State Comptroller Recinds Local Attorneys’ Retirement Service Credit

Since March, the State Comptroller’s Office has revoked the membership or retirement services of 26 people, many of them attorneys.
Comptroller Thomas DiNapoli says that these attorneys are contractors, not employees and two North Country names are on the list: Paul Dierdorf and Eugene Renzi.

Dierdorf is the former counsel to the Carthage School District and the Village of Adams.

When he retired in 2002, Renzi took over and both had the understanding that they would be paid a yearly salary which included a state pension.

The state comptroller’s office said that the men could not serve as employees because they did not set hours, did not keep time sheets and had no office or supervision.
Dierdorf will be required to give back some of the pension fund he has received from the state, totaling in the thousands.

Renzi said that the state will send him back the money he has paid into the pension fund since he has not retired.
Mayor of Adams Dugal Peck said it never was questioned before now and Assistant Superintendent of Carthage Mike Powers said Renzi is now a contract employee.

The comptroller’s office expects many more names to be added to the list.

Caroline Tucker reports:

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From the press release:

State Comptroller Thomas P. DiNapoli today announced his office revoked the New York State and Local Retirement System membership of three attorneys and rescinded service credit of three other attorneys from across New York.

The actions are part of DiNapoli’s ongoing review of the Retirement System.

“State pensions are strictly for employees of state and local governments,” DiNapoli said. “Independent contractors do not qualify for state pensions. We are continuing to look at lawyers in the Retirement System to ensure no one is receiving a pension they don’t deserve.”

DiNapoli revoked the memberships of Joseph Pondolfino, Thomas DeBoy and Gilbert Henoch. DiNapoli rescinded the service credit of Michael Bergan, Paul Dierdorf and Eugene Renzi.

The Village of Adams and Carthage Central School District, both in Jefferson County, incorrectly reported Dierdorf as an employee when he served as an independent contractor, allowing him to earn an annual pension of $24,720 when he retired in 2002.

Because Dierdorf earned full-time service credit from other public employers during the same period, losing service credit from the village and the district will not affect his years of service but any salary reported from the entities will be removed from his record and his pension will be recalculated.

During his time with the village and the district, Dierdorf did not have set hours, did not keep time sheets and did not receive office space or supervision from either entity.

When Dierdorf retired in 2002, Renzi was incorrectly reported as an employee by both the Village of Adams and Carthage Central School District.

Because Renzi earned full-time service credit from other public employers during the same period, losing service credit from the village and the district will not affect his years of service but any salary reported from the district will be removed from his record.

Similarly to Dierdorf, Renzi did not have set hours or keep time sheets for either the village or the district.

Renzi also did not receive office space or supervision from either entity. Other attorneys from Renzi’s law firm have filled in for Renzi at village board meetings.

DiNapoli sent letters to the individuals involved advising them of his actions and of their right to an administrative hearing. DiNapoli’s office will recoup the erroneous pension payments made to Pondolfino, Bergan and Dierdorf.

DiNapoli’s office has now revoked membership or retirement service credit for 26 individuals. In addition, DiNapoli previously suspended the pensions of two Long Island attorneys.

In March, DiNapoli announced strengthened regulations to provide clarification and guidance for local governments when they determine who is an employee.

DiNapoli’s office is providing assistance to help participating local governments determine whether an individual should be considered an employee or an independent contractor.

Those municipalities needing assistance should call 518-474-0167.