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Author: NevadaGolfer Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 20699  
Subject: Re: death by pension Date: 11/15/2012 4:04 AM
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For the most part it's fire fighters and police that get the absurd pensions paying sometimes 3-4x in yearly retirement pay what they made on their last base salary. Teachers don't get to juice up their final two years pay with real or phantom OT like firefighters and police do or at least certainly not to same ridiculous levels.

I know a retired police sergeant from southern Cali who told me his pension is $20k/month and based on the life style he enjoys it's quite believable.

Police sergeant with $60k base salary on 28 years of service seems pretty reasonable or even low paid to most folks as that's right around $30/hour. However, if the last two years if you work 100 hours a week; 40 base hours, 10 hours at 2x rate, and rest at 3x rate for example. That gives you effectively 210 hours/week in pay or just over $300k/year. Do that for the last two years and then your pension is 80% of the average of your last two years results in a pension of $240k/year or $20k/month.

That's essentially what is happening when you see these crazy police/fire fighter pensions. No private industry management would condone or allow that kind of artificial pension juicing but police and fire department management will generally not only tolerate it but actively facilitate it.
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