The Un-Official Pension Newsletter – January 2022

During the most recent campaign for pension fund trustee I was asked numerous times to counter some of the conflicting information between myself and the leadership of Local 2 who were supporting my opponent Tony Martin.  Specifically, I was asked – Did a theft actually occur at the pension fund?   And if it did occur, why did I write an apology letter to Tony Martin?  I think those are fair questions for the membership to ask about the administration of what is probably their greatest financial asset.

DID A THEFT OCCUR?  Based on the information presented to me, a theft absolutely did occur at the pension fund.  Contrary to what the Local 2 stewards post on social media, Kim Foxx’s office was notified of the felony theft at our pension fund but her office chose not to conduct an investigation.  Given the Cook County State’s Attorney’s Office lack of interest in prosecuting crime, I’m not surprised there wasn’t an investigation.  Nevertheless, Local 2 is not always the best source for accurate information on important matters such as a felony theft at our pension fund.  Had this steward just requested any correspondence between the pension fund and Kim Foxx’s office, he would have been provided the following letter by the pension fund:

The letter clearly states the pension fund discovered over $20,000 of cash ‘misallocated’.  The letter has the name of the employee initially believed to be involved in the theft blacked out, but if you listen to the audio recording below, from the meeting where the pension fund trustees discussed the theft, you will hear that, according to the pension fund attorney Mary Pat Burns, this employee was Tony Martin’s brother’s girlfriend.  Towards the end of the audio tape you will also hear Ms. Burns mention that the Executive Director felt uneasy hiring Tony Martin’s brother’s girlfriend.  The audit uncovered that Tony Martin owed the pension fund money that he, without authorization, borrowed from the pension fund.   

 The audio recording of the meeting actually discuss two separate thefts, one from our pension fund and another from the EMWQ.  The pension board was never able to determine how much money was stolen from the Widows and Orphans Fund – it could have been anywhere from a few thousand dollars to many multiples of that amount.  The audio tape will show that Mike Shanahan and I were going to attempt to remove Tony Martin from the Widows and Orphans Fund Board after discovering this possibly fraudulent activity.  Unfortunately, Tony had an ally in the Commissioner who was unwilling to remove Tony Martin from the Board.  Ultimately pension fund President Mike Shanahan resigned from both the Widows and Orphans Fund and the pension fund prior to his term being finished. I can’t speak for Mike, but during the various conversations we had on the matter, I think he was just disgusted with the politics and lack of governance on both boards.  When someone like Captain Mike Shanahan throws up his hands in disgust, you know we have a problem.  So that is what I can tell you to clarify any questions the membership has about the thefts.  The audio tape of the meeting is at the bottom of this newsletter.  I can’t believe this Executive Board couldn’t find younger more qualified members to run for the pension fund.  After all this came to light, this Executive Board continues to endorse the same people that have failed to change the trajectory of our financial security; there needs to be new leadership at Local 2 and our pension fund.

APOLOGY LETTER.  I’m also asked, Why did you sign an apology letter to Tony Martin, especially given all this clear evidence.  Well, that is a little more complicated.  The biggest reason is that Tony Martin sued me in Cook County for slander even though I believe everything I wrote about Tony’s lack of judgement and ethics were supported by records at the pension fund.  My lawyer warned me that even the best cases can go awry in the Cook County court system, that the juries aren’t very educated and have been known to reward outlandish damages.  Initially I told my attorney I didn’t care about the consequences and wanted the case to go to trial.  If Tony wanted to litigate this and draw attention to his role at the pension fund then I wanted City Clerk Anna Valencia, the City Treasurer and all the other trustees called in to testify.  These officials were present when the felony theft was discussed.  My attorney agreed that Tony’s case was very weak, but continued to warn me about Cook County juries, and if the jury awarded damages, I would be personally liable.  The advice from my attorney was to recognize the financial risk to my family and just do whatever you have to do to make the case go away.

Then my attorney had a conversation with Tony’s attorney, she was advised that Tony had a collaborating witness that would state he heard me say “Tony stole $25,000 from the pension fund”.  I told my attorney that was absolutely not true, that I was very careful not to say Tony stole all of the money, that the pension fund audit could not identify who exactly stole the money, but that he was involved at some level and was required to pay back a certain amount we could identify he inappropriately borrowed from the pension fund.  My attorney asked if anyone would lie on Tony Martin’s behalf.  Well, as many of you know, I am not very well liked down at the Union Hall and I have heard some pretty outlandish statements on my character and positions.  Then I remembered the following text sent to me by Local 2 Treasurer Mark Egan just before he decided to run a smear campaign against me during the Local 2 election:

In the text Mark Egan stated he ‘heard’ I lost my CPA license and filed a bankruptcy.  I think it is very telling about Mark Egan’s character that he decides to bring this up during a campaign even if there isn’t a morsel of truth associated with the statements.  I texted Mark Egan back that if he could prove any of those allegations he should “put it out there”.  Well, apparently proof wasn’t necessary in Mark’s mind and he did put it out there because I was asked about it while out in the field.  During the campaign, Tony Martin also posted about my alleged ‘financial problems’ on social media.  I challenge anyone to find any information that remotely suggests either of those statements by Mark Egan are true.  It amazes what people will do just to win an election.

