You impugned my integrity

Friday, January 19, 2007
Letters to the Editor
The Jersey Journal

I do not respond to every negative or inaccurate article that your newspaper prints about me, but Jarrett Renshaw's article on the City's Deferred Compensation Board published on Monday, Jan. 8, requires an exception to my general rule.

Prior to Monday, none of your articles had impugned my integrity; indeed in my 56 years on earth in this city in this county, as a father, husband, assistant prosecutor, criminal defense attorney, chief judge, city councilman, and now mayor of our city, no one has ever questioned my honesty or integrity save your newspaper.

The headlines and general tone of Mr. Renshaw's article implied that I had interceded on behalf of the former police chief's half brother's client, The Hartford Group, and tried to steer the contract to The Hartford Group. Nothing could be further from the truth. I received information that Hartford and another bidder were rejected by the board based on alleged deficiencies which in fact did not exist. My intercession was an effort to insure that the selection process was open and fair to all five bidders including Hartford. My ultimate goal was to insure to the best of my ability, that the best deal for the city and its employees would be chosen by the board.

To that end, I wrote the following short memo to Paul Soyka, the city's finance director on June 15, 2006:

"Please use your considerable knowledge of finances and investments to review, advise, and assist the deferred compensation trustees as they move towards their final decision on the City's plan provider for the next few years.

"As you know, this is an important decision that directly impacts the future finances of our City employees. It is urgent that our trustees are provided with all available relevant information and given any guidance they seek to enable them to make the best decision."

All board members and the plan administrator were forwarded copies of that memo. My purpose in writing to the finance director was not to strip the plan administrator's or anyone else's role in this decision, it was merely to urge that the board pick the best provider for the city. In fact, Mr. Renshaw's article in this regard, led me to peruse the City Council's resolutions on this subject passed in 1998 and 2001. These make clear that the ultimate decision on this contract is to be made by the City Council, after the board votes and based on the business administrator's final decision, not the plan administrator's decision.

Finally, as a result of my request and Mr. Soyka's intercession, several of the proposals have been modified to afford the city and its employee's greater savings and benefits.

MAYOR JERRAMIAH T. HEALY JERSEY CITY

Is this something you got from the Speedy Delivery Man? or was it Mr. McFeely

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Sorry grovepath, you think it's these wool sweaters i always wear that make me itch?

The Mr. Rogers that I know would never talk about a "bad case of crabs"

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This Troy guy is like a bad case of crabs,we can't get rid of him.

What the hell does he have on jerry healy,naked pictures.Oh,thats right everyone has those.

The integrity of this city with its council staff was flushed down the toilet years ago, and this is just another classic example of kick backs and more then likely, secret commissions from private corporations.
How in the hell does an ex-cop become a expert on money management and why even employ a finance director in the first place if Healy wants to influence proceedings.

I'd laugh my head off if all the (city employees) retirement money was lost to poor management - it would be poetic justice for the citizens of JC.

Say mayor tried stripping plan official's role
Monday, January 08, 2007

Jersey City Mayor Jerramiah Healy sought to prevent the administrator of the city's deferred compensation plan from playing a key role in deciding which firm will manage that plan, sources said.

Stephen McGuire, the city's deferred compensation administrator, sent a memo in June outlining why the trustees on the city's Deferred Compensation Board had voted to eliminate the Hartford Financial Group and its partner, the Freeman/DeHayes Financial Group, from consideration in managing $100 million in city employee retirement funds. The Hartford-Freeman/DeHayes proposal would cost too much, he wrote.

But just days later, Mayor Jerramiah Healy - acting after conferring with former Police Chief Robert Troy, half-brother of a partner in Freeman/DeHayes - put Hartford-Freeman/DeHayes back into consideration. Healy then began looking for a way to take away McGuire's power to make a recommendation on the city's retirement plan provider, sources said.

The City Council has the final say in whether to accept or reject McGuire's recommendation, but such recommendations are almost always followed.

