I know i know i know......

[Obvious Li]

we have been down this road before....but this is so good it should be required reading for everyone....



If you are looking for a career that permits you to work few hours, take three months off a year, have job security despite your performance and retire at age 55 with a great pension, public school teaching is the only game in town.



Gary Keating has become the poster child for entitled Canadian public school teachers and an abject lesson as to the problem with public sector labour negotiations.



During his 28 year teaching career, Keating had risen to the position of high school principal before venturing into politics. But only three weeks after being elected to the New Brunswick legislature by a mere nine votes, he resigned, betraying his party, constituents and New Brunswick's taxpayers, who must now foot the bill for a by-election. Keating said it quickly became apparent the job's "long hours and travel" were such "that the role is not for me."



There are teachers who work hard, and others who do not work hard but are nevertheless good teachers. But if you are looking for a career that permits you to work few hours, take three months off a year, have job security despite your performance and retire at age 55 with a great pension, public school teaching is the only game in town. That makes it inevitable that many people enter teaching largely for the lifestyle at the expense of our youth and, ultimately, this country's educational needs.



    The biggest boondoggle is teachers' pensions, which are calculated on 70% of their best five year's average earnings for life



I have devoted a couple of columns to excessive teacher salaries, which garnered more reaction than anything else I have written, because no one had published the calculations until then. I noted that the average elementary public school teacher in Toronto, who decided to work only the minimum hours required by their collective agreement, earned a wage of $78 an hour (likely that has gone up). In Ontario, the 2012 Drummond Report found about half of teachers were at the top level of their salary range, at nearly $95,000. This puts them well into the top 10% of income earners, according to Statistics Canada's National Household Survey from 2011. In Alberta, the average teacher now earns $99,300. Canadian teachers are among the three highest paid in the world. And I did not even take into consideration their benefits.



But the biggest boondoggle is teachers' pensions, which are calculated on 70% of their best five year's average earnings for life with inflation adjustments. They can work part-time, then go full-time for the last five years and retire with a massive pension for life, while supplementing that income with work as an occasional public school teacher or a full-time private school one. We are subsidizing our most experienced teachers to leave at age 55, on a full pension, while they double-dip. While teachers do contribute half of their pensions, the taxpayers pay the other half. That assumes there is no shortfall and pressure for taxpayers to make it up.



And with skyrocketing teachers' salaries, that mean future pensions will be even higher. A report from Mercers in Australia showed public sector workers live almost four years longer than others. The statistics here are similar, Bill Tufts writes in Pension Ponzi, and the reason is "great pensions and no stress in retirement and early retirement." As of 2013, teachers work an average of 26 years and are retired for an average of 31 years. So what should the $78-an-hour pay really be for total remuneration, based on the hours teachers are actually required to work — $175 an hour? $190? And all of this with no risk or expenses.



Furthermore, in our low interest rate environment, the assets required to support pensions are much greater. At 1%, $970,000 is required to sustain a typical $40,000 pension. At 5%, only $575,000 is.



Although I do not predict the imminent demise of any of provincial governments, despite their spendthrift predilections, the town of Springhill, N.S., just voted to dissolve itself as result of the impact of police pension costs.



Here is what I recommend;



Change collective bargaining. Provincial governments must start taking tougher positions at the bargaining table. Many private sector unions have long understood the need to make concessions to keep the businesses whose members they represent solvent. The traditional concessionistic approach of all public sector negotiators is unacceptable.



Eliminate defined benefit pension plans. These have virtually disappeared in the private sector. Whether it be through negotiations or legislation, those pensions should be replaced with defined contribution ones, so teachers would only receive what their plans have earned.



Raise teachers' retirement age. They should not be permitted to retire before age 67 and draw full pensions, any more than the taxpayers who employ them.



End double-dipping. Those that are collecting pensions should not be permitted to work in the public school system. If they choose to work elsewhere, there should be a reduction in their pension accordingly, in part to reduce the drain on public finances and also to discourage early retirement.



Balance the pension system. The sheer amount of teachers' pensions should be dramatically reduced or, at least, the taxpayer contribution portion eliminated, until their pensions are equivalent to the median of  the taxpayers who ultimately are paying those pensions.



Howard Levitt is senior partner of Levitt & Grosman LLP, employment and labour lawyers.

[Anonymous]

we have been down this road before....but this is so good it should be required reading for everyone....



If you are looking for a career that permits you to work few hours, take three months off a year, have job security despite your performance and retire at age 55 with a great pension, public school teaching is the only game in town.



Gary Keating has become the poster child for entitled Canadian public school teachers and an abject lesson as to the problem with public sector labour negotiations.



During his 28 year teaching career, Keating had risen to the position of high school principal before venturing into politics. But only three weeks after being elected to the New Brunswick legislature by a mere nine votes, he resigned, betraying his party, constituents and New Brunswick's taxpayers, who must now foot the bill for a by-election. Keating said it quickly became apparent the job's "long hours and travel" were such "that the role is not for me."



