Government Workers as the Fastest Growing Group of Millionaires

Forbes publisher Rich Karlgaard wrote an interesting and entertaining piece in his blog.

Karlgaard discusses the growing disparity beteen the incomes of public sector or "government" workers versus their private sector counterparts.

Many would assume that private sector employees are on the advantageous side of this disparity.  This is not, however, the case.

As Karlgaard indicates, the compensation levels of government workers--on average--for exceeds that of their private sector counterparts.

The reason is the rich levels of employee benefits received by government employees.  The benefit costs for health care and defined benefit pension plans are mind boggling. 

Karlgaard descibes policeman who is recently retired with a defined benefit pension plan that pays $80,000 per year.

The present value of this $80,000 given average life expectancy is approximately $2,000,000.

Source: Forbes.com

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