On the heels of this week’s Stockton, CA, bankruptcy case, which was caused in large part by the city’s growing pension liabilities, there are reports that an Alameda county administrator will retire at 63 with an estimated $423,664 per year package. Along with her $301,000 annual salary, she will get equity pay to make sure she is paid more than anyone else in the county (even in retirement), a $24,000 performance bonus, $9,000 to serve on a county board and an additional $54,000 for working more than 30 years. And don’t forget her $8,292 annual car allowance.
Though it might be unfair to criticize an individual who’s made a nice deal for herself, the example vividly illustrates how out-of-control state and local pensions have gotten — with local taxpayers, who are struggling to fund their own retirement, left to foot the bill. Private companies had the incentive to cut DB plans they could not afford, but it appears that the public sector is lagging behind — especially when the decision makers have the most to lose.
