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Over $104,000 In Retirement Settlement Money To The State Pension Fund And Local Governments

Over $104,000 In Retirement Settlement Money To The State Pension Fund And Local Governments
Source: Joint Press Release; Office of the State Comptroller; Office of the Attorney General

In a press release dated December 5, 2008, Attorney General Andrew M. Cuomo and State Comptroller Thomas P. DiNapoli announced that $104,231.15 collected by the Attorney General has been returned to the New York State and Local Retirement System. The funds come from settlements Attorney General Cuomo reached with Long Island, Capital Region and St. Lawrence County attorneys who were wrongly classified as employees at school districts and Boards of Cooperative Education Services (BOCES) and thereafter erroneously received pension payments.

Attorney General Cuomo?s ongoing statewide investigation of pension abuse includes more than 4,000 local governments and special districts across New York State, all school districts, and the 37 BOCES.

The investigation has already revealed that many lawyers had improperly remained on public payrolls for such extended periods of time, or were included on the payrolls of so many public sector employers simultaneously, that they accumulated substantial credits in the New York State pension system. To date, Attorney General Cuomo?s investigation into fraud and abuse in the public pension systems has resulted in more than $1.5 million in settlements involving the conduct of more than 65 attorneys.

Comptroller DiNapoli?s office has now revoked membership or retirement service credit for 40 individuals. Comptroller DiNapoli recently announced the establishment of a Retirement Compliance Unit to actively monitor participating employers?, members? and retirees? compliance with regulations and reporting requirements. The unit, headed by former City of Albany Comptroller Thomas Nitido, will correct past abuses of the Retirement System and work to prevent abuses in the future.

DiNapoli said the $104,231.15 will be used to make whole the pension fund and, where appropriate, pay back local governments for contributions made to the pension fund on behalf of these attorneys. Employers will see a credit for the money on their 2010 Retirement System invoices, which will be mailed in November 2009.

In March, DiNapoli announced regulations clarifying long-standing requirements for inclusion in the Retirement System and providing guidance for local governments seeking to determine the difference between employees and independent contractors. To view a timeline of DiNapoli?s actions, visit:

http://www.osc.state.ny.us/retirereformtimeline.htm.
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Full post as published by New York Public Personnel Law on December 05, 2008 (boomark / email).