OT: Penn State Administrator Who Failed To Report Sandusky Sex Crimes With Minors Received $330,699 Public Pension

[WeaverIsComing]

Zerohedge

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By Adam Andzejewski of OpenTheBooks.com, submitted by RealClearPolicy.com,

In 2001, Gary Schultz was Penn State’s senior vice president for finance and business when he was told that assistant football coach Jerry Sandusky had sexually assaulted a boy in the school’s locker room shower.

But neither he nor any other Penn State administrators who were told about the incident reported it to law enforcement, childcare, or youth services.



Schultz was charged with perjury and failing to report to authorities allegations of sexual contact with a minor. However, he retired from Penn State and collected a $330,699 annual pension.

He plead guilty to endangering the welfare of children in March 2017, was sent to jail and released in September 2017.

Schultz was given a six-to-23-month sentence, with only the first two months in jail and the remainder on house arrest, followed by probation.

While Pennsylvania has a pension forfeiture law that strips pensions from public employees convicted of job-related crimes, Schultz’s crime fell between the cracks, allowing him to continue collecting his $330,669 yearly pension.

Sandusky is serving a 30-60-year prison sentence after his conviction on 45 counts of sexually abusing young boys from 1994 to 2009 through the charity he founded, The Second Mile, to serve Pennsylvania's underprivileged and at-risk youth.

Sandusky “retired” and received a $58,600 public pension – that continues to this day.

 

[9nationalchampionships]

They are ..... enablers!

 

[TIGER-PAUL]

3.2.1 thread will be deleted...

 

[WeaverIsComing]

3.2.1 thread will be deleted...

you came back from the dead to report my thread?

 

[recruitsreadtheseboards]

Wow...brings back memories and the whole absurdity of this ordeal. I mean if adults, grown men, just acted like grown me from the start..........none of this would have happened. I mean to Paterno and Penn State. Sandusky still would have done some damage, but he would have been rightfully stopped. PSU gets embarrassed for a moment, but still, they did the right thing, they reported it and investigated and prosecuted. But they did nothing....and it went on........why? There was no harm to them if they just did the right thing. Unless......there was alot more.

 

[21Guns.]

As much as I hate the fact that they are collecting a pension this is a perfect example of terrible journalism. There are several flaws that make the article worthless. The PA Pension forfeiture law was passed in 2019...you can not retroactively apply laws. Secondly it applies only to specific crimes and child endangerment was not included.. So nothing fell through the cracks. There is no basis for them to forfeit his pension unfortunately.

 

[WeaverIsComing]

As much as I hate the fact that they are collecting a pension this is a perfect example of terrible journalism. There are several flaws that make the article worthless. The PA Pension forfeiture law was passed in 2019...you can not retroactively apply laws. Secondly it applies only to specific crimes and child endangerment was not included.. So nothing fell through the cracks. There is no basis for them to forfeit his pension unfortunately.

https://www.legis.state.pa.us/WU01/LI/LI/US/PDF/2004/0/0086..PDF

 

[FreeportPanther]

I'm more shocked by the size of that annual pension.
Is that a misprint???
A State employee gets $330,000 EVERY YEAR????
What the hell was his salary???
If true, no wonder the State is broke!

 

[21Guns.]

https://www.legis.state.pa.us/WU01/LI/LI/US/PDF/2004/0/0086..PDF

Once again the crime he plead guilty isn't covered in that law.

 

[WeaverIsComing]

Once again the crime he plead guilty isn't covered in that law.

I see now that endangering the welfare of children wasn't covered until the reform

 

[FreeportPanther]

Schultz probably making more in retirement than the Warden of the prison he went to.
Jerry's pension is probably more $ than his guards make.

Bizarro world!

 

[WeaverIsComing]

Once again the crime he plead guilty isn't covered in that law.

2019 Act 1

www.legis.state.pa.us

[Section 7. Retroactively.

The provisions of this act shall be retroactive to December 1, 1972.]

 

[9nationalchampionships]

As much as I hate the fact that they are collecting a pension this is a perfect example of terrible journalism. There are several flaws that make the article worthless. The PA Pension forfeiture law was passed in 2019...you can not retroactively apply laws. Secondly it applies only to specific crimes and child endangerment was not included.. So nothing fell through the cracks. There is no basis for them to forfeit his pension unfortunately.

Ahhh the coverup for horseplay...... Maybe he can clean the stadium after school!

 

[HailtoPitt]

I'm more shocked by the size of that annual pension.
Is that a misprint???
A State employee gets $330,000 EVERY YEAR????
What the hell was his salary???
If true, no wonder the State is broke!

This is the better question. And as crazy ad it sounds, his salary probably paled in comparison to the comparable corporate position.

