Disability pensions for city top $340,000

June 21--A dozen former Hazleton employees collected more than $340,000 in disability pension payments in 2014, with the cost accounting for about 15 percent of the $2.57 million in pension payments that were doled out last year, according to figures released by the city.

While Mayor Joseph Yannuzzi believes the cost of traditional pensions has become overbearing for Hazleton and other municipalities, he has no qualms with police and fire employees collecting disability pensions when injuries prevent them from collecting a traditional pension they would've received after completing 20 years of service.

"If you're injured on the job ... and you get disabled and cannot perform this job, you should get that benefit," Yannuzzi said of disability pensions.

Five police officers receive disability pensions and in 2014 received payments totaling $137,480.08. Disability payments worth another $202,990.64 were paid to seven firefighters last year as well, according to records.

In 2014, the city paid $2.57 million in pension payments to 95 former workers. The total accounts for the $340,470.72 paid to employees who receive disability pensions as well as those who collect traditional pensions.

The process for applying for a city disability pension is thorough and typically includes input from the applicant as well as his/her doctor and attorney, the mayor said. A similar team and a labor attorney represents the city, he said.

"You can't come in and simply say, 'I'm disabled,'" Yannuzzi said. "You go through doctors, tests -- they analyze you up and down."

When the review is complete, the case goes before city council for a vote.

Police Chief Frank DeAndrea appeared before council in March with a resolution requesting disability retirement for Detective Sgt. Christopher Tessitore.

The chief provided some details regarding Tessitore's condition when presenting the resolution to council.

"Tessitore sustained a broken neck and had to have surgery," according to meeting minutes that are posted on the city's website. "He was previously pinned between two cars apprehending a drug dealer, and recently broke his neck in (a) crash while in pursuit of a suspect."

DeAndrea told council that Tessitore lost feeling in his right arm and that the nerves were not regenerating.

When making the request, DeAndrea assured council it was the "right thing to do."

Four other former city police officers who receive disability pensions are David Callavini, John Leonard, Eugene Riley and Vincent Zola.

Firefighters who receive disability pensions include John Andeara, John Darrough, Robert Dorneman, Gerald Guscott, Bernard Leonard Jr., Thomas Powell and Henry Steibing.

A third component of pension costs accounts for post-retirement health, vision and life insurance expenses, which totaled $662,473.18 in 2014.

Challenges

Gross pension payments and retirement costs exceeded $3.2 million last year, a cost Yannuzzi said is difficult for Hazleton to maintain.

The mayor believes pensions were sweetened years ago during contract negotiations as an alternative to hefty salary increases.

At the same time, criteria for retirement has been lowered.

Years ago, Yannuzzi recalls that employees had to have 20 years of service and reach the age of 65 to be eligible for a pension. The years of service criteria remained the same, but the age criteria dropped to 55 years old and eventually was eliminated, he said.

"Now, it's 20 years (of service) and out," he said. "You can retire and start receiving benefits. And, they turn around and give family health plans for life. It adds up. That's what's really breaking the bank."

Reform

No matter the scenario for reform, Yannuzzi said a solution must balance fiscal responsibility with treating people "properly."

A state takeover of municipal debts would do nothing more than shift the burden from municipalities to the commonwealth, he said.

Getting employees to share in the cost of health insurance will ease the burden of some costs that municipalities like Hazleton incur, he said. Shifting to a retirement plan that resembles a 401(k) could be a solution, according to the mayor.

"If the employee puts money in and the employer puts money in and if you retire and it gets you a lot of money that's fine with me," Yannuzzi said. "The person employing you should not be paying the full load."

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