So why did I write an apology letter to Tony Martin even when the clear compelling evidence outlined in the audio tape supports the concerns I brought to the membership’s attention?  Well, because the case was going to be heard in a questionable court system, and my ability to send my kids to college hung in the balance.  I had no idea what a Cook County jury or politically connected judge would allow to happen in the courtroom, especially with an attorney like Mark C. Egan potentially testifying against me.  So those were my reasons for signing an apology letter and putting the matter behind me.  

I can understand members are tired of hearing about this nonsense, but at what point will this membership pay attention, get involved and hold people accountable?  What should really make the membership wonder is why we continue to elect the same people to these offices.  People who embrace the same incompetent politicians and keep us on this same failing path that harms us and our families.  A perfect example is pension fund President Dan Fortuna, who voted to make Tony Martin the Executive Director of the pension fund.  Could you imagine how many loans would have been taken out if no one prevented Dan Fortuna from hiring Tony Martin as the Executive Director and Tony’s brother’s girlfriend was still employed by the pension fund?  This membership’s continued unwillingness to ask tough questions, get involved and understand the risks facing our livelihood and retirement is dangerous.  It isn’t helpful when the typical Local 2 vote is cast because someone was told that a candidate is a “good guy” or a supposed “union man”.  I have seen firsthand many of these ‘good guys’ and ‘union men’ sit on their hands while this City continues to undermine this membership’s interests.  When you vote in the next election remember the following:

• The pension funds unfunded liability stands at $5.2 Billion, an average of more than $1 Million for each active member of the pension fund.
• The City’s balance sheet is loaded with debt and the budget is structurally unsound which in turn puts our financial security at risk.  
• Newer members aren’t receiving pay for working as EMT’s during the first 4.5 years of their careers in the middle of a pandemic even though in 2021 the City received $1.9 Billion in federal funds that was earmarked to cover premium pay for first responders.
• The City continues to eat away at any sense of motivation on this department by failing to administer promotional exams that are transparent or timely and refuses to adequately compensate EMS members for taking promotions.
• This administration can’t even plan for something as obvious as manning for a fixed number of ambulances subjecting the membership to continuous mandatory rehires.  
• We are forced to live in a city with a deteriorating school system, rising property taxes and a crime prevention strategy that is non-existent.  Neighborhoods that have traditionally been safe middle class havens to raise a family are being ignored as spreading crime is not addressed by the politicians our union dues continue to support.
• In an economic environment of rising inflation, the City we are forced to live in now automatically increases property taxes by the rate of inflation.

On a final note, I think it is imperative that the membership recognize how ugly things have gotten in the public discourse at Local 2.  Besides the campaign waged by Mark Egan and Tony Martin on my personal finances and professional credentials, two other incidents recently occurred that should really make members pause about the “new normal” of permitted discourse when Local 2 members disagree with one another.  The first case involved President Jim Tracy addressing the pension board and speaking out against a member receiving a pension benefit.  I can appreciate Jimmy and this particular member having a difference of opinion, but to take that animosity to the level of trying to persuade the pension board to deny the member an earned benefit is pure petty vindictiveness.  I hope, given all the misinformation and disorganization amongst our members, that the membership could at least agree our union president actively trying to deny earned benefits to a union member who happens to be a political rival is unacceptable.   

The second incident occurred a few months ago and involved a member applying for a duty disability.  I don’t know this member, but after his name appeared on the pension fund monthly summary indicating he was applying for a duty disability, I heard his name often.  Members reached out and told me he didn’t deserve a benefit because he was a big mouth or he’s an asshole.  I’m sorry, but nowhere in the pension code does it indicate big mouths and assholes aren’t entitled to benefits.  Someone actually took the time to video tape this member and submit it as evidence that his injury wasn’t legitimate; that was the first time I have seen such a tactic in my six years as a trustee.  I don’t care how big of an asshole someone is or how much you don’t like him, trying to take away members’ benefits for a personal vendetta should not be tolerated by this membership; it speaks to the climate our Union has created. 

There were five positions on the current Executive Board that went unchallenged in the last election.  The collective apathy of this membership is going to result in continued ineffective leadership by the politicians that decide how to run a City that we are forced to live in.  If this membership continues to elect people that can’t even safeguard thousands of dollars in a petty cash drawer, how is it ever going to elect people to secure the City resources to plug a $5 Billion hole in our pension fund?  Brothers and Sisters – Stay Aware, Stay Safe, Be Well and Get Involved

Timothy McPhillips
Former Pension Fund Trustee