Wednesday, December 28, 2011
Public employees can often buy "air time" to pad their retirements.
Thomas Frank has a provocative story in USA Today Wednesday showing how workers in 21 states can buy “air time”. effectively credit for more time worked, to increase their pensions after they retire, link here.
In some states, the practice was part of a plan to try to encourage early retirement. In California, over 34000 people have “bought” the time, but Jerry Brown wants to end the practice. In many states, employees are not "contributing" enough to pay for their extra retirement benefits according to actuarial calculations.
Federal law allows “air time” purchases in public employee plans only, not in private industry.