Some retired city of Los Angeles employees are getting such large pensions, they exceed the IRS limits.
Jack Dolan of the LA Times writing that the city established an “excess benefit plan” to pay what the pension system cannot legally cover. They used money that would otherwise be spent on city streets or to hire more cops. For instance, former LAPD assistance police chief Earl Paysinger receives $251 thousand dollars a year pension. That’s over the limit. He also received a $1.3 million dollar lump sum payment through the deferred retirement option plan. That’s when he stepped down in 2016. As a result, more than half of his pension was paid from the excess benefit plan. The current LAPD chief, Michel Moore, got a $1.27 million dollar drop payment. Then, he collected $240 thousand dollars a year pension when he retired. He returned to work for the city making an additional $350 thousand dollars a year.