Editorial: Corruption and pensions

Nothing erodes a citizen’s trust in our government like corruption — public employees who illegally use their positions for personal gain.

That’s why the state and county governments have adopted a dizzying thicket of laws and regulations designed to safeguard the public interest. There are rules about receiving gifts; avoiding conflicts of interest; disclosing confidential information; post-employment lobbying; entering into contracts; and many others that guide the day-to-day work of a government employee.

Arguably, these safeguards are one reason why government moves more slowly, and sometimes less efficiently, than the private sector. But they’re important. A functioning democracy depends on the support of the public, and that support is built on trust.

Senate Bill 912, S.D.1, H.D.1 aims to strengthen those safeguards by hitting a corrupt public employee where it hurts the most: pension benefits.

The measure would allow a court to order the forfeiture of one-half of the pension of an employee, former employee or retiree who is convicted of a felony that is “directly related to the employee’s position or duties.”

It could be a powerful deterrent against corruption. Most state and county employees work for regular wages; a lifetime pension, earned over many years of service, is a significant benefit.

In some cases, the punishment would be appropriate. The felony convictions of former police chief Louis Kealoha and his wife Katherine, a former deputy prosecutor, came as a shock to the system: Top law enforcement officials convicted of using their offices to break the law.

As it happens, SB 912 probably won’t affect the Kealohas’ situation: Katherine Kealoha reportedly doesn’t have a pension, and 75% of Louis’ $9,700 monthly payments is being diverted toward restitution to his victims, who are owed $237,698.

One could argue that in some cases, the punishment wouldn’t fit the crime. Under state law, a Class C felony, the least serious type, can result in a fine of up to $10,000 for a relatively manini theft; losing half a pension would cost an employee much, much more.

However, even a manini theft could cost more than the amount stolen or fine levied. Taxpayers must pay for the investigation, prosecution, settlement and cleaning up of the mess so it won’t happen again. And the bigger cost — beyond calculation, really — is the erosion of faith in our governmental institutions to work for the public good. Preventing that from happening surely is worth half a pension, at least.