FOR RELEASE:

Long Island and Erie Country Lawyers' Retirement System Memberships Revoked

Two attorneys, Carol Hoffman and Phillip Brothman, had their Retirement System memberships revoked because they were erroneously reported as employees by school districts, State Comptroller Thomas P. DiNapoli announced today. DiNapoli also notified Brothman that he must repay $24,077 in pension benefits to the Retirement System. The actions are part of DiNapoli’s ongoing review of the Retirement System.

“Our review of lawyers in the Retirement System is finding people who should not be members of the System,” DiNapoli said. “Ms. Hoffman and Mr. Brothman are just the latest examples. Our review will not stop until we are sure there are no individuals improperly taking advantage of the Retirement System.”

Hoffman earned nearly 15 years of service credit from four school districts in Long Island that incorrectly reported her as an employee when she was actually an independent contractor. Bethpage Union Free School District, Lawrence UFSD, East Rockaway UFSD and Plainedge UFSD reported Hoffman for periods ranging from three to six years. Hoffman did have some creditable service from other employers but it was not enough service to vest her in the Retirement System.

DiNapoli’s review found that Bethpage UFSD also contracted with Hoffman’s law firm during the time it reported Hoffman as a full-time employee. The district stopped reporting Hoffman to the Retirement System in 2003 and paid subsequent legal fees directly to her law firm. Lawrence UFSD also paid Hoffman’s law firm legal fees while the district reported Hoffman as a part-time employee to the System. Plainedge UFSD reported Hoffman as a full-time employee from Aug. 1983 through Jun. 1987.

The districts did not control or supervise Hoffman’s work or provide her with office space. Hoffman did not work set hours or maintain timesheets at any of the districts.

Evants-Brandt Central School District, also known as Lake Shore Central School District, located in Erie County incorrectly reported Brothman as a full-time employee when he actually served as an independent contractor for 37 years. Brothman owes the Retirement System $24,077 for pension benefits he received after he retired in July 2006 with an annual pension of $11,468.

DiNapoli’s review determined Brothman worked out of his own law office and Brothman’s law firm now provides the same services to the district as an independent contractor. The district did not control Brothman’s work or complete performance evaluations for him. Brothman did not work set hours.

DiNapoli sent letters to the individuals involved advising them of his actions and of their right to an administrative hearing.

DiNapoli’s office has now revoked membership or retirement service credit for 35 individuals. In March, DiNapoli announced strengthened regulations to provide clarification and guidance for local governments when they determine who is an employee. Click here to view DiNapoli's past actions.

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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