Skip to content

SB 1425: Pension Spiking (2010)


Senate Bill 1425 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 1425 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.

For more information, you can read the SB 1425 "Fact Sheet" prepared by a member of Senator Simitian's staff.

Final Status and Text

SB 1425 is no longer active. Its final status was:
Vetoed by the Governor

You can read its final text on the Legislature's Bill Information site.

News & Press Releases about SB 1425

06/02/2011 - Simitian Bill To Curb Public Employee "Pension Spiking" Passes Senate

08/31/2010 - Bill To Curb Public Employee 'Pension Spiking' Passes Legislature

06/02/2010 - Pension Reform Bill to Curb "Pension Spiking" Clears State Senate

06/01/2010 - Senate passes bill aimed at curbing pension abuses

03/12/2010 - Simitian bill takes aim at big pension payouts for public employees

03/11/2010 - "Pension Spiking" Bill Aims To Curb Abuse