News

Eye-popping is Los Angeles pensions, taxpayers are scrambling to cover costs

According to an investigation by the Los Angeles Times, juicy and pensions Plan are forced to begin the city’s “Excess Benefit” to cover the costs. The plan has distributed $ 14.6 million to 110 retired employees since 2010, according to an analysis by the newspaper.<br data-cke-eol=”1″>
(Reuters)

Numerous retired city workers in Los Angeles, according to reports, huge amounts of money accumulate in the retirement pay exceed Internal Revenue Service limits – to leave the city, to tap tax dollars that can go to other services.

According to an investigation by the Los Angeles Times, which led juicy and pensions to begin the city’s “Excess Benefit Plan” to cover the additional costs of the pension system can not accept legal. The plan has distributed $ 14.6 million to 110 retired employees since 2010, according to an analysis by the newspaper.

Most of those who are to be paid to the plan, retired police officers and firefighters, whose pension payouts from the program imports your income far in excess of the $200,000 annual limit set by the IRS for the pension.

The former LAPD Assistant Chief Earl Paysinger was the top recipient of the payment, according to the report. Paysinger not only dragged in a $251,000 pension, but also home, an additional $took 1.3 million lump sum under the Deferred Retirement Option Plan, to Plan the forces of Los Angeles to pay more than half of his pension Benefit from the deductible.

Video

The Deferred Retirement Option Plan, or DROP taken already under the microscope of the Los Angeles Times.

The newspaper found, the straw that pays the salary and pension of the police officers and firefighters at the same time allows up to the last five years of their careers, the recipients have to accept the possibility of injury leaves for things such as bad back and sore knee for up to a year.

While Alex Comisar, a spokesman for mayor Eric Garcetti, say, if the mayor thinks that the Surplus is in favor of reasonable, he wanted to say that the reforms initiated in the beginning of this decade, is to prevent people hired, the payouts to 2011 from the collection of such massive pensions.

Video

Los Angeles is not the only place in the Golden State, where separate plans have been set up in order to get IRS limitations. CALPERS and the Macquarie group – the state’s largest public pension Fund and the University of California have similar plans to found.

“It’s just another advantage is to get the government workers, paid for by the taxpayers, will never see similar benefits themselves,” Robert Fellner, executive director of Transparent California, told the Los Angeles Times.

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular