Libertarian activist Richard Rider says that most city workers retiring with 30 years of service are getting 120 percent of their final year’s pay. They get 75 percent through their normal pension program. In addition, they have a supplemental pension savings plan. The City matches their annual contribution, which is between 3.05 and 6.1 percent of their pay. An employee who puts in 6 percent a year, gets the match, and makes 8 percent annually on the growing pot can easily retire at 140 percent of his or her final year’s salary, says Rider. And that’s not considering DROP.
A city employee who has worked 35 years and is in both the DROP program and the supplemental pension savings plan may retire at age 60 with a $75,000 annual salary but will rake in $170,000 a year in retirement — 226 percent of his or her highest pay.
Are you ready for the recession and bear market? Your next-door neighbor who works for the City certainly is. That neighbor has been dealt a nice hand.