The realities of Ontario's public sector compensation /

Contribution rates for selected occupations vary less in the public than the private sector 24 2  InStItutE FOr COMPEtItIvEnESS & PrOSPErIty Contents Foreword & Acknowledgements 4 7 the realItIes of ontarIo’s PublIC seCtor ComPensatIon 10 the PublIC seCtor ComPensatIon PremIum Is quantIfIable most of the public sector has higher wage levels than the private sector. [...] More precisely, The public wage premium increased but the public wage premium in we cannot determine if the premium considerably over time for the Ontario shows the largest change is a new characteristic of Ontario’s provinces in the analysis, with during the 1997-2012 period. [...] For Canada, The mandatory contribution nature of Moreover, since changes in actuarial employer contributions for the public public sector plans explains the higher calculations – most important, in the sector are consistently above the levels of employee contribution, case of unfavourable adjustments – contributions in the private sector. [...] Pension plans in the public contribution plans.16 For defined sector are more encompassing benefits, the employer contribution The difference in average employer than in the private sector, which is not fixed, since “the amount the contribution can be partially means, for any occupation in the employer contributes for future explained by the differences in the government, workers are more accruing [...] Once by workers, in both the public and the average wage premium for the again, these calculations are rough private sectors, are tremendously public sector – from 9.7 to 5.0 percent estimates, but they indicate a cost important for the economy, not – the government expenditures can that is roughly half of the $350 only for the plan members.