L.A.'s city workers graying but staying

The L.A. Daily News reports:

Growing numbers of Los Angeles city government workers are staying on the payroll longer to reap richer benefits and job security, sending the average age soaring to 46, with potentially far-reaching impacts on pension costs and the future of city management.

Since 1988, the average city employee's age has risen from 41.2 to 45.6 years, records show. And that typical worker is staying on the job longer - up from less than 10 years in 1988 to 12 years now - with an average annual salary of $58,146.

The confluence of factors, including turnover of just 2.5 percent, has sent city salary costs soaring to $2.8 billion and pensions to $600 million.

And it has begun to raise concerns that city government faces a loss in the ranks of top management.

"A lot of industries are fighting this looming wave of retirements," said Jack Kyser, chief economist for the private, nonprofit Los Angeles County Economic Development Corp., noting an imminent baby boomer retirement bulge on the population curve. "That means there could be a big brain drain."

They stay because they are overpaid relative to their set of skills.It's really that simple.