Ambulance Workers and Pension Reform

Nanea Kalani has a very interesting story on Civil Beat this morning about how public workers are taking advantage of the pension system. They’re spiking their pay to boost their retirement benefits.

One prime example is ambulance workers in the city’s Emergency Services Department, which found itself in the spotlight recently after an audit revealed high overtime costs.

In the course of examining whether Honolulu’s ambulance fleet adequately meets the island’s needs, the audit uncovered excessive overtime use by employees. In some cases, workers earned between 200 percent and 350 percent of their regular salaries in overtime.

The upfront overtime costs — $16 million over three years — were sizable. But the pension costs for these employees could cost taxpayers much more.

That’s because retirement benefits are based in part on an employee’s highest three years of pay, which covers all compensation including overtime.

Read the full story: Excessive OT for Ambulance Workers Highlights Strain on Pension System