There are teachers who work hard, and others who do not work hard but are nevertheless good teachers. But if you are looking for a career that permits you to work few hours, take three months off a year, have job security despite your performance and retire at age 55 with a great pension, public school teaching is the only game in town. That makes it inevitable that many people enter teaching largely for the lifestyle at the expense of our youth and, ultimately, this country's educational needs.



    The biggest boondoggle is teachers' pensions, which are calculated on 70% of their best five year's average earnings for life



I have devoted a couple of columns to excessive teacher salaries, which garnered more reaction than anything else I have written, because no one had published the calculations until then. I noted that the average elementary public school teacher in Toronto, who decided to work only the minimum hours required by their collective agreement, earned a wage of $78 an hour (likely that has gone up). In Ontario, the 2012 Drummond Report found about half of teachers were at the top level of their salary range, at nearly $95,000. This puts them well into the top 10% of income earners, according to Statistics Canada's National Household Survey from 2011. In Alberta, the average teacher now earns $99,300. Canadian teachers are among the three highest paid in the world. And I did not even take into consideration their benefits.



But the biggest boondoggle is teachers' pensions, which are calculated on 70% of their best five year's average earnings for life with inflation adjustments. They can work part-time, then go full-time for the last five years and retire with a massive pension for life, while supplementing that income with work as an occasional public school teacher or a full-time private school one. We are subsidizing our most experienced teachers to leave at age 55, on a full pension, while they double-dip. While teachers do contribute half of their pensions, the taxpayers pay the other half. That assumes there is no shortfall and pressure for taxpayers to make it up.



And with skyrocketing teachers' salaries, that mean future pensions will be even higher. A report from Mercers in Australia showed public sector workers live almost four years longer than others. The statistics here are similar, Bill Tufts writes in Pension Ponzi, and the reason is "great pensions and no stress in retirement and early retirement." As of 2013, teachers work an average of 26 years and are retired for an average of 31 years. So what should the $78-an-hour pay really be for total remuneration, based on the hours teachers are actually required to work — $175 an hour? $190? And all of this with no risk or expenses.



Furthermore, in our low interest rate environment, the assets required to support pensions are much greater. At 1%, $970,000 is required to sustain a typical $40,000 pension. At 5%, only $575,000 is.



Although I do not predict the imminent demise of any of provincial governments, despite their spendthrift predilections, the town of Springhill, N.S., just voted to dissolve itself as result of the impact of police pension costs.



Here is what I recommend;



Change collective bargaining. Provincial governments must start taking tougher positions at the bargaining table. Many private sector unions have long understood the need to make concessions to keep the businesses whose members they represent solvent. The traditional concessionistic approach of all public sector negotiators is unacceptable.



Eliminate defined benefit pension plans. These have virtually disappeared in the private sector. Whether it be through negotiations or legislation, those pensions should be replaced with defined contribution ones, so teachers would only receive what their plans have earned.



Raise teachers' retirement age. They should not be permitted to retire before age 67 and draw full pensions, any more than the taxpayers who employ them.



End double-dipping. Those that are collecting pensions should not be permitted to work in the public school system. If they choose to work elsewhere, there should be a reduction in their pension accordingly, in part to reduce the drain on public finances and also to discourage early retirement.



Balance the pension system. The sheer amount of teachers' pensions should be dramatically reduced or, at least, the taxpayer contribution portion eliminated, until their pensions are equivalent to the median of  the taxpayers who ultimately are paying those pensions.



Howard Levitt is senior partner of Levitt & Grosman LLP, employment and labour lawyers.

Interesting article Obvious Li and I am so happy you are back.

 ac_flower

[Anonymous]

This shit rubs me the wrong fucking way handsome. My son is already in debt so lazy, entitled assholes like Keating don't have to work hard, work long hours and live a comfortable life of leisure for years at our expense. This cannot last indefinitely. Our wonderful democratic politicians will keep punting this problem down the road until one day future governments(possible even the No Development Party) may have no choice, but to derail these privileged pricks gravy train.

[Big Wave Dave]

Too many characters? The maximum number of allowed characters is 6000.



You can't blame anyone for wanting as much as they can get with as little effort as possible. That's like a motto I live by. ac_drinks

[Anonymous]

Too many characters? The maximum number of allowed characters is 6000.



You can't blame anyone for wanting as much as they can get with as little effort as possible. That's like a motto I live by. ac_drinks

Why does that NOT fucking surprise me. acc_angry

[Anonymous]

The teachers in our private Christian school system make similar wages to their public school colleagues..



The big difference is that they are not unionized and don't have the same pension plan..



They have a pension plan, but it is not as generous as in the public system.