In order to cut payroll costs, the City made the early retirement program with an incentive. It's one of those "hard to refuse" deals that traded having to pay a worker a salary for showing up every day on the job for now paying the worker for not working anymore. Some money was added as a bonus for taking the deal and it was supposed to be limited to 2400 employees. It makes you wonder how good the deal turns out for the city when you also consider the recent announcement that several hundred of the approved participants were employees that were not paid out of the general fund and these retirements will not reduce the deficit calculation.
The revelation makes you wonder how well the planning was done in this area, with so many annual pension figures rising above the $100,000.00 mark.
"City Pensions Since ERIP: The Facts, The Figures, The List" Written by Ron Kaye, Saturday, 06 February 2010, as appearing in the blog, "OurLA.org" at http://ourla.org/index.php?option=com_content&task=view&id=1447&Itemid=3233 (The story also posting on the blog, RonKayeLA.com)
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