Clarks Summit police chief earns more $113G between his salary and Carbondale pension [The Times-Tribune, Scranton, Pa.]

Sept. 30--One of four former Carbondale police officers who accepted a lucrative retirement incentive earns more than $113,000 per year between his pension and salary from another municipality where he is now employed as police chief.

Joseph Laguzzi, 42, was already approved for an annual pension of $63,767 from Carbondale when he was hired as police chief in Clarks Summit on Jan. 2. The position initially paid him about $30,000 annually, but was later increased to $50,000 a year.

A second Carbondale officer who took the incentive, 43-year-old Jesse Van Deusen, also did not head straight for the couch once he retired. He continues to earn $28,742 a year as chief deputy coroner for Lackawanna County, a job he has held since 2011, while bringing home a $59,880? annual pension from Carbondale.

The payouts were a good deal for the officers, Mayor Justin Taylor? acknowledged, allowing both to collect more in pension payments than they earned in base salary in 2012, all while continuing to work at other jobs.

Mr. Taylor said he understands that may rile taxpayers, but it's completely legal.

"It flies right in the face of the whole anti-government movement out there. How could someone make $100,000 a year for being a cop in Lackawanna County? That is part of the question that will come up." Mr. Taylor said. "There is nothing to stop them from getting another job."

It is not uncommon for public safety officers, who usually qualify for retirement at a younger age than nonuniform public employees and those in the private sector, to seek other employment after they retire. They can do so without losing pension benefits because municipal pension plans are run by individual municipalities, said James McAneny, executive director of the Public Employee Retirement Commission.

"Frequently, people who retire go somewhere else. As long as each plan is separate, you can go work as a police officer in another jurisdiction. ... They are totally different employers," Mr. McAneny said.

While the arrangement is legal, the perks provided public sector employees have increasingly come under attack from politicians and the public as local and state governments struggle to meet rising costs.

"A lot of citizens are concerned that, while they're losing their pensions, public pensions keep going up," said Barry Kauffman, executive director of Common Cause Pennsylvania, a taxpayer watchdog group. "I'm not suggesting either party is right or wrong. ... They're playing by the rules, but maybe the rules need to be changed."

'Pension envy'

That "pension envy" has become increasingly volatile in recent years as media reports of excessive benefits drew the ire of taxpayers. From the Chicago sanitation worker collecting a $158,000 pension as reported by the Chicago Sun in 2011, to a 2013 Seattle Times report on two firefighters who take home more than $150,000, the cases have fueled a growing resentment among private sector employees, said Edward Siedle, a Florida attorney who specializes in money management and pension law.

"It is creating an increasingly inflammatory situation," Mr. Siedle said. "Most baby boomers have little or nothing saved for retirement. This is creating a war between the haves and have-nots."

In Carbondale, Chief Laguzzi and Mr. Van Deusen joined two other officers, Joseph Pilcavage, 58, and Joseph Demchak, 57, in taking a retirement incentive approved by city council in February.

The city's pension ordinance requires officers to have 20 years of service and be at least age 50 to retire. Chief Laguzzi and Mr. Van Deusen qualified based on an amendment included in the 2008 union contract that specifically permitted them and seven other officers to retire after 20 years, with no minimum age requirement.

Chief Laguzzi had not officially retired from Carbondale when he took the job as chief in Clarks Summit. The council there hired him at a salary of $30,000. Nine months later, the council raised his pay to $50,000.

?Chief Laguzzi acknowledged the Carbondale package was a good deal for the officers. He said it also paid off for taxpayers because it allowed the city to reduce salaries by replacing most of their positions with part-time officers. As to whether the offer was excessive, he said the specifics of the deal were up to council.

"I had no intention of retiring, but they offered an incentive to us because of the budget situation," he said. "I was very fortunate to land another job."

Mr. Van Deusen said he does not believe the package was excessive given his years of service and the difficult nature of police work.

"For the job police do and the money they make, they are worth their weight in gold. Of course I think what the city gave us was fair," Mr. Van Deusen said.

As for those who may criticize the deal?

"Everybody is entitled to their opinion," he said. "There are going to be people who say we make too much, just like they say schoolteachers make too much. If you are making $15,000 a year, and someone else is making $20,000 a year, they're making too much."

Early retirement

Richard Dreyfuss, an actuary and senior fellow with the Commonwealth Foundation, a Harrisburg think tank, has called for the state Legislature to increase the retirement age for police and firefighters to be more in line with the private sector.

Most municipal pension plans allow police officers and firefighters to retire at age 50 or 55, with 20 or 25 years of service, whereas private sector employees typically must wait until age 62 or 65 to qualify for a pension.

"People in their 50s are working in some other capacity and collecting a pension. Why do we make pensions so generous as to incentivize people to leave? On top of that, we put in an early retirement incentive. From a human resources standpoint, it doesn't make a whole lot of sense," Mr. Dreyfuss said.

Les Neri, president of the Fraternal Order of Police Pennsylvania state lodge, said police and firefighters get to retire earlier because of the physical nature of their jobs.

"I don't know if the public wants a police officer who is 58, 60 or 62 running down the street chasing armed robbers, rapists, arsonists and murderers," he said.

As for retired officers who go to work for other municipalities, Mr. Neri said in most cases those officers are moving into administrative positions -- such as chief -- that are not as physically demanding.

One issue the public also fails to recognize is that most police departments don't participate in the Social Security system, Mr. Neri said. That means police officers are entirely dependent upon their pensions for their retirement income.

"I don't care if the guy is making a dollar in pension or $70,000 in pension. Whatever the pension is, whatever he does after retirement shouldn't affect his pension," Mr. Neri said.

Abuse exaggerated

While the media have focused on examples of abuses, the reality is they are isolated cases and not reflective of what most public sector retirees receive, said Stephen Herzenberg, executive director of the Keystone Research Center, a research and policy development organization. A recent report by the national office of the American Federation of State, County and Municipal Employees said the average public sector employee earns a pension of $19,000 a year.

"The anecdotes about oversized pensions or double-dipping in any form tend to be exaggerated," Mr. Herzenberg said. "Yes, there are some people who get very good pensions, but most pension plan obligations go to people who get modest pensions."

Mr. Taylor said he understands some people question whether Carbondale's incentive was too generous. He said city officials believe they got the best deal they could for taxpayers, noting the officers initially sought a more lucrative package.

The base pension payment was calculated by taking 50 percent of the officer's final year's salary, which included overtime and a partial payment for one year's worth of unused sick, vacation, personal and compensatory time. Mr. Taylor said the officers initially wanted to have all their unused time from the date of hire added in to their final year's salary. That would have significantly increased the base pension payment.

The city also negotiated additional concessions for health insurance. Both Chief Laguzzi and Mr. Van Deusen agreed to waive health insurance for themselves for as long as they are eligible to receive the benefit through another employer or their spouse's employer. Mr. Pilcavage agreed to waive health insurance for his spouse for a three-year period.

"Did we have to include as much as we did? I think the answer is yes." Mr. Taylor said. "If not for the incentive, not one of these persons would have gone."

Contact the writer: tbesecker@timesshamrock.com

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