Double dipping is a term referring to the practice of earning a wage at the same time as receiving a pension. New Haven Video
Double Dip Pensions
In order to get a double dip pension it is received at an age younger than the normal retirement of age 65. It must also be from a defined benefit pension. In other words, usually only public sector employees are eligible for the Double Dip. Police and fire fighters are eligible as early as age 50 for pensions and the rest of the public sector at age 55.
Politics plus pensions equals big bucks
Double dipping has come into the news recently as the media and politicians examine the fairness and cost to taxpayers of our public sector pensions. It occurs at all levels of government. Starting at the top, most of us know a retired Member of Parliament who is know holding down another job at the same time collecting their $70,000 a year pension.
An acquaintance of mine recently retired with about a $55,000 a year pension from the RCMP and is now working as a city by-law enforcement officer. He retired and got a 50% raise in salary.
Currently in the Florida legislature there is a bill that would ban double dipping. The bill in Florida focuses on employees who leave their position for 30 days to trigger the pension and then return to the same or a similar job at full pay.
In Canada the same thing is happening in the public sector with employees who arrange a leave in order to trigger their CPP (Canada Pension Plan) and then return to the very same position at regular pay.
It always has been popular for teachers in Canada.
Teaching the Double Dip
In a surprise comment by unions in New Brunswick, they cited double dipping as part of the high cost of public sector pensions there. Double Dipping in New Brunswick
Recently a the unfortunate Police Commissioner of Buffalo was in hot water because he did not process his double dipping paperwork properly. Buffalo Police Commissioner
This is starting to sound like a Johhny Cash song!