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CITY OF MEMPHIS JOB BENEFITS
 
  CAN YOUR SALARY AND BENEFITS COMPARE WITH THESE?
July 18, 2005

I have finished my salary and benefit comparison spreadsheet and have given the City, The County, the MLGW and the two school systems a chance to review and correct any errors. I think it can be useful in trimming back some of the costs of government. Basically these are great jobs compared to private sector jobs. The real problem with the City is that it is run as a patronage job factory and not as a business. I think it could be run much more efficiently with the top jobs being filled with real professionals and with the Mayor’s job filled with someone who cares more about the taxpayers than he does about his supporters, his cronies and his business contributors.

For the future, I think the pension system should be changed for future employees from a defined benefit plan to a defined contribution plan and more restraints should be put on PILOTS and other tax giveaways which mainly benefit the Mayor’s contributors. Another key problem is oversight or lack thereof. There is currently very little oversight on how and for what money is spent, particularly at HCD and MHA and when there is an audit it is generally done by someone who knows the outcome the Mayor wants in advance.

Looking at the spreadsheet, the following are areas that could be looked at. Some MLGW salaries are too high but those jobs requiring high technical skills may be are worth it. If you start filling the MLGW with City Hall patronage types, they will certainly be too high. But then lookout, when the lights go out and no one knows how to turn them back on.

The health care costs seem somewhat high compared to private companies considering the huge numbers in the groups. Vacations (5 to 6 weeks) are 1 to 2 weeks longer than private companies. Sick days for the City and County (30 days) should be cut back to 12 days like the others. Car allowances should be discontinued as they are really salary. If they are required to get and keep great employees, then they should be rolled into salary. All the various life and disability insurance benefits should be reviewed to see what they are actually costing and who is selling these policies.

And finally, the appointed people, over and above what is authorized by the Charter, should be laid off. This, of course, does not touch the CIP budget items which desperately need to be removed before the bankruptcy notice is posted at City Hall and at the County.

What can you, the taxpayer, do about the situation? You have the power to replace the Mayor and the City Council in October 2007. Replace them with people who care about this City and who want this City to return to its former beauty and safety. Look carefully at what they say and compare it with their public record. Most taxpayers want low taxes, good safe schools, their garbage picked up, the public parks cut and maintained, the public roads repaired and the parkways planted with flowers and the grass cut and the criminals taken off the streets. They do not care about trolleys, light rail dreams, basketball forums that few can afford or grandiose riverfront fantasies. Throw out the long serving, self serving politicians and replace them with good people who want what you want.

Click here to see what great jobs these public service jobs are.





City Jobs Versus the Private Sector

*POS Plan

Annual deductible In Network: You pay nothing
Annual out of pocket In Network: You pay nothing
Office Care In Network: You pay $20 per visit, Plan pays the balance
In Hospital Care In Network: You pay $100, Plan pays the balance
Preventive Care In Network, You pay $20 per visit, Plan pays balance
Outpatient Treatment In network: You pay $100, Plan pays the balance
Emergency Services In Network: You pay $100 for Hospital
Laboratory & Radiology In Network: You pay $0, Plan pays ALL
Maternity Care In Network: You pay $20 for initial visit, $100 co-pay, Plan pays the balance

Click here to see what the Memphis City School system pays in benefits.

BENEFIT INFORMATION FOR MLG&W

Company Statistics:

• Annual Revenue: $1,232,046,140
• Electric Customers: 419,304
• Gas Customers: 324,427
• Water Customers: 244,030
• Union Employees: 1,816
• Non-Exempt management: 109
• Salaried Management: 732
• Total MLGW Employees: 2,657
Union: Brotherhood of International Electrical Workers (IBEW 1288)

Union Leadership’s Compensation: One Business Manager and two Assistant Business Managers paid by ratepayers (MLGW). Paid top Union rate of $31.41 per hour times 3 equals: $94.23 @ 2080 hours=$195,998. IBEW provides additional compensation.

General Increase (Union workers): 3.5% 1-1-05 One Year Contract

Benefits:

• Vacation:
1-5 Years Service: 10 days
6 Years Service: 11 days
7 Years Service: 12 days
8 Years Service: 13 days
9 Years Service: 14 days
10-14 Years Service: 15 days
15-19 Years Service: 20 days
20-30 Years Service: 25 days

• Holidays: 11 days

• Flexible Benefit Programs: Medical expense spending account and dependent care flexible spending account. Tax free accounts fully funded by individual employee.

• Sick Leave: Earn 1 day per month with no maximum accrual amount and carried over year to year

• Sick Leave Pay: Management/Exempt employees paid 42% of sick leave at retirement. Union employees may select one of two options: (1) 42% of sick leave or (2) 100% pay for 65 days. Any union employee who sells sick leave prior to retirement is restricted to option #1. Employees hired after 1-1-98 limited to option #1. All employees may sell all sick leave over 100 days at 42% rate. After sick leave is paid at retirement remaining 58% is credited to pension service.

• Bonus Days: Receive 1 day every three months for perfect attendance during that period

• Retirement Plan: Employee pays 8% of pay and MLGW pays 8%. Full retirement after 25 years service.

• Life Insurance: Employee pays 40% of cost, MLGW pays 60%. Life Insurance is 2X base salary. Optional dependent coverage paid 100% by employee.

• Salary Continuation: Short-term/long term disability compensation pays 60% of employees’ salary if unable to perform job duties due to sickness or accident and no available sick leave. Company pay 50% of cost/Employee pays 50%.

• Medical Insurance: HMO/PPO/POS plans available for employees and dependents. Company pays 80% of cost/Employee pays 20%. Maximum deductibles $250 individual/$1500 family per hospital confinement.

• Dental Plan: First $10 paid by company

• Worker’s Comp: Regular pay for first 180 days and then reduced to state rate until reaches MMI. At MMI additional 180 days at full pay until place in new position. Note: If placed in lower paying job, can receive disability pay supplement from pension plan if employee has 5 years service.

• Shift Differential Pay:

3-11 Minimum of $.65 per hour or 4% of hourly wage
11-7 Minimum of $.65 per hour or 5% of hourly wage

• Work Out of Classification Pay:

Grades 1-5 $.50 per hour
Grades 6-9 $.60 per hour
Grades 10 & up $.70 per hour
Non-supervisory MGMT $.80 per hour
C/l & supervisory $.85 per hour




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