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Disabled double-dippers drains millions from NJ pensions

By   /   September 9, 2013  /   News  /   13 Comments

AP file photo

TRYING?: New Jersey Gov. Chris Christie last month established a special unit to prosecute pension fraud in New Jersey. But that initiative won’t stop double-dippers who legally use loopholes to game a system that faces the $47 billion shortfall estimated by Treasury officials.


By Mark Lagerkvist | New Jersey Watchdog

Meet New Jersey’s “disabled” double-dippers. They get two sets of checks from the state – one for working and another because they cannot work:

A New Jersey Watchdog investigation found 18 state employees who double-dip $2.2 million a year – $1 million in tax-free accidental disability pay plus $1.2 million in salaries.

“These people are playing within the rules of the game,” said John Sierchio, a state pension board member who advocates reform. “But the rules of the game are so absurd, they need to be changed.”

So far, those 18 employees – all law enforcement retirees – have drawn more than $5 million in disability pay since they returned to work in full-time jobs for state government. Receiving accidental disability benefits for line-of-duty injuries, they will receive two-thirds of their former pay, tax-free for life.

It is only the tip of what happens in a loophole-riddled police disability pension system that pays out $200 million a year. New Jersey Watchdog’s research did not encompass disability retirees employed by the state’s 21 counties and 565 municipalities.

Because of laws that protect the privacy of governmental employees, information on how and why a public worker is disabled is typically hidden from taxpayers. The process of determining who gets a disability pension occurs behind closed doors and away from public scrutiny.

A ‘Heck’ of a loophole

New Jersey police and fire department retirees get special treatment under pension law. They can keep all of their disability pay, regardless of how much they earn if they go back to work.

This exemption only applies to members of the Police and Firemen’s Retirement System and State Police Retirement System – and not to other public employees. It offers a strong financial incentive for PFRS and SPRS members to retire on disability, then return to work for a second income.

The loophole enables Heck to keep all of his tax-free disability pension while he gets a six-figure salary as associate counsel to Gov. Christie.

At age 28, Heck retired as a Middletown Township police officer in 1993. He was struck on the hand with a hockey stick while responding to a domestic dispute, according to state pension records.

Details about the injury and the extent of disability were deleted from the records released by Treasury officials. The township certified it had no other job or duty for Heck, paving the way for his retirement.


“Once you have your pension in hand, you’re golden,” said Sierchio, a Bloomfield police detective who has served on the PFRS board of trustees since 2002. “You can do whatever you want to do.”

With a pension-for-life in his grasp, Heck attended Rutgers University and graduated with a law degree.  In 2004, he was hired by the Office of Attorney General as a state investigator.

Assigned to the Division of Criminal Justice, Heck performed police work on high-profile cases. While investigating a securities scam, Heck took several trips to South Florida and a 4,700-mile flight to Sao Paulo, Brazil, the Star-Ledger reported in an article on the case.

In 2007, Heck was promoted to deputy attorney general. Four years later, he joined Christie’s staff as associate counsel with a $110,000 salary.

He continues to collect disability retirement checks, now $44,818 per year – right under the nose of a governor who boasts pension reform as one of the big accomplishments of his first term in office.

Heck did not return New Jersey Watchdog’s calls. A source recently observed him dribbling a basketball in the driveway of his home.

Plugging the loophole – by applying the same rules to police and fire disability retirees as other public employees – could save taxpayers millions of dollars each year.

For example: If Heck had retired from a different state retirement plan – such as the Public Employees Retirement System or Teachers’ Pension and Annuity Fund – he would be required to report his post-retirement income to pension officials.

Based on his current income, Heck would be forced to give back all of his disability pay.

The PERS and TPAF handbooks state: “If your pension, when added to the earnings of other employment, exceeds what your former position currently pays, the law states that the disability pensions shall be reduced dollar for dollar by the excess earnings above what the former position currently pays.”

In contrast, PFRS and SPRS disability retirees have no limits on their incomes – or on how much they can double-dip from public jobs and public pensions.

Bills in the state Senate and Assembly – S-1913 and A-3074 – would eliminate the double-standard and institute other reforms.

After passing two committee votes last year, S-1913 stalled in the Senate. Its companion bill, A-3074, remains stuck in an Assembly committee.