 

[recruitsreadtheseboards]

I'm more shocked by the size of that annual pension.
Is that a misprint???
A State employee gets $330,000 EVERY YEAR????
What the hell was his salary???
If true, no wonder the State is broke!

RAISE THE TOLLS!!! RAISE TAXES!!!

 

[upj87]

I'm more shocked by the size of that annual pension.
Is that a misprint???
A State employee gets $330,000 EVERY YEAR????
What the hell was his salary???
If true, no wonder the State is broke!

if vested...( (years of service x 2.5)/100 ) x Averaged yearly salary in last three quarters.

So if he was employed for 37 years and earned 356,756 a year 330,000 would be his payout.

(37 x2.5)/100 = .925 _____ .925 x 356,756 = 330,000

Interesting point here is that if he worked 36 of those years as a janitor he would get the same pension...now you know why state cops put in all that overtime in their last year of work..

fortunately this is slowly being grandfathered out for new hires starting in the last decade or so....

 

[pittiswhereiamfrom2]

Sounds like a public education problem.

 

[GreatBear71]

3.2.1 thread will be deleted...

We were toldl you had passed away

 

[recruitsreadtheseboards]

We were toldl you had passed away

He got better.

 

[pittchagg]

if vested...( (years of service x 2.5)/100 ) x Averaged yearly salary in last three quarters.

So if he was employed for 37 years and earned 356,756 a year 330,000 would be his payout.

(37 x2.5)/100 = .925 _____ .925 x 356,756 = 330,000

Interesting point here is that if he worked 36 of those years as a janitor he would get the same pension...now you know why state cops put in all that overtime in their last year of work..

fortunately this is slowly being grandfathered out for new hires starting in the last decade or so....

That’s not necessarily how it works - your pension is calculated based on the average of your three highest consecutive salaries...so if you worked for 34 years as a janitor, you’d need to work three straight years as Vice President to get the full benefit. So it takes a little more planning than what you’re saying, but not much.

Keep in mind, too, two things: (1) your pension plan is based on when you entered, so his pension is the one that existed 40 years ago, which is several rounds of pension reform (read: benefit tightening) ago. There are also incentives in place to reward employees who stay employed for longer than ~30 years, and also incentive programs to get people to retire before they work for that long.

It’s also a ton of money, but at the end of the day the guy spent 10 years basically running all of the non-teaching parts of a huge university with tens of thousands of on campus students, thousands of employees, and thousands of buildings spread across the entire state, with a budget in the billions. Not excusing his failures as a person, but $350K doesn’t seem unreasonable for those responsibilities.

 

[HailtoPitt]

The main problem with these pensions is giving retirement payouts based on late career salary instead of the actual money people put into the pension plan. This dbag didn't earn $350,000 every year, but his pension is based on him earning that amount.

 

[Dan1911]

As all the Staters say,”If that was what really happened, I’d agree with you...” then they mention nothing happened and are incensed that they were subjected to unfair criticism and demand an apology.

 

[Mikefln]

It’s also a ton of money, but at the end of the day the guy spent 10 years basically running all of the non-teaching parts of a huge university with tens of thousands of on campus students, thousands of employees, and thousands of buildings spread across the entire state, with a budget in the billions. Not excusing his failures as a person, but $350K doesn’t seem unreasonable for those responsibilities.

When talking about base salary, I will agree with you that salary is not unreasonable and in line. The problem is $330,000 is not a base salary anymore but a tax payer backed pension that allows him to make close to his salary when he had actual responsibility (regardless of his performance of said responsibility). That is incredibly wrong for such a system to have ever been established.

 

[pittdan77]

When talking about base salary, I will agree with you that salary is not unreasonable and in line. The problem is $330,000 is not a base salary anymore but a tax payer backed pension that allows him to make close to his salary when he had actual responsibility (regardless of his performance of said responsibility). That is incredibly wrong for such a system to have ever been established.

Not saying it’s not a lot but also remember that the investments held against the money contributed have done very well.

 

[Mikefln]

Not saying it’s not a lot but also remember that the investments held against the money contributed have done very well.

Dan between Public School Employees Retirement System and State Employees Retirement System PA is $72 Billion in debt. You think I give a crap at how well the money contributed did when there is that much debt?

 

[Franb]

Dan between Public School Employees Retirement System and State Employees Retirement System PA is $72 Billion in debt. You think I give a crap at how well the money contributed did when there is that much debt?

Part of the problem, as I understand it, is that for years, the State lowered its contribution rate. At the time, the investments that the systems had were doing well, and it was decided that the State could contribute less and meets its obligation. Well, no. Welcome to big pension debt.

