Amended law stops some, not all, double dipping
March 17, 2010
An amendment to state law that halts double dipping for retirees hired for public jobs after July 1 will benefit Belen by saving the city money.
Double dipping occurs when a government employee retires and later returns to work, receiving both a salary and pension.
During to 2009 fiscal year, the City of Belen had eight double dippers in city government. With this month’s resignation of former City Manager Sally Garley and the electoral defeat of former City Councilor Terese Ulivarri, that number is down to six.
Right now Judge Kathy Savilla, Councilor Wayne Gallegos, Police Chief Mike Chavez and three other city employees, assuming they have remained with the city after the 2009 fiscal year, receive their salary and pension.
The new provisions in the state law aren’t retroactive, so all of the city’s double dippers will continue to collect a salary and pension. That’s a continuing cost to taxpayers statewide, but because the pensions come from a state fund, the city’s budget isn’t directly impacted.
The city appears to benefit financially from the changes.
The city and the typical employee pay into the state’s retirement fund. But under the old return-to-work law, the city has been responsible for paying a double dipper’s portion into the fund.
Beginning July 1, four of the six remaining double dippers will have to pay their portion into the state’s retirement fund.
Retirees who are “elected to serve a term as an elected official” are exempted.