As California's pension battles become more and more politically heated, civic leaders are claiming that public safety employees in San Jose are using legal loopholes to cash in on benefits before jumping ship.
According to Bloomberg, firefighters and police officers in the city – whose union recently sued the city after voters approved measures restricting future pension benefits – have been citing injuries and filing disability retirement claims in increasing numbers.
Critics say they're using the disability claims to collect pensions that are partially exempt from state and federal taxes, and then find new jobs; the newest claimants can legally retire in their 30s and 40s and still receive benefits. Retired fire and police employees have also been using the rules to alter their existing pensions and receive the tax benefit.
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