Testifying In Support of AB 340: (left to right) Joe Czyzyk and Assemblyman Warren Furutani testify in Sacramento before the State Senate Public Employment and Retirement Committee.

Assembly Bill 340 (Furutani), Anti-Pension Spiking Act Passes the Senate Public Employment and Retirement Committee

(Sacramento) Today, Assemblymember Warren T. Furutani’s bill AB 340, the Anti-Pension Spiking Act passed the Senate Public Employment and Retirement Committee on a bi-partisan vote.

As Chair of the Assembly Public Employees and Social Security Committee, Assemblymember Furutani has made pension reform legislation a priority. AB 340 seeks to prohibit the practices of “pension spiking” and “double dipping” within the pension system.

“Pension reform is a top priority for me,” said Assemblymember Warren Furutani. “We must end the abusive practices of pension spiking and double dipping in the state pension system if we are to meet our future pension obligations.”

“Pension spiking” is the practice of boosting the calculation of one’s salary by including unused vacation, sick time, bonuses or allowances as cash payments so they can be counted as compensation earnable for retirement purposes. “Double dipping” is when a retiree returns to employment with the public employer on a part-time or contract basis, thereby allowing them to earn a salary and pension benefits at the same time.

“Abuses like pension spiking and double dipping are an albatross around the necks of California’s tax payers,” said Joe Czyzyk, Chair of the Board of the Los Angeles Area Chamber of Commerce. “The Los Angeles Area Chamber of Commerce strongly supports Assemblymember Furutani’s AB 340 to end these abuses and we encourage the Legislature to continue with further pension reforms.”

AB 340 now heads for a full vote in the Senate before advancing to the Governor’s desk.

Assemblymember Warren T. Furutani (D-South Los Angeles County) represents the 55th Assembly District, which includes the cities of Carson, Harbor City, the Harbor Gateway, Wilmington and parts of Lakewood and Long Beach.