ORANGE COUNTY PERSPECTIVE : Giveaway: Just Say No

In its flap with the state retirement system, Huntington Beach sounds more like an advocate for its employee unions than a city facing an outrageously high bill for artificially inflated retirement benefits.

The state Public Employees Retirement System (PERS) and the city do not see eye to eye over the latter’s interpretation of a new law that makes illegal most aspects of pension “spiking.” A number of cities have been stung by retiring employees pumping up retirement benefits, Huntington Beach among them.

The logical thing would be to lean on the law as justification for not spending money that isn’t there, and let the unions argue otherwise if they wish. But the city, even with its professed abhorrence for pension spiking, is appealing to the state to pay an outstanding $743,632 spiking bill and is making the case for other big payments without beneficiaries having to make it themselves. What it should do is follow the law rather than risk a showdown with the state system over who pays. Let the courts decide the issue if employees press it.

The city’s argument that it is bound by existing contracts may win points in some quarters for the appearance of good faith. But the fact of the matter is, spiking is a deplorable practice that gives away money that isn’t really there.

The Legislature properly has recognized the financial irresponsibility of such arrangements by passing the new law, and the state system is justifiably concerned about administering a plan that isn’t covered by the contributions of employees.