DiNAPOLI REVOKES RETIREMENT MEMBERSHIP OR
SERVICE CREDIT OF SIX LAWYERS
Attorneys Improperly Reported as Employees by
School Districts and Villages Across the State


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today announced his office revoked the New York State and Local Retirement System membership of three attorneys and rescinded service credit of three other attorneys from across New York.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 DiNapoli rescinded the service credit of Michael Bergan, Paul Dierdorf and Eugene Renzi.

DiNapoli’s office determined Oneonta Central School District, located in Otsego County, incorrectly reported Pondolfino as an employee to the Retirement System when he was actually an independent contractor, allowing him to receive nearly 11 years of service credit and an annual pension of $1,999 since 2004. The district did not control or supervise Pondolfino’s work and Pondolfino did not work set hours.

DeBoy incorrectly received 3.75 years of service credit from Cheektowaga Central School District in Erie County since 2004 because the district incorrectly reported DeBoy as an employee when he acted as an independent contractor. DeBoy performed services for the district as an independent contractor from 2000 until 2004, when the district added him to the payroll. DeBoy did not work set hours and did not maintain an office at the district.

DiNapoli’s office determined Henoch was incorrectly reported as an employee by two Long Island school districts, Hempstead Union Free School District and East Meadow Union Free School District, and revoked his membership and 26 years of service credit. Henoch cooperated with the Comptroller’s office, consistent with his settlement with the Attorney General.

The Capital Region BOCES incorrectly reported Bergan as an employee, allowing him to earn 2.66 years of service credit and a higher average salary that substantially increased his annual pension to $33,106, which he has been receiving since 2002. BOCES contracted with Bergan’s law firm for 22 years prior to reporting Bergan as an employee. After Bergan retired, BOCES contracted with another law firm to provide the same services. Bergan did not work set hours and did not maintain time sheets. DiNapoli’s office rescinded Bergan’s BOCES service credit and adjusted his pension amount.

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.