Belfanti: I wont get $76K per year

To the editor: Thank you for the opportunity to respond to the article which was penned by Bob Swift, your Harrisburg correspondent, headline reading "Lawmakers to get plentiful pensions; Mellow set for $313,000; Belfanti $76,000." The contents of the article led some people to believe that is what each of us will receive; more importantly, it did little to explain how this pension actually works; and finally, most read into it as a taxpayer-paid benefit.

I disagree with the implication, which sparked one of my regular Sound Off detractors to claim that the taxpayers' share of my pension is an outlandish percentage that I won't even repeat as it was intentional and a despicable, bald-faced lie. Secondly, on Monday, another article appeared regarding per diems. Rather than pen two letters (I'm a two-finger typer), I'll address that briefly.

First and foremost, all state employees and teachers are entitled to pensions, but the fact is, it is mostly our money and the investments made with it based on the average of their highest three years salary and the number of years they pay into it. In my case, that is 30 years and four years of military time, which I'll get to shortly. Basically it works like this, the judge, state policeman, legislator, PennDOT worker, school employees, etc., pay a percentage of every paycheck in the pension funds called SERS for state employees or PSERS for school employees. These contributions range from 6.25 percent for most state employees, 7 percent for teachers, 7.5 percent for legislators, state police and other agencies like auditor and attorney general employees, etc., and finally all judges, including magistrates, who contribute 10 percent of their paychecks into the pension fund. (This not unlike many private-sector company plans, which match what their employees contribute personally). Our contributions are also to be matched by the state or school districts. This is not the case, however, and I'll explain briefly.

SERS and PSERS invests that money into several stock markets, government and municipal bonds, etc. The problem is that the funds were so solvent and had huge surpluses in the late '90s and early 2000s that the taxpayers' (school districts and state) match was allowed to drop, and in some years was zero percent - no contributions from any taxpayer were paid into the fund. Not foreseeing the second great recession, the fund managers, often at the shove of the executive branch, kept the money in the "general fund" and it was used to help balance budgets of the state and schools. From 1996 through 2002, the taxpayers' match dropped from to 5 percent then to 1.4 percent and finally to zero percent. Since then, it has risen to approximately 5.9 percent. Bear in mind, we state employees continued to contribute our full rates from our paychecks. Now both funds are in trouble, partially because of the drop in taxpayer match and, more importantly, the stock market and the economy.

This needs to be fixed because, as of now, there are proposals to raise the employer rate to 10 percent or more if the economy and stock markets don't make a miracle comeback by 2014. I stand ready to vote on any proposal to prevent this from happening. I'm providing one of many letters I'm receiving from school district management (who are urging their teachers to contact us to raise the taxpayer contribution to the 10 percent or higher levels).

Back to the article's reference to myself. I have contributed the full amount into my fund and they made 30 years worth of investments with it, along with the so-call match and those investments. I am voluntarily providing my personal and confidential information (to the editor) regarding my options, provided to me by SERS. I will never collect $76,000 per year. That rate could happen if I were 20 years younger and in perfect health; but it would give my wife nothing after I die, other than the contribution which is left in my account.

Therefore, what I've provided is my two options to protect my family: I haven't gone to SERS or decided if I will take option 2 or 3. These options greatly reduce my annual pension, while upon my demise, my wife can keep collecting my pension. The annual pension rate for me will likely be either $49,000 or $57,000, depending on what SERS advises based upon my (and my wife's ) age and health status.

To get any pension credit for my Marine Corps service, I must purchase that for four years, at a personal cost for $37,000-plus. That purchase is factored into any and all of my options as I signed an agreement to purchase it many years ago.

Insofar as per diems, I'll briefly state that I rarely break even with what the congressionally set rates are. For the last 3 1/2 years, I've barely been able to walk without severe pain, a condition called neuropathy. As one of my staff lives in Mount Carmel and commutes to Harrisburg with me, I pay for one or two hotel rooms. In addition to myself, I pay for the extra person cost for the room (he snores louder than anyone I've ever met) and all of his meals out of my per diem, and often partially from my pocket. I know that this applies only because of my health, but often we expect a normal 5 to 6 p.m. quit on many days, check out of the hotel, but get stuck staying on the floor until 10 to 11 p.m. (until this session, 2 to 4 a.m. was not unusual). We then have to find a different class hotel, often double the price, and re-check in. This applies to all members.

Finally, I've never failed to return calls to The News-Item on even the most controversial issues. I realize that the press' mission is to attack our institution since the ill-conceived pay raise and now the so-called Bonusgate. All I can say is that it's not fair to use the word "corrupt" before Legislature any more that it is when a cop, clergyman, judge, newspaper, CEO, fireman or even a Little League treasurer does something illegal. That doesn't make the 90 percent of their colleagues or their institutions corrupt.

I have served full-time (even from my home) and honorably. I've also voted for every open records and reform measure ever put before me on the House floor. I know great men and women who sacrifice greatly to serve their citizens. Our institution, in my opinion, has undergone many rule changes over my tenure. It has been an honor to enjoy the voters' trust and appreciation for most of my efforts. The Shamokin hospital or the Route 901 projects were "pork" to Philadelphians, but have been earned and appreciated by us. I've been offered a multitude of jobs, some paying triple what I've earned, not counting the usual bonuses some of these companies pay at year's-end. My heart, however, has been in public service since I was a Boy Scout.

Now, while I finish my final eight months, I'm very melancholy about leaving, but it's time. I need to focus on "quality of life" issues now. To all of those who have helped me earn the seniority (which is so valuable), my excellent staff and especially my family, I love you all!

I will be as active as possible as requested. I'll probably need a part-time job. Does anyone have any ins with Wal-Mart?

Again, I appreciate the offer by the paper to fully air my position and in some way recognize the General Assembly members, even realizing that this issue will continue through the November elections and beyond.

Sincerely,

Rep. Bob Belfanti and family