The union representing Los Angeles Division of Water and Energy employees is suing the town for permitting staff who retired from different metropolis departments to work on the utility whereas accumulating a pension.
The lawsuit, filed Tuesday by Worldwide Brotherhood of Electrical Employees Native 18, argues that the town constitution prohibits those that retire with a pension by the Los Angeles Metropolis Workers’ Retirement System from subsequently working as a DWP worker.
Town lawyer’s workplace final 12 months took the place that the retired metropolis staff can be part of the DWP, in line with the lawsuit.
However the constitution’s prohibition towards working as a “metropolis worker” whereas accumulating a LACERS pension consists of DWP jobs, not simply jobs elsewhere within the metropolis authorities, the lawsuit stated.
Town constitution consists of three pension programs: the Water and Energy Workers’ Retirement Plan, the Los Angeles Hearth and Pension System and LACERS.
IBEW officers fear {that a} flood of retired metropolis staff will signal on on the utility, which frequently pays greater than different departments. Due to their expertise, they will begin at a excessive degree, drawing a wage and their LACERS pension, then retire once more and acquire pensions from each LACERS and the Water and Energy plan.
The union additionally argues that the difficulty have to be addressed by collective bargaining.
“The taxpayers and ratepayers of Los Angeles are the identical individuals, and they’re going to pay the worth if this determination is allowed to face — it triggers probably the most excessive ‘double-dipping’ situation any municipality has ever seen,” IBEW Native 18 head Gus Corona stated in a press release.
In a cease-and-desist letter to Metropolis Atty. Hydee Feldstein Soto dated March 11, Corona referred to as the scenario “DROP on steroids” — a reference to a police and firefighter program that permits members to gather their salaries and pensions concurrently for the final 5 years of their careers.
As of Could, seven DWP staff obtained a LACERS pension, whereas an extra 81 to 253 DWP staff are eligible to take action. One other 1,700 DWP staff will develop into eligible sooner or later, in line with the lawsuit.
The transition isn’t as straightforward for workers making the reverse transfer. Beneath DWP guidelines, a retired worker could search one other metropolis job solely after six months and should begin as a brand new worker, working for not less than 5 years earlier than their LACERS pension vests, in line with an IBEW consultant.
Ivor Pine, a spokesperson for the town lawyer’s workplace, declined to touch upon the lawsuit.
