[quote=PatentGuy] . . . Public pensions are based on that last, spiked year, which probably is their highest pay ever. . . . [/quote]
In the County of SD, the pensions are based upon the highest year’s salary, not necessarily the last year’s salary.
A SD county employee can have a high-earning year, get cancer and then go out on disability for surgery/chemo for 6-12 mos. When they return to work, they may not have the energy or focus to keep up with their former position so take a voluntary demotion, work a couple more years and retire at their highest-year’s pay. This and similar scenarios are very common. Even if an “unclassified” manager or supervisor-appointee voluntarily steps down amid controversy regarding their competence or a classified employee fails a probationary period for a promotion, the classified employee has step-down rights to their former classification and their pension is based upon their highest year’s pay in combination with years of service. The former mgr has step-down rights to their old classified position at the discretion of the dept head, which, in the past, was usually granted. (Don’t know if they’re allowed to place their “friends” in make-work positions anymore.) If the employee stepping down IS the dept head or appointee, they have no step-down rights so will have to retire or take deferred retirement.