Public Employees Can Retire And Get A Raise In Pay [VIDEO]
How can you, retire and then get about a $100,000.00 a year pay raise? Well, If you're a School Superintendent and making $150,000.00 annually in salary & benefits, you can, just before you have to layoff 25% of the teachers in the district.
I can retire and my new "retirement wages" are $100,000.00 a year. Then I can go back to work the very next day in the very same office and same job and be paid what I was making right before I retired yesterday, $150,000.00 a year. Now I am bringing home $250,000.00 a year working for the same school district that has to lay off about 25% of the teachers and close down a few days in order to keep from going broke. This “double dipping” practice called “faux retirement” is endangering the financial health of state pension funds.
“It’s faux retirement,” said Byron Schlomach, an expert on pensions at the Goldwater Institute, a conservative-leaning public policy group, who is critical of the practice. “There have always been people who have come out of retirement to help out, but it’s much more systemic now. People are figuring out, ‘Hey, there’s a way to take advantage of the system.’ ”
Mr. Bejarano, 58, the superintendent of the Isaac School District in western Phoenix, is an example of a nonretiring retiree. He intends to officially give up working on June 30 and then go back the next day to the same job as a consultant for a private education firm.
Many who retire and then immediately go back to work take lower salaries, giving a financial advantage to the school district or other public entity where they work. In Mr. Bejarano’s case, there will be no pay cut.