August 27, 2008

Weitzman moves to revoke lifetime health benefits following State’s ruling

that attorney was NOT entitled to pension

             Nassau County Comptroller Howard Weitzman today said he has started the process to revoke lifetime health benefits for Albert D’Agostino, a Valley Stream attorney who had been improperly classified as a County employee. Mr. D’Agostino was an independent contractor, not an employee, State Comptroller Tom DiNapoli has found.

             “In light of the State Comptroller’s ruling, Mr. D’Agostino should not have been receiving a County-taxpayer-funded pension and health benefits,” Comptroller Weitzman said.

             In 1999 D’Agostino applied for and was given over 21 years’ worth of retroactive pension credits from the New York State pension system, qualifying him for retiree lifetime health benefits, courtesy of Nassau County taxpayers. Weitzman today announced he will terminate these health benefits and seek reimbursement for the almost eight years of family health benefits D’Agostino has already received.

              “I applaud State Comptroller DiNapoli’s ruling to revoke Mr. D’Agostino’s pension credits and recover what is owed to the State,” said Weitzman.

             The State Comptroller’s Office stated that the County will be issued a refund of employer pension contributions, which Weitzman stated totaled approximately $177,000. Weitzman said the estimated cost to County taxpayers for the retiree health benefits was $91,669.  With interest, the total amount repaid to County taxpayers from the State (for pension contributions) and from Mr. D’Agostino (for health benefit contributions) will be approximately $431,000

             “County taxpayers deserve to be made whole from this unfair claim on their pocketbooks,” said Weitzman.

D’Agostino worked under contract as a County consultant for the Nassau County Planning Commission, but in 1999 he had his status converted to “employee,” a status he kept until 2000. At that time he applied for and received over two decades worth of pension credit retroactively, costing the County $103,660.45 and qualified for lifetime health benefits, after being classified as a County employee between 1999-2000-- just a little over a year. This loophole was recently closed when the Legislature unanimously approved legislation drafted by Weitzman to require at least five years service with the County before employees can receive lifetime retiree health benefits.

D’Agostino received the 21 years worth of retroactive pension credits by submitting over a decade’s worth of 1099’s for proof of the County payments, and a letter from former Comptroller Fred Parola evidencing that the County had four years of contracts with Mr. D’Agostino in the years predating County electronic record keeping.  According to Weitzman, these submissions should not have been accepted by the Retirement System as evidence of employment.

             In addition, Mr. D’Agostino relied on a letter from Howard Blankman, former Chairman of the Planning Commission, and Herbert Libert, former Planning Commission administrator, who claimed that the County had intended to hire him for 21 years but failed to do so because of bureaucratic inertia.

             “The claim that a government made a ‘mistake’ that lasted over 21 years is ludicrous,” Weitzman said.

Comptroller Weitzman said that professionals working as independent contractors should not be reported as employees or be entitled to pensions and health benefits.

In the past few months, dozens of other instances have come to light involving independent contractors employed by special districts and schools, who were given “employee” status in order to receive generous pension benefits to which they were not entitled.

 “We are working closely with the State Comptroller, the Attorney General and the Nassau County District Attorney to ferret out any abuses of taxpayers’ money and to assure that only those hard-working employees entitled to state pensions and benefits are receiving them,” said Weitzman.