City Workers Get Million Dollar Pen$ions

By Lauren Manary
|  Thursday, Feb 12, 2009  |  Updated 2:36 PM PDT
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City Workers Get Million Dollar Pen$ions

Getty Images/Steve Bronstein

Critics of San Diego's pension plan said that it is bankrupting San Diego's municipal budget.

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If you work for the state, you might get laid off, but if you used to work for the city, you may just be getting a nice, fat pension check.

More than 80 former employees of the city received payments if more than $100,000 in retirement payments in 2008, the voiceofsandiego.org reported. Topping the list is former Deputy City Manager Patricia Frazier, who received $165,870.

That’s not the worst of it. Since the program began in 1997, five former city employees have received more pensions in excess of $1 million.

The Deferred Retirement Option (DROP) program allows workers nearing retirement to receive a monthly pension payment prior to retirement, which then accrues at a guaranteed rate. That rate was recently lowered to 7.75 percent.

Mayor Jerry Sanders has called for pension reform since the data was released. Critics of the controversial program -- including City Councilman Carl DeMaio -- said it is bankrupting San Diego’s municipal pension budget and have called for the interest rate to be reduced to 4 percent.

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