Local government pension systems may soon have to start disclosing more information about how certain lump-sum payouts at the end of an employee’s career are used to increase that person’s retirement benefits.
In 2016, the General Assembly passed a law known as the Local Government Wage Increase Transparency Act, which requires disclosure of certain large lump-sum payments such as severance packages and unused vacation. Often, those payments have the effect of boosting an employee’s final average salary, which is used to calculate benefits.