Tuesday, March 26, 2019

States increase pension crisis with payouts for unused vacation and sick time

Failure to reform these practices puts already-beaten down taxpayers under an even more crushing load. California owes $3.5 billion in payouts for unused vacation time to workers, according to the Los Angeles Times.

In 2017 alone, the state paid out $300 million for unused vacation days to retiring workers.

The police chief of Englewood Cliffs, a town of about 5,200 residents, received a payout of $587,000 that included 150 unused sick days and 408 unused vacation days.

The state pays retirees for unused sick time.

In 2017, the inspector general reported that the state faced a liability of $117 million because of the unused time.

The state owes workers some $444 million in unused time off, according to one report.

One recent Ohio example: a former state pathologist retired with 3,000 hours of sick leave and 600 vacation hours, worth $193,000.

https://www.city-journal.org/public-sector-retirement-debt-crisis

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