Saturday, May 16, 2009

$499,000 Public Pension for One Government Worker in California Town of 110 People

The Orange County Register reports:
Rogue municipalities can spike employee's pensions to astronomical rates. As an example, the 5.5-square-mile Los Angeles County city of Vernon, population 110, paid a politically connected insider, Bruce Malkenhorst Sr., $600,000 a year to serve in six different capacities at once, spiking his pension to $499,674. Malkenhorst is currently fighting a criminal indictment charging him with embezzling $60,000 for such things as massages.

Generous years-of-service clauses allow officials to ring up huge pensions; then retire and take another government job while drawing the pension. An example is former Anaheim City Manager Jim Ruth, who retired in 2001 on a pension of $219,045, then went on to serve another year as a consultant to the city for $192,000. Ruth later did a stint as Orange County's chief executive and, currently, is the county sanitation district chief: Annual salary: $225,000. Between retirement and salary, he makes $444,000.

Retirements often are used as escape hatches when officials run into trouble. For instance, Art Simonian, 28-year city manager of Yorba Linda, was suspended in August 1999 amid accusations by the city council that he doled out $600,000 in unapproved bonuses to himself and others. After a bitter 10-month feud, Simonian agreed to resign with $200,293 in severance. He continues to receive $173,204 in retirement pay.
Theft through majority voting.