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By MARK GUYDISH; Times Leader Staff Writer
Sunday, December 15, 1996     Page: 1

HAZLETON — Records show Louis Rossi’s city pension increased by 40
percent, from $12,037 to $20,204 a year, after Rossi worked only 12 weeks as
fire chief.
   
Council member John Tarone called for a state investigation of the
increase, predicting it would lead to a lawsuit. Rossi insisted he is legally
entitled to the new pension amount.
    Mayor Michael Marsicano appointed Rossi as chief on Jan. 2 over council’s
objections. Before the appointment, city records show Rossi was receiving a
pension check of $502 twice a month for his 13 years as a city firefighter.
Rossi claimed he was injured on the job in 1983 and retired in 1985.
   
Rossi was Marsicano’s campaign adviser in last year’s mayoral election.
After taking office Marsicano hired Rossi as chief at an annual salary of
$40,408. On Feb. 15 council slashed Rossi’s salary to $6,408, a move vetoed by
the mayor. Council voted to override the veto March 9.
   
Throughout the legal battle city records show Marsicano paid Rossi a
biweekly wage based on the higher salary. When the money council authorized
for the salary ran out in March, Marsicano was forced to lay Rossi off.
Records show the total paid for Rossi’s salary was $7,617.
   
But Rossi’s brief stint as chief paid off, with his pension payment jumping
to $842 twice a month.
   
“I think it’s interesting that a guy can come back to work for a month or
two and nearly double his pension,” council member Bill Lockwood said when
told of the pension increase. Lockwood declined further comment, citing a
lawsuit filed by Rossi against council over the pay cut and lay off.
   
Tarone was less reticent, saying the increase was legally questionable. “No
matter which way this plays out, the auditor general’s office should be
contacted.”
   
Tarone also said he believes council is supposed to have a representative
on the city’s pension “super board,” which oversees fire and police pensions.
Fire and police also have smaller, separate pension boards. Tarone said to his
knowledge no council member has been on the super board for years.
   
Tarone, a teacher in the Hazleton Area School District, has tangled with
Rossi about his pension before. Rossi is president of the School Board and has
been on the board twice before.
   
In 1985 Tarone accused Rossi, who was a member of the city pension board at
the time, of doubling his own disability pension by doctoring documents.
Disputes about Rossi’s pension and other benefits led to several lawsuits
between Rossi and the city.
   
“I have very little faith in the resolution of this matter; we’re still in
court over what happened the last time he (Rossi) retired,” Tarone said.
   
Rossi said state law allows him to receive 50 percent of his fire chief
salary as his pension. City Administrator Mildred DeLorenzo and Solicitor
Anthony Lucadamo both agreed that state law controls many aspects of the
pensions, though Lucadamo said he believed the city pension board might have
limited ability to change pensions.
   
A spokesman for the auditor general’s office said the pension is controlled
by several state laws, but the city also has some control through the pension
boards. Both DeLorenzo and Lucadamo said they did not know details of how city
pensions are determined.
   
Tarone called for an investigation by the state auditor general because
some of the pension money is provided by the state.
   
The city provided information on police and fire pensions last week after
repeated requests by The Times Leader. The original request was made Oct. 22.
The city provided a list of those receiving pensions and the amount received
twice a month.
   
DeLorenzo said she believes the list includes both retirement pensions and
disability pensions. The list does not distinguish between the two.
   
According to the lists, 31 people receive checks from the fire pension fund
and 37 receive checks from the police pension fund. The checks are issued on
the first and 15th of each month. The total issued from the police pension
each period is $19,006, while the total from the fire pension is $15,978.