A 2012 California law reduced pensions for new members and attempted to limit the ways employees could artificially "spike" their pensions by cashing out unused sick or vacation leave or taking on overtime in their last years of employment. Because pensions are based on a formula reflecting an employee's final average salary, employees can receive lifetime pension benefits by inflating their compensation in their last years of employment. In implementing the law, the California Public Employees’ Retirement System (CalPERS) recently announced 99 different types of compensation they consider "pensionable." Governor Jerry Brown, a strong advocate for the 2012 law, is looking into possible recources of action, but in the meantime here are some of my favorites from the list:
- Dictation/Shorthand/Typing Premium - Compensation to clerical employees for shorthand, dictation or typing at a specified speed.
- Longevity Pay - Additional compensation to employees who have been with an employer, or in a specified job classification, for a certain minimum period of time exceeding five years.
- Physical Fitness Program - Compensation to local safety members, school security officers and California Highway Patrol officers who meet an established physical fitness criterion.
- Audio Visual Premium - Compensation to miscellaneous employees who are routinely and consistently responsible for operating audio visual equipment.
- D.A.R.E. Premium - Compensation to local police officers, county peace officers and school police or security officers who routinely and consistently provide training to students on drug abuse resistance.
- Confidential Premium - Compensation to rank and file employees who are routinely and consistently assigned to sensitive positions requiring trust and discretion.
- Parking Citation Premium - Compensation to employees who are routinely and consistently assigned to read parking meters and cite drivers who have violated parking laws.
- Traffic Detail Premium - Compensation to employees who are routinely and consistently assigned to direct traffic.
- School Yard Premium - Compensation to part-time school district employees who are routinely and consistently assigned to supervise students during recreation.
There's also there's a premium for firefighters assigned administrative work during regular hours (as opposed to actually putting out fires) and a premium for employees who routinely deal with sprinklers. Under the new CalPERS rule, employees may have to deal with sprinklers while they're employed, but the state will compensate them with a pension "sprinkler premium" for the rest of their lives. Read the full list here.