Despite plea, ex-Lower Southampton judge still collecting pension

Posted March 6, 2019
A former Lower Southampton district judge who has admitted to using his position to commit extortion and money laundering is collecting a $989 monthly taxpayer-funded pension, while a state agency determines if he is entitled to the money.

John Waltman

Under state law, John Waltman, 61, of Lower Southampton, is entitled to collect his pension while the State Employees’ Retirement System staff reviews whether the guilty plea he entered earlier this year in federal court meets the requirements for forfeiture, according to SERS spokeswoman Pam Hile.

Pennsylvania’s state pension forfeiture law only covers certain crimes under the state crimes code, and those crimes must relate to the member’s job duties to result in a potential forfeiture. The law is not triggered until a member either pleads guilty, is convicted or pleads no contest to criminal charges.

If the SERS staff review finds that Waltman pleaded guilty to an offense included in the pension forfeiture law or a “substantially similar” federal crime, the payments would immediately stop, Hile said. As a state judiciary member, Waltman also faces additional state scrutiny that could cost him his pension under the Judicial Code; a forfeiture can be triggered even if no crime has been committed, if conduct brought the judicial office into “disrepute.” 

Waltman has been receiving his pension since he retired last June, according to state records obtained through a Right to Know request. Waltman remained enrolled in SERS for a year after he was suspended without pay from his magisterial court position following his indictment on money laundering charges in December 2016. He joined the organization in 2010 when he was appointed to the district judge position.

The records show Waltman also accepted a lump sum payment of $47,746.70; members are entitled to withdraw any portion of their contributions plus 4-percent legally mandated interest compounded annually, in exchange for a reduced monthly annuity payment, Hile said.

If Waltman is forced to forfeit his pension, he is allowed to keep contributions he made into the fund without interest. Information was not available for how much Waltman could collect.

Crimes covered under Act 140

Act 140 requires forfeiture of all pension and retirement benefits by any Pennsylvania State Employee Retirement System member who commits certain crimes. Those offenses that trigger Act 140 are:

• Criminal offenses committed by a school employee against a student
• Theft by deception
• Theft by extortion
• Theft of services
• Theft by failure to make required disposition of funds received
• Forgery
• Tampering with records or identification
• Misapplication of entrusted property and property of government or financial institutions when the criminal culpability reaches the level of misdemeanor of the second degree
• Bribery in official and political matters
• Threats and other improper influence in official and political matters
• Perjury
• False swearing
• Unsworn falsification to authorities
• False reports to law enforcement authorities
• Witness or informant taking bribe
• Tampering with or fabricating physical evidence
• Tampering with public records or information
• Intimidation of witnesses or victims
• Retaliation against witness, victim or party
• Obstructing administration of law or other governmental function
• Official oppression
• Speculating or wagering on official action or information
• Crimes that would fall under the Tax Reform Code of 1971

Source: State Employees Pension System