Lawmakers heard testimony over whether to audit overtime by some public workers.
The administrator of the Employee Retirement System showed how a sample pension could rise from $30,000 a year to more than $100,000 from excessive overtime worked close to retirement.
This "spiking" would cause a million dollar gap in unfunded costs over that person’s retirement.
Department heads testified overtime is not abused to boost retirement, but instead has been a necessity especially in recent years.
The administrator of the Employee Retirement System showed how a sample pension could rise from $30,000 a year to more than $100,000 from excessive overtime worked close to retirement.
This "spiking" would cause a million dollar gap in unfunded costs over that person’s retirement.
Department heads testified overtime is not abused to boost retirement, but instead has been a necessity especially in recent years.
"We peaked with our overtime during those furlough years, we needed to provide services for patient safety," says Hawaii Director of Health Loretta Fuddy. "There have been hiring freezes in the past, and when we have increased vacancies, again we do need to provide the services."
ERS estimates that over the past three years, nearly 700 retirees out of about 5,000 had pensions that were made larger due to recent overtime, causing an unfunded $40 million gap.
See the original article at: KHON2 Developing Stories
