I’m now going to make up a story about Fictitious Company #1 which makes an arrangement with Fictitious Company #2 whereby Fictitious Company #1 “loans” Fictitious Company #2 an employee to work in Fictitious Company #2 but Fictitious Company #1 will continue to pay said employee wherein Fictitious Company #2 has a much higher pay scale than Fictitious Company #1 but Fictitious Company #1 continues to pay “loaned” employee at Fictitious Company #2’s much higher pay scale and, loaned employee continues to accrue Retirement Benefits in Fictitious Company #1’s Retirement Plan.
I know a lot of things...
Ø I know that the above sentence is too long.
Ø I know that you don’t know what the heck I am talking about in the above paragraph.
Ø I know that this arrangement is not fair to the shareholders of Fictitious Company #1.
Ø I know that Loaned Employee is pleased as can be about this arrangement.
Ø I know that the “Loaned” Employee can’t believe his good fortune all these years (24) and he is about to slide into Retirement with a pension payment that is 10.5 higher than if he had continued to work for Fictitious Company #1.
Ø I know that the Loaned Employee is not going to say, “I object to this Pension Payment that is 10.5 times higher than if I had stayed worked for Fictitious Company #1 instead of working for Fictitious Company #2 and being paid by Fictitious Company #1 at Fictitious Company #2’s much higher pay scale”.
I know that you still don’t know what the heck I am talking about but I know I’m going to make all this as clear as can be before this Blog Posting is finished...Or will I?
Ø Neither Fictitious Company described above is Fictitious.
Ø Fictitious Company #1 is the Lansing Michigan Public School District.
Ø Fictitious Company #2 is the Michigan Education Association, the state’s largest teachers union.
Ø In 1993 the School District “loaned” (this is called “Release Time”) one of its employees to the Teachers Union.
Ø The Teachers Union Pay Scale was much higher than the School District’s Pay Scale.
Ø The School District has continued to pay the employee’s salary but at union’s much higher pay scale.
Ø The Loaned Employee has been the President of the Teachers Union since 2011 and is about to retire with a Pension that will be paid out of the School District’s Retirement Fund.
Ø Had Loaned Employee stayed with the School District it is estimated he would be entitled to an Annual Pension Payment of $10,000 from the School District’s Retirement Fund.
Ø Instead the Loaned Employee will receive an Annual Pension Payment of $105,000 from the School District’s Retirement Fund.
What’s that you just said? Did I really just hear you say that The Fella has finally lost it and he is completely fabricating stories to try and hang onto his few Dear Readers? (Some links to this not-made-up-story can be found in Lagniappe below.)
From my One Thing You Never Thought of Department, the jobs that Loaned Employee left at the School District still had to be done back at the School District all these years so the School District has had to employ, pay and accrue pension benefits for the Replacement Employee. (That’s known as adding insult to insult and injury.)
From my Oh Well, One Time Can’t Hurt Department, this has happened a lot more than one time. This is a quote from the source article for this posting... “The Office of Personnel Management tracks release time for federal employees. Its most recent report in 2014 showed that union employees logged 3.4 million hours of release time, at a cost of more than $162 million.”
Did I just hear you say to yourself, “This all sounds quite Kosher to me”?
Ahhhh! Go back and read all of the above again. You must have missed something.
Would I kid u?
Smartfella
Lagniappe:
http://luxlibertas.com/why-do-taxpayers-get-the-bill-for-a-union-presidents-pension/
If ya don’t believe me...
Still don’t?...
http://www.dolphnsix.com/news/3981997/taxpayers-bill-union-president-s-pension
