Teachers want changes in bill that limits public employee pensions
"The California Teachers Association and California State Teachers’ Retirement System are opposing a bill that would limit pension “spiking,” the practice of boosting salaries right before retirement to increase pension payouts.
SB 27, authored by Sen. Joe Simitian, D-Palo Alto, applies to the California Public Employees’ Retirement System and CalSTRS. The law would trigger an audit if a public employee’s salary increases 25 percent or more during the final five years on the job. It also would put restrictions on non-salary compensation that increases pension payments, such as life insurance, car allowances, housing, unused vacation and sick pay..."
No surprise here. The teachers pension system, CalSTRS, is severly underfunded and the teachers union is busy protecting pension spiking. Why? Because, just like CalPERS, they expect the taxpayers to cover ALL funding shortfalls that are caused by bad policy and or pension spiking abuses by their own members.
What they should be worried about is how they can afford to send out pension checks, for the next 30 years, when the will be out of money. If you think the teachers unions are unreasonable now, just wait until the size of the checks shrinks... it is happening in RI...or they try to double or triple the cost to the tax payer.
At a time when we need to control costs, the teachers unions are heading in the opposite direction.