Skip to comments.Report: 'salary spiking' fattens state pensions
Posted on 03/03/2012 7:07:26 PM PST by redreno
LOS ANGELES -- Public employees in several California counties are fattening up their pensions by engaging in "salary spiking" - adding vacation time, educational incentives, car allowances and bonuses to their final retirement salaries, according to an investigation.
Partial data from Ventura and Kern counties shows that the practice is draining public pension systems already underfunded by millions of dollars, the Los Angeles Times reported Saturday ( http://lat.ms/zFvWyB).
CalPers, the state's largest public employee retirement system, banned spiking in 1993 to help control costs. But 20 of California's 58 counties - including Los Angeles, Ventura, Orange, Kern and San Diego - do not participate in CalPERS and their employees may legally continue to boost their pensions to levels beyond what they earned while working.
(Excerpt) Read more at fresnobee.com ...
The other negative consequence of basing pensions on final years’ earnings (rather than top years’ earnings) is that a catastrophic event resulting in lots of overtime can lead to a “brain drain” a year or two later as employees realize that they will never again see such a high annual gross.
This has been known for many years. I see the occasional news piece about it, it’s discussed on conservative talk radio, people get mad, but nothing changes. San Diego elected Jerry Sanders who promised to clean up the pension mess, including outrages like this spiking business. He’s done little to nothing about these issues.
I am thrilled to hear it. Let it all come crashing down.
Is this salary spiking legal?
Coincidentally, this is also a sport enjoyed in Illinois.
We work for the unions.
lets face it....these policies are allowed by the elites to keep the unions fat and happy....
just like the govt entities in some areas will allow people to retire, hire them within a few days at the same wage/benefits so said govt employee is collecting both a fat salary and a fat penion...
I wonder how much this investigation cost? Anyone who has ever talked to a public employee could have told you that not only is this practice commonplace, it has been so for generations.
the honor system only works in a moral country - it cannot work in country where certain segments feel ever increasingly ‘entitled’. (covetous)
Yep,it’s legal and common.
College professors have been doing this for years.
Work for 25-30 years for nine months. The final three years, work as an administrator such as an associate dean with a 12 month contract. Pension increases by 30% or so.