It’s not just a pension scam.
The board has apparently acted to stop Schaitberger’s illegal pension grab but he will need to be watched closely as he will try to undo their work through bribery, bullying and treachery.
It’s crucial to remember that where Schaitberger’s damage to the IAFF is concerned, the pension scam is just the tip of the iceberg.
The Kelly memo lays out the other grim and pervasive aspects:
- Failure to consult the treasurer of this organization (IAFF) is a blatant abuse of your [Schaitberger’s] power.
- Systematic misrepresentations in financial reporting to the Executive Board
- Failures to adhere to dictates of convention action and internal policies regarding financial operations
- $6 million unaccounted for in interfund balances
- [Improperly] accessing employees email accounts
- Your [Schaitberger’s] staff, at your direction, prohibits my [Kelly’s] ability to act as this organization’s record keeper.
- Your [Schaitberger’s] sudden and subjective interpretation of the Constitution & ByLaws that you have the sole authority to sign all contracts is not supported by the longstanding practice in this organization.
- Amendments to the Staff and Employee Pension Plans that were adopted in 2006, which were not approved by the Executive Board. These amendments provided unreduced early retirement benefits for certain former employees of the IAFF and have potentially added millions of dollars to the funding obligations of the Plans.
- Two principal officers have accrued millions of dollars of benefits under a non-tax qualified retirement program covered by Internal Revenue Code Section 457(f), without the taxability of the benefits being reported to the IRS. This will require the IAFF to file multiple years of retroactive amended Form W-2s to properly report the taxable benefits, with as yet unknown exposure to the IAFF for back taxes, penalties and interest.
- We are currently under IRS audit on our 457(b)-retirement program due to excess deferrals by certain individuals, including the General President.
- The General President and former General Secretary-Treasurer began collecting their pension from the Staff Pension Plan when they were elected to their offices, even though they did not retire. Three separate outside law firms have advised in writing that this was not allowed under the Internal Revenue Code. This has resulted in over a million dollars of improper pension payments to these officers.
- Millions of dollars in financial misreporting and millions of dollars in nondiscretionary funds that were utilized for purposes unrelated to their designation.
Can the same vice-presidents who have been on the board for many years with Schaitberger be expected to investigate such an extensive list of claims?
But, if they think they can, they need to clearly articulate their plan and their willingness to be completely transparent.
No more hiding behind Mama Schaitberger’s apron.
It’s time for change.
For more coverage see:
Tell your vice-president to end the corruption now.
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