New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending September 2, 2017

New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending September 2, 2017

Source: Office of the State Comptroller

Click on text highlighted in color  to access the full report

Town clerk pleads guilty to attempting to increase her ERS retirement benefits 

On August 30, 2017, Springport Town Clerk Deborah Waldron pleaded guilty in Aurelius Town Court to official misconduct and attempted computer trespass, and agreed to resign for her attempts to boost her state retirement benefits by using a town computer, State Comptroller Thomas P. DiNapoli said. 

Waldron, 62, a 25-year town employee, was initially charged in May following an investigation by the Comptroller, New York State Police and the Cayuga County District Attorney’s office. Her actions were exposed during the Comptroller’s review of Springport’s monthly retirement reports. When DiNapoli’s office re-calculated her actual hours and benefits, it prevented Waldron from receiving extra money she did not earn. 

"This case is a warning to any public employee who falsifies retirement records: You are risking arrest and tarnishing your reputation," DiNapoli said. "I hope this case will deter others who attempt to defraud the New York State and Local Retirement System. I thank Cayuga County District Attorney Jon E. Budelmann for partnering with us to protect our retirement system." 

Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at investigations@osc.state.ny.us, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 14th Floor, 110 State St., Albany, NY 12236. Review prior cases at http://www.osc.state.ny.us/investigations/index.htm.

Employer contributions on behalf of employees will decrease for the State's 2017-2018 fiscal year

Employer contribution rates for the New York State and Local Retirement System (NYSLRS) in State Fiscal Year 2018-19 will decrease from State Fiscal Year 2017-18, New York State Comptroller Thomas P. DiNapoli announced today.

The estimated average contribution rate for the Employees’ Retirement System (ERS) will decrease from 15.3 percent of payroll to 14.9 percent of payroll. The estimated average contribution rate for the Police and Fire Retirement System (PFRS) will decrease from 24.4 percent to 23.5 percent of payroll. 

"We’ve had strong recent investment returns that have helped keep rates stable," DiNapoli said. "Stable rates are very important to our employers and provide the predictability they need to plan for their future budgets. Prudent management helps keep New York State’s pension fund one of the strongest and best funded in the country and allows our public workforce to retire with security."

The investment rate of return was 11.48 percent as of March 31, 2017, the end of the fiscal year for the state pension fund.

Employer rates are determined based on actuarial assumptions recommended by the Retirement System’s Actuary and approved by DiNapoli. A copy of the Actuary’s report can be found here.

In 2015, the Actuary conducted a review of the Systems’ economic and demographic experience for the prior five years. The Actuary proposed assumptions and methods for the actuarial valuations, which were adopted by DiNapoli. Based on that report, DiNapoli lowered the assumed rate of return in 2015 from 7.5 percent to 7 percent. The median assumed rate of return among public pension funds is 7.5, according to a February 2017 brief issued by the National Association of State Retirement Administrators.

In 2012, DiNapoli began providing employers with access to a two-year projection of their annual pension bill six weeks earlier than in previous years. Employers use this projection for preparation of their local budgets.

Projections of required contributions vary by employer depending on factors such as retirement plans, salaries and the distribution of their employees among the six retirement tiers. 

There are more than 3,000 participating employers in ERS and PFRS, and 335 different plan combinations.

Payments based on the new rates are due by Feb. 1, 2019, but may be pre-paid by Dec. 15, 2018.

In April, the Pew Charitable Trusts public policy foundation ranked New York’s pension system as the third best funded retirement system among states.

Read the report, or go to: http://osc.state.ny.us/retire/word_and_pdf_documents/reports/actuarial_assumption/aa_2017.pdf.

See a chart of historical employer contribution rates, visit: http://osc.state.ny.us/pension/images/emplyr_contribution_rates.pdf.
 

A stipulation waiving rights to a disciplinary hearing and agreement to resign from the position may not disqualify the individual for Unemployment Insurance benefits

A stipulation waiving rights to a disciplinary hearing and agreement to resign from the position may not disqualify the individual for Unemployment Insurance benefits

2017 NY Slip Op 05885, Appellate Division, Third Department

As a general rule, a claimant for unemployment insurance benefits who voluntarily leaves his or her employment without good cause or who engages in disqualifying misconduct is ineligible to receive such benefits.

In contrast, courts have held that "[a] claimant who voluntarily leaves his or her position in the face of disciplinary charges may qualify for unemployment benefits if the actions did not amount to misconduct."* Further, as the court ruled in Matter of Oberman [New York City Dept. of Citywide Admin. Servs.—Commissioner of Labor], 143 AD3d 1022, whether a claimant for unemployment insurance benefits has engaged in disqualifying misconduct "is a factual question for the Board to resolve and its determination will not be disturbed if supported by substantial evidence."

In this case the employee [Claimant], who was in the public service, was confronted with various disciplinary charges over a period of time. Ulimately Claimant and the public employer entered into a "stipulation of settlement" resolving the most recent round of alleged disciplinary infractions.** The stipulation provided that Claimant would waive her right to a Civil Service Law §75 disciplinary hearing and would resign from the position by a specified date. In addition, it was stipulated that Claimant "would be allowed to collect her accrued annual leave and, going forward, would receive a 'neutral reference' from the employer."***

Claimant then filed an application for unemployment insurance benefits. The Department of Labor issued initial administrative determinations disqualifying claimant from receiving benefits upon the grounds that she had voluntarily left her employment without good cause or, in the alternative, lost her employment due to misconduct. Claimant appealed the administrative rulings.

