Ronnie Polaneczky: Agency finds financial help in workers' pension plans

February 22, 2011|By Ronnie Polaneczky, Daily News Columnist

USUALLY, WHEN an organization needs cash to make ends meet, it borrows money from a bank. They negotiate the loan's amount, interest rate and timeline of payback.

At the Consortium Inc., run by longtime Philadelphia politician and public servant John White, things aren't so easy to track.

For at least the past year, the cash-strapped West Philly-based community mental-health agency has been using employee money to help make ends meet. The problem is, no one asked workers' permission, and no one seems to know when it will be returned.

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"This is like stealing," said an employee who contacted me after being stonewalled by Consortium administrators for an explanation about why pension payments haven't been fully deposited into retirement accounts, as required by federal law. Of the nearly $10,000 voluntarily deducted from the employee's 2010 salary, only about half has shown up in the account.

"I lost out on interest and dividends," said the employee, who asked to be kept anonymous. "They can't just take our money when they need it."

Pension accounts aren't the only places Consortium's 300-plus workers have been affected by the nonprofit's financial woes.

Last month, they were stunned to receive medical bills for services normally covered by insurance provider Aetna, which alerted them that the Consortium hadn't paid premiums since the fall. They were told they'd be responsible for all medical costs dating from Nov. 1.

Dental premiums also went unpaid, as did dues to health-care union AFSCME 1199c, to which some workers belong.

Employees weren't promptly alerted to the stoppages, even though money continued to be deducted from their paychecks to cover their benefits.

Worse, when employees started demanding answers from the Consortium, in e-mails CC'd to the entire organization, they were scolded by an administrator for using the e-mail system to "blog" about their gripes. If they didn't cease with the CCs, they were warned, e-mail access would be suspended.

This, from a nonprofit whose website touts "respect" and "hope" as core assets.


 

John White Jr. knows a thing or two about running things.

He's a respected former state representative, state secretary of public welfare, city councilman, mayoral candidate and Philadelphia Housing Authority chief. Since 2001, he's led the Consortium, which treats about 10,000 patients a year.

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