FOR RELEASE:

DiNapoli Rescinds Retirement Service Credit of Two Attorneys

Attorneys from Central New York and Long Island Owe $195,000 Collectively

State Comptroller Thomas P. DiNapoli announced today that his office rescinded the New York State and Local Retirement System service credit of a Central New York attorney and a Long Island attorney because they were erroneously reported as employees by school districts and municipalities. The actions are part of DiNapoli’s ongoing review of the Retirement System.

“My review of attorneys in the Retirement System is turning up individuals who were incorrectly reported as employees when they acted as independent contractors,” DiNapoli said. “Erroneous pension benefits are being recouped and the money is being returned to local government employers. My review of attorneys is continuing and my office is looking at additional professional titles.”

DiNapoli’s office rescinded the service credit of Central New York attorney John Mowry and Long Island attorney A. Thomas Levin.

The review found that Mowry was incorrectly reported as an employee by Mexico Academy and Central School District and the Village of Mexico, both located in Oswego County, allowing him to earn more than 25 years of service credit. The district reported Mowry as a full-time employee for more than 25 years. The village reported Mowry as a part-time employee for eight years. The district and the village did not supervise or control how Mowry performed his work and did not provide him with office space. Mowry did not keep time sheets or work set hours. The village retained Mowry as an independent contractor both before and after the village reported him as an employee. Mowry retired in December 2002 with an annual pension of $30,958. DiNapoli’s office notified Mowry that he must repay $136,716 to the Retirement System.

The Village of North Hills incorrectly reported Levin as an employee for 19 years. The village also contracted with each law firm that employed Levin over the years. Levin did not work set hours or submit time sheets. Levin performed his work from his office at the law firm. In addition to paying his law firm, the village continued to pay Levin through the payroll system for 10 years after he retired in July 1999 with an annual pension of $9,536. DiNapoli’s office notified Levin that he must repay $59,003 to the Retirement System.

Letters were sent to the individuals involved advising them of the actions and of their right to an administrative hearing.

DiNapoli’s office now has revoked membership or retirement service credit of 48 individuals. Last year, DiNapoli announced the establishment of a Retirement Compliance Unit to actively monitor participating employers, members and retirees’ compliance with regulations and reporting requirements. The unit will correct past abuses of the Retirement System and work to prevent abuses in the future.

Last year, DiNapoli also announced strengthened regulations to provide clarification and guidance for local governments for determining who is an employee. To view a timeline of DiNapoli’s actions, visit: http://www.osc.state.ny.us/retirereformtimeline.htm.

DiNapoli’s office is providing assistance to help participating local governments determine whether an individual should be considered an employee or an independent contractor. Those municipalities needing assistance should call 518-474-0167.

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