For the dynamic duo,
it’s a DROP in the bucket

By Tom Waring
Times Staff Writer

Two longtime elected officials, City Councilwoman Joan Krajewski and City Commissioner Marge Tartaglione, began new terms on Monday after very brief retirements.
The two Democrats enrolled in the city’s Deferred Retirement Option Plan, created in 1999 largely to keep veteran police officers and firefighters from retiring at the same time.
Under the plan, a city employee’s pension will be frozen upon joining DROP. The individual must retire within four years and will collect a lump sum of pension payments that are placed in an interest-bearing account. The payments can be made by check, subject to a 20-percent federal tax, or rolled over into a tax-free individual retirement account.
According to the city personnel department, participation in DROP is "irrevocable" once someone joins. A memo states, "You must retire from City employment within four years of your DROP enrollment date."
Krajewski (D-6th dist.), of Mayfair, and Tartaglione, of Oxford Circle, aren’t the first city employees to return to work after retiring. Mayor John Street, who left office on Monday, rehired Sylvester Johnson as police commissioner after he cashed in on DROP.
However, Krajewski and Tartaglione are the first elected officials to remain in office after signing up for the program. The city Law Department approved the move, allowing them to retire on Friday and return on Monday for their swearing-in ceremonies. City Controller Alan Butkovitz did not return a call asking for his view.
Krajewski, who announced in 2004 that she wouldn’t run for re-election only to change her mind last year, said her office hasn’t received one negative phone call about her decision and nobody has addressed the subject with her in person.
The councilwoman, who took office in 1980, said the DROP payments — both she and Tartaglione had about $300,000 rolled over into an IRA — did not come at the expense of taxpayers.
"That is my money," she said.
Krajewski, 73, contended that she was saving the city money, because she would be collecting a pension if she had retired while her successor would be earning an equal salary.
In addition, she said constituents returned her to office in an overwhelming mandate knowing that she was in DROP.
"My people elected me," she said.
Tartaglione, 74, who took office in 1976, spent her day in retirement caring for her ailing husband, Gene. Like Krajewski, she argued that her payment did not affect taxpayers.
"I worked thirty-two years for that money," she said.
Though Tartaglione is back working after retiring, she will receive only her salary. Her pension is frozen.
"I ain’t taking a pension until I retire," she said.
If new Mayor Michael Nutter has his way, elected officials might not be able to sign up for DROP anymore. When he was serving in City Council in 2004, he introduced a bill that would exclude elected officials. The measure never made it out of committee.
Nutter has not dropped his opposition.
"I have previously stated that I am concerned about various provisions of the DROP program," he said. "As a member of City Council, I already indicated that I do not believe the DROP plan was created to benefit elected officials. I still have the same concerns, and I will look to make appropriate changes in the DROP plan."
Two other elected officials who joined DROP defended the decision by Krajewski and Tartaglione.
Street had no choice but to retire. He was prohibited by the Home Rule Charter from seeking a third four-year term.
The former mayor acknowledged that DROP was "too expensive," but noted that the program was created by then-Mayor Ed Rendell. He said Council can amend the program, but he doubts it will happen.
Nevertheless, he said the decisions by Krajewski and Tartaglione to retire and return to office cost city government "zero."
"Councilwoman Krajewski going back to City Council is not costing taxpayers one additional dime," he said. "And if it’s not Marge Tartaglione, it will be somebody else in that job. It’s not like you’re not going to have a 6th district councilperson or not have a city commissioner."
District Attorney Lynne Abraham announced she would not run again in 2009 and expects to honor that pledge. But, she said there’s nothing in the law that prohibits elected officials from joining DROP, then changing their mind about retirement.
Abraham disagreed with critics who label the Krajewski/Tartaglione decision a "pay grab."
"Frankly, I don’t know what all the hoo-ha is about," she said. ••
Reporter Tom Waring can be reached at 215-354-3034 or twaring@phillynews.com