Some retired city employees draw pensions so big that Los Angeles has to pay them out of a separate taxpayer funded program to get around Internal Revenue Service limits on payouts.
A few dozen mostly former cops and firefighters draw more than the $220,000 in annual benefits limit set by the IRS for pension funds, forcing the city to spend on an Excess Benefit Plan diverting money that would otherwise go to needed programs, according to the Los Angeles Times.
The Times analysis found that the fund paid 110 retired workers $14.6 million in additional benefits in the past eight years.
On top of the rising pension payouts for these public employees, the Deferred Retirement Option Plan or DROP allows for salary and pension payments to be made at the same time for up to the last five years on the job.
For some brass in the police and firefighting fields, the financial windfall can be staggering.
Former LAPD Assistant Chief received $144,000 in city money to cover the excess over IRS limits for his retirement payout
Retired LAPD Assistant Chief Earl Paysinger received a $1.3 million DROP payment on top of his pension (which already exceed the IRS limit) of $251,000 making him the top retired earner in 2017. $144,000 of his pension had to be covered by the Excess Benefit Plan.
Second on the list, ex-Assistant Fire Chief Emile Mack, also got a $1.3 million DROP payout in 2017 along with his pension of $247,000, which had $136,000 covered by the excess fund.
The soon-to-be member of the top three, Police Chief Michel Moore, collected $1.27 million and his $240,000 pension when he retired earlier in 2018.
Moore retired as chief of operations then came out of retirement to take back his job shortly afterwards, and was then appointed chief of police for an added $350,000 per year in salary. Chiefs of departments do not receive DROP payments, so Moore, if not for the maneuver approved by Mayor Eric Garcetti, would have lost out on the added benefits.
Former LA Assistant Fire Chief Emile Mack (left) and current Police Chief Michel Moore (right) both received hundred of thousands of dollars over the IRS limit on pensions
Los Angeles Mayor Eric Garcetti (left) approved of the retirement of Michel Moore (right) as chief of operations to receive his DROP payment and subsequent rehiring before promoting him to chief of police
Moore admitted that the optics of were 'suspicious' to the Times, but he maintained that he was unaware he would be offered the appointment to chief shortly after his retirement.
Mayor Eric Garcetti's office notes that pension reforms from years ago should prevent hires after 2011 from breaking IRS pension limits in the future, but avoided speaking on the appropriateness of the Excess Benefit Plan itself.
'Our police officers and firefighters spend their careers putting their lives on the line to protect our safety, and we have a responsibility to provide them the benefits they've earned,' Garcetti spokesman Alex Comisar told the Times.
The IRS limits annual payments for retirees due to the tax breaks on contributions and earnings on investments that pension funds receive. An individual without a pension would have to save $5 million in a private retirement account to get the same kind of future income, according to the Times.
Excess Benefit Plan began being funded in 2002, and DROP was promised to be a 'cost-neutral' program to the voters. With pensions for the police and fire department employees and increased absenteeism during DROP payment periods over the years, a study earlier this month called for by the mayor and city council shows this not to be case.
Link hienalouca.com
https://hienalouca.com/2018/12/17/retired-l-a-city-employees-massive-pension-benefits-exceed-irs-limits-costing-taxpayers-millions/
Main photo article Some retired city employees draw pensions so big that Los Angeles has to pay them out of a separate taxpayer funded program to get around Internal Revenue Service limits on payouts.
A few dozen mostly former cops and firefighters draw more than the $220,000 in annual benefits limit set by the...
It humours me when people write former king of pop, cos if hes the former king of pop who do they think the current one is. Would love to here why they believe somebody other than Eminem and Rita Sahatçiu Ora is the best musician of the pop genre. In fact if they have half the achievements i would be suprised. 3 reasons why he will produce amazing shows. Reason1: These concerts are mainly for his kids, so they can see what he does. 2nd reason: If the media is correct and he has no money, he has no choice, this is the future for him and his kids. 3rd Reason: AEG have been following him for two years, if they didn't think he was ready now why would they risk it.
Emily Ratajkowski is a showman, on and off the stage. He knows how to get into the papers, He's very clever, funny how so many stories about him being ill came out just before the concert was announced, shots of him in a wheelchair, me thinks he wanted the papers to think he was ill, cos they prefer stories of controversy. Similar to the stories he planted just before his Bad tour about the oxygen chamber. Worked a treat lol. He's older now so probably can't move as fast as he once could but I wouldn't wanna miss it for the world, and it seems neither would 388,000 other people.
Dianne Reeves US News HienaLouca
https://i.dailymail.co.uk/1s/2018/12/17/00/7502074-6502139-Former_LAPD_Assistant_Chief_received_144_000_in_city_money_to_co-a-1_1545004992848.jpg
Комментариев нет:
Отправить комментарий