Public pension system investigates salary spiking to boost retirement pay

Author:
Updated:
Original:

Minnesota's Public Employees Retirement Association (PERA) has launched an investigation to see how prevalent the practice of pension spiking is, and to determine whether it can be limited.

Spiking is the term used when public employees work massive amounts of overtime in their final five years of employment in an effort to hike their salaries to increase their pensions.

The Pioneer Press reported that the state probe comes following the newspaper's investigation into spiking that it documented among supervisors in the St Paul Fire Department.

At the time of the Pioneer Press story, PERA Executive Director Mary Vanek said the pension system had no method to calculate whether workers are boosting salaries, because employers don't break out earnings to show overtime pay. Now PERA has requested three years' worth of salary data, including the overtime amounts, from local governments, to see if spiking exists throughout Minnesota's public retirement system.

That analysis is expected to be presented at the PERA Board of Trustees' December 12th meeting. At least 15 states have enacted anti-spiking provisions.

Next Up

1402 Mainstreet, Hopkins, Minnesota

Woman, 26, fatally struck by suspected impaired driver in Hopkins

A man was arrested on suspicion of impaired driving.

fireball

Fireball crash in Lowry Hill tunnel kills 2, closes I-94 west

Traffic cameras showed the shocking moment the car crashed and exploded into flames.

police tape, crime scene

Police: Man dies after breaking window during domestic assault in St. Paul

The man's official cause of death will be ruled by a medical examiner.

Rep. Joe McDonald

'No respect': MN lawmaker shows up to debate in pirate costume

He was called out on Twitter by Rep. Kaohly Vang Her.

Rocco Baldelli

Twins-Athletics postponed for Monday amid COVID issues

The Twins are hoping to play a doubleheader with the A's on Tuesday.

Rep. Maxine Waters

Maxine Waters speaks in Brooklyn Center, draws ire of right-wing media

The congresswoman visited protesters Saturday night.

Related