NYC Educator made the first attempt to calculate the cost of arbitrator Martin Sheinman's ruling that forces active UFT members to pay the cost by deferring raises so the city can have enough money to pay full retroactive money to people who retired between November 1, 2009 through June 30, 2014. We did our own breakdown for an individual teacher on maximum and here is what we came up with.
Maximum salary would have been $119,471 as of May 1, 2018, but 3% of that money will now be deferred for a month and a half until June 16, 2018 or three pay periods. Therefore, by taking $119,471 and dividing it by 24, we come up with $4977.96 per pay period. Now multiply this by 3% (.03 is the value of the deferred increase) and we get $149.34. Multiply that number by 3 since we are being deferred for three pay periods and the result is $448.02. That is part of every senior teacher's gift to retirees. But that is not it.
We still have to add in the one month extension to the contract. The value of this is harder to calculate. If Michael Mulgrew and his Unity Caucus negotiate and set a new pattern, the most likely value will be nothing for that first year. We will only lose after we start getting increases.
If people wake up and vote out Unity or another union establishes a new citywide pattern, let's assume a more historically relevant 3, then we must recalculate. If we were to get 3% on December 1, 2018 as opposed to November 1, 2018, the date a new contract would have started without arbitrator Sheinman' s intervention, we can start a new set of calculations.
Let's take $119,471 and multiply by 1.03 for a 3% raise. Maximum then comes to $123,055.13. Now multiply by.03 to figure out the value of the increase. The total is $3,691.65. Divide that by 24 pay periods to figure the cost per check which comes to $153.82. Multiply by two checks (a month delay caused by Scheinman) and the cost is $307.64.
Now add the $307.64 to $448.02 and we get an approximate final cost of $755.66.
There you have how much a teacher on maximum will be billed (estimated) to pay the retirees.
I don't expect to see too many thank you notes from retirees in the comments section.