Public vs Private

[oiprocs]

I sell equipment to government water/wastewater agencies in CA.

Clients tell me about the benefits, pension payouts, time off, etc. As great as these benefits are, they're also a huge factor with respect to the state's economic problems.

On one side, these guys are telling me to apply to positions for which I qualify. They say things will slow down but when I get older, I'll appreciate the health/medical and pension waiting for me when I retire.

On the other side is my boss, who is a good, honest man and isn't out to deceive me. He says that the great benefits are not going to continue for longer. He says reform is coming and that new employees will not be getting the same luxuries afforded to existing employees.

What I want to know is, even with a major reform, will it still be worth considering a position with one of these agencies? I know it's hard to say, given that we may not know what changes will happen, but I figure someone on this board is more informed than I am.

Also, if this belongs in P&N, I'm sorry.

 

[rudder]

On one side, these guys are telling me to apply to positions for which I qualify. They say things will slow down but when I get older, I'll appreciate the health/medical and pension waiting for me when I retire.

Most public pensions and no where near fully funded. I would not want to rely on one. These people may receive the pensions they were promised... but it will be made up on the health/medical side.... i.e., premiums and out of pockets expenses will keep going up.

 

[Arcadio]

I thought this thread was about programming. I need to get out more.

 

[olds]

They'll cut pensions for new hires. They'll have to raise pay to compensate. Since new hires get paid more, they'll have to raise the pay of the workers that were there before the benefits were lowered.

 

[T_Yamamoto]

They'll cut pensions for new hires. They'll have to raise pay to compensate. Since new hires get paid more, they'll have to raise the pay of the workers that were there before the benefits were lowered.

So that means the old people get paid more + the better pension?

 

[olds]

So that means the old people get paid more + the better pension?

Yep.

 

[T_Yamamoto]

Yep.

But theres a possibility that there will be another round of cuts.

 

[olds]

But theres a possibility that there will be another round of cuts.

There will certainly be another round of cuts.

 

[jagec]

I sell equipment to government water/wastewater agencies in CA.

Clients tell me about the benefits, pension payouts, time off, etc. As great as these benefits are, they're also a huge factor with respect to the state's economic problems.

On one side, these guys are telling me to apply to positions for which I qualify. They say things will slow down but when I get older, I'll appreciate the health/medical and pension waiting for me when I retire.

On the other side is my boss, who is a good, honest man and isn't out to deceive me. He says that the great benefits are not going to continue for longer. He says reform is coming and that new employees will not be getting the same luxuries afforded to existing employees.

What I want to know is, even with a major reform, will it still be worth considering a position with one of these agencies? I know it's hard to say, given that we may not know what changes will happen, but I figure someone on this board is more informed than I am.

Also, if this belongs in P&N, I'm sorry.

If you like your current job and boss and are paid well, with medical, 401k etc, then don't switch. The grass is certainly not THAT much greener.

As far as government jobs go, the flexibility and security* of the job is indeed often better than the private sector, and I don't see that changing for federal positions (less certain for state), but I wouldn't rely on the pension that you get at 65 (66? 68? 75?) looking ANYTHING like what current retirees are getting. Everyone assumed that they could get 10% returns forever, and so they "saved a lot of money" by underfunding the pension pot.

*which used to be ironclad. Less so these days, but if you're actually a decent worker, your odds of getting cut are fairly low, and if you get cut your managers will do more to try and get you another position elsewhere in government. Private sector, you're better off jumping ship BEFORE it sinks.

 

[DCal430]

I will sat this where I use to live, we had water provided by a private company. Everyone in the area was MANDATED by law to purchase water from this private company, and this was in California too. I think 20 to 30% of water in California is supplied by private companies where home owners are mandated to purchase from a single private company.

The city near by provided water for its citizen, same with special water district not too far away. Our private water was around 2 times the price as water provided by these government entities. In fact this is very typical, private water tends to be two to three times as expensive as government supplied water.

So they may get higher benefits, but the people save BIG money over private companies. Private companiesw almost ALWAYS charge more for the same work as the government. Here we have government run electric company, it is way cheaper than the near by area that has a private company providing electricity.

 

[jagec]

The city near by provided water for its citizen, same with special water district not too far away. Our private water was around 2 times the price as water provided by these government entities. In fact this is very typical, private water tends to be two to three times as expensive as government supplied water.

This is an OT thread about job advice, not a P&N thread about whether the private or the public sectors are more efficient at providing services.

 

[DCal430]

oiprocs do you also sell to private water/waste water companies given the large percent of Californians who have private water.

 

[PowerEngineer]

It's fair to say that the retirement benefits offered by both government agencies and private companies are being cut way back. Most "defined benefits" programs (like pensions and medical) are being replaced with "defined contributions" (like enhanced 401k's and fixed contribution toward medical coverage). As benefits continue to slide downhill, I'm thinking that government retirement benefits will continue to be better than those in private industry.

As to the public versus private sidebar, public agencies have lower costs for borrowing (because of tax-free interest payments) and no income taxes. Publics also often get preferential access to federal resources, particularly in the electricity business. Private utilities (e.g. electricity and water) are granted franchises by local governments which means everyone in that juristiction buys their service, and in return for this monopoly the utilities are subject to rate setting by the state.

 

[Jaskalas]

I sell equipment to government water/wastewater agencies in CA.

I firmly believe only a Federal bailout can save CA. Money has been fleeing the state for a decade.

 

[Itchrelief]

I'm not adding any factual information, but from news stories every time there's an economic downturn, it seems it isn't much better to be a non-emergency state (non-federal) worker than a private-sector worker. It seems that states get their revenues hit just as bad as private entities and end up having to slash eventually, it's just that they have to go through a few rounds of public feedback and legislature debate before they do it.

 

[DCal430]

It's fair to say that the retirement benefits offered by both government agencies and private companies are being cut way back. Most "defined benefits" programs (like pensions and medical) are being replaced with "defined contributions" (like enhanced 401k's and fixed contribution toward medical coverage). As benefits continue to slide downhill, I'm thinking that government retirement benefits will continue to be better than those in private industry.

As to the public versus private sidebar, public agencies have lower costs for borrowing (because of tax-free interest payments) and no income taxes. Publics also often get preferential access to federal resources, particularly in the electricity business. Private utilities (e.g. electricity and water) are granted franchises by local governments which means everyone in that juristiction buys their service, and in return for this monopoly the utilities are subject to rate setting by the state.

Here the Public Utilities Commission which is the state body that approves of rate increases for private utilities, rubber stamps every rate increase that comes their way. They have yet to see a rate increase that fucks over the consumer that they didn't love. The Commission is full of former private utility execs, and the private utility execs are full of former commission members. It is a very corrupt system.

 

[oiprocs]

oiprocs do you also sell to private water/waste water companies given the large percent of Californians who have private water.

Yes.


Posted from Anandtech.com App for Android

 

[Tommy2000GT]

I would love to get a government job. I can be all lazy and incompetent and still be entitled to raises.

 

[olds]

This is an OT thread about job advice, not a P&N thread about whether the private or the public sectors are more efficient at providing services.

It's an Off Topic thread, so anything goes.
Pics of your mom?