Former Williamsport City Manager Loses Pension Benefits

WILLIAMSPORT — A former city manager of Williamsport, who has a felony conviction, will no longer receive any city benefits.

After a 45-minute executive meeting on Wednesday, the City Officers and Employees Pension Commission voted to revoke William E. Nichols Jr.’s pension and demanded he repay $33,356 that he has received since his sentencing on May 5 in Harrisburg.

With his pension canceled, Nichols loses medical benefits provided by the city and must repay any expenses incurred since May.

The decision to revoke Nichols’ pension was made with a 6-1 vote, and although it halts future benefits, it does not affect the benefits he received before this decision. Only one member, former public works official William Schweikert, voted against the motion.

According to the Public Pension Forfeiture Act, pensions can be revoked for felony convictions.

Nichols pleaded guilty in a Dauphin County court to charges of theft by deception and falsifying a public document, brought forth by the state attorney general’s office.

He received a sentence of one year probation from Dauphin County Chief Judge Scott A. Evans, who did not require him to pay restitution. During sentencing, Nichols expressed gratitude for his contributions to the city, which left some city officials displeased.

At 72, Nichols had a long career, serving as the general manager of River Valley Transit (RVT) for 42 years, including a stint as the city’s finance director.

It’s noteworthy that both the state attorney general’s office during the indictment and Judge Evans at sentencing mentioned that Nichols did not personally benefit from the misappropriation of grant funds from 2013 to 2020.

Due to the investigation into Nichols, the city now faces an obligation to repay the Federal Transit Administration $1.4 million for improperly spent funds.

There was tension between Nichols and Mayor Derek Slaughter, leading to Nichols’ termination at the start of the mayor’s term in January 2020.

The statewide grand jury revealed that Nichols was able to hold multiple positions over extended periods, effectively providing himself with little oversight.

The grand jury’s findings indicated that Nichols, who had served under eight mayors, engaged in actions to hide misappropriation of funds and authorized improper payments to city employees for work they did not perform, among other financial misconduct.

• He misused public funds for Hiawatha, a mock paddle steamer on the Susquehanna River.
• He solicited donations from nearly all vendors he dealt with.
• He misreported financial information to create a misleading picture of the city’s transactions.

Nichols’ situation is still developing. The Pensions Commission is currently looking into whether he can reclaim funds he contributed to the pension fund.

His attorney, Helen A. Strinas, contended that only a court can mandate restitution, a step the judge did not take. Meanwhile, Justin Hauser, representing the pension board, argued that the law permits repayment of misappropriated funds.

Online court records indicate that Nichols has already paid $1,668 in costs and fees tied to his case.