Skip to comments.California public unions invent "airtime" for pension riches. Richard Epstein John Batchelor Show
Posted on 03/24/2018 7:02:29 AM PDT by Voption
One of the main themes in the blockbuster case of Janus v. AFSCMEcurrently before the United States Supreme Courtis the risk of having unions sit on both sides of the table in public-sector contract negotiations. Nowhere is that risk more pronounced than in California, where the perverse and pervasive effects of union political influence are on display in Cal Fire Local 2881 v. California Public Employees Retirement System, now before the California Supreme Court. Between 2009 and 2013, California law allowed state and local employees with over five years of service to purchase with their own funds up to five years of fictional years of retirement service creditscommonly called airtimethat they could then add to their years of actual service in order to increase the value of their pensions at retirement.
(Excerpt) Read more at audioboom.com ...
It would be nice if either this article or its linked one had some hard numbers. For example, how much would it cost a $100k employee with 25 years of service and 50 years old buy up 30 years and how much more per year would he get as retirement payments?
Here is the schedule, pretty outrageous!
Well, if it’s sane, then the amount he’d have to buy would give years of contributions (which would still need adjustment for npv). Pensions are typically based on a 6% rate of return or so, so it’s probably a net gain to the state is they do this.
Job Title: Assistant Chief---Retired 2010---Years service 32
Rec'd from L/A Fire and Police Employees Pension Fund 2015: $1,164,022.65 annual
Lifetime Health Benefits $17,286.69 annual
(Excerpt) Read more at breitbart.com ...
Thanks for that link.
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