Hollington Introduces Bill to Address 'Double Dipping'

A bill introduced by state Rep. Richard Hollington, R-98, would put restrictions on "double dipping" by public employees.

Hollington said taxpayers are outraged that a public employee can retire, wait a day and then take a similar job in another community for the same compensation, while also receiving a pension. In the case of a person 48 years old with 25 years of service, that pension equals 60 percent of compensation earned over the last three years.

House Bill 202 would address "double dipping" by reducing retirement payments by $1 for every $2 earned from a continuing job. It would apply only to those who retire after the legislation is enacted.

Social Security for early retirees was handled in a similar manner a few years ago, with re-employed retirees allowed to earn up to $14,000 before earnings are set off against the pension at a rate of $1 for $2 of wages.

Hollington said it would be better to reduce a retiree's pay rather than pension, but the Federal Age Discrimination Employment Act precluded him from taking that approach with HB 202.

Under this plan, Hollington said communities will be able to rehire desirable employees without doubling their compensation. He said there is still incentive for people to continue working because, with their pensions, they can make 50 percent more than before retirement.

The bill has been referred to the House Health and Aging Committee.