SB 27: Pension Spiking (2011)
Summary
Senate Bill 27 aims to curtail the problem of pension spiking in California. Pension spiking is a term used when an employee boosts their final salary before retirement by cashing out on vacation time or administrative leave, among other things, in order to get a higher payout.
Senate Bill 27 requires that an individual’s pension be evaluated by a series of steps in order to deter employees from padding retirement with one time bonuses, end of career “promotions” and accrued vacation time.
Text and Status
You can find the most recent text and status of SB 27 on the Legislature's Bill Information site.Background Information
Little Hoover Commission, Public Pensions For Retirement Security report (2011)