Search This Blog

Sunday, August 5, 2012

$100,000 + pensions for former employees remain intact while California cities go bankrupt!

A local newspaper headline announces bankruptcy in Stockton, California.(REUTERS / Kevin Bartram)
As some California cities face bankruptcy, public services are being slashed so unusually high pensions can stay on the books. Stockton’s former police chief rakes in a pension of more than $200,000 a year, while also working another job.
Former Stockton Police Chief Tom Morris retired with a $204,000 pension after just eight months on the job. While his California city became the largest in the US to file for bankruptcy, he moved to another city and makes an additional $76,066 salary at a new job.
The former police chief retired at age 52, and was among four of the city’s chiefs who held the job for less than three years, while retiring with an average of 92 per cent of their final salaries.
But Morris’ unusually high pension is not an isolated incident. City councils across California have allowed public safety employees to retire after working for 30 years and collect 90 per cent of their top salaries. But while raking in a sizable pension, they often take jobs elsewhere, while still in their early 50’s.
Two former police chiefs in San Bernardino receive similarly high pensions. Keith Kilmer receives $216,581 annually, while working another job. His predecessor, Michael Billdt, who has no college degree and was accused of trying to bribe an officer to withdraw a union grievance in exchange for a dropped investigation, receives $205,014.
“We have some safety retirees that are actually earning more in retirement than they earned when they were working, because they were able to manipulate the system enough in that last year that they could crank that last year’s income and then get 3 per cent times their 25 to 30 years,” said Kathy Miller, the city’s vice mayor, in an interview with Bloomberg News.
Offices are seen at the San Bernardino City Hall building in San Bernardino, California (AFP Photo / Frederic J. Brown)02.08, 21:5418 comments

Third California city goes bankrupt

With more than $1 billion in debt, California’s San Bernardino filed for bankruptcy on Wednesday. The city, which is the third in the state to go bankrupt in five weeks, blames its economic catastrophe on the 2007 housing crash.
Joshua Lott / Getty Images / AFP 26.07, 01:026 comments

'Burning Bank' artist arrested in LA

A Los Angeles-based artist that made headlines last year for painting pictures of banks going up in flames has been arrested on misdemeanor vandalism charges after drawing with chalk outside of a Chase branch in downtown LA.
Shuttered and padlocked businesses line Main Street in Stockton, California June 27, 2012 (Reuters/Kevin Bartram)12.07, 19:2326 comments

California cities 'may cease to exist'?

In a phenomenon that seems to be worsening with each and every hour, a widespread fiscal crisis in California is quickly propelling the state into bankruptcy, city by city.
25.06.2009, 20:429 comments

Is California going bankrupt?

California, America’s most populous state, has a projected $24.3 billion budget deficit for the coming year, and may start issuing IOUs starting next week.
Image from dodgersblueheaven.blogspot.com11.11.2011, 00:185 comments

Jefferson County makes biggest bankruptcy filing ever

Unable to repay creditors a debt of over $3 billion, Jefferson County, Alabama filed for bankruptcy yesterday, the largest filing of its kind in American history.

No comments:

Post a Comment