For years Johnston County’s school superintendent accepted fringe benefits as a compliment to his salary then, just before he retired, he turned $94,000 in ‘fringe benefits’ into salary to increase his pension to $143,000.
The State Treasurer then told Johnston County, We’re not going to pay that. That’s pension spiking.
Johnston County didn’t say, Whoops. We’re sorry. It sued the State Treasurer. And won. On a technicality.
The State Pension Fund and the State Health Care Fund are $60 billion in debt and putting a stop to ‘pension spiking’ would be a simple way to stop more debt piling up. But common sense isn’t a trait of government. Johnston County didn’t mind a little pension spiking as long as the state was on the hook to pay the bill.