split. Under SB 1614, the employee contribution towards retirement increased from 50 to 53 percent and the employer contribution decreased from 50 to 47 percent. AEA believes that SB 1614 violates the Arizona Constitution and contract law for the existing participants in ASRS. Basically, the over 200,000 active participants in ASRS accepted employment agreeing to pay for half the cost of their retirement, and SB 1614 wrongly changes the terms of those existing employment contracts. AEA filed its complaint in Superior Court in July 2011, and on December 15, 2011, both parties argued their respective Motions for Summary Judgment. On February 3, 2012, Judge Willett granted our Motion for Summary Judgment, holding that the shift in the contribution rates violated the Arizona Constitution. AEA is waiting for the Judge to sign our order enjoining ASRS from accepting the contributions pursuant to SB 1614, and once that happens, your employers can change the deductions in your paychecks. AEA is also working to have the wrongfully withheld contributions returned to you. The State has not yet decided whether it will appeal that decision, but AEA is committed to defending the retirement promises made to educators. ✒ ADVOCACY CORNER By the time of publication, updated information about our win in this case will likely be available. Go to the AEA website for the latest. AEA Advocate ❘ Summer 2012 23

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