Dan Lungren’s Lavish Pension

Posted on 08-19-10

 

FOR IMMEDIATE RELEASE
August 19, 2010
Contact: Lucinda Guinn
(916) 686-5244
press@beraforcongress.com
DAN LUNGREN'S LAVISH PENSION
As California Republicans address the "Pension Tsunami" Lungren enjoys lavish LRS Pension
ELK GROVE, CA - On Saturday August 21, 2010, the California Republican Party is hosting their fall convention, which will feature a workshop on “The ‘Pension Tsunami Facing California.”  The agenda for the workshop states that it will address the issue of lavish pension packages: 
“How excessive are the pension packages given to government employees – and how you can best communicate with the public by using concrete examples of lavish pension packages” (California Republican Party web page, “Convention Info: Workshop Series,” http://www.cagop.org)
If California Republicans are really looking for “concrete examples of lavish pension packages,” they could look to one of their own: Rep. Dan Lungren.  In 2009, Lungren received $55,697 in pension income from the California Legislators Retirement Pension (LRS) for only eight years of service as attorney general.  The following table details the pension income that Lungren has reported on his financial disclosure statements since he began collecting an LRS pension: 
(Financial Disclosure Statement, “Schedule I: Earned Income,” United States Clerk of the House, Dan Lungren)
Lungren’s LRS pension has far exceeded the pension income earned by the average state employee in California. According to calculations by the Orange County Register, under the pension plan offered to typical state employees, an 11-year employee would be eligible, at most, for $40,738 annually.  (Orange County Register, 8/13/10)
Moreover, Lungren enjoyed a significant spike in his pension payments due to a 25.9% salary increase he received during his final month in office, which increased the maximum amount he could collect on his LRS pension by $11,546.40.  If LRS pension payouts are calculated using 40% of an individual’s maximum salary, then Lungren’s LRS pension would have only been $44,553.60 based on the $111,384 salary he received in 1998.  However, after Lungren received his 25.9% pay raise, the maximum pension benefits available to him increased from $44,553.60 to $56,100, based solely on the salary he received from December 7, 1998 until January 4, 1999. (California Citizens Compensation Committee, “Salaries of Elected Officials,” www.dpa.ca.gov, Orange County Register, 8/13/10) 
A few years after Lungren took advantage of this form of "pension spiking," it was outlawed.  In 2007, the Senate and the Assembly passed SB 221 unanimously, which changed the pension benefit structure to close the payout loophole enjoyed by Lungren. Pensions are now based on the highest average salary during a 12-month period.  Lungren continues to draw a pension based on a salary he made for only a month. (SB 221, 2007; Sacramento Bee, 7/18/2007)
Additionally, Lungren’s $55,697 LRS pension package is not the only government benefits package he will be eligible for when he retires.  He will also be eligible to receive an estimated federal pension of $64,662 for the 15 years he’s served in Congress, courtesy of the American taxpayer.  Although Lungren has yet to begin collecting a federal pension, an estimate was calculated based on his congressional salary over the last three years and the Civil Service Retirement System pension formula provided by the Congressional Research Service. This year Lungren accepted a $174,000 taxypayer-funded salary in addition to his lavish LRS pension. (U.S. Senate web page, “RL30631: Congressional Research Service Report for Congress: Retirement Benefits for Members of Congress,” www.senate.gov; TheCapitol.net web page, “FAQ: Pay and perquisites of Members of Congress,” www.thecapitol.net)
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FOR IMMEDIATE RELEASE
August 19, 2010
Contact: Lucinda Guinn
(916) 686-5244
press@beraforcongress.com

DAN LUNGREN'S LAVISH PENSION
As California Republicans address the "Pension Tsunami" Lungren enjoys lavish LRS Pension

ELK GROVE, CA - On Saturday August 21, 2010, the California Republican Party is hosting their fall convention, which will feature a workshop on “The ‘Pension Tsunami Facing California.”  The agenda for the workshop states that it will address the issue of lavish pension packages: 

“How excessive are the pension packages given to government employees – and how you can best communicate with the public by using concrete examples of lavish pension packages” (California Republican Party web page, “Convention Info: Workshop Series,” http://www.cagop.org)

If California Republicans are really looking for “concrete examples of lavish pension packages,” they could look to one of their own: Rep. Dan Lungren.  In 2009, Lungren received $55,697 in pension income from the California Legislators Retirement Pension (LRS) for only eight years of service as attorney general.  The following table details the pension income that Lungren has reported on his financial disclosure statements since he began collecting an LRS pension: 

lavish pension
(Financial Disclosure Statement, “Schedule I: Earned Income,” United States Clerk of the House, Dan Lungren)

Lungren’s LRS pension has far exceeded the pension income earned by the average state employee in California. According to calculations by the Orange County Register, under the pension plan offered to typical state employees, an 11-year employee would be eligible, at most, for $40,738 annually.  (Orange County Register, 8/13/10)

Moreover, Lungren enjoyed a significant spike in his pension payments due to a 25.9% salary increase he received during his final month in office, which increased the maximum amount he could collect on his LRS pension by $11,546.40.  If LRS pension payouts are calculated using 40% of an individual’s maximum salary, then Lungren’s LRS pension would have only been $44,553.60 based on the $111,384 salary he received in 1998.  However, after Lungren received his 25.9% pay raise, the maximum pension benefits available to him increased from $44,553.60 to $56,100, based solely on the salary he received from December 7, 1998 until January 4, 1999. (California Citizens Compensation Committee, “Salaries of Elected Officials,” www.dpa.ca.gov, Orange County Register, 8/13/10) 

A few years after Lungren took advantage of this form of "pension spiking," it was outlawed.  In 2007, the Senate and the Assembly passed SB 221 unanimously, which changed the pension benefit structure to close the payout loophole enjoyed by Lungren. Pensions are now based on the highest average salary during a 12-month period.  Lungren continues to draw a pension based on a salary he made for only a month. (SB 221, 2007; Sacramento Bee, 7/18/2007)

Additionally, Lungren’s $55,697 LRS pension package is not the only government benefits package he will be eligible for when he retires.  He will also be eligible to receive an estimated federal pension of $64,662 for the 15 years he’s served in Congress, courtesy of the American taxpayer.  Although Lungren has yet to begin collecting a federal pension, an estimate was calculated based on his congressional salary over the last three years and the Civil Service Retirement System pension formula provided by the Congressional Research Service. This year Lungren accepted a $174,000 taxypayer-funded salary in addition to his lavish LRS pension. (U.S. Senate web page, “RL30631: Congressional Research Service Report for Congress: Retirement Benefits for Members of Congress,” www.senate.gov; TheCapitol.net web page, “FAQ: Pay and perquisites of Members of Congress,” www.thecapitol.net)

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