State retiree loophole costs Florida $300M a year

[wrobert]

TALLAHASSEE -- A growing number of elected officials are quietly taking advantage of a loophole carved into the state retirement law a few years ago that allows double dipping -- collecting a state pension while still getting a regular paycheck from taxpayers


http://www.sptimes.com/2008/02/23/State/State_retiree_loophol.shtml

[aleonard]

TALLAHASSEE -- A growing number of elected officials are quietly taking advantage of a loophole carved into the state retirement law a few years ago that allows double dipping -- collecting a state pension while still getting a regular paycheck from taxpayers


http://www.sptimes.com/2008/02/23/State/State_retiree_loophol.shtml
I knew I had heard of this program before.

http://www.nwfdailynews.com/article/8802
Richburg is the highest paid public official in Okaloosa County, earning $215,000 a year. And compensation is at the heart of Richburg’s decision to retire, and his desire to be rehired again.

The state’s Deferred Retirement Option Program – known as DROP – will enable Richburg to collect more than a half-million dollars upon retirement.

If he is rehired, Richburg will receive his salary, and within a year of being rehired he will also begin receiving more than $8,000 a month in additional retirement compensation.

[wrobert]

I knew I had heard of this program before.

http://www.nwfdailynews.com/article/8802
Richburg is the highest paid public official in Okaloosa County, earning $215,000 a year. And compensation is at the heart of Richburg’s decision to retire, and his desire to be rehired again.

The state’s Deferred Retirement Option Program – known as DROP – will enable Richburg to collect more than a half-million dollars upon retirement.

If he is rehired, Richburg will receive his salary, and within a year of being rehired he will also begin receiving more than $8,000 a month in additional retirement compensation.

He got $553228.16 from the DROP. Plus his annual pay of $215K. I do not see what his monthly retirement is.

[Beach Angel]

don't know how it works here. in ohio, if you are rehired for the same position, you make entry-level pay regardless of your years of experience. so - if you are a teacher who has taught 30 years and you want to take the "incentive to retire" (it is only offered once), you retire and then if you are rehired it is for a beginning teacher salary with no medical benefits (because you pay for them through the retirement system). so the school wins because they have an experienced teacher for less than the cost of a "green" one (no medical), and the teacher wins because he has retirement pay plus a paycheck, at least for a few years. the retirement system is paying out what it would anyway if the teacher retired. so the fla system MIGHT not be as awful as it looks on the surface - but it MAY be.

[aleonard]

He got $553228.16 from the DROP. Plus his annual pay of $215K. I do not see what his monthly retirement is.

he will also begin receiving more than $8,000 a month in additional retirement compensation.

I'm not trying to use this as anything but an example of someone local that has used the the program listed in your original post:D:wave:

[wrobert]

he will also begin receiving more than $8,000 a month in additional retirement compensation.

I'm not trying to use this as anything but an example of someone local that has used the the program listed in your original post:D:wave:

Okay. I was just posting what the spreadsheet had that the reporter who did the article sent me. There are three in Walton County on the list. But none of them are of a large amount like the example you gave.

[ShallowsNole]

So this is an issue? :confused:

Dang, we were hoping to start doing this a few years from now.

[aleonard]

So this is an issue? :confused:

Dang, we were hoping to start doing this a few years from now.

Personally, I don't see it as double dipping. If you do the time to earn a retirement and then are still the best choice for a job after the mandatory 30 day leave, then why not be rehired?:idontno:

[TooFarTampa]

Glad you posted this WGOP!

I read this today and was amazed, mostly by the short sightedness of the legislators that pushed the bill through at the end of the session. This loophole was meant to help out a select group of people ... apparently they just didn't foresee that all sorts of other high paid state employees would decide to take advantage. :roll: :bang:

It's a really intriguing story, and I can't get over the unabashed glee that some clearly have over "working the system." The loophole is stupid and needs to be closed. The Miami-Dade Community College president is collecting $15K a month in retirement benefits along with his salary of over $300K a year? And all he had to do was retire for 30 days to get it?

Yep, this loophole will be closed shortly (all that anger and outrage), yet sure as the sun will rise tomorrow, some other stupid bill with unintended consequences will be pushed through the end of this upcoming session.

Lucy Morgan strikes again. :clap: (She is "retired" but did not say whether she is taking a pension AND getting a salary ... WGOP why don't you email her and ask. :D)

[aleonard]

Glad you posted this WGOP!

I read this today and was amazed, mostly by the short sightedness of the legislators that pushed the bill through at the end of the session. This loophole was meant to help out a select group of people ... apparently they just didn't foresee that all sorts of other high paid state employees would decide to take advantage. :roll: :bang:

It's a really intriguing story, and I can't get over the unabashed glee that some clearly have over "working the system." The loophole is stupid and needs to be closed. The Miami-Dade Community College president is collecting $15K a month in retirement benefits along with his salary of over $300K a year? And all he had to do was retire for 30 days to get it?

Yep, this loophole will be closed shortly (all that anger and outrage), yet sure as the sun will rise tomorrow, some other stupid bill with unintended consequences will be pushed through the end of this upcoming session.

Lucy Morgan strikes again. :clap: (She is "retired" but did not say whether she is taking a pension AND getting a salary ... WGOP why don't you email her and ask. :D)


Who was the select group it was made to help? Thanks for all the info:wave:

[TooFarTampa]

Who was the select group it was made to help? Thanks for all the info:wave:

:wave: Thanks for posting the NWFDN link.

