News
Union Alleges L.A. City Workers are Double Dipping by Collecting Pension and Salary
Allegations have surfaced that some city workers in Los Angeles are participating in a practice known as “double dipping,” a term used to describe individuals who retire from one job and then start a new position while simultaneously collecting a pension from their previous role. According to a union leader, this practice is occurring at the Department of Water and Power (DWP) and is causing financial strain on the city and the DWP’s retirement plan.
Gus Corona, the head of International Brotherhood of Electrical Workers Local 18, which represents a majority of DWP workers, raised concerns about the detrimental impact of double dipping on the city’s finances and the stability of the DWP’s retirement system. In a letter addressed to City Attorney Hydee Feldstein Soto, Corona referred to the situation as “DROP on steroids,” drawing parallels to a program that allows police and firefighters to receive salaries and pensions simultaneously during the final years of their careers.
Corona emphasized in his letter that the union is opposed to this practice and views it as a threat to the city’s financial well-being, the sustainability of DWP employees’ retirement plans, and the city’s obligation to engage in fair bargaining practices. He accused the city attorney’s office of unilaterally changing its interpretation of the city charter to permit double dipping, despite existing regulations that prohibit employees in the Los Angeles City Employees’ Retirement System from taking on additional paid roles within the city.
According to Corona, a handful of city workers have retired from LACERS positions and subsequently transitioned to salaried positions at DWP, which operates its own pension system. He expressed concerns about a potential domino effect, with more employees following suit and burdening city taxpayers with the cost.
The city attorney’s office defended its position, asserting that retiring from a LACERS position and assuming a role at DWP is not in violation of the city charter. The office highlighted the longstanding practice of DWP retirees seeking employment in LACERS-covered positions within the city and emphasized the value of experienced individuals contributing their expertise to DWP roles.
However, the dispute between IBEW Local 18 and the city attorney’s office revolves around differing interpretations of the city charter’s restrictions on post-retirement employment within the city. Corona argued that DWP positions should be included in the city charter’s prohibition against taking on additional city jobs after retirement.
In response to the situation, IBEW Local 18 is pursuing an unfair practices charge with the Los Angeles Employee Relations Board, citing the city’s failure to adequately notify and engage in discussions with the union regarding its revised interpretation of the charter.
The city attorney’s office intends to provide a written response to Corona’s concerns, indicating that further dialogue and clarification are needed to address the complexities of the issue at hand.
News
Is now the right time to invest in gold as prices have cooled?
The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.
This lull in gold’s price may represent an investment opportunity.
In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?
Compare your gold investment options among leading brokers now.
Gold prices have cooled. Should you buy in now?
With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:
Prices may rise again
If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.
But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.
Add gold to your portfolio now before prices have a chance to rise.
You may be able to make a quick profit
Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.
Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.
There are other benefits of investing in gold
There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:
- Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
- Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.
The bottom line
Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.
-
News2 weeks ago
Juno discovers massive lava lake on Io
-
News2 weeks ago
Kevin McCarthy, former House Speaker, seeks revenge
-
News2 weeks ago
Additional Perspectives on the 2024 Eclipse: Views from the Moon and Earth’s Orbit
-
News2 weeks ago
Possible Future Colleague of Trump: David Lammy, a Close Associate of Obama
-
News2 weeks ago
Knowing the Magnetic Field of an Exoplanet’s Star is Essential to Determining the True Size of the Exoplanet
-
News2 weeks ago
House speaker receives additional request from GOP member to resign or be ousted
-
Entertainment2 weeks ago
Bethenny Frankel reveals that her mother Bernadette Birk passed away from lung cancer
-
News2 weeks ago
Forest Lawn Drive now free of RV encampment and parking