An Unemployment Insurance Administrative Law Judge [ALJ] overruled the initial determinations, finding that Claimant "had good cause to separate from her employment and had not otherwise committed disqualifying misconduct." The ALJ also determined that Claimant "had been subject to a hostile work environment."

Ultimately the Unemployment Insurance Appeal Board adopted the ALJ's findings and affirmed the ALJ's decision, rejecting the employer's challenge to the ALJ's ruling granting Claimant unemployment insurance benefits.

The Appellate Division sustained the Board's decision, noting that the stipulation of settlement entered into between Claimant and the employer contained no finding or admission of wrongdoing with respect to the Claimant, holding that the Board credited Claimant's testimony as to the nature of her work environment and her reasons for resigning.

Further, said the court, the Board agreed with the ALJ's findings that Claimant's actions did not rise to the level of disqualifying misconduct but, rather, were undertaken in direct response to her "hostile" and "untenable" work environment — an environment that, in turn, provided her with "a compelling reason for her to resign."

The Appellate Division said that as there was substantial evidence to support the Board's decision regarding Claimant's application for unemployment insurance benefits, "it will not be disturbed notwithstanding the presence of other evidence in the record that could support a contrary conclusion."

* See Matter of Jimenez [New York County Dist. Attorney's Off.—Commissioner of Labor], 20 AD3d 843.

** The stipulation of settlement contained no admission of misconduct, and no finding of wrongdoing on the part of Claimant was made.

*** The decision notes that provided that Claimant would be given a "neutral reference" should a prospective employer contact the agency for such a purpose. In contrast, Education Law §1133.1 provides that “[a] school administrator or superintendent shall not make any agreement to withhold from law enforcement authorities, the superintendent or the commissioner, where appropriate, the fact that an allegation of child abuse in an educational setting on the part of any employee or volunteer as required by Article 23-B of the Education Law in return for the resignation or voluntary suspension from his or her position of such person, against whom the allegation is made.

The decision is posted on the Internet at:

http://www.nycourts.gov/reporter/3dseries/2017/2017_05885.htm

Filing disciplinary charges against an employee where the absence is due to an injury or disease

Filing disciplinary charges against an employee where the absence is due to an injury or disease

OATH Index No. 648/17

An appointing authority may serve an employee of the State* as the employer  with disciplinary charges alleging he or she is guilty of "excessive absence." It is typically inappropriate to do so, however, when the employee is eligible for Workers' Compensation Leave pursuant to §71 of the Civil Service Law or Leave for Ordinary Disability pursuant to §72 of the Civil Service Law.

Civil Service Law §71 provides for leaves of absence in the event an employee’s injury or disease is “work connected” and is typically referred to as “workers’ compensation leave. §72 of the Civil Service Law provides for leaves in situations where the employee’s injury or disease is not job related and is usually designated “leave for ordinary disability.” §73 of the Civil Service Law provides for the termination of an employee absent on §72 leave while termination of leave in §71 situations is authorized by §71 itself.**

Significantly neither termination pursuant to §71 nor §73 is pejorative in nature and the individual is eligible for reinstatement to his or her former position, or a similar position, upon timely application once the underlying cause of his or her absence abates.

a. Workers’ Compensation Leave, §71 of the Civil Service Law, “stands alone” with respect to placement on such leave and termination from, and subsequent reinstatement following such termination from §71;

b. Civil Service Law §72, Leave for Ordinary Disability, provides for such leave and reinstatement from such leave while §73 of the Civil Service Law provides for termination from a §72 leave and subsequent reinstatement after such termination; and

c. Termination from §71 or §72 leave once the minimum periods of such leaves are satisfied is at the discretion of the appointing authority.

It should be noted that although the employee must be absent on leave pursuant to §72 continuously for period of one year to trigger the appointing authority’s ability to elect to terminate the individual pursuant to §73, the appointing authority may, as an exercise of discretion, terminate an employee absent on §71 Worker’s Compensation Leave after he or she has been absent on such leave due to the same injury or disease for an “accumulative period” of one year or longer.

Further, where an employee is placed on §71 Workers’ Compensation Leave because of a disability resulting from an assault sustained in the course of his or her employment, he or she is entitled to a leave of absence for an “accumulative period” of at least two years.

In any event, neither §71 nor §72 requires the termination of the employee after he or she has been absent for the requisite minimum period of such a leave. Such termination effected as the result of an appointing authority's exercising a right of discretion to do so.

This issue was recently addressed by New York City Office of Administrative Tribunals and Hearings [OATH] Administrative Law Judge Kara J. Miller as the result of a New York City construction worker being charged with incompetence pursuant to §75 of the Civil Service Law due to "excessive absence."

The record, however, established that the employee's absence was due to an occupational injury which resulted in his being "out on worker’s compensation" for more than one year. ALJ Miller recommended that the worker be separated from employment pursuant to Civil Service Law §71 because his extended absence resulted exclusively from an occupational injury.

Indeed, in Gooshaw v Village of Massena, 216 AD2d 819, the Appellate Division said that it is inappropriate to file disciplinary charges against an individual who is unable to report for work because of his or her conceded disability.

* Although not all employees of the State are State officers, all officers of the State are employees of the State.

** See 4 NYCRR 21.3(e) and 4 NYCRR 21.8, both of which apply to employees of the State as an employer. Many local civil service commissions and personnel officers have adopted similar rules or regulations.

The decision is posted on the Internet at:

http://archive.citylaw.org/wp-content/uploads/sites/17/oath/17_cases/17-648.pdf

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