 

[joefromlancaster]

A pension of $330,000 is outrageous for a public employee!
Now we know why the pension plan is going belly up!
Administrators and coaches getting upwards of a half million dollars for
a pension.
Plan deserves to go belly up!

 

[Parkview57]

That is incredibly wrong for such a system to have ever been established.

Tom Ridge made a "possible problem" into a catastrophe waiting to happen, he changed the multiplier from 2.0 to 2.5 for educators in order to get a the votes needed to raise state workers pensions as he went out the door, (horrible politician , IMHO he was ). Then as I understand it, the state did not pay its share in for a decade because the investment returns were so high , so instead they politicians spent it on pet projects to get re-elected. The bottom line is that when the thing goes belly-up, the people it was suppose to help are gonna be out of luck because nobody I know wants to raise taxes to give teachers more pension money, a complete mess.

 

[Mikefln]

Tom Ridge made a "possible problem" into a catastrophe waiting to happen, he changed the multiplier from 2.0 to 2.5 for educators in order to get a the votes needed to raise state workers pensions as he went out the door, (horrible politician , IMHO he was ). Then as I understand it, the state did not pay its share in for a decade because the investment returns were so high , so instead they politicians spent it on pet projects to get re-elected. The bottom line is that when the thing goes belly-up, the people it was suppose to help are gonna be out of luck because nobody I know wants to raise taxes to give teachers more pension money, a complete mess.

That is why I hate politicians on either side. Right now every PA resident is on the hook for $6,000 to cover the pension debt. You better believe no one is interested in paying that for a mismanaged fund.

Then when they hear people like Schultz is getting $330K per year and HS teachers getting over $100k per year in pension, no way are people (many of them with less than $250k TOTAL in 401K/IRA) are going to want their taxes raised to support that.

 

[pittiswhereiamfrom2]

Part of the problem, as I understand it, is that for years, the State lowered its contribution rate. At the time, the investments that the systems had were doing well, and it was decided that the State could contribute less and meets its obligation. Well, no. Welcome to big pension debt.

When the people making the decisions care more about their own profit than some silly debt, we get such outcomes.

But they can always raise taxes to try to make up the difference.

 

[pittiswhereiamfrom2]

That is why I hate politicians on either side. Right now every PA resident is on the hook for $6,000 to cover the pension debt. You better believe no one is interested in paying that for a mismanaged fund.

Then when they hear people like Schultz is getting $330K per year and HS teachers getting over $100k per year in pension, no way are people (many of them with less than $250k TOTAL in 401K/IRA) are going to want their taxes raised to support that.

Good luck finding a majority of people who care or even give a thought to such things.

 

[pbrad]

Isn't there something in Biden's infrastructure plan that guarantees pension money for plans that are in trouble.

 

[pittiswhereiamfrom2]

Isn't there something in Biden's infrastructure plan that guarantees pension money for plans that are in trouble.

I think only pensions for blue collar workers are guaranteed

 

[pittdan77]

Dan between Public School Employees Retirement System and State Employees Retirement System PA is $72 Billion in debt. You think I give a crap at how well the money contributed did when there is that much debt?

There are a lot of reasons that two system that were flush with cash are struggling and there are a ton of articles on line that explain it.

 

[recruitsreadtheseboards]

Pretty soon we have to have a financing plan to pay for the tolls for a trip between Pittsburgh and Philly on the turnpike.

 

[HailtoPitt]

Part of the problem, as I understand it, is that for years, the State lowered its contribution rate. At the time, the investments that the systems had were doing well, and it was decided that the State could contribute less and meets its obligation. Well, no. Welcome to big pension debt.

Any system where the pension received amount is based on the very end of a persons career is doomed to fail.

 

[pittdan77]

Any system where the pension received amount is based on the very end of a persons career is doomed to fail.

Let's face it, there were a lot of reasons that it was politically convenient for the pension systems to fail. And both sides contributed. New teachers get a 401k and it kind of feels like that was the plan all along.

 

[DC_Area_Panther]

Career politicians are in politics for their own power, prestige and enrichment. Their time horizon only extends to the next election. They will do whatever it takes, especially buying votes with favors to special interest groups (including public employee groups and unions) using taxpayer dollars to do it. Their unspoken mantra is the same as was that of King Louis XIV of France-- "Apres mois la deluge." They couldn't care less about the long term consequences of their policy and program decisions as long as they keep getting elected.

 

[Parkview57]

Apres mois la deluge.

So I googled "Apres mois la deluge." You learn something everyday on here.

 

[pittizit]

I'm more shocked by the size of that annual pension.
Is that a misprint???
A State employee gets $330,000 EVERY YEAR????
What the hell was his salary???
If true, no wonder the State is broke!

Unions…until that stops state,federal,teachers,cops…this country will be broke before you know it.