Article

2020-08-01 Economy

California Supreme Court rules against pension spiking

[American Thinker] Facing an $85 billion state deficit and $83,738 pension liability per household, the California Supreme Court denied public employee rights to engage in "pension spiking."

Unionized public employees in California and 12 other states had been successful over the last four decades in finding ways to artificially inflate total pay as their members approached retirement age in order to spike lifetime monthly pension payments.

The 2019 compensation for the average California public sector miscellaneous employee was $99,000 in pay, plus $32,000 in benefits. Police averaged $129,000 and $52,000 in benefits; while firepersons average $162,000 and $52,000 in benefits. That contrasts with the U.S. Bureau of Labor Statistics calculation that the California private sector average compensation was $61,290 in pay and $12,520 benefits.

Government payments flow into public sector pension plans according to average hours worked and overtime authorized. But public sector unions have made access to overtime a right of senior employees. As a result, the highest paid employees can work enormous amounts of overtime in their final years to push up their pension "pay" basis.

Transparent California reported that 80,500 retired California public employees received a pension of $100,000 pension last year, up 24.5 percent from the prior year.

Unionized public employees in California and 12 other states had been successful over the last four decades in finding ways to artificially inflate their total pay as they approach retirement in order to spike the size of lifetime monthly pension payments.

Posted by Besoeker 2020-08-01 11:17|| || Front Page|| [12 views ] Top

#1 Interesting, in the military, the retirement is calculated on 'base pay', not housing allowance, food allowance, special pays, or bonuses. That's why during WOT a lot of 'bonus' pay was handed out and base pay stayed flat.

Posted by Procopius2k 2020-08-01 12:18|| 2020-08-01 12:18|| Front Page Top

#2 Oakland has bus drivers spiked their last year by getting all the overtime they could handle, resulting in many retiring at over 100k in pension, more than their full salaries. But the best scheme remain the LAPD trick some years back of retiring after a full career and drawing 90%and then being hired the next day as a contract replacement for your own job with a 5 year contract because of your unique job skills match for the vacated position.

Posted by NoMoreBS 2020-08-01 12:37|| 2020-08-01 12:37|| Front Page Top

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