One local economic development entity has taken a different course to comply with Comptroller Tom DiNapoli's investigation and action into the practice of getting people into the state pension system through a series of managment agreements crafted by an Albany law firm specializing in advising local IDA's.
The Watertown Trust has instead hired two employees in a private sector manner with no involvement in the NYS Retirement System, effective August 1. Our board is very comfortable with the direction taken and the advice on the matter from the separate legal counsel secured by the Trust.
If signed by the Governor, a recently passed bill ensures pension credits earned to date after the Comptroller had sought to abrogate the credits due to his contention the local development corporations were not eligible to participate in the pension system and that the arrangement in place was in essence a ruse. The other side of the coin is that for years the state accepted the contributions made into the system and then changed the rules late, leaving 12 employees in the lurch. If the past credits had not been left in place the workers in questions would have sued the local IDA and LDC's for the cash equivalent of the plan they were told they were entitled to. They would have won and that would be very expensive.
This whole episode has been an expensive and distracting affair and the actions of the Trust Board ensure the agency and its two employees will move on without further legal gyrations.
Watertown Daily Times | JCIDA OKs to cut ties with sub-agencies so staff can get state pension