The Treasury estimated the legislation would save $66 million for state and local governments during the first three years after enactment.

‘Totally and permanently disabled’

To qualify for disability retirement under New Jersey law, a public employee must be “totally and permanently disabled.”

But when Jenkins retired on disability as an Englewood police lieutenant in 2004, there was nothing permanent about his retirement from public employment.

The next year, Jenkins was hired by the state Department of Law and Public Safety as a supervising investigator. Within its Division of Consumer Affairs, he is now chief investigator of a unit that polices bingo, raffles and boardwalk games.

Jenkins collects $186,506 a year from the state – $93,058 in pension plus $93,448 in salary – more than any of the other disabled double-dippers on New Jersey Watchdog’s list.

In pension records released by the state, officials blacked out virtually all information about Jenkins’ disability. After an unspecified injury in an unspecified on-duty incident in June 2001, Jenkins continued his employment in Englewood until he retired three years later at age 39.

Jenkins’ lawyer, Eric Kleiner, told New Jersey Watchdog his client was unable to work as a police officer, yet remained qualified for other employment. Citing attorney-client privilege, Kleiner said he could not discuss Jenkins’ injury and disability.

So what is totally and permanently disabled?

“In the real world, it means somebody is unable to work,” said Sierchio. “In the police and fire world, it usually means somebody doesn’t want to go to work.”

Disability claims have reached epidemic proportions. The applicants, armed with sympathetic doctors and lawyers, bring their cases to pension boards. The boards, picked by public employee unions and the governor’s administration, deliberate in secret to protect the claimants’ privacy.

The claims include a fireman who fell out of bed while sleeping, an officer who missed a chair while sitting down, a cop who stapled his hand to a target at a firing range and a patrolman who suffered emotional trauma because his lieutenant yelled at him during roll call.

“I’d say 95 percent of the disability applications are questionable,” said Sierchio. “If a person trips over a curb, slips on ice or falls off a chair, I find it hard to believe he is totally and permanently disabled.”

As a result, 5,300 disability retirees receive a total $200 million a year from PFRS and SPRS, which are funded by contributions from taxpayers and members.

“If we don’t change the rules, this pension system is in a lot of trouble,” said Sierchio.

The disability jackpot

A tour bus headed for Atlantic City carried both bad luck and good fortune for Fantini of the New Jersey State Police.

The bus struck the back of Fantini’s cruiser on the Garden State Parkway in July 1995. The trooper had parked on the road shoulder to assist a stalled vehicle.

Fantini was hospitalized and treated for multiple rib fractures, a collapsed lung and back injuries, a State Police spokesman told Associated Press. As a result, he retired in January 1997 with a disability pension.

But that did not end Fantini’s career with the State Police.

Able to work two years later, Fantini was rehired by the State Police as an investigator, according to state records. Yet unable to work as a State Police trooper, he keeps collecting retirement benefits.

Fantini has received roughly $750,000 in tax-free disability pay since he was rehired by the State Police in 1999. In addition to his salary, now $72,686 a year, he continues to draw the pension, $52,689 per annum.

Fantini did not return calls seeking comment.

Other state employees and the approximate sums of their disability pension jackpots since returning to public employment include:

  • Consumer Affairs chief investigator Scott Jenkins – $700,000.
  • Department of Children and Families supervisor of investigations Brendan M. Finnegan – $650,000. Finnegan retired from the West Windsor Township police in 1996.
  • Motor Vehicle Commission investigator James C. Whittaker – $500,000.  Whittaker retired from the State Police in 2002.
  • Office of Homeland Security and Preparedness analyst John P. Schroeder – $400,000.  Schroeder retired from the Trenton police in 2006.
  • Governor’s associate counsel Adam Heck – $350,000.
  • Assemblyman David P. Rible, R-Wall Township – $300,000.  Rible retired from the Wall police in 1998; his disability pension was the focus of a New Jersey Watchdog investigation three years ago.

The state pension system generally assumes a disabled worker will not recover and should be entitled to benefits for life.

During the first five years of retirement, PFRS can re-examine accidental disability retirees – an option seldom exercised. After that, pension benefits become permanent.

“The way the law is right now, we can only review somebody for up to five years,” said Sierchio. “After five years, we can never evaluate them again.”

