July 18, 2008
Joe Bruno's golden stallion
Today as Joe Bruno rides into the sunset, to borrow his phrase, he can ride high in the saddle with an annual pension of approximately $95,000--only $8,000 less than his take-home pay (after state and FICA taxes) when he was the $120,500-a-year Senate majority leader.
Bruno racked up 41.7 years of pension credits--although he was on the state payroll for only 39 years. He was first hired in 1969 as a special assistant to Assembly Speaker Perry Duryea. During much of that period, Bruno also ran a successful telephone equipment business. How did he do it?
Bruno is in the lucrative Tier I pension system and qualifies for "Section 80-a" benefits, having joined the pension system as a legislative employee prior to July 1, 1973. That gives him two extra years of pension credits--thanks to a 2000 law passed when Bruno was Senate leader.
In addition, as a Tier I member, Bruno received a full year of service credits even for the years when he worked part time, according to a spokesman for the state comptroller. (Tier I ended June 30, 1973. The newest pension system, Tier IV, began September 1, 1983.)
Like other Tier 1 members, Bruno did not contribute to his pension. More recent hires must contribute 3 percent of their salaries for 10 years.
As Senate majority leader, Bruno earned leadership stipend of $41,000 on top of his $79,500 legislative salary. Last month, Bruno stepped down as majority leader, surrendering the stipend. The New York Times reported Thursday that his pension would exceed his base salary of $79,500.
Actually, Bruno's financial future is rosier than that. His pension--estimated at $95,000 by the comptroller's office--is exempt from state personal income taxes and FICA (social security and Medicare) taxes.
FICA taxes are 7.65 percent of salary. Assuming Bruno paid the top state marginal personal income tax rate of 6.85 percent on his Senate salary, here are estimates (without federal income taxes) comparing Bruno salary and pension incomes.
Senate majority salary: $120,500
State income taxes: $8,254
FICA: $9,218
Subtotal: $17,472
Net: $103,028
Base legislative salary: $79,500
State income taxes: $5,445
FICA: $6,081
Subtotal: $11,526
Net: $67,974
Pension: $95,000 (estimate)
State income taxes: $0
FICA: $0
Net: $95,000
Difference between his estimated net leadership salary and his pension: $8,028 (which would be smaller after federal income taxes).
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