Pension Fraud Probe Extended To Every School District
Posted on Thursday, 15 of May , 2008 at 5:55 pm
NEW YORK—A public hearing on employment arrangements at Long Island school districts will be held as part of Attorney General Andrew Cuomo’s statewide investigation into pension fraud in New York’s school districts, local governments, and special districts.The hearing will be held in conjunction with members of the New York State Senate and Assembly.
Cuomo also announced a broad expansion of his investigation into “double dipping” by seeking information from all 685 school districts in New York State regarding the hiring of retired individuals who are already receiving public pensions. Cuomo previously sought such information from all school districts on Long Island.
“New Yorkers need to know that their tax dollars are not being wasted on state benefits for those who do not deserve them,” said Cuomo. “We are expanding our investigation to determine whether ‘double dippers’ engaged in any fraudulent activities and we are holding a public hearing to shine a light on questionable employment practices in our school districts. The fraud that this investigation has already uncovered is inexcusable, and it’s going to end now.”
The Attorney General’s office is investigating the practice of school districts permitting employees to “double dip,” allowing them to earn both salaries and pensions simultaneously. The Attorney General’s office will now be examining whether this is a proper use of public funds, whether these practices and their implementation violate existing laws and regulations, and whether existing law needs to be clarified as to these practices.
The Office of the Attorney General is sending a letter to every school district in the State seeking information about these “double dipping” practices. The letter requests:
–The identity of all current employees who are receiving public pensions in addition to their salaries, as well as the amounts of their salaries and pensions;
–Whether districts specifically classified these employees in a manner intended to permit them to collect both their salaries and pensions simultaneously;
–Whether the districts can document a real need to hire retired individuals as opposed to otherwise qualified non-retired individuals;
–The cost to the public of paying both the salaries and the pensions of these employees; and
–Any and all communications, including applications and certifications, between the districts and any state agencies concerning the employment of the specified employees who were already receiving pensions.
On May 22, Attorney General Cuomo will preside over a public hearing where he will hear testimony related to his statewide investigation into pension fraud. The Attorney General will be joined at the hearing by New York State Senate Deputy Majority Leader Dean Skelos, Assemblymember Robert Sweeney, Senator Kenneth LaValle, and Assemblymember Earlene Hooper. These legislators were designated by the Senate Majority Leader and the Speaker of the Assembly. 5-15-08
Category: Business, Education, Government, Insurance, New York State
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