Suburban Fire Board Boosted Chiefs' Pensions, Promoted Trustee's Partner

By KATIE DREWS, Better Government Association | September 2, 2013 | 12:00 AM

Back in 2004, James Eggert, the then-chief of a west suburban fire department, was set to retire. Just three weeks before his retirement, the board decided to give him a going-away gift: a $7,380 raise. This brought his annual salary from $105,420 to $112,800. Then, only three months later, with just two months left on the job, they handed him another raise—this time for over $11,000. His final salary ended up being $124,079, meaning he received more than $18,000 in raises during his last few months of employment.

At around the same time, the Tri-State fire district board also agreed to a separation deal with Assistant Fire Chief James Krohse, boosting his salary by over $10,000 shortly before he resigned. These generous exit packages significantly increased their pensions and opened the door for someone else to move up the ranks.

When Eggert and Krohse left, the board promoted Deputy Chief Alan Hagy to chief and Battalion Chief Michelle Gibson to deputy chief. Hagy stayed until 2008 and was given two raises totaling $17,000 in his final months, pushing his salary from $115,000 to $132,000. He also received a severance package worth $60,000. When Hagy stepped down, Gibson, who happens to be in a civil union with Jill Strenzel—a Tri-State fire board trustee since 2003—was appointed as the new chief.

Jill Strenzel was on the board when these raises were approved and even voted to promote her partner. In response to criticism, she and board president Hamilton "Bo" Gibbons defended their decisions, stating that the raises were reasonable and in the district's best interest. However, neither agreed to an interview for further clarification.

Michelle Gibson, who earns $137,887 annually plus potential bonuses, chose not to comment, citing concerns about burdening the district with questions. Meanwhile, Eggert, Krohse, and Hagy remain silent due to confidentiality clauses in their agreements. Their pensions, calculated based on their final salaries, increase by 3% annually.

For example, Eggert's pension this year will total $107,401. Without those two raises he received near retirement, his pension would have been $91,250. Additionally, he received a $10,000 severance payment that doesn't count toward his pension. Krohse's pension is $77,473, but it would have been $69,090 without the late raise. He also received $25,000 in severance pay, excluded from his retirement benefits. Hagy's pension stands at $113,163; without those final raises, it would be $98,589.

Assuming these individuals live to be 80 years old, they could collectively receive over $1.5 million more in pension payouts than they would have without those raises.

State Representative Jim Durkin (R-Western Springs), whose district includes the fire protection district, described these arrangements as outrageous and stated that such practices shouldn't be allowed. He also expressed frustration over the secrecy surrounding these deals, emphasizing that public funds should never be shielded by confidentiality clauses.

In 2010, the Illinois Department of Insurance reviewed Hagy's pension and found issues with the second raise, which was deemed a retirement incentive under state law. The department suggested corrections, but legal advice led the pension board to avoid taking action due to the risk of litigation.