(Reason) -- Take a program that lets a public employee earn both a pension and a salary at the same time. Add an extremely generous disability leave and workers' compensation program that allows public employees to be paid while not working for months or even years on end. What do you get? Massive corruption, obviously.
A new report from the Los Angeles Times attempts to quantify the costs and consequences of a program allowing L.A. police and firefighters to collect both salaries and pension returns in the years running up to retirement. But these same employees often spend massive chunks of their final years on the payroll out on medical leave—so they're costing the city even more money without actually working.
The program is called the Deferred Retirement Option Plan (DROP), and it allows public safety employees who have reached the age of 50 to bring home a salary while also earning pension returns during that time. The pension funds (with a guaranteed five percent return rate) are then given to the officer or firefighter as a single payment upon retirement within five years. When you hear stories about police chiefs or fire captains taking home a massive lump sum of money when they retire, this is typically why.
Advertisement - story continues below