Philadelphia Delays $24,000 Retirement Payouts by 5 Months for Scores of Retirees
Updated
Updated · WPVI-TV · Jun 19
Philadelphia Delays $24,000 Retirement Payouts by 5 Months for Scores of Retirees
2 articles · Updated · WPVI-TV · Jun 19
Summary
Scores of retired Philadelphia employees say terminal pay and other retirement-related checks have been delayed for months—sometimes nearly a year—leaving them short on bills after leaving city jobs.
Finance Director Rob Dubow acknowledged the backlog, saying terminal payments averaged just over five months over the past three years, with an average payout of $24,000.
Dubow said an audit function moved into his department and slowed processing; the city is now hiring staff and building a dedicated three-person unit to handle more than 1,700 annual payments.
FOP Lodge 5 says some union contracts require accrued leave to be paid within 30 days and called the delays 'wage theft,' while retirees also reported five-month waits for DROP lump-sum pension payments.
The dispute is widening beyond late checks, with retirees pushing for interest on delayed balances and city pension officials saying some DROP holdups also stem from incomplete paperwork.