Updated: Pension Board Subtracts Year of Service From Iossa

Updated with information from the treasury department saying the ruling does not affect Iossa's monthly benefit. It is not yet known how retroactive raises, if awarded when the police union reaches a contract agreement with the borough, would affect the amount.

A state pension board on Monday reduced by one year the years of service used to calculate the pension of a retired Madison police officer because of allegations the officer stole small amounts of cash from the police locker room, a state treasury department spokesman said.

The ruling by the Police and Firemen's Retirement System Board of Trustees followed a public Honorable Service hearing for Peter Iossa, a sergeant who retired effective Jan. 1.

The hearing was held during the board's meeting on Monday morning in Trenton.

Iossa was receiving a monthly pension benefit of $4,342.50 based on his 23 years and five months of service. Going forward, the benefit would be based on 22 years and five months of service. The difference in the pension amount wasn't immediately known.

(Update: The treasury department said the monthly benefit would not change because his salary was the same at both points in his career—$104,220—and his pension calculation only considered he has more than 20 years of service. It wasn't immediately known how retroactive raises, if awarded to police officers once the union reaches a contract agreement with the borough, would affect Iossa's pension.)

William Claxton, who is representing Iossa, said Monday evening he wanted to verify aspects of the ruling with the treasury department before commenting.

Bill Quinn, treasury department spokesman, said it was represented during the hearing that it was Iossa's understanding officers could take some money if needed.

The police department had a camera set up and allegedly documented Iossa taking money, according to testimony at the hearing, Quinn said.

Iossa has the right to appeal the board's decision.

Iossa regularly made the most DWI arrests in the borough and in 2010 made more DWI arrests than any other officer in Morris County. He after . Officials had not said why Iossa was placed on administrative leave.