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Double-dips mean millions for 45 ‘retired’ NJ school chiefs

By   /   February 28, 2013  /   1 Comment

Part 2 of 2 in the series Double-dippers



By Mark Lagerkvist │ New Jersey Watchdog

Thomas Butler can take you to school on the study of double-dipping in New Jersey.

Since he retired as a school superintendent 18 years ago, Butler has held 23 jobs as an interim or temporary chief at public school districts in eight different counties. While continuing to draw six-figure salaries from taxpayers, he has pocketed $1.2 million in state pension checks.


BUTLER: It’s ‘to help the district out.’

At present, Butler collects $212,340 a year – $135,000 in salary as interim superintendent of Mendham Borough schools in Morris County, plus a $77,340 pension as a retired educator. He says he saves the school district money as it searches for a permanent leader.

“I’m in this just to help the district out,” Butler said.

However, the brunt of double-dipping falls on the state’s troubled pension system, which faces a shortfall of nearly $42 billion.

A New Jersey Watchdog investigation found 45 retirees have worked as interim superintendents so far during the current school year. They use a loophole in pension law to collectively receive more than $4 million annually from the state Teachers’ Pension and Annuity Fund in addition to executive pay from districts.

The loophole intends to help districts fill key openings with experienced administrators as they search for permanent replacements. But some districts wind up with a revolving door of well-connected temporary chiefs who get two public paychecks, not just one.

Pension rules allow retired administrators to work for up to two years in an interim position without losing any benefits. There is no limit on the number of times they ccan hold interim jobs.

“There are several people out there who have done this for a number of years. It raises great questions that ought to be discussed,” Richard Bozza, executive director of the New Jersey Association of School Administrators, told NBC 4 New York‘s Chris Glorioso.

NBC 4 New York partnered with New Jersey Watchdog to produce this report.

In Bergen County, Karen Lake gets $108,230 a year for working part-time – three days a week – as interim superintendent of Mahwah schools. She also collects $131,964 from her pension as retired superintendent of Hillsborough Township schools in Somerset County.


LAKE: ‘I took advantage of it.’

“It’s the way the system is set up,” said Lake. “I took advantage of it.”

And she’s not the only one.

“There are a lot of superintendents who are retiring and coming back to the workforce,” said longtime South Jersey school chief Ralph E. Ross Sr.

Ross collected $292,272 last year – $149,256 in salary as interim superintendent of Deptford Township schools in Gloucester County, plus $143,016 from pension as retired superintendent of Black Horse Pike Regional schools in Camden County.


ROSS: ‘I don’t apologize for any money I get.’

“Of course, people are going to call it double-dipping because you get paid twice,” Ross said. “I don’t apologize for any money I get. My services are worthwhile and appreciated.”

When Ross hit the two-year mark at Deptford, the 72-year-old retiree didn’t have to go far for his next post-retirement job. Ten miles away, the Monroe Township school district quickly hired him as its $136,500 interim assistant superintendent.

But not all retired school chiefs are content or comfortable with the double-dipping or interim employment status.

Gary Loudenslager, Ross’ replacement in Deptford, has decided to “unretire.” He is taking a job as the schools’ permanent superintendent, which will require him to give up $88,320 per annum in state pension checks for at least the next five years.

“I am doing this because I want to,” said Loudenslager. “I wasn’t ready to retire. I don’t want to be an interim; I want to be the superintendent.”

Loundenslager retired as principal of Deptford Township High School in June 2011. Six months later, he returned as an interim principal. When Ross left, the board hired him in January as interim superintendent with a $122,000 salary.


LOUNDENSLAGER: He took the interim job ‘because the financial part was very good.’

“I did become an interim because the financial part was very good,” Loudenslager said.

Last week, the school board agreed to remove “interim” from Loudenslager’s title. While his salary has not been set, he could make up to $167,500 a year. Even if he gets the maximum, he knows his total income will go down.

When Loudenslager finally retires for good, he’ll receive a second pension. He estimates the additional benefit will be less than $15,000 a year.

Double-dipping has enabled the 45 retirees and undoubtedly others to sidestep a salary cap ordered by Gov. Chris Christie in 2010. Declaring that many superintendents in local districts were overpaid, Christie set a limit on maximum pay that ranges from $177,500 a year in the largest districts to $120,000 a year in smaller districts.

The cap has caused an exodus of superintendents from New Jersey and increased the demand for interim chiefs, said Bozza, who heads a group of 1,000 New Jersey school administrators.

“These men and women who are serving in interim positions are really performing a great service,” Bozza said. “But I don’t think it should be prolonged … I think we should be looking very closely at that.”

