Her total defined benefit pension (not counting DROP) is not $123,600 annually as the U-T story reported. It’s $123,600 plus four years’ credit, which buys an addition $19,950 annual pension. The total pension (again, not counting DROP) therefore is $143,550 — plus 2% annual COL increases.
According to the Voice of San Diego article, if Jarman decides to pay out her DROP account as a 20 year annuity (guaranteed by taxpayers at 7.75% rate), she will receive annually a $33,344 payment from DROP.
Jarman’s total annual payout first 20 years: $123,600 + $19,950 + $33,344 = $176,894 – more than her $165,000 salary. No WONDER she retired!
The lesson? GET A CITY JOB!
Posted by: Richard Rider, Chairman, San Diego Tax Fighters at May 30, 2009 08:34 AM
