State law lets workers get pension while on job; Double dippers likely number in hundreds

Courier Journal ^ | 12/22/02 | Chris Poynter

[hoosierskypilot]

A broadly written Kentucky law is allowing government employees and elected leaders to retire, only to return a month later to their same jobs, often at the same pay, and collect retirement benefits on top of their salaries.

''It's happening, and it's happening quite often,'' said Bill Hanes, executive director of the Kentucky Retirement Systems.

The state doesn't track how many people are ''double dipping,'' but the number likely is in the hundreds, Hanes said.

The practice has had no impact thus far on the $11 billion in pension investments, Hanes said. But he warned that if many more workers were to retire and return to work, it could cause state health insurance costs to rise. Retirees receive virtually free health care.

Other states have wrestled with double dipping, including Ohio, which has not seen the practice affect its retirement system. Unlike Kentucky, Ohio alerts the public to officials who double dip. Ohio officials said the state started the practice after legislators, citizens and the press raised questions.

Kentucky legislators changed the retirement law in 1998 so the state could hire back experienced retirees who were reluctant to return to government work because their pension pay would be suspended. Employees often retire from state and county governments in their 50s and early 60s. Many find work in the private sector, allowing them to draw a company paycheck while also receiving their government pensions.

[hoosierskypilot]

I've always felt that laws forbidding retirees to work at the risk of losing SS or pension benefits were counter-productive. These retirees often have much more to offer than some snot-nosed rookie.

[gunnedah]

They have done that here in South Carolina and it will eventually lead to the destruction of a sound retirement system. They hire the employee back and no funds go into the retirement fund,he works for less and the state can replace an employee cheaper.Also I am told the legislature here will soon pass a law for the state to borrow from the reirement funds like the Federal Government does Social Security and we all know SS is bankrupt and full of government IOUs.Our elected officials play all kind of games and there is nothing we can do about it. It wont affect me but it will come together somewhere down the line.