Double Payment For New York Educators
Wednesday, October 15th, 2008Some retired New York state educators were using a loophole in the law to collect a paycheck for returning to fill holes in the employment roster as well as receiving their pensions. The governor of the state has said no more and on Friday will be signing a bill that will close up the ability to partake in such a practice. Wanting those who have experience to fill the employment openings has lead to a gross overexpendature.
The new law requires school districts and public agencies to wait a year before hiring a retired worker into the same or similar position. Previously, there was no waiting period, although some New York City agencies like the Administration for Children’s Services had adopted a one-year waiting period on their own. In addition, school districts and agencies will now be required to show more extensive documentation that they tried to recruit nonretirees for the positions.
State Attorney General Andrew M. Cuomo, whose investigations into pension fraud in school districts led to the new law, said school superintendents and others had routinely abused the pension system this way. “This was a great game of taxpayer abuse for many years,” he said in a telephone interview on Tuesday, “and if you follow the money, you end up at the state pension fund.”
The new law has some educators concerned that they may have an even tougher time hiring competent talent to fill empty positions. Robert Lowry, the deputy director of the New York State Council of School Superintendents had these suggestions on how to make the law work best for everyone:
Mr. Lowry said school districts often have little choice but to hire retirees, and can even save money because they do not have to make pension contributions for retirees, and may not have to pay health benefits, either. He suggested a narrower approach, such as applying the one-year waiting period only to a retiree’s last district, limiting interim appointments to one year and requiring school districts to show that hiring a retiree saved money.










