New York Attorney General Probes Pension 'Spiking'
New York Attorney General Probes Pension 'Spiking'

Spiking, which is lawful in most places, has come under increased inspection in the past couple of years, as private-sector workers have fallen upon tougher times and have seen their retirement savings reduce in size. Over this, anger has grown for what is perceived to be overly generous retirement benefits for public employees. In particular, six-figure pensions that can result from spiking have drawn headlines.

California, Massachusetts and Georgia are among some states with bills or proposals waiting to ban pension spiking or to make it harder to do. Local governments are also moving on the issue. Earlier this month, the board of the Contra Costa County Employees Retirement Association permitted a measure that prohibits using increases in pay in the final years of employment to get bigger pensions. The rule only applies to the newly hired people.

According to a recent survey data, New York State had an overall pension cost of $486 a dweller in 2007, the highest in the nation. The standard annual pension payment to each beneficiary is $25,000, but some take in more than $300,000.

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