San Jose Cops Rush Disability Retirement as Rules Tighten - Bloomberg

San Jose Cops Rush Disability Retirement as Rules Tighten - Bloomberg

Workers’ ease of access to the program helps explain how San Jose, with a population of about 971,000, has seen retirement costs surge in the past decade to $245 million in fiscal 2012 from $73 million in fiscal 2002. Benefits consume more than 50 percent of payroll and account for more than 20 percent of the general fund, according to the city’s website.
The tax break applies to the portion of existing pensions that equals 50 percent of employees’ final compensation. In the case of a police retiree whose final annual average salary was $100,000 and is receiving a pension of $90,000, $50,000 would be free from income taxes.