Wednesday, October 16, 2013

Pension Death Spiral, "What Could Go Wrong?"

Frank McCoy’s coming retirement after eight years as Oceanside police chief comes with a steep price: taxpayers will owe him an annual pension of more than $170,000, based on the 51-year-old’s 29 years as a cop. Factoring in automatic 2 percent annual increases, McCoy is on track to one day make more as a former cop than he ever did on the force.
Such is the fallout from the generous pensions cities and counties throughout California granted employees during the late 1990s and early 2000s, particularly to public safety workers, many of whom are able to retire at 50 with a pension of 3 percent of their highest base pay for every year they worked. “It’s an unsustainable system,” says Oceanside City Councilman Jerry Kern.

Coercion at its finest!  What are you paying to prevent this man from ever facing the economic risk you face each day?

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