Audit Calls For End to Rehiring Retirees

Double dippers may cost state retirement system $900 million in coming decade

"It was evident in the cases we reviewed that retiring was, with few exceptions, simply a maneuver to begin drawing both a pension and a salary," the audit said. "Returning to work soon after retiring suggests the retirees had not genuinely intended on ending their public service careers."

Utah State Auditor
Getting retirement and salary
November 12, 2009

"The retired in place system is valuable because it allows municipalities to rehire police chiefs or sheriff for the same job at a lower rate within the pay scale." [...]
"Then you have the same person that you pay less and the same amount of service and job experience," he said."It's a good incentive for citizens and cities because it allows cities to renegotiate salary and benefits packages."

Chief Jon Greiner
Getting retirement and salary
November 12, 2009

Ogden City's Chief of Police and State Senator Jon Greiner again gets his mugshot plastered onto the front page of this morning's Standard-Examiner with this AP/SE Staff story, which reports that the the State Auditor's office has recommended a ban on the practice of "double-dipping," a unique Utah quirk, whereby some well-connected government employees are legally-entitled to "retire in place," and then go on collecting a salary in addition to state retirement benefits.

Several eye-popping facts emerge from this morning's Std-Ex story:

• The state retirement system covers state and local governments, as well as public and higher education employers.
• The audit said allowing rehired employees to collect pension benefits has cost the state more than $400 million in the past eight years and will cost nearly $900 million over the next 10.
• Utah is the only western state that allows retirees to return to work with a salary, pension and 401(k) plan. The audit recommends requiring employers to make contributions to the state retirement fund instead of personal 401(k) plans.

Both the Salt Lake Tribune and Deseret News are also all over this topic this morning too, with stories which do not, (unlike the one in this morning's Std-Ex,) directly focus on Ogden's police chief as the poster boy for the egregious Utah practice of allowing certain good ole boys (and gals) to spend a virtual lifetime wallowing in the public trough.

Now that the state legislature has its back pressed to the wall with the severe state tax revenue shortfalls resulting from the ongoing 2008-09 Great Recession, will our legislators act swiftly and decisively to enact the State Auditor's recommendation into Utah law?

We'll volunteer to say won't be holding our breath.