Financial experts have warned Riverside County supervisors that early retirement offers for more employees will be costly later. 702 employees have accepted a sweetened retirement offer and
supervisors are debating whether to extend the offer to probation
officers, district attorney investigators and others in law
enforcement. The county now employs about
19,000 workers. NorthCountyTimes reports:
But some financial experts say offering the early retirements merely defers a financial problem that will grow and come due in coming years. Early retirements have been a very appealing and seemingly painless way to cut expenses, an imperative for the county, which must wrest $130 million from its budget for the coming fiscal year. Supervisors this fiscal year directly control $727 million.
Giving away service years as an early retirement incentive is common, says Jack Dean, editor and publisher of PensionSunamic.com which tracks developments in public employee's pension plans. "It's a sleight of hand to say that is saving money," he said. "Elected officials don't seem to realize they are paying (increased) pension costs later."
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