HR: New York lawyer's pension revoked

George Lipp, an attorney from Long Island, has been recieving a pension from New York state for his service to a number of state insitutions including Babylon Union Free School District, Island Trees Central School District and Levittown Central School District.

But although each of those Districts reported Lipp as an employee he was, in fact, an independent contractor and therefore not entitled to join the state pension scheme.

Lipp did not work fixed hours or keep time-sheets at any of the districts and he worked from his private law office. The districts also did not supervise or direct how Lipp performed his work activities.

Babylon Union Free School District retained Lipp as an independent contractor for about seven years before he was reported as an employee by the school district starting in 1973 after Lipp asked the district to provide him with retirement benefits. Lipp continued to provide legal services to the district as an independent contractor for five years after he retired. Lipp retired in 1983 with an annual pension of USD9,321 and nearly 16 years of accumulated service credit.

DiNapoli’s office notified Lipp that he must repay USD82,209 to the Retirement System and advised him of his right to an administrative hearing. Section 213 of the Civil Practice Law and Rules generally limits civil recoveries, such as this, to six years. DiNapoli is working with Attorney General Cuomo to determine if any additional recovery may be possible in appropriate cases.

Lipp is not the only one found to have been receiving pensions to which he is not entitled: the Comptroller's office has now revoked membership or retirement service credit for 40 individuals and recently announced the establishment of a Retirement Compliance Unit to actively monitor participating employers, members and retirees’ compliance with regulations and reporting requirements.