From the story:

The loophole was created, as are so many in Tallahassee, on the last night of a legislative session, when few people notice what gets into bills flying through legislative hallways.

In 2001, lawmakers quietly amended a retirement bill, allowing elected officials to receive retirement benefits as well as regular pay while remaining in the same job. Sponsors said they were trying to help a few lawmakers who had been on school district payrolls before they won election to the Legislature.

Sen. Mike Fasano, R-Port Richey, at the time a House member handling the retirement bill, said he did not realize that a fellow member's last-minute amendment would help so many people collect so much money.

"This is absolutely not what the Legislature intended," he said this week. "It's so sad when you have elected officials who want to take advantage of this."

Fasano said the law should be changed so public officials get either a salary or a pension, but not both. "They are taking advantages of some glitches in the law, and they know they are."

[aleonard]

:wave: Thanks for posting the NWFDN link.

From the story:

The loophole was created, as are so many in Tallahassee, on the last night of a legislative session, when few people notice what gets into bills flying through legislative hallways.

In 2001, lawmakers quietly amended a retirement bill, allowing elected officials to receive retirement benefits as well as regular pay while remaining in the same job. Sponsors said they were trying to help a few lawmakers who had been on school district payrolls before they won election to the Legislature.

Sen. Mike Fasano, R-Port Richey, at the time a House member handling the retirement bill, said he did not realize that a fellow member's last-minute amendment would help so many people collect so much money.

"This is absolutely not what the Legislature intended," he said this week. "It's so sad when you have elected officials who want to take advantage of this."

Fasano said the law should be changed so public officials get either a salary or a pension, but not both. "They are taking advantages of some glitches in the law, and they know they are."

Thanks.:biggrin: Should have went back and read the source article. If they do change this it would not be retroactive, would it? I can understand if a person crosses job lines. Meaning they retire first and then work another job. But in the case I posted a link to, the board of trustee's had to vote to rehire the employee back. So, they were willing to play along as well. I would stake a guess that the example you gave was the same?:idontno:

[wrobert]

Personally, I don't see it as double dipping. If you do the time to earn a retirement and then are still the best choice for a job after the mandatory 30 day leave, then why not be rehired?:idontno:


I don't know. If you were to start over at the bottom of the pay scale, or even at some point closer to the bottom, but to take off thirty days, draw your pension, then still draw your topped out salary. At some point new people have to be hired.

[aleonard]

I don't know. If you were to start over at the bottom of the pay scale, or even at some point closer to the bottom, but to take off thirty days, draw your pension, then still draw your topped out salary. At some point new people have to be hired.


That's a stickier point, agreed.

[TooFarTampa]

I don't know. If you were to start over at the bottom of the pay scale, or even at some point closer to the bottom, but to take off thirty days, draw your pension, then still draw your topped out salary. At some point new people have to be hired.

It's take off 30 days, take a lump sum, get your same salary back, and start drawing your pension benefits. Unless you are a CEO or some other golden parachutist, it just doesn't work that way in the real world.

[wrobert]

It is now coming out that there are 131 employees that are actually triple dipping. Drawing two State retirements then their salary.

When will the carnage end?

[scooterbug44]

I am once more convinced that we need bounty hunter type accountants - they get to keep .001% of the money that they save the govt/taxpayers. :angry:

[aleonard]

I am once more convinced that we need bounty hunter type accountants - they get to keep .001% of the money that they save the govt/taxpayers. :angry:
oh........I like that idea:clap:

[Badges?]

Thanks.:biggrin: Should have went back and read the source article. If they do change this it would not be retroactive, would it? I can understand if a person crosses job lines. Meaning they retire first and then work another job. But in the case I posted a link to, the board of trustee's had to vote to rehire the employee back. So, they were willing to play along as well. I would stake a guess that the example you gave was the same?:idontno:

The current law allows folks to double and in some cases, triple dip. The sad part is any change would only effect new folks. The door would close on them, but those already reaping the benefits of the "loophole" would continue to do so. The legislature knew what they were doing when this problem was created. It is amusing to hear their "outrage" now.

[wrobert]

The legislature knew what they were doing when this problem was created. It is amusing to hear their "outrage" now.


I do not think that they really did. The law was changed to allow a single legislator to get his retirement while he was serving in his part time position. It was done at the last minute and without proper research as to the overall effect. I really believe that they had good intentions since the job of legislator is suppose to be part time. All of the ones that I have emailed and the news reports that I have followed suggest that everyone was surprised by the use of the loophole for the current purpose. It is going to be very hard to change because of the number of legislators that are now taking advantage of the system to line their own pockets.

Another victim of unintended consequences.

[Badges?]

I do not think that they really did. The law was changed to allow a single legislator to get his retirement while he was serving in his part time position. It was done at the last minute and without proper research as to the overall effect. I really believe that they had good intentions since the job of legislator is suppose to be part time. All of the ones that I have emailed and the news reports that I have followed suggest that everyone was surprised by the use of the loophole for the current purpose. It is going to be very hard to change because of the number of legislators that are now taking advantage of the system to line their own pockets.

Another victim of unintended consequences.

That is certainly another way of viewing the current debacle. The legislature didn't change a law to benefit a single friend. Although I don't question their intent, I do question their intelligence, as they have often questioned ours.