Given the sharp downturn in tax revenues starting in 2008, you would think that states and cities under fiscal stress would not be increasing pension benefits for public workers. If you live in California, you'd be wrong.
Buried in a recent report by the state's Little Hoover Commission, which garnered attention by recommending widespread changes in California public employee pensions, are some startling details about how the state's municipalities continued to burnish pensions over the last three years.
Buried in a recent report by the state's Little Hoover Commission, which garnered attention by recommending widespread changes in California public employee pensions, are some startling details about how the state's municipalities continued to burnish pensions over the last three years.
According to the report, "nearly 200 (government) agencies actually enhanced benefits for current workers" in that time frame. That included 13 local governments which adopted a 3 percent at 50 formula for public safety workers, which effectively means an employee can retire at 50 after 30 years of service with 90 percent of salary. Another 18 municipalities enacted a 2.7 at 55 formula for non safety workers, which means you can earn 81 percent of your final pay after 30 years work at age 55. The Sacramento Bee termed that "an extraordinarily generous benefit." That those benefits were granted in the midst of a continuing fiscal crisis in the state is a reminder of how tough the fight for fiscal reform will be in some states.
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