Friday, April 2, 2010, AM | Leave Comment
New York Post reported news by Philip Messing, updated on March 29, 2010:
“The second-in-command of the FDNY has retired on a tax-free disability pension worth an estimated $242,000 annually for the rest of his life.”
The online issue says this is the highest ever awarded to a city firefighter.
Frank Cruthers’ annual pension can be broken down in 3 distinct areas for which he was paid, according to an FDNY insider:
$150,000 in Pension
Cruthers’ annual pension based on first 20 years of service $150,000. This payout is exempt from federal, state and city taxes because of the “line-of-duty” designation.
$52,000 for 23 years of service
Receives additional one-sixtieth of his earnings for each year from his 20th year through his 43rd year of service $52,000.
$40,000 in Annuity
Received from so-called ITHP fund, the Increased Take-Home Pay annuity $40,000.
Total per year $242,000.
Mr. Cruthers started working for NY Fire Department when he was 20 years and worked there for 43 years. The author, Mr. Messing, seems to pick on the first deputy commissioner. He got injured while on duty.
The website says “Cruthers, who oversaw counter-terrorism training and response and helped rebuild the department after its devastating 9/11 losses, amassed nearly 43 years of city service as a cop and firefighter and was second in rank only to FDNY Commissioner Salvatore Cassano.”
Under any circumstances, that’s an important job especially right after 9/11 devastation. We must recognize the services of our police, firefighters and other such public servants who deal with the risk of death and serious injury everyday.
Moral of the story
If you look at the breakup of Mr. Cruthers compensation and the time he served as a public servant, the $150,000 is from his pension plan. If the law says this money is tax free because of the “line-of-duty” designation, so be it.
Pick on the law if you must instead of picking on one individual. Change the law if you think of its deficiency. Change the law of compensation that the C-level executives – in financial and other institutions – receive in bonuses. They get bonuses every year as if their lives are on the line.
In my opinion, Mr. Cruthers earned his money, fair and square.
However, America is still land of opportunity. Bonuses for the financial institutions executives and debt for the common man grow on trees. “And there is nothing you can do [nothing] about.”
What do you think?Facebook.com/doable.finance