Housing authority taps federal funds to boost employee retirements
11th August 2011
Santa Clara County’s housing authority could have spent $16 million of federal funds to help more struggling families put a roof over their heads. Instead, it chose to more than double the value of its employees’ retirement benefits.
That may sound unusual, but federal housing officials say it was an allowable expense. Still, the switch from a 401(k)-style retirement plan to a pension allowing workers to retire early — with guaranteed lifetime payments — is raising eyebrows at a time when generous public employee pensions are under fire.
As Jerry Pournelle is fond of saying, the purpose of government is to hire and pay government workers. If there’s any money left over, it gets used for government.