Showing posts with label retiring. Show all posts
Showing posts with label retiring. Show all posts

Sunday, May 30, 2010

Retiring from the Sun Prairie Area School District (2010)

"Retiring from the Sun Prairie school district" is consistently the single greatest search performed on the SP-EYE website. We get e-mails requesting for updates. People want to know. Subsequently, we try to update this data at least annually. It's time.

We have collected retirement data over the past 4 years. Our databank now includes 33 teachers, 12 AFSCME Local 60 members, and 2 administrators. This year we had 7 teachers (SPEA) retire. Of course, a $6,000 "golden handshake" incentive was offered to any teachers who filed retirement paperwork (effective June 2010) prior to October 15, 2009.
Retirement Statistics
The mean salary at retirement for teachers in Sun Prairie is $69,500; the mean $69,900; and the mode $70,000. Statisticians will tell you that for most data sets of at least 20 points, when the mean, median, and mode are all equal, it indicates a very consistent data set. In fact we applied Grubbs' outlier test, and n one of the data points was statistically identified to be an outlier. The range of salaries at retirement is $52,400 to $80,800.
The average teacher retires at 59 1/2 years old, has worked as a teacher for 32.4 years, and has a Master's degree. In our dataset, 77% of teachers retiring have earned their Master's degree. In addition to their average salary of $69,500, they also earn, on average, $27,100 in fringe benefits. Adjusted for 190 contracted work day, the hourly pay for a teacher at retirement is $45.72 (per hour). That number is obtained by dividing the retirement salary by 190 contacted days, and then by 8, for the number of salaried hours per workday.
Contracts: 260 vs. 190 days
For most occupations, the annualized standard is to work 2080 hours. 2080 hours divided by 8 hours per workday, translates to 260 "contract" days. Of course, some of these days will become paid vacation days. Where did the 260 days come from? 365 days in a year - 104 for the 2 weekend days that occur in each of the 52 weeks. That leaves us with (52) 40 hour work weeks. Teachers are only contracted for 190 days. That translates to 180 school days plus 5 days one either end of the school year to set up and take down.
"When I started in the district, I was paid only $10,000 per year"
We did get approached by one reader to address the fact that many of the more tenured teachers, may indeed be earning upwards of $70,000 today (at retirement), but these same staff were only paid as little as $10,000 per year at hire. Using the 190 contracted 8-hour days, that translates to about $6.57 per hour!
The reader is correct...but that average starting salary was pretty much what the rest of the world earned 30+ years ago. In fact, Mr. Average Retiring Teacher, who has worked for 32 years, with a starting salary of $10,000 actually earned an average annual raise of 6.25%! State workers receive an average raise of 2%, with many biennial contracts calling for NO raises.
When we talk about salary equity, the Consumer Price Index frequently comes into play. Frequently it is argues that teacher raises don't even keep up with the Consumer Price Index (CPI). In fact, since 1940, the AVERAGE rate of inflation has been 4.48%. Therefore, teachers HAVE been ahead of the CPI. State workers have not.
State worker parallel
For a real life example, consider the situation of a state worker we'll call Notch...Notch Johnson. Notch started working for the state in 1973 as a Senior Scientist at a salary of.....drum roll.....$4.50 per hour. At the standard 260 x 8-hour days, that translates to a whopping $9,360 per year. ...and Notch thought he was rich! 36, years later,however, in 2009, Notch retired as a "Section Chief" at a salary of $75,200. Pretty equivalent, eh?
In fact, Notch's average annual salary increase only comes out to 5.95%. That's 5% less that the average annual increase (6.25%) experienced by teachers in Sun Prairie.
1978 Price Points for reference
Year End Close Dow Jones Industrial Average: 805
Interest Rates Year End Federal Reserve 11.75%
Average Cost of new house $54,800.00
Average Household Income per year $17,000.00
Minimum Wage: $2.65 per hour
Average Monthly Rent $260.00
New Car: $6,379
Cost of a gallon of Gas 63 cents
Dozen Eggs 48 Cents
Bread: 34 cents per loaf
Postage Stamp: 15 cents
Teachers work more hours/days that the 190 8-hour contract
The other argument which invariably surfaces is that teacher devote a great deal of their time for free...working beyond their 8-hour days and working on non-contracted days.
We agree...teachers (most, anyway) do work more than 8 hours a day, and often work on days when they are not required to be in school. But, ya know what? So do many folks in other occupations. In fact, the term "salaried employee" to the rest of the working world means, "We pay you X amount as salary; you do what it takes to get the job done". Many a relationship has been strained by folks who work nights and weekends to "get the job done" and keep that salary. Therefore, we think this argument should be considered a push.
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We're not expecting a lot of love from the teacher's union on this post....but we're not in this game to please the union...or anyone else for that matter. At the heart of this blog is the desire to present straight-forward factual information. Spin-free. We're not taking any sides, because there is no war. We just want to make sure that people have the facts.
And the facts are that teachers in Sun Prairie are retiring at a pretty decent salary...more than most occupations. What other occupation do you know that earns an average salary increase of 6.25% over 32 years? Or gets paid over $45 per hour?

Sunday, May 24, 2009

Update: Retiring from the Sun Prairie Area School District

So many people have inquired about this data, that it was time for an update. We've posted some limited retirement data in the past, but now we have a sizable pool--for teachers at least--from a compilation of retirements in 2008 and 2009.

CLICK TO ENLARGE Based on a dataset of 23, the average teacher in Sun Prairie is retiring at a salary of about $68,500 after about 33 years of teaching. Seems like a LOOONNNNGGG time, doesn't it? Well, if you figure that the minimum retirement age under the state retirement system is 57, and the average fresh out of college teacher is age 24-25, it takes a good 33 years to retire.

Benefits for SPEA members cost roughly 50% of their salary.


In comparison, support staff who are members of the "Local 60" union (based on a smaller data set of n=8) retire at an average wage of just under $17.00 per hour.

Benefits for support staff cost about 25% of their salary.


CLICK TO ENLARGE We also have one member of administration [not quite in the 100K club] ($ 92K) and also one retiree from Administrative support ($ 54K).

Retire at over $68,500?
How is that possible? But...but...teachers are only paid about $30,000 to start.
True...all true. But contracts include what is called a salary grid, with "steps" (1 step = 1 year of experience teaching) and "lanes". Every 6 credits earned moves you into the next "lane". Lane changes include a salary base increase of 1.9%. Step increases are 3.0%. And ,actually, the salary grid is maxed out at about 15 years (earlier for those with a BS/BA and less credits earned towards an MS/MA degree. Those members who are "off" the grid typically get as much as a 3.8% annual "step" increase.

This quick table is based solely on a 3% annual "step" increase and shows the salary progression from year zero (30,000) until retirement after 32 years of service. This kind of gets back to what we've discussed on several occasions. The downside of "percentage increases" is that in terms of new dollars, you get squat in the early years. A 3% increase for a teacher making 30,000 is a whopping $900, or it pays for about 6-8 weeks of groceries. But for someone like Dr. Culver, making over $145,000, a 3% increase means an increase of over $4300! That's vacation cash.

Year Salary
0 30000
1 30900
2 31827
3 32782
4 33765
5 34778
6 35822
7 36896
8 38003
9 39143
10 40317
11 41527
12 42773
13 44056
14 45378
15 46739
16 48141
17 49585
18 51073
19 52605
20 54183
21 55809
22 57483
23 59208
24 60984
25 62813
26 64698
27 66639
28 68638
29 70697
30 72818
31 75002
32 77252