Union activist says former Ficano aide's sweetened pension deal worth at least $1M

Detroit ? Wayne County Executive Robert Ficano significantly enriched the pension of a mental health director to end a lawsuit she brought after her firing, according to documents released Friday.

Days before a Monday federal court hearing to force the release of a sealed settlement, Ficano released the 2004 deal with former Detroit-Wayne County Community Mental Health Agency Director Patricia Kukula.

According to the agreement, Kukula received some $60,000 in back salary and unused sick time and was credited four years and 11 months of service time to enable her to retire immediately. In return, she dropped the suit and agreed to defer collecting her pension until April 2009.

The 55-year-old's pension pays her $78,100 per year. When she was fired in 2003, she was just 47 and ineligible to draw her pension.

The retirement enhancements are believed to be worth at least a few hundred thousand dollars over the life of her pension. Union activist Robert Davis, who brought the suit, contended they are worth at least $800,000.

"Taxpayers (need to) know how screwed up Wayne County government is," said Davis, who added the settlement was released as a result of his lawsuit.

"Mr. Ficano bought a former employees' tongue who alleged illegal acts against him."

Ficano spokeswoman Brooke Blackwell said in an email it was not a "cover-up."

She also tried to avoid comparisons to a $200,000 severance to former economic development director Turkia Mullin by saying Kukula's deal is "not a severance agreement ? it's a lawsuit settlement."

Kukula was brought on board in 2003 but fired that November by Ficano during a power struggle on the mental health board that is comprised of 12 representatives of six members apiece from Detroit and Wayne County.

Kukula alleged in her whistleblower suit that she was retaliated against for reporting that Ficano's staff was "misusing mental health funds ? (and) employed members of his personal staff using mental health dollars, when in fact they were not performing mental health work."

Speaking to The Detroit News on Thursday, Kukula would only say she was cooperating with Davis' lawsuit.

"I resigned and (the suit) was settled 7 ? years ago, that's what I can say," said Kukula, who is now vice president of corporate development for the Detroit Medical Center.

"I'm just trying to move on."

The biggest perk in the settlement is the nearly five years of work credit Kukula received that allowed her to add thousands of dollars a year to her pension without having worked for them. The county retirement system is based on years of service: Each year of work is worth 1.25 percent to 2 percent of average final compensation.

Kukula, a former administrator to Ficano's predecessor Edward McNamara, made $166,000 when she was working for him, but Ficano cut her salary to $145,000. Depending on which plan Kukula was in, the five years added between 6.25 and 10 percent to her pension. For instance, if her final average compensation was $125,000, it would mean a bump of $7,800 to $12,500 annually.

Over a 30-year retirement, that could mean an increase of $375,000. Davis contended the deal is worth closer to $816,000 ? the amount Kukula would have had to earn for the five years she was credited.

"This is bigger than Turkia Mullin because you have employees within the county making less than $35,000 a year carrying the burden of the county's mismanagement, (while) Robert Ficano enriches his friends and pays off individuals who could ruin his political career," Davis said.

But the settlement also didn't cost the county additional pension money because Kukula agreed to wait five years to draw upon her pension, beginning in 2009. Her previous contributions into the fund ? from her and the county ? were allowed to grow untouched for those five years.

Davis said a court hearing is still scheduled for 2 p.m. Monday before U.S. District Judge Bernard Friedman because the county didn't release all the documents he requested ? including the total worth of the severance.

Source: http://www.detroitnews.com/article/20120106/METRO/201060430/1006/rss01

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