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New bill aims to end 'pension spiking'

February 19, 2010 | 11:26 am

With states facing massive funding shortfalls for public pensions, California lawmakers will debate a plan that could end large pay raises for state workers on the verge of retirement.

A new bill by Assemblyman Ed Hernandez (D-West Covina) seeks to end the practice known as "pension spiking" -- when workers on the verge of retirement receive large pay increases, which in turn increase their lifetime pension benefits.

In a written statement, Hernandez said, "Teachers, nurses, firefighters and police officers deserve an adequate and secure retirement that is not threatened by a few unscrupulous individuals trying to fatten their own benefits."

The bill, AB 1987, was introduced this week. More details of the proposal are in Capitol Weekly.

-- Anthony York