Pension Cuts On Deck In Latest Shock To California Workers
by Tyler Durden
ZeroHedge.com
Sep 6, 2016
Many public employees utilize a tool, known as “salary spiking,” to boost their annual pensions payment in retirement and we taxpayers get to foot the bill. So what is “salary spiking?” Typically, a public employee’s pension benefit in retirement is equal to some percentage of their highest annual pay which is often their final year on the job. Fortunately for public employees who plan ahead, there are all sorts of fun games that can be played to “spike” your final year salary so that you actually earn more in retirement than you did on the job. In fact, a recent report by the Los Angeles Times found that there are 60 ways to “spike” your final year salary in California including taking cash payouts for accrued vacation time, special 1x bonuses related to graduate degrees (though we’re sure you really needed that extra degree as you head off into retirement), “longevity” bonuses, etc.
One example of salary spiking comes from former Ventura County CEO, Marty Robinson, who offered up a textbook example of how to stick it to taxpayers by planning ahead. Robinson’s official salary heading into her final year on the job was $228,000. That said, Robinson “spiked” her final year salary by cashing out $34,000 in unused vacation pay, taking an $11,000 bonus for a graduate degree and collecting more than $24,000 in extra pension benefits the county owed her. Adding all the 1x payments, Robinson earned nearly $300,000 in her final year which entitled her to an annual pension payment of $272,000 or the rest of her life…nearly 20% higher than the salary she received for actually working.
The Rest…HERE
