Blog Entry

Sandusky, Schultz draw hefty pensions from PSU

Posted on: November 13, 2011 12:24 am

Posted by Adam Jacobi

Former Penn State assistant coach Jerry Sandusky and former Penn State treasurer/vice president of business Gary Schultz may both be retired, but they're both drawing substantial amounts of money from the school -- even as both face serious charges from the state of Pennsylvania. 

According to, Sandusky, who faces 40 charges of sexual assault for incidents that date back to his tenure as assistant head coach at Penn State, accepted a lump sum payment of over $148,000 from the State Employees upon retiring from Penn State in 1999. Since then, Sandusky has been deriving monthly pension payments that total $58,898 annually.

As for Schultz, the 39-year employee of Penn State retired in 2009, and had rejoined Penn State on an interim basis in 2011 when he was charged with perjury and failure to report child abuse in the Sandusky investigation. Upon his first retirement retirement, Schultz accepted a lump sum of $421,847, and currently draws a pension of $27,558 per month -- enough for an annual income of over $330,000 in pension.

If Schultz is convicted on his charges, however, he stands to forfeit that pension. Under Act 140 of Pennsylvania state law, there are several types of actions related to public trust that could trigger a forfeiture of pension. There is an entire Section of Act 140 relating specifically to perjury, which is one of the charges Schultz faces. And even if he is innocent of the perjury charge, he may also be subject to forfeiture under Section 5101, which relates to, among other things, obstructing administration of law. 

If Schultz does forfeit his pension, according to the law, he is still entitled to the money he paid in without interest, but that money must first go to legal fees and restitution related to the crime that forced his forfeiture. It was not announced how much Schultz paid in during his time at Penn State, and obviously it's too early to know how much in legal fees Schultz's criminal case will accrue -- or whether his case will end in forfeiture.

It's also worth noting that among the various reasons for forfeiting pension, Sandusky's charges don't appear to be covered as reasons to forfeit pension.

For the record, athletic director Tim Curley -- who also faces charges of perjury and failure to report -- did not participate in the state's pension plan, nor did fired school president Graham Spanier. Fired head coach Joe Paterno did participate, but his information has not yet been released by Penn State. A request is already in to the school for that information from the Patriot-News.


Since: Aug 15, 2006
Posted on: November 15, 2011 9:19 am

Sandusky, Schultz draw hefty pensions from PSU

Agreed Smogie on the convictions, but asking questions about the situation and showing disgust is completely in line in this case. Heck, even tossing out what should happen if he's found guilty as well.

Please keep in mind, we've seen far too many examples of the premise of a trial is nothing more than buying your way out of a crime these days... This cannot happen here. A technicality verdict will not go over well... Facts will need to well presented on either side.

The Pension only continue with the disgust that people have, not only for that individual, but the parties linked to have known. It is going much deeper than Sandusky now. 

Since: Mar 20, 2008
Posted on: November 15, 2011 8:07 am

Clearly Convicted in the Court of Public Opinion

Slow down folks. Clearly these are disgusting allegations and worthy of our vigilance as a society to root out the guilty and punish them adequately.  This is one of the beautiful things I love about my adopted country.  So please let the legal process run its course before you demand this or that should happen. In my old country the accused may have been shot and his family charged for the bullet. No trial, no nothing? Fair?  

Let's remember that we are Americans and worthy of due process before the verdict.  If anything has ever been made more clear to me while living in the USA, you never know who will and will not be convicted (OJ and Casey Anthony come to mind).  If found guilty, Mr. Sandusky deserves the harshest of penalties.  

Pensions? Slow news day?   

Since: Oct 12, 2011
Posted on: November 14, 2011 11:13 am

Sandusky, Schultz draw hefty pensions from PSU

I hate to pin hopes on ambulance chaising lawyers, but in this case they are badly needed to go after Sandusky's hefty pension.  Hopefully the victims will see the lions share of the money.

Since: Dec 5, 2007
Posted on: November 14, 2011 10:57 am

Sandusky, Schultz draw hefty pensions from PSU

In fact there is a video of how the whole report to Schultz went down on YouTube... or something very similar anyways.. Cool

Since: Dec 5, 2007
Posted on: November 14, 2011 10:52 am

Sandusky, Schultz draw hefty pensions from PSU

And in addition to this, I'm pretty sure Schultz still gets a pension from the German army for working as a sergeant at a prison camp during WWII. "I see NOTHING! .. I know NOTHING!" Cool

Since: Nov 10, 2011
Posted on: November 14, 2011 10:47 am

Sandusky, Schultz draw hefty pensions from PSU

The school should take their pensions/retirement money and give it to the abused victims

Since: Jun 8, 2010
Posted on: November 14, 2011 9:27 am

Sandusky, Schultz draw hefty pensions from PSU

If Penn st dosent stop payment today, no one should ever attend or televise or have anything to do with that school.
But they wont because this all boils down to money and how can they make money." Hey Joe anounce you are going to retire at the end of this year and lets see what the media thinks. Oh crap that wont work we are going to have to fire you sorry, hows ole Sandusky holding up anyway? I dont think we can save him but we will sure try, and we will keep paying him. I cant believe this got out how is the team, they know we are on espn sat."

Since: Jul 3, 2007
Posted on: November 13, 2011 2:00 am

Sandusky, Schultz draw hefty pensions from PSU

Sandusky's charges don't appear to be covered as reasons to forfeit pension.

What, did they just not think of that when they wrote the code??? 

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