"Sweet retirement deal for county's former COO"

Intelligencer/Courier Times editorial, April 21, 2010:

The Republican commissioners running Bucks County should not ink a deal with a new county boss without first publicly discussing compensation. That's the reasoned request of Democratic Commissioner Diane Ellis-Marseglia.

Taxpayers ought to demand it.

They ought to demand it because the deal given to former Chief Operating Officer Dave Sanko, fully disclosed only two days ago, might have been more mindful of taxpayers had it been talked about in the open.

Sanko, an ex-bigwig with the GOP, was hired in 2004 at $125,000 a year, not exorbitant for the chief executive of a large organization. But let's remember that his was, and remains, a government job, which means the benefits are good and holidays plentiful.

When Sanko resigned five years later, he was earning $140,688. Again, not outrageous. But during that time, Sanko also drove a county car, compliments of taxpayers. And, it turns out, he received a sweet retirement deal, also courtesy of taxpayers.

How sweet became clear this week when the county revealed that Sanko received $76,500, the amount the county deposited into a "457" retirement fund for Sanko over his tenure. Unlike the shrunken 401(k) retirement accounts most people in the private sector have, Sanko did not have to deposit any of his own income into the account, according to the county finance director.

That's not how it works for other nonunion county workers. Their 457 retirement plans are built on the employees' own contributions; the county doesn't throw in a dime. That Sanko's retirement deal turned the formula upside down made it unique in Bucks County, the finance director said.

Uniquely generous!

In fact, when taxpayers file their federal income tax returns next year, they might consider claiming part of Sanko's retirement as a charitable contribution. Or maybe they should consider it a political contribution.

Either way, the taxpayers' generosity doesn't end there. The "deferred compensation" Sanko received is just part of his retirement deal. When Sanko reaches 60, he'll be entitled to pension payments of $18,000 a year for his five years of service here. . . .

"Sanko gets hefty check, annual pension"

By Peter Hall, Intelligencer, April 20, 2010:

Former Bucks County Chief Operating Officer Dave Sanko's contract called for the county to pay the maximum amount allowed by the IRS for a 457 retirement plan. He also qualified for an $18,000 annual county pension.

Bucks County's former Chief Operating Officer Dave Sanko received $76,500 in deferred compensation for the five years he worked as the county's top staff member.

In addition to the money the county paid into a retirement fund for Sanko, he will be eligible to collect $18,000 a year in pension payments from the county employees' retirement fund when he turns 60, county Controller Ray McHugh said Monday. . . .

"McIlhinney proposes changes to pensions"

By Gary Weckselblatt, Bucks County Courier Times, April 2, 2010:

The 10th District state senator wants plans similar to 401(k)s for school and state employees.

State Sen. Chuck McIlhinney said Thursday night he's working on legislation to change the pension system for future school and state employees, moving away from a defined benefit plan to one similar to a 401(k).

McIlhinney, a Republican whose 10th District runs through much of Bucks County and Souderton and Telford in Montgomery, said he consistently hears from constituents that nobody guarantees their retirement plans. . . .

"The pending crisis for public pensions"

Radio Times, April 5, 2010: "There's a crisis brewing over public pensions – those retirement funds promised to government employees like teachers, policemen, firemen and state workers. In most states, including Pennsylvania, there simply may not be enough money in the till to pay these retirees what they’ve been promised. According to a recent study published by the Pew Center on the States, some of it has to do with the recession and investment losses, but most of it is the fault of policy decisions that resulted in severe under-funding of pension plans. Harrisburg AP reporter Mark Scolforo and Kil Huh, author of the Pew Center report, who will put it all into a national context."