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Chief's pension raises questions
By Lauren Stanforth Staff Writer
Published: 12:00 a.m., Wednesday, November 17, 2010

SCHENECTADY -- A line in next year's city budget calling for fire administrators to earn up to $74,000 in overtime is drawing concern that the city may be allowing its soon-to-retire chief to pad his pension.

City director of administration John Paolino said Fire Chief Robert Farstad agreed he would work overtime so the dollar amount could be shaved off his ultimate retirement buyout of $117,000 -- a way for the city to avoid paying the full cost in one lump sum during the current fiscal crisis.

Paolino said $46,000 of Farstad's buyout would have counted to his pension anyway, so the overtime is not pension padding. But Farstad has already worked $47,000 worth of overtime in the last two years, and fire administration is budgeted for another $74,000 more in overtime for 2011.

A state worker's pension is typically calculated by plugging the highest three consecutive years of salary into a formula. Paolino insisted that just because $74,000 is budgeted doesn't mean that will be spent, and that Public Safety Commissioner Wayne Bennett must approve all overtime first. Assistant Fire Chief Michael Della Rocco could also earn overtime, Paolino said.

When asked if 2011's overtime would simply allow Farstad to up his pension, Paolino said, "I don't believe that to be a true statement," he said. "I would ask you to reserve judgment on that until next year."

City Councilwoman Barbara Blanchard was "amazed" Tuesday when told about Farstad's overtime payments and unaware such a deal existed.....................>>>>.........................>>>>................http://www.timesunion.com/local/article/Chief-s-pension-raises-questions-817598.php

Now that most of the states and cities in the country are in fiscal crisis city and state officials will start to dig into the sweet deals that the unions have enjoyed for many years and realize that they can't afford to live up to the contracts that the unions have.

yeah,,,,real leaders here huh?

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SCHENECTADY
Fire chief’s pension deal on hold
Council in dark on mayor’s setup
BY KATHLEEN MOORE Gazette Reporter

Fire Chief Robert Farstad increased his salary by 40 percent this year through a deal with the mayor that the City Council didn’t know about and never approved.
The deal not only gave Farstad more pay this year, but would substantially increase his pension when he retires next year.
    After a reporter informed City Council President Gary McCarthy — who strongly criticized the situation — the mayor put the deal on pause.
    Late afternoon Wednesday, Mayor Brian U. Stratton met with Farstad and told him the deal is off. For now, Stratton said, there’s no more overtime. “We’re going to stop it now until we get something to the council,” Stratton said. But council members said they have no intention of approving the deal if they’re ever asked. In essence, the mayor had been allowing Farstad to increase his pen- sion by submitting overtime requests for work that had been part of his regular duties in previous years.
    So far this year, Farstad has asked for more than 12 weeks’ worth of overtime for everything from attending minor fi res to talking about fire safety with neighborhood groups.
    Firefighters said Farstad regularly shows up for fires that are already in hand and being supervised by the deputy fire chief on duty. Farstad declined to comment.
    As management, he is not eligible for overtime. Until last year, his job required him to attend major fi res and functions during his time off without overtime pay. His salary of $106,080 was considered high enough to cover the extra hours.
    Then Stratton changed the rules. In 2009, he began allowing Farstad to collect overtime. The deal was in exchange for $117,000 worth of accumulated sick leave, vacation time and longevity pay.
    As Stratton explained it, the idea was that Farstad would put in for overtime equaling $117,000 between 2009 and 2011. In turn, he would give up all of his $117,000 payout when he retires in 2011.
    “It’s really giving us the opportunity to pay him what we owed him over a three-year period,” Stratton said.
PENSION IMPACT
    But he never ran the idea past the City Council, and he apparently didn’t realize that the change would increase Farstad’s pension tremendously.
    Sick leave and vacation payouts don’t count when the state Comptroller’s Offi ce calculates pensions. But overtime pay does — and the way that Farstad was allowed to collect it gives him the maximum increase possible in his pension.
    At first, Stratton insisted the change would not affect Farstad’s pension. But when a reporter went through the list of retirement system rules and how they related to Farstad’s overtime, Stratton’s director of administration agreed that Farstad would benefi t greatly. ...........................................>>>>...........................>>>>................................http://www.dailygazette.net/De.....r00104&AppName=1

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Ill-advised pension games in Schenectady