Two bills pending in the Assembly would change that. A-2376 would allow PFRS to order physical exams of disability retirees every year until age 55. A-1019 would permit exams every other year.

Both measures were introduced early last year. So far, neither bill has escaped committee.

By executive order last month, Christie established a special unit to prosecute pension fraud in New Jersey. But that initiative won’t stop double-dippers who legally use loopholes to game a state retirement system that faces a deep deficit — estimated at $47 billion by treasury officials and $171 billion by State Budget Solutions, a public policy group.

“The fraud unit is just a small piece of the puzzle,” said Seirchio. “We have to change what totally and permanently disabled really means.”

# # #

Click here for New Jersey Watchdog’s list of state employees who collect salaries plus disability pensions.  Earl Glynn of Watchdog Labs contributed to this report.



Mark formerly served as staff reporter for Watchdog.org.

  • Mc

    I do believe that is called stealing, they should pay the state back every penny.

  • jim

    everyone in this story get more disability in one month than most vets get in two years

  • Jeff Krogue

    Public unions are suffering from being too successful, they were able to get contracts that are so good that its going to bankrupt city and state budgets. The same thing happened with the auto unions, they were able to drive the companies they work for into bankruptcy. Basically they are killing the golden goose.

  • Trent

    In Texas, injured workers are constantly stigmatized for malingering and faking injuries. I’m not sure if we have any public officials double-dipping, but I wouldn’t be surprised if we did. It would be worker’s comp insurance fraud to have an injury and then work without reporting the wages. Additionally, states that term individuals totally and permanently disabled should be held accountable to the taxpayers by proving the use of their monies is warranted. However, NJ is a major epicenter of government corruption. If the people are raising hell about it, then no one will really care. I think it’s great WatchDog has exposed the abuse, but it does nothing if the voters don’t care.

  • iamsurrounded

    This has been going on forever – the taxpayer is getting scammed by the unions. I know two teachers who retired before age 60, collect at least 80K a year in pension and work at another job. So they are taking a job away from someone who actually may need it. It’s such a joke – and the joke is on the taxpayer.

  • twmat311

    More like the law is written to actually allow this – the system can choose to audit (and catch) this, but opts not to. They get away with it till the numbers add up high enough.

  • SharonS

    The teachers are not collecting another state pension. A teachers pension is 60% of the average of the last three years. I doubt someone is collecting 80K a year as a retired teacher.

  • dave

    I read this right after receiving a phone call soliciting money for the Police Benevolent Fund, saying injured police needed my financial help.

  • iamsurrounded

    I know two who are and I know it is 80K for both

  • jerry

    president Obama makes it to easy for people to collect food stamps,welfare and disability payments.i would get rid no outlaw companies like Binder&Binder to drain our treasury OF MONEY.!

  • Phoenix Jet

    Cops have the best racket going. I worked with lots of ex cops who are cleaning up….

    Don’t believe the myth of the poor hard working cop just struggling to get bye.

    I never would’ve gone to college had I known then what I know now.

  • Phoenix Jet

    Don’t ever give money to cop funds… They are cleaning up already.

  • monacall

    so are we to see another Detroit?
    hope so…..people don’t learn very well. or do they listen. its just like all of these people all of these people on welfare. pretty soon we will all be on the dole, due to this administrations and past administration’s cheating and lying to the American people….but who cares right, “its not effecting me attitude” well we are now seeing things going vey very fast. pretty soon obozocare will kick in for you and I the worker bee, the tax payer. and there we go on the welfare payroll…
    what amazes me though is how stupid all of the people are that are already on the welfare programs and these same people probably have been on the dole for generations….they breed to be on the dole and to stay on it…….but, the deal is which is to funny when all of us are on it…..whose paying the coffers….which means less money coming in which means less money to be paid out. so they way I see it…..if any welfare person who wants to stay status quo should vote for the guy who wants to stop the program…..You know there will always be people on the welfare program..because that’s just the way we are made…..give till it hurts….help those who need help……but when no one is working, when there are no jobs for the government to take taxes from…..whose paying the bills? so less for the welfare folks….. the rich will never suffer, the middle class has always paid the bills and soon there will be more middle class…..so therefore no more welfare……happy end to an unhappy class….the takers….