When I read the CalPERs response to Dan Borestein's column, I was outraged and disheartened. Pension spiking is one of the most egregious forms of greed imaginable. Executive and management pay has extra perks that come with the entrapments of being in those positions, and those extra perks can be used as extra compensation when those folks retire.
However, rank and file employees receive little or no perks in there positions. In addition, cuts always start at the bottom when it comes to balancing a budget and the newest employee or the long time part-time employee is the first to go.
Now CalPERs interpreted the new rules the state legislature has just passed on pensions to include carve outs for certain perks that are received by employees. Abuse is almost certain because the most shady of executives and managers will come up with ways to exploit those loopholes in the system.
Changing the name of a job title or a perk is one of the ways this could happen. For example, instead of an executive or manager receiving a vehicle allowance, they now receive a travel expense. For a public safety official, a POST allowance can become a tuition reimbursement. The name has changed, yet the benefit remains the same. But the name change now qualifies it for inclusion in with base pay.
See how easy it is to abuse the system.
However, rank and file employees receive little or no perks in there positions. In addition, cuts always start at the bottom when it comes to balancing a budget and the newest employee or the long time part-time employee is the first to go.
Now CalPERs interpreted the new rules the state legislature has just passed on pensions to include carve outs for certain perks that are received by employees. Abuse is almost certain because the most shady of executives and managers will come up with ways to exploit those loopholes in the system.
Changing the name of a job title or a perk is one of the ways this could happen. For example, instead of an executive or manager receiving a vehicle allowance, they now receive a travel expense. For a public safety official, a POST allowance can become a tuition reimbursement. The name has changed, yet the benefit remains the same. But the name change now qualifies it for inclusion in with base pay.
See how easy it is to abuse the system.
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