Benefits April 26, 2011
CT Lawmakers to Look into Pension Spiking by State Employees
April 26, 2011 (PLANSPONSOR.com) – The Connecticut Senate Appropriations Committee has approved legislation requiring the Program Review and Investigations Committee to study the current limit on the number of highest income years considered when calculating someone's state pension.
Reported by Rebecca Moore
The Associated Press reports that the review is intended to target “pension spiking” among Connecticut state employees attempting to boost their retirement checks by accumulating overtime pay.
State Senator Robert Kane said retirement income is now based on a worker’s three highest paid years of state service. He tried to change that to five, but his amendment failed, according to the AP.
Representative Toni Walker, the committee co-chairwoman, said lawmakers shouldn’t rush into making changes, and a study is needed to avoid unintended consequences.