Pension 'fix' bill would codify 'spiking,' critics say

Contra Costa Times ^ | 8/2/10 | Matthias Gafni

[SmithL]

As momentum builds to curb inflated public employee pensions in Contra Costa and other counties, a Sacramento bill aimed at stopping the practice would make the problem worse, critics say.

The bills' authors say the bill would rightfully leave to union negotiations most decisions about how to curb end-of-career increases in pensions.

Critics say labor cannot be trusted to correct a problem that could easily be fixed with legislation. Moreover, they say, because it is a problem created by poorly drafted legislation, the Legislature must be the one to fix it.

A legal expert says the bill is so convoluted it would create courtroom battles for years, and, in the end, Assembly Bill 1987 would fail to end spiking.

The state's association of counties said Friday that the bill would codify pension spiking.

The bill, which heads to the Senate Appropriations Committee today, floated out of the Assembly on a bipartisan 75-0 vote with the support of the Bay Area's Democratic leadership in Sacramento.

The legislation warns: "The efficacy of the retirement systems is threatened by the behavior of those who seek to unfairly and unjustifiably enhance or 'spike' their pensions."

When many public employees retire, their final pay is used to compute their pension payments. In question for Contra Costa is what other pay categories — such as unused vacation, unused sick leave, auto allowance and other perks — can be added Advertisement to that final calculation. Those additions can significantly boost a retiree's pension.

In one of the most flagrant Contra Costa examples, former San Ramon Valley Fire District Chief Craig Bowen, who retired at 51, went from a final year base salary of $222,507 to a starting pension of $283,958 annually. His resulting pension could cost taxpayers almost $8.5 million over the next three decades.

[SmithL]

Proof that the Democrats in the legislature are owned by the unions.

[fifedom]

"floated out of the Assembly on a bipartisan 75-0 vote"

Looks like the republicans got suckered too.