By Lauren Stanforth
The Times-Union
SCHENECTADY, N.Y. — The city might have to pay Fire Chief Robert Farstad’s miscalculated pension costs after all, this in the wake of last week’s controversy that Mayor Brian U. Stratton secretly upped Farstad’s overtime to make up the difference.
Stratton and various city staff members will soon meet with representatives from the state pension system to see if Farstad should have been enrolled in the same enhanced retirement system other firefighters are in — an error that could mean Farstad is owed an estimated $160,000.
Questions first arose after fire administrators were budgeted to receive $74,000 in overtime in 2011 at a time when 14 firefighters are losing their jobs next year due to the current fiscal crisis.
Stratton and director of administration John Paolino acknowledged last week that the overtime was meant to assist the city in paying down what they said was Farstad’s single pension payout of $117,000 — as Farstad was expected to retire in 2011. A person’s yearly pension payment is calculated based on a formula that uses the highest three consecutive years of salary, and Farstad had already earned $43,000 in overtime this year in addition to his $106,000 a year salary.
Stratton says despite the extra overtime, Farstad’s annual payments would have still been $8,000 less a year because he wasn’t enrolled in the 384-E enhanced retirement system.
Some City Council members said they weren’t aware such a deal was struck, and Stratton moved quickly last week to halt Farstad’s overtime payments.
The mayor then held a press conference Friday to explain Farstad’s overtime, saying when Farstad took a leave of absence in 1998 he should have been enrolled in the more lucrative pension. Despite City Council’s past objections to have Farstad enrolled retroactively, Stratton said he allowed Farstad the overtime to make up the difference, a maximum $126,000 in overtime over two years, according to the 2010 and 2011 city budgets. It was at the press conference that Stratton said Farstad would have been owed $160,000 under the 384-E retirement.
An executive session was held before the City Council meeting Monday night that included Farstad, Paolino, Stratton and members of the city’s legal staff. City Council President Gary McCarthy said there was no legislative action taken after the session.
Stratton said he doesn’t know when he’ll meet with the state, but he believes Farstad is entitled to the money — even though Farstad worked for the Scotia Fire Department during his leave of absence 12 years ago.
“We need to do a little bit of research before we make a quick, reactionary response,” City Councilman Carl Erikson said at the meeting Monday night. “We need to do it the right way and understand what is due legally and contractually.”
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