workers. charles payne for the fox business network joins us. the numbers are huge and this statement is tremendous. it is huge. we periodically see these kind of stories and we re all taken aback and what the heck, something has to be done. as you delve deeper, it becomes more astonishing, the so-called double dipping. we know most of these public-sector workers make subsubstantially more than private sector counterparts, benefitsรง more lavish. you got all these things going and add in pension spiking, the last year when you work a lot of overtime and the pay for the rest of your life is 20% higher than it was. then you add it on with how about i go back to the trough and get more of the action? we talked about it a lot when the economy was melting down and some of these cities and municipalities were filing for bankruptcy and it became absurd we the taxpayer would be spending
unreasonable to say look the incredible imbalance has to be brought down. pension spiking should end. if you work for 20 years your spepbgs is base spepbgs is based on your last three or four years of work. and they do a lot of extra work to jack it. we re out of money, that s the key point. bill: to our cuers, hemmerrer hemmerrer & fox news.com. because you asked online right now. thank you, sir. martha: scott walker has advice for governor mitt romney, while the wisconsin governor says the r next to romney s name needs to stand for much more than just republican. bill: a graduation speech that some high school students will not soon forget. why he told them quote, to consider themselves not so special. oh, joy.
a 401k. a san diego city council member is behind this overhaul. now we did reach out to the democratic candidate, he was not available. carl, welcome to the program. good to see you. thanks for having me. pension reform is topic number one in state and municipal governments nationwide. what you re doing is trying to change the pension plans for san diego city workers for new hires to put them on 401ks. i put it to you, karl, that will not do anything to fix the problem with existing retirees who have the old-fashioned pension plan. that s right and that s why our measure impacts existing employees. we figured out that you could actually change the calculation on pensions by ending pension spiking and using only the base salary of city employee compensation. we also freeze impose a hard
passed into law, right? got to get through the legislature and unions too. absolutely. bill: $500 billion is budget gap for retirement funds in california the they re trying to do it in ohio. we ll find out in a week or not whether it survives referendum. part of the issue in california with a nurse making $270,000 a year. there are a lot of things. there is 12-point plan that governor brown wants to propose or wants to be made into law. one of them what is called pension spiking. what happens is late in their, when a pension recipient is about to retire they back load all their days off that they didn t take, all the sick days and put it into the last few months of their, before their retirement and and, or, take it in the form of pay. they will spike their pay right before they retire. if they re coming into their pension with 60% of their full pay, they re actually going 60% of a much higher number, almost making more than they were making during most of their years of service t
every dollar of dead. mayor luke ravenstahl is the mayor. things have to change. reporter: retiring at age 50, ending a pension half of their take-home pay. firefighters can boost their pensions by making more overtime in the last years on duty. a pension called pension spiking. is that fair? it s not. reporter: usually pension spiking does not go on? not in this bureau. i m not sure in other cities. this way, the way the overtime is distributed, it s an even rotating list. reporter: firefighters deny they re engaging in pension spiking. they blame city hall. because of fiscal mismanagement, the cities and governments and thing, the working man shouldn t have to suffer from that. reporter: rob, with the local firefighters union, is open to raising the retirement age, but says this no job for senior citizens. so what am i supposed to do with somebody that reaches the