Pension-spiking, double-dipping targeted by lawmakers


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State senators on Wednesday approved an attempt to stop pension-spiking, as well as double-dipping by public employees who retire from one government job on a Friday and start another the following Monday so they can get two checks.

The bill was introduced by state Sen. Joe Simitian (D-Palo Alto) amid reports of state and local employees, including administrators in the city of Bell, boosting their pay substantially to raise the amount they can receive in pension benefits.


Under the measure, the California Public Employees’ Retirement System and the State Teachers’ Retirement System would be prevented from increasing pension benefits based on end-of-career salary increases meant to spike the retirement checks. The legislation, which next goes to the Assembly for consideration, also prohibits a retiree from returning to work for a government agency for 180 days after retirement.

‘It’s one step forward in terms of pension reform, but we have much more to do,’’ said Sen. Ted Gaines (R-Roseville) before the unanimous vote to approve SB 27.

-- Patrick McGreevy in Sacramento