Happy Halloween: "Class of 2018: Pension Bandits"

Copyright© October 2018, Eric Epstein

The Halloween season has arrived. Following Halloween are a number of events - including retirements - that remind us how the Pay Raise and Pension Jack votes still produce holiday presents for departing legislators.

The annual Cost of Living Adjustment will be released in November. December brings in the Pennsylvania Society junket as well as the report on the legislators’ slush funds referred to as the Legislative Audit. Before the Honorables flee Harrisburg for the sanctuary of New York City, Rock the Capital examined how their yearly departed colleagues are subsisting.

Legislative retirees opted to tap into the State Employees’ Retirement System (“SERS”) throughout 2019. The Class of 2018 - for the most part - are pedestrian politicians who kept their mouths shut and wallets open. The “Class of 2018: Pension Bandits” are comprised of Pay Raise supporters, Pension Jackers, and garden variety scoundrels.

These folks cross party lines and tend to live in the Philadelphia- area. The Honorables are bound together by 1) Their exploitation of per diems, (2) increasing their incomes, (3) padding their pensions, (4), and receiving “golden parachutes” (5) In addition, some resigned and picked up a pension on the way out the door, (6) despite sexual abuse allegations.

The “Class of 2018: Pension Bandits” serves to demonstrate how an entrenched political paradigm is resistant to reform and insensitive to taxpayers. In Harrisburg, politicians systemically act and behave outside the rule of law and are rewarded for their debauchery.

“Pension Bandits” serves to remind hostage taxpayers of the long reach of the Pay Raise (2005) and Pension Jack (2001) votes. These votes have paid large dividends for incumbents protected by Gerrymandered districts. The annual COLA serves to boost legislative salaries, and increase pension pay outs.

The Class of 2018 receive free health care. Some receive annual annuities in excess of their legislative salaries. Others lived in homes underwritten by taxpayers, and may have netted a profit. In the case of Mr. Stack and Mr. Taylor, nonpartisan collusion produced a winning hand.

Taken together, this “Class of 2018: Pension Bandits” demonstrate that the political system in Harrisburg remains intent on rewarding gluttony, greed, and lust.

At the Capitol, slime does pay.

1. Per Diems:

• Former Representative Dom Costa: (D-Allegheny County)

• Former Representative Paul Costa: (D-Allegheny County)

• Former Fire Commissioner Tim Solobay: (D-Beaver and Washington Counties)

2. Pay Raise:

• Former Representative Paul Costa: (D-Allegheny County)

• Former Representative Robert Godshall: (R-Montgomery County)

• Former Senator Stewart Greanleaf: (R-Philadelphia)

• Former Representative Bill Keller: (R-Philadelphia)

• Former Fire Commissioner Tim Solobay: (D-Beaver and Washington Counties)

• Former Lt. Governor Mike Stack: (D-Philadelphia)

• Former Representative John Taylor: (R-Philadelphia)

3. Pension Jackers:

• Former Representative Paul Costa: (D-Allegheny County)

• Former Representative Robert Godshall: (R-Montgomery County)

• Former Senator Stewart Greanleaf: (R-Philadelphia)

• Former Representative Bill Keller: (R-Philadelphia)

• Former Fire Commissioner Tim Solobay: (D-Beaver and Washington Counties)

• Former Representative John Taylor: (R-Philadelphia)

4. “Golden Parachutes”:

• Former Representative Robert Godshall: (R-Montgomery County)

• Former Representative Nick Miccarelli: (R-Delaware County)

• Former Senator Stewart Greanleaf: (R-Philadelphia)

5. Sexual Abuse Allegations:

• Former Representative Brian Ellis: (R-Butler County)

• Former Representative Nick Miccarelli: (R-Delaware County)

• Former Fire Commissioner Tim Solobay: (D-Beaver and Washington Counties)

6. Taxpayer-Purchased Second Homes:

• Former Representative Paul Costa: (D-Allegheny County)

• Former Fire Commissioner Tim Solobay: (D-Beaver and Washington Counties)

Former Representative Dom Costa: (D-Allegheny County)

• Class of service x multiplier x number of years of service: D4 x 1.5 x 9.9167 years

• Three highest years of retirement coverage compensation, final average salary: $86,332.47

• Monthly annuity payment: $1,242.18

• Lump sum pension payment: $75,340.01 (Full payment)

Why is he on the list?

Family tradition. His cousin, Jay, is the Senate Democratic Majority Leader, and his cousin, Paul Costa, served in the House of Representatives.

Car talk: “Rep. Dom Costa, D-Stanton Heights, collected $33,406 for mileage, the second-highest amount in the House and more than three other Erie House members. With per diems of $55,495, his two-year combined travel reimbursement was $88,541.” (“Tribune Review,” Brad Bumsted, March 4, 2013.)

Car washes: “Rep. Dominic J. Costa, D-Allegheny, for example, spent $422 on 31 commercial car washes of his taxpayer-funded car, which he leased from the state Department of General Services. The lease plus gas and oil expenses cost taxpayers $12,101. Those expenses were included in his total of $75,215.” (“Morning Call,” Steve Esack, Eugene Tauber, December 26, 2015.)

Chachkies: Friends of Dom Costa spent $125,530 in “obscured spending” from 2016 through 2018 from his political campaign account on food, gifts, and travel expenses, and “...took six months to produce records and still has not released all of them.” (Reporting by Angela Couloumbis of “Spotlight PA”, and Mike Wereschagin, Brad Bumsted, Paula Knudsen, Sam Janesch and Alyssa Biederman of “The Caucus.,”(October 22, 2019).

Former Representative Paul Costa: (D-Allegheny County):

• Class of service x multiplier x number of years of service: D4 x 1.5 x 20 years.

• Three highest years of retirement coverage compensation, final average salary: $86,332,47.

• Monthly annuity payment: $3,184.18.

• Lump sum pension payment: $158,043.93 (Full Payment).

Why is he on the list?

Mr. Costa voted to raise his pension in 2001, supported the pay raise, but paid the loot back.

Family ties: His brother, Jay, is the Senate Democratic Majority Leader and his cousin, Dom Costa, was elected to the House of Representatives.

Second home paid for by taxpayers: “In December 2011, state Rep. Paul Costa, D-Wilkins Township, filed notice with the state regarding the creation of a limited liability company. Vandaleh Real Estate Associates* LLC was created with the Harrisburg address of property that was at the time owned by Costa, former Rep. Michael Diven, Sen. Tim Solobay, D- Canonsburg, and Sen. John Yudichak, D-Luzerne.” (“Observer-Reporter,” Aaron Kendeall, December 12, 2012.) Mr. Costa can walk to his second home in Harrisburg which is located close to the Capitol.

* Vandelay Industries is a fictional company featured on the sitcom “Seinfeld.” George Costanza used the company as a front when he applied for an extension of his unemployment benefits.

Mr. Costa was able to use his per diem reimbursements to purchase a second home in Harrisburg. Former legislators who exploited the process to their benefit include Judge Mark Cohen, Michael Diven, Todd Eachus, Rep. Michael Peifer, Mario Scavello, Tim Solobay, James Wanacsaz, John Wozniak, and Senator John Yudichak.

Per diems in 2009: $23,000. Per diems in 2011: $23,375.