Tuesday, August 08, 2000
Money will be returned to city
Lebanon disputing recipients for state retirement fund
By Cindi Andrews
The Cincinnati Enquirer
LEBANON — The city has learned it's getting back $110,565 it paid into the state retirement system on behalf of the former city auditor.
“I think it's appropriate that the city got the money back,” Councilman Ron Pandorf said.
City Auditor Debbie Biggs “was not directly employed by the electric department.”
