Audit Report on Pedagogical Pensioners of the New York City Teachers’ Retirement System Working for the City after Retirement

The objective of this audit was to identify New York City pedagogical pensioners 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 year 2009. These individuals—known as ‘double-dippers’ or ‘disability violators’—have been re-employed by a City agency and may be illegally collecting a pension from the New York City Teachers’ Retirement System (TRS).

Audit Findings and Conclusions

The audit found that three TRS pensioners appeared to violate RSSL §211 – §212 or New York City Charter §1117. Two pensioners appeared to violate RSSL §211 – §212 as they were under age 65 and received City wages exceeding the limitations without having a waiver on file, while one additional pensioner appeared to violate §1117 of the New York City Charter, which prohibits a TRS disability retiree from earning more than $1,800 a year (including pension payments) in New York public service unless the retiree’s disability pension is suspended during the time of such employment. These three individuals possibly received $27,487 in pension over payments during 2009.

Audit Recommendations

The audit made three recommendations that TRS officials should:
Investigate those individuals identified in this report and, if in violation of State or City regulations, commence recoupment action against said individuals.
Forward to the Department of Investigation, if the circumstances warrant such action, the names of individuals found to be illegally collecting pensions.
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.

TRS Response

TRS officials agreed with the three recommendations and indicated that they have taken steps to recoup the overpayments.