Retire-rehire practice is double-dipping

San Francisco Chronicle ^ | 10/1/10 | Chip Johnson

[SmithL]

"Annuitants" - in public sector parlance - refers to retirees who are rehired to work their old jobs or similar positions, a practice that has become all too common in local and state government.

For the retirees, it's just one more way to remain on the public payroll - while collecting pension benefits.

But some government leaders see this recycling of employees as a cost-effective measure in tough economic times: These experienced and skilled employees are available to pitch in during busy periods or fill-in temporarily while new or promoted workers are trained to replace them.

"They don't receive benefits, and there's no pension cost to employers," said Pat O'Connell, the auditor-controller for Alameda County. For most workers, for every dollar spent on salary, the county spends another 50 cents on health and other employee benefits, O'Connell explained.

Annuitant employees are restricted by state law to no more than 960 hours - or 24 weeks - of employment for the year. They receive a payroll check, a pension check and - after being laid off until the next year - unemployment insurance payments.

It means that in some cases annuitants earn more money than they ever did as full-time workers. Nice work if you can find it. But there is something terribly wrong with giving pension-collecting retirees a second bite at the apple.

Such policies run counter to claims of drastic cost-cutting measures in an effort to bring government spending within the limits of its means.

[Daveinyork]

Our school district superintendent retired a few years ago, after only two years of a three year contract. She was 56, and with 35 years on the public payroll, she was entitled to 2.5% of her final average salary time years of service. This would be 80% of a six figure income, and no social security tax. She moved to Albany, NY, and got a job with the school district there, and will be double dipping, while those of us in the private sector, who are forced to pay those benefits, will be lucky if we can single dip.

[Marty62]

And people wonder why the union pensions are drowning the states. she will ofcourse get some kind of pension from NY bet on it.

[cherry]

lets be specific...its the govt employees...all of them...its not sustainable...everyone knows it...even the employees so they tend to keep quiet about it.....

[muawiyah]

All of them? A rehired annuitant in the federal government goes back on the payroll and loses his or her retirement check for the duration.

We are talking about something that happens in state and local government. Stick to the subject.

[dashing doofus]

States should make this practice illegal.

If President Soetoro really wanted to “create” some jobs, he would address this outrage. A retiree should retire, and free up the job.

[Hatheos]

My father-in-law retired from road construction work several years ago. After he retired, he would still work the alloted hours he could and keep his retirement benefits from his union. He slipped on an oil spot while climbing off a tractor, so after it was all said and done, he was drawing three checks; his retirement, his workman’s comp, and his pay from working.

[Liz]

In NJ, one supt actually wrote her own exit package which totalled some $650, 000-—just to retire. Not including her pension, annuities, Cadillac family benefits, bonuses, etc, etc, etc.

She had also hired her husband-—but there was no info what she stole from taxpayers for him.

BTW, the exit pkg was negated by the courts and she settled for much less-—an amt that she supposedly used for legal fees to fight the taxpayers.

The zinger is that she was employed in a so-called Abbott district-—a low income area which is subsidized by the entire state’s tax dollars.

[Liz]

THE MILLIONAIRE COP (firefighter, teacher, federal bureaucrat) Next Door
BY Rich Karlgaard, Forbes Magazine 6/28/10 issue

EDITED Who are America's fastest-growing class of millionaires? They are police officers, firefighters, teachers and federal bureaucrats, who, unless things change drastically, will be paid something near their full salaries every year--until death--after retiring in their mid-50s....a retirement sum worth millions.

Based on a realistic 4% return, an $80,000 annual pension payout with full health benefits implies a large pot of money--$2 million, to be precise.

That $2 million also happens to be the implied booty of your average California policeman who retires at age 55........in Carlsbad, CA the average firefighter or police officer typically retires at age 55 and has 28 years of service w/ an annual city pension of $76,440. SOURCE http://www.forbes.com/

[discostu]

change the retirement system so it doesn’t force people out and it won’t happen. Most states retirement system for public employees works like AZ’s, ASRS is points based, you get points every year, the more points you have the higher the percentage of your salary you’ll get, UNTIL you go too far. There’s a level where the points actually start reducing what you’ll get in retirement. So people on ASRS who don’t actually want to retire (or can’t afford it) “retire” so they stop getting points then take a version of their job that lacks benefits. If the system didn’t have a “get the hell out” gate they wouldn’t “retire”.