Sunday, May 10, 2009

Double Dipping

Double dipping is a term referring to the practice of earning a wage at the same time as receiving a pension. New Haven Video

Double Dip Pensions
In order to get a double dip pension it is received at an age younger than the normal retirement of age 65. It must also be from a defined benefit pension. In other words, usually only public sector employees are eligible for the Double Dip. Police and fire fighters are eligible as early as age 50 for pensions and the rest of the public sector at age 55.
Politics plus pensions equals big bucks

Double dipping has come into the news recently as the media and politicians examine the fairness and cost to taxpayers of our public sector pensions. It occurs at all levels of government. Starting at the top, most of us know a retired Member of Parliament who is know holding down another job at the same time collecting their $70,000 a year pension.

An acquaintance of mine recently retired with about a $55,000 a year pension from the RCMP and is now working as a city by-law enforcement officer. He retired and got a 50% raise in salary.

Currently in the Florida legislature there is a bill that would ban double dipping. The bill in Florida focuses on employees who leave their position for 30 days to trigger the pension and then return to the same or a similar job at full pay.

Florida ban on double dipping
End of Double Dipping in Florida
Another example in Florida

In Canada the same thing is happening in the public sector with employees who arrange a leave in order to trigger their CPP (Canada Pension Plan) and then return to the very same position at regular pay.

Other Examples
It always has been popular for teachers in Canada.
Teaching the Double Dip

In a surprise comment by unions in New Brunswick, they cited double dipping as part of the high cost of public sector pensions there. Double Dipping in New Brunswick

Recently a the unfortunate Police Commissioner of Buffalo was in hot water because he did not process his double dipping paperwork properly. Buffalo Police Commissioner

Call for end of double dipping in New Jersey
End it in New York as well
San Diego

This is starting to sound like a Johhny Cash song!

1 comment:

  1. 'Triple-dipping' is much more lucrative.........

    "...In 2006, Ms. Routliffe reached retirement age and qualified for a full pension. She soon began pondering how she could collect her pension while still working in the Senate. She also realized that if she was fired from her job she could collect a hefty severance....."