Is it any wonder there are fiscal problems:
Philadelphia is known as the city of brotherly love and, apparently, paying out massive pensions to public employees who will continue working for the city.
Marion B. Tasco, who has been described as being “politically savvy,” will retire from her sixth term as councilwoman, collect $478,057, and then be sworn in on Monday to serve her seventh term, Catherine Lucy and Chris Brennan of the Philadelphia Daily News.
How does she get away with this?
Tasco, along with many of her fellow Council members, is enrolled in Philadelphia’s Deferred Retirement Option Plan (DROP). DROP allows city workers to collect salary and build up pension money during the last four years of their employment, writes Aaron Kase of Philadelphia Weekly.
Naturally, when DROP was originally introduced, it was touted as being “revenue neutral.” It’s been anything but that. SInce its introduction, Philadelphia’s DROP program has cost the city $258 million in extra pension costs over a decade, according to a 2010 Boston College study.