The union representing Los Angeles Department of Water and Power employees is suing the city for allowing retired employees from other city departments to work for the department while collecting pensions.
The lawsuit, filed Tuesday by the International Union of Electrical Workers Local 18, argues that the city’s charter prohibits people who retire while receiving pensions through the Los Angeles City Employees Retirement System from subsequently working as DWP employees.
According to the lawsuit, the City Attorney’s Office took the position last year that retired city employees could join the DWP.
But the charter prohibits them from working as a “city employee” while receiving a LACERS pension, which includes DWP work as well as other city government positions, the lawsuit states.
The city’s charter includes three pension plans: the Water and Power Employees Retirement System, the Los Angeles Fire Department Pension System and LACERS.
IBEW officials are concerned about the influx of retired city employees joining the utility, where salaries are often higher than other departments, and because of their experience, they can start at a high level, collect a salary and a LACERS pension, then retire again and collect a pension from both LACERS and the Water and Power Plan.
The union also argues that the issue should be resolved through collective bargaining.
“Los Angeles taxpayers and ratepayers are the same people, and they will pay the price if this decision is allowed to stand. It creates the most extreme ‘double dip’ scenario any municipality has ever experienced,” IBEW Local 18 President Gus Corona said in a statement.
In a cease and desist letter sent to City Attorney Heidi Feldstein Soto dated March 11, Mayor Corona called the situation “DROP on steroids,” a reference to the program for police officers and firefighters that allows participants to simultaneously collect pay and pensions during their final five years of service.
As of May, seven DWP employees were receiving LACERS pensions, and between 81 and 253 more DWP employees were eligible. According to the lawsuit, an additional 1,700 DWP employees will be eligible in the future.
For employees going in the other direction, the transition isn’t as easy: According to IBEW representatives, DWP rules state that a terminated employee can only look for another city job after six months, and must work at least five years before starting as a new employee and receiving a LACERS pension.
Ivor Pyne, a spokesman for the city attorney’s office, declined to comment on the lawsuit.