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Commentary: CalSTRS Payouts Too Large


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(Sacramento, CA)
Friday, July 08, 2011

Scott Thompson, a former analyst with CalSTRS, tried to alert his bosses to spiking - the too common practice of top level public employees jacking up salaries in their last year on the job, which then qualifies them for higher lifetime pensions. 

In one case Thompson highlighted, a school superintendent's salary rose more than $100,000 in a single year, a staggering 70% jump. In another, a charter school principal's pay rose from $120,000 to $265,000 over four years, an increase that entitled her to - get this - a $327,000 lump sum when she retired, and $13,000 a month in pension, for life, on top of that.

Thompson reported these cases to his supervisors, then to top officials at the agency, and finally to the CalSTRS board itself. They ignored him. Then they fired him. 

I approach whistle-blowers warily. The employer can't talk, so it's hard to get both sides. But I heard plenty from Thompson's former colleagues. They told me he's right. The agency ignores spiking.

The legislature, which claims to care about this issue, should order an audit of CalSTRS. Talk to Thompson and his colleagues. Believe me, they have a lot to say.

 

Ginger Rutland writes for The Sacramento Bee opinion pages.