Taxpayers to pay $100G pension of county employee

Joye Brown

April 24, 2008

The conversation with state pension system specialist E.J. McMahon, director of the Empire Center for New York State Policy (a conservative think tank), about Nassau's Karl Kampe went something like this yesterday:

Me: So there's this guy in Nassau County who retired one day and went back to the exact same job the next da ...

McMahon: What's his pension?

Me: They say they don't know for sure, yet.

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McMahon: What's his salary?

Me: Umm, he was making $150,000 on the day he retired. And $140,000 on the day he came back ...

McMahon: What!? Why the high salary?

Me: Oh, the usual. He's got skills, can't be replaced, blah, blah, blah ...

McMahon: And he's going to be collecting a pension ...

Me: Yeah, but the county says it's actually saving money because it won't have to find and train someone new.

McMahon: They're saying it's cheaper?

Me: Oh yeah, they always say it's cheaper.

Neither of us buys that "cheaper" stuff. And neither should anyone else. The employee in question could pull down a pension of up to $100,000 a year, guaranteed by state taxpayers, for the rest of his life.

Ah, what a sweet deal, because that $100,000 will come free of payroll and state income taxes - which means it's more like $110,000 a year, guaranteed, for the rest of his life.

On top of his taxpayer-supported salary. And taxpayer-supported health benefits.

McMahon: Let's assume he was indispensable ...

Me: Uh-huh.

McMahon: ... which I don't assume ...

Me: Uh-huh.

McMahon: ... If they really were interested in saving taxpayer money, they would pay him the difference between his adjusted pension and the original salary - $40,000. That would save $100,000. And if he didn't want it, they'd wish him off to a happy retirement ...