The Streets Were Paved with Gold - Ken Auletta [96]
Police and firemen are eligible for special tax-free pensions under the so-called “Heart Bill” (about $17 million). First passed by the state legislature in 1970, and annually since, this bill presumes that any heart disability is work-related, allowing retirement at three-quarters of the final year’s salary. As an added bonus, this pension is tax-free. And one need not be disabled to receive it. The Police Department’s Chief Inspector, George McManus, got a $28,465 tax-free disability pension when he retired in 1971 (he currently earns $25,000 as an executive with the National Auto Theft Bureau). Chief of Detectives Albert Seedman retired with a tax-free $25,904 pension (he currently earns $35,000 as vice president for security of Alexander’s department stores). Police Commissioner Michael Codd, who left office on the final day of the Beame administration, applied for a $46,000 disability pension—$493 less than his salary. “I am suffering far greater physical limitations that I did four years ago,” he told the Daily News, explaining that doctors discovered his heart problem when he was admitted to a hospital in September 1977. That’s odd, since at the time the Commissioner said his problems were due to “exhaustion.” (After it became a public issue, the Police Pension Board turned down Codd’s request.)
Special tax-free disability pensions are available for all city workers. An “ordinary” disability pension is available to any city worker who is the victim of a non-work-related injury—getting hit in the head with a golf ball, for instance. Those with less than 10 years’ city service can retire on one-third pay; those with more than 10 years receive half pay. A “line-of-duty” injury entitles the worker to a three-quarter pay pension. Again, one need not be disabled to qualify. August Gary Muhrcke, claiming a back injury, retired from the fire department 4 years ago. He receives a tax-free $11,822.04 pension. Yet his “disability” did not prevent him from winning the First Annual Empire State Building Runup—covering 85 flights of stairs in 12 minutes, 32 seconds. Commissioner John T. O’Hagan energetically ran the Fire Department for 5 years. Upon retiring in early 1978, he claimed a “hearing loss” disability and requested a $41,000 disability pension. (Like Codd, he was turned down.) Since 1970, according to the News, 55 percent of all retired police officials with the rank of captain or above received disability pensions.
Police, firemen, teachers and professors at the vast City University receive what is called “longevity” pay. Police, firemen and corrections officers get a bonus of $100 every five years. Teachers receive a bonus of $750 after 10 years and another $750 after 15.*
Certain city employees receive what are called “pay increments.” These are automatic promotions, divorced from performance. Teachers, for example, receive two $500 increments a year, for a total of 16 over 8 years. These cost $10 million annually. (They were increased in 1978). Like other employees, they also receive cost-of-living increases of almost $1,200 annually. All uniformed employees, including sanitation men, also receive yearly increments. Police and firemen receive an increment of $2,443 after the first year, an additional $675 after the second year and $671 after the third. The Koch administration calculated a 2-year budget saving of $43 million if all increments and longevity payments could be eliminated.
Many city employees receive what is called “terminal pay.” All uniformed employees and sanitation men are entitled to 1 month paid leave for every 10 years worked, prorated for those with less than 10 years. Civilian workers, after 15 years’ service, are eligible for 1 month for every 10 years worked (or, like all civilians, they can choose to take 1 day’s pay for each 2 sick days not taken). The