The Chicago Sun-Times recently published an article focusing on retirement bonuses awarded by the Tri-State Fire Protection District Board. This story highlights how certain decisions made by the board could significantly impact the pensions of its employees.
A piece written by Katie Drews for the Better Government Association on September 2, 2013, delves into some questionable practices. For instance, James Eggert, who was set to retire in 2004, received two substantial raises just before stepping down. The first raise bumped his salary from $105,420 to $112,800, and the second increased it further to $124,079. These raises amounted to over $18,000 in total during his final months.
Around the same period, James Krohse, an assistant fire chief, also received a raise shortly before resigning. The increase added more than $10,000 to his compensation package. These generous severance packages not only enhanced their pensions but also paved the way for the promotion of other employees, including Alan Hagy and Michelle Gibson.
After Eggert and Krohse's departures, Hagy was promoted to fire chief, followed by Gibson being appointed as deputy chief. Hagy himself received two raises totaling $17,000 in his final months, pushing his salary to $132,000, along with a $60,000 severance package. Eventually, Gibson succeeded Hagy as chief, despite her personal relationship with Jill Strenzel, a fire board trustee.
Strenzel, who had been on the board when these decisions were made, defended the actions, stating that the raises were justified given the employees' service and were beneficial for the district. However, state representative Jim Durkin criticized these practices, calling them outrageous and arguing against the use of confidentiality clauses in public fund matters.
Further complicating the situation, an audit conducted by the Illinois Department of Insurance in 2010 found issues with Hagy’s pension calculation. It was determined that his second raise, while part of a written retirement agreement, shouldn't have been factored into his pension due to state regulations. Although there was a legal recommendation to rectify the mistake, concerns about potential litigation prevented any changes from being made.
This story raises significant questions about transparency and accountability within public institutions, particularly regarding how taxpayer money is utilized. If these individuals live to age 80, they could collectively receive over $1.5 million more in pension benefits due to these raises.
As for the individuals involved, Eggert, Krohse, and Hagy have chosen not to comment, citing confidentiality clauses in their separation agreements. Their current pensions, based on their inflated final salaries, continue to grow annually by 3%.
This case underscores the need for greater oversight and openness in how public sector pensions are managed and awarded.
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