Audit Report on New York City Pensioners Working for New York State after Retirement

AUDIT REPORT IN BRIEF

The Comptroller’s Office performed an audit to identify New York City pensioners who may be illegally re-employed by New York State ("double-dippers" or "disability violators"), and to quantify the amounts of any improper pension payments to individuals who appear to be violators of New York State Retirement and Social Security Law (RSSL) § 211 and § 212, or New York City Charter § 1117, during calendar years 2001 (BERS and NYCERS) and 2002 (all five New York City Retirement Systems).

The audit found that 44 pensioners who received $802,289 in pension payments during 2001 and 2002 that appear to violate applicable sections of State and City laws. These pensioners were in apparent violation of RSSL § 211 or § 212 because they were under the age 70 in 2001 or under age 65 in 2002 and received excess State wages above the limitations without having a waiver on file at one of the five City retirement systems, or were in violation of § 1117 of the New York City Charter because they were collecting disability pensions while earning more than $1,800 (including pension payments) a year at a New York State agency and were past their applicable anniversary dates.

To address these issues the report recommended that officials of each of the five New York City retirement systems:

• Investigate those individuals identified as concurrently receiving pensions while being re-employed in New York State public service. City retirement system officials should also commence prompt recoupment action against those individuals found to be illegally collecting pensions.
• Forward to the Department of Investigation, if the circumstances warrant such action, the names of those individuals found to be illegally collecting pensions.
• Ascertain whether previous pension overpayments have been recouped and whether current pensions have been suspended for those individuals who have been cited in previous audits as "double-dippers" or "disability violators."
• Send special reminders to service retirees under the age of 65 and to all disability retirees that clearly state their responsibilities regarding public service re-employment.