School superintendents are by far the highest paid government employees in New Jersey, making even more than heads of some Utilities Authorities, though they do need to come to work occasionally.
Governor Christie makes $175,000 in salary so in 2010 he imposed that as a prospective cap on superintendent salaries.
In an article today, a purported blowback example is provided in the retirement of Judith Wilson who has 35 years of service with a salary of about $225,000 and is retiring on a pension of $144,000 at age 56 rather than swallow a pay cut. What that writer is missing…..
If Ms. Wilson had stayed another 10 years and gotten heretofore routine salary increases to get her average salary to $300,000 her pension would have been $250,000 instead of $144,000, an increase in value of about $1 million and those higher salaries while working would more than make up for the forgone pension payments over the 10 year period.
Defined benefit plans are severely backloaded. Someone at or near retirement age could easily accrue 50% of their salary in the value of pension increases while someone 30 years from retirement might be getting an accrual value, subject to vesting, of 5%. As outrageous as it may seem to have a government employee getting a pension valued at $2 million, how would $3 million strike you?
Does anyone teach math (or logic) around here?