Tag:Joe Paterno Pension
Posted on: November 13, 2011 12:24 am
 

Sandusky, Schultz draw hefty pensions from PSU

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 PennLive.com, 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.

 
 
 
 
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