Paul Yep, the former interim chief of the San Francisco Police Department, remains with the agency in the role of transitional chief, ostensibly to guide the new chief, Derrick Lew.
But Yep is still getting a chief’s pay and a boosted pension.
When Lew’s role was announced in early December 2025, Yep sent the rank-and-file a message stating that he would stick around to help the new chief learn the ropes. What he didn’t say was that he’d also be getting a massive pension spike.
Yep’s extended time with the department — he retired as a commander in 2023 after 28 years, before returning as interim chief last year — could lock in a chief’s pension at an annual rate of approximately $420,000, up from his commander pension of $265,000.
Soon-to-retire officers are often promoted during their last year of service so that their pensions spike – the practice costs the city significantly. San Francisco’s pension costs were $1.8 billion (opens in new tab) in 2024, adding to the city’s already stretched budget. The SFPD’s budget is $849 million.
“It’s absolute pension-spiking,” said a former command staff member, who noted that the practice has been common for years.
For example, a lieutenant might be posted to fill an empty captain’s position , for instance, stationed at Hech Hetchy, the San Francisco Public Utility Commission-owed water reservoir in the Sierras. Then, 10 months later, that officer retires on a captain’s pension.
In 2011 San Francisco voters passed Pro. C (opens in new tab), which targeted pension spiking by creating a retirement calculation based on the three highest years of salary instead of one single year. It applied to all hires after 2012, but not many long-serving veterans like Yep.
California has tried to curtail the practice, and known about it for decades (opens in new tab). In 2014, one state retirement system, CalPERS, reported the practice costing $800 million (opens in new tab).
In 2020, the state Supreme Court upheld (opens in new tab)a pension-spiking reform act. The law gives local governments the power to ban such practices as cashing out unused sick time or running up overtime in the last year before retirement.
Paul Yep, a former police commander, right, listens to Mayor-elect Daniel Lurie on Nov. 8, 2024. | Source: Amanda Andrade-Rhoades/The Standard
Mayor Daniel Lurie initially named Yep as his public safety czar in January 2025. In that role, Yep was playing by the normal rules (opens in new tab) governing when retired employees can return to the police force. He was a part-time employee making $84,000, which meant he could still collect his annual pension of $265,000 (opens in new tab).
However, months later, Lurie appointed Yep to run the entire SFPD in June 2025.
When that happened, the city created a special job classification for him: transitional police chief (opens in new tab). Ever since, he’s been making $200 an hour, or $416,000 a year. Even though he’s no longer interim chief, he is still receiving the salary of transitional chief, according to the city.
“So you’re paying two chiefs of police,” said the former command staff member. “That’s not right. That is fiscally irresponsible. Do you need two chiefs? Who’s the boss?”
If Yep continues in his current role for at least 10 months, his new chief’s pension will be locked in.
Yep did not respond to a request for comment.
“Chief Yep has served the SFPD with honor and distinction throughout his decades-long career,” said Evan Sernoffsky, an SFPD spokesperson.
“He stepped up to serve as interim chief at a pivotal time in our department. Staying on as a special adviser to Chief Lew ensures there is a seamless transition so we can continue to meet the public safety needs of the city and remain one of the safest cities in the nation.”
The city’s retirement system and human resources office confirmed the details of Yep’s employment and retirement status.