Perhaps no one has passed through the revolving school doors as frequently as Butler.

At age 56, Butler retired in 1994 as superintendent of Chester Township schools. According to his resume, Butler has since worked as interim superintendent in the following 22 districts:

  • Burlington County: Springfield Township schools
  • Essex County: Highland Park, Hopewell Valley Regional and Livingston schools.
  • Hunterdon County: Delaware Valley schools.
  • Mercer County: East Windsor Regional, Lawrence Township and West Windsor-Plainsboro schools.
  • Morris County: Chester Township, Boonton Township, Denville, Long Hill Township and Wharton schools.
  • Middlesex County: Middlesex County Vocational/Technical and South Plainfield schools.
  • Passaic County: Manchester Regional schools.
  • Somerset County: Branchburg, Bridgewater-Raritan Regional, Montgomery Township, Somerset Hills, Somerville and Watchung Hills schools.

Butler’s 23rd post-retirement post is at Mendham Borough schools in MorrisCounty. He was hired in July 2012 on a contract that will last one year – or until the district finds a permanent chief. If the school board does not choose a new superintendent by then, it will have an option to extend Butler’s contract for another year.

“Excuse me, I’m not doing interviews,” Butler told Glorioso after a school board meeting, as he covered the reporter’s microphone with his hand.

Off-camera, Butler said he saves money for school districts because they don’t have to pay for his medical insurance or other employee benefits. However, state taxpayers are already paying for Butler’s health coverage through the pension system, not to mention the $1.2 million in retirement checks he’s collected during the past 18 years.

As of Feb. 1, there were 37 interim superintendents working in state public schools who also were drawing New Jersey pensions as retired school administrators. Here’s in New Jersey Watchdog’s list, sorted alphabetically by county:

Brigantine William Gussie




Estell Manor Bruce Greenfield




HackensackCity Joseph Abate Jr




Carlstadt-E Rutherford Gary Bowen




Ramsey Bruce DeYoung




Ridgefield Harry Groveman




Haworth Maria Nuccetelli




Glen Rock Raymond Albano




Montvale Lawrence Hughes




PalisadesPark Twp Mark Hayes




Mahwah Twp Karen Lake




Shamong Twp Dolores Szymanski




EdgewaterPark Twp Cheryl L. Smith




CamdenCounty Tech Timothy Bell




Haddon Twp Cheryl Simone




Camden Co Ed Svcs Edward Wasilewski




Berlin Twp Leonard Fitts




Fairfield Twp Mary Lou DeFrancisco




Monroe Twp Ralph Ross




Franklin Twp Barbara Morella




Deptford Twp Gary Loudenslager




Greenwich Twp Stephen Derkoski




Lebanon Borough Thomas O’Brien




Tewksbury Twp James Gamble




Hampton Boro Arthur DiBenedetto




Bloomsbury Albert Purdy




OldBridge Twp Timothy Brennan




Manasquan Robert Mahon




Shore & W Long Branch Renae LaPrete




Wharton & Mine Hill Dennis Mack




MorrisPlains Ernest Palestis




Mendham Boro Thomas Butler




WoodlandPark Elaine Baldwin




Bloomingdale Frank Buglione




Oldsman Twp Stephen Berkowitz




Andover Regional Peter Merluzzi




Fredon Twp Diane Pittenger




At least eight other retirees worked as interim superintendents earlier in the 2012-2013 school year. (The number does not include Ralph E. Ross Sr., who left Deptford Township schools to take a job in Monroe Township schools.) Here is that list:

Brigantine Robert Previti




Mt.Ephraim Diane DeGiacomo




Lower Township Joseph Cirrinicione




Montclair Clarence Hoover




Deptford Township Ralph Ross




Greenwich Township Robert Suessmuth




Kearny Ronald Bolandi




W Long Branch Herbert Massa




Sussex Co Tech Anthony Macerino




SOURCES: New Jersey Watchdog gathered the data from state pension records and employee records obtained from individual school districts through Open Public Records Act requests.

View more videos at: http://nbcnewyork.com.

 THIS STORY WAS UPDATED at 6:45 a.m. March 1.


Part of 2 in the series Double-dippers
  1. Christie to probe leader: Want to be a judge?
  2. Double-dips mean millions for 45 ‘retired’ NJ school chiefs


Mark Lagerkvist is New Jersey Watchdog's investigative reporter. He can be reached at mark@NJwatchdog.org.

  • concerned citizen

    this happens in Massachusetts also! It is legal so don’t want to imply people doing it are doing something wrong, but loopholes need to be closed. After all, if retirees hold onto top jobs the trickle down is 23 year old teachers without jobs (due to lack of others moving up the ladder).