SB 1425: Pension Spiking (2010)
Summary
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SB 1425 is no longer active.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 Senate08/31/2010 - 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