Leave value

[Jeff Tanner]

Wim,
I realize this is a small point, but vacation and sick time are only of
value if one uses it.  Our vacation time works the same as sick leave, in
that it is accrued at the rate of 15 days per year.  After 10 years, that
rate increases some.  We don't get an immediate 4 weeks paid vacation.  So
far, I've averaged using much less sick leave than I get, and annual leave
as well.  It has to build up, and once you use what's saved, you start over
with a goose egg.

You can roll over up to 45 days of annual leave each year, but you can take
no more than 30 days.  You can roll over up to 180 days of sick leave each
year, but you can take no more than 30 days.  At this point, if you're not
using enough of your saved leave time so that you end the year with more
than 45 days, you're actually losing the value of it.  Upon retirement, the
state will pay you for up to 45 days of remaining annual leave at the value
it is worth at the time, but sick leave gets NO reimbursement at
retirement.  Therefore, the value of sick leave when figured into salary,
is a bit overrated.  You only get paid for what you use.  Or do you?

We have 14 paid state holidays, which except for MLK, July 4th, Labor Day,
Election Day (15th holiday), and Thanksgiving, are all bunched up during
the Christmas break, when I could be getting some valuable work done, but
if I don't take them, I lose them.  Yes, we're getting paid to sit at the
house or go visit family.  Or are we?

Yes, added together, the value of this leave time comes out to $6390.46.
But that's GROSS.  IF you use all this leave, taxes and other deductions
still come out, leaving a $4260.49 net, for 44 available days of leave and
holidays.  Or is it?

Now, consider this.  If you DON'T use this leave time and work all year,
what will you be paid?  Exactly the same amount if you had used it.  You
can't add the value of the leave time to your salary to invent a bigger
salary.  If I take all 44 days of vacation and holidays I earn each year,
will I then be making $45,030.46?  If I show up for work during paid
holidays, will my pay increase?  NO.  Only if I use the leave time to
perform extra work outside does it put additional funds in my pocket.  If
we had no paid leave and were to have to use UNPAID leave, the salary would
be reduced -- it would not stay the same.  My $38,640 INCLUDES the $6390.46
of AVAILABLE leave time.

So, actually, my salary is $32,249.54, plus $6390.46 for the added value of
44 days of paid leave, which I have the freedom to use all of or save until
next year, or never use at all.

Is paid leave a nice benefit?  Of course.  But it does not actually
increase the salary, and you can't compare it that way.  Only at retirement
is any of this leave actually worth additional compensation in the form of
dollars, and that's limited to 45 days of saved annual leave, and then,
you've got to watch out for jumping tax brackets.  The rest of it is of no
additional dollar value.

Our human resources department uses the same selling point you use for
adding the value of paid leave to the salary.  But that's really
misleading, now isn't it?

And remember, private sector employers offer paid leave, too.

Yes, the value of the state's contribution to my health insurance costs are
a big plus -- over being self-employed -- but that's the case for ANY
employment situation.  Most every private sector business which has a large
number of employees will offer similar benefits, including 401(k), profit
sharing, etc.  Actually, our state health plan contributions are a bit more
costly to the employee than a lot of private corporation plans are.  My
wife's former employer was a relatively small business, yet her
contribution to health plan was ZERO.  They paid her entire premium.  If
she covered family members that was additional, but our state doesn't offer
a zero contribution for the employee.  Right now, our state isn't even
matching contributions to our 401(k) (which is in addition to the state
pension), so where's the value in that?

So, we're making less than private sector employees, and it costs us more
to do so.

Speaking of leave time, I'm taking some of it for the next few days as we
have a family member near death back home.  Take care all.

Jeff

Wim wrote:
>I make $20 per hour, times $37.50 is $39,000. My vacation time, sick days,
>and holidays adds another $5850. The difference between what I used to
>pay, and what it cost me now for health insurance is $4800. The difference
>in rec center is $340. Retirement adds $1170 per year. This year I am
>taking 3 weeks of professional development time, at $20 per hour is
>another $2250. That's $14,410. in "benefits." That doesn't even include
>the tuition, which I am not taking advantage of.
>
>My full time income from the university has a value of $53,410. Is this in
>line what a "full time" technician makes?
>
>Wim
>