A memo from the city's finance director to city attorney Milton Bouhoutsos obtained by The Jersey Journal reads:

"Thanks for letting me know . that you had spoken with Mayor Healy to confirm his request that our deferred compensation trustees, and only our five deferred compensation trustees, be given the legal right to make all decisions regarding the city's deferred compensation plan," the memo said, with the word "only" underlined.

The deferred compensation trustees are appointed by the mayor, but McGuire has served in his capacity for more than a decade.

Healy said the moves against McGuire had nothing to do with Troy or his half-brother, James Freeman. Instead, Healy said, he was attempting to prevent McGuire from "steering" the contract toward Prudential Financial - which currently holds the contract. Healy said he wanted all bidders for the contract fairly considered, and in fact he also reinstated MetLife after it too had been rejected by the board.

Apparently, Healy could find no legal way to block McGuire from making his recommendation. Healy spokeswoman Maria Pignataro said, as it stands now, McGuire will still be making that recommendation.

JARRETT RENSHAW

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Firm of ex-chief's bro back on table
City employees' retirement fund pact at stake
Monday, January 08, 2007
By JARRETT RENSHAW
JOURNAL STAFF WRITER

The half-brother of Jersey City's former top cop, Robert Troy, is back in the running for a lucrative contract to help manage tens of millions of dollars in city employees' private retirement funds - even after an advisory board in June booted his company from consideration.

James Freeman, Troy's half-brother, is a partner in the Freeman/DeHayes Financial Group, which is paired with the Hartford Financial Services Group in a bid for a lucrative city contract to manage over $100 million in city employees' retirement funds.

In June, the city's little-known Deferred Compensation Board - whose members are appointed by the mayor - eliminated Hartford and Freeman/DeHayes from consideration, saying their services were too expensive.

But Jersey City Mayor Jerramiah Healy brought Freeman's proposal back from the dead after discussing the issue with Troy, an investigation by The Jersey Journal revealed.

Troy, who retired as police chief in June, is a close friend of the mayor and continues to play a role in the current administration.

Sources said the Freeman/DeHayes Financial Group stands to make more than $300,000 annually if it is awarded the contract. It could not be learned what the other firms seeking the contract would make.

For the past year, the city has been going through a selection process to choose a firm to manage its $100 million deferred compensation program fund, which invests money for more than 2,000 employees - both active and retired - who participate in the plan.

The city is deciding between Prudential Financial, which currently manages the plan, and four other firms. In June, the Deferred Compensation Board voted to reject Hartford-Freeman/DeHayes, as well as MetLife, leaving Prudential, Nationwide and Diversified.

The city's plan administrator, Stephen McGuire, issued a memo to Business Administrator Brian O'Reilly following the board's vote in June, saying the Hartford proposal would cost city employees "between $309,500 and $563,200 annually."

But just five days later, Healy issued a memo to city Director of Finance Paul Soyka, that urged him to put both Hartford-Freeman/DeHayes and MetLife back into consideration. Troy had already retired when the memo was sent.

Healy said he had discussed the matter several times with Troy, but said his decision had nothing to do with the fact that the former chief's half-brother is a partner in Freeman/DeHayes.

"As mayor, I have always made decisions that I feel are in the best interest of the city, and this was no different . I talked to Bobby about it, and he told me there were things that the board was not looking at," Healy said.

The mayor said that he feared that McGuire was not providing a full picture to the board because he preferred Prudential and was "steering" the contract toward that company.

But McGuire - who has been in his position for more than a decade - said it was the board, not him, who voted to throw the companies out of contention.

He said removing the two firms was a "proper" decision then and "remains the right decision."

Freeman refused to comment, hanging up the phone when called at his office. Troy refused to comment.

A Hartford spokesman would only say the proposal will be "reviewed on its merits."

The city is still evaluating the proposals and it is unclear when a final decision will be made.

The Deferred Compensation Board serves as an advisory board to McGuire, who will make a recommendation to City Council, which has the final say. Sources said that recommendation is almost always followed.