Suburban Fire Board Boosted Chiefs' Pensions and Promoted Trustee’s Partner

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

Back in 2004, James Eggert, who was set to retire from his position as chief of a west suburban fire department, received quite the going-away gift from his employers—a $7,380 raise that hiked his annual salary from $105,420 to $112,800. Just three months later, with only two months left before his retirement, the board overseeing the department, which serves portions of Darien, Burr Ridge, Willowbrook, and unincorporated DuPage County, decided to give him yet another raise—this time for over $11,000. In total, Eggert saw his pay increase by more than $18,000 in his final months on the job.

Around the same period, the Tri-State fire district board also agreed to a separation deal with Assistant Fire Chief James Krohse, providing him with a $10,000 raise shortly before his resignation. These generous severance packages not only padded their pensions but also paved the way for the promotion of a battalion chief who is now in a civil union with a member of the board that approved these arrangements, according to records and interviews.

When Eggert and Krohse stepped down, the three-member board responsible for managing the fire protection district promoted Deputy Chief Alan Hagy to chief and Battalion Chief Michelle Gibson to deputy chief. Hagy stayed on until 2008, leaving after receiving two raises totaling $17,000 in his final months. His initial salary went from $115,000 to $121,000 and then up to $132,000, along with a severance package worth $60,000. Following Hagy's departure, Gibson, who lives with Jill Strenzel—a Tri-State fire board trustee since late 2003—was named the new chief. The couple entered into a civil union last year during a ceremony held in Darien, and Strenzel was on the board when the late-career raises for Eggert, Krohse, and Hagy were approved, as well as when she voted to promote her partner to chief.

In a written statement, Strenzel and Hamilton “Bo” Gibbons, the board president, justified their decisions by stating that the raises were "reasonable given each employee’s service" and served the best interests of the district. Neither party was willing to engage in further discussion.

Gibson, earning $137,887 annually plus potential bonuses, chose not to comment, citing concerns about burdening the district with inquiries. Similarly, Eggert, 58, Krohse, 55, and Hagy, 56, remained silent, citing confidentiality clauses in their separation agreements. All three are currently receiving pensions from the district, which increase by 3% annually based on their final salaries.

This year, Eggert’s retirement benefits amount to $107,401. Without the two raises he received in his final months, his pension would have been $91,250, a source confirmed. Additionally, Eggert received a $10,000 severance payment that did not factor into his pension. Krohse’s pension stands at $77,473, rising to $69,090 without the late raise. He also received $25,000 in severance pay, excluded from his retirement income. Hagy’s pension totals $113,163, whereas it would have been $98,589 without the two raises he received in his last three months.

Assuming these individuals live to be 80 years old, they could collectively receive over $1.5 million more in pension payments than they otherwise 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 argued they “should not be allowed.” Durkin also criticized the secrecy surrounding these deals, emphasizing that “the use of public funds... should never be cloaked in confidentiality.”

In 2010, the Illinois Department of Insurance, which regulates government pension funds, expressed concerns about the size of Hagy’s pension. During an audit, the department found that Hagy’s second raise—$11,000—was part of a formal retirement agreement and thus classified as a retirement incentive, which shouldn’t count toward pensions under Illinois law, according to Kimberly Parker, a spokesperson for the state agency. Although pension boards have 35 days to rectify errors, Parker noted that legal advice recommended against taking action due to the discovery of the mistake in 2010, long after it occurred, potentially leading to expensive and unsuccessful litigation.