    Pension padding — loading up on overtime during the last few years on the job to ensure a larger payment after retirement — is legendary in the Schenectady city work force, and it’s one reason the city is in such fi nancial trouble: Next year, it will have to pay $6.5 million into the state Retirement System. That amount seems likely to increase in the future as a result of a deal Mayor Brian Stratton apparently cut Fire Chief Robert Farstad last year — a deal that would allow the city to ease the burden of Farstad’s retirement payout by spreading it over a few years but is likely to cost the system, and probably the city, much more in the long run.
    City officials say the scheme was devised to let Farstad claim overtime pay — something administrators in Schenectady and most other municipalities are generally not entitled to — in lieu of up to $117,000 in unused longevity and vacation pay they say he would be entitled to when he retires next year.
    To Farstad, the advantage would be a larger annual pension payout — for which the state Retirement System, not the city, would shoulder the burden. But schemes like these (along with the mediocre investment results of the pension fund’s investment portfolio) are the reason the Retirement System will be billing municipalities around the state from 19 percent more to 37 percent more next year. So eventually, Schenectady taxpayers, and others, will have to pay for this.
    Stratton says that $46,000 of the $47,000 Farstad has earned in overtime thus far would have counted toward his pension calculation anyway, so he believes that, up to this point, the deal has been basically a wash for Farstad. Moreover, the mayor has promised to undertake an immediate review and “put a stop to” the overtime payments for fire department administrators — for which $74,000 has been budgeted next year — if it turns out that future ones will enhance his pension.
    But the deal with Farstad was never put in writing, so there may be nothing to stop the chief from trying to have it both ways — collecting as much overtime as he can and demanding the full $117,000 payout at retirement.
    Finally, there’s the question of the arrangement’s legality, which Stratton insists then-City Council President Mark Blanchfield verbally approved but which Blanchfield and other council members who were around at the time say they never heard of............................>>>>................................>>>>......................http://www.dailygazette.net/De.....r00902&AppName=1

OMG! At the same time Mayor SOS wants to layoff 19 fire fighters, including all 3 trainees. It's not something that's awry-everything is awry. Absolute outrage. Calls for his resignation are deafening.

     Gee, still "Mayor For Life" Gazetto editors? ROTFLMAO!! How the tune has changed after 7 years of alleged "leadership". The working together team doing its thang. When caught red handed the horrible Mayor tries to throw others under the bus.

This matter should be referred to the AG's office for review. If this isn't a case of a gift of public funds, I don't know what is...

Stratton cut a deal with a chief that would significantly pay him more money over the remainder of his life against NYS pension rules and guidelines. And when pressed on the details, he just lies, lies and gets caught in more lies.

The 'brotherhood' must be pissed!
To think the chief was laying off just to make room for his pension padding! WOW!

Just the brotherhood? On the Fred Dicker show the AG promised to look into this latest So Schenectady.

     Quote of the Year from the Mayor; "I'm not making things up." Really? And he tries to throw John P and the City Council under the bus. Admit what you did. This will not go away anytime soon. Anybody got a fork?

The AG has been absent TOO long in schenectady county.

Not only the pension padding countywide, but also the metroplex and rems needs to have a full ag investigation.

True especially Metrograft that was reamed in the NYS Comptroller's audit. But nobody here knew nuthin?

      All I want for Christmas is a new set of forks.

Thought it was merely fiscal incompetence? NO! It's militant disregard for the taxpayers.

     The Mayor makes an illegal contract to screw over the City taxpayers. But I thought he was looking for paper clip savings? ROTFLMAO!! Without telling anyone-when the pathetic Mayor gets caught red handed by the TU he blames the City Council and John P. All the turkeys have come home to roost. Just in time for Thanksgiving.

Pension padding should be banned all together! Those are some of the lucrative benefits that the union workers get from Schenectady county elected officials!

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The AG has been absent TOO long in schenectady county.

Not only the pension padding countywide, but also the metroplex and rems needs to have a full ag investigation.

AMEN!

The city council meeting this coming meeting should be overflowing as far away as downtown over this.  

And everyone should spead during POF and express their outrage.

THen a copy of a video of the meeting should be given to Cuomo and everyone should demand in immediate investigation and swift criminal action of violating the law that prohibits Farstad from earning OT.

But can you see DV there with his pom poms cheering his buddy dems