Financially strapped Florida city considers altering pension calculation method
Citizens of Hollywood, Florida, recently took to the polls to vote on a variety of measures intended to reduce the city's $38 million budget gap, according to the South Florida Sun-Sentinel.
The initiatives, which would save $8.5 million, included increasing the age of retirement, changing pension calculations and excluding overtime from the pension plans of police and firefighters.
Generally, the overtime earned by employee attendance that goes beyond normal working hours in a given week is factored into workers' pension takeaways.
Earlier this year, a California legislative loophole led to pension spiking, the process by which employees manipulate overtime, unused vacation days and other forms of compensation in order to increase their retirement pay.
The case that brought attention to the issue involved former Upland city manager Robb Quincey, who was fired earlier this year. In 2010, Quincey made $460,000. In comparison, the chief operating officer of San Diego made just under $270,000 in 2009, despite the fact that the city is approximately 17 times larger than Upland, according to Bloomberg.
The initiatives, which would save $8.5 million, included increasing the age of retirement, changing pension calculations and excluding overtime from the pension plans of police and firefighters.
Generally, the overtime earned by employee attendance that goes beyond normal working hours in a given week is factored into workers' pension takeaways.
Earlier this year, a California legislative loophole led to pension spiking, the process by which employees manipulate overtime, unused vacation days and other forms of compensation in order to increase their retirement pay.
The case that brought attention to the issue involved former Upland city manager Robb Quincey, who was fired earlier this year. In 2010, Quincey made $460,000. In comparison, the chief operating officer of San Diego made just under $270,000 in 2009, despite the fact that the city is approximately 17 times larger than Upland, according to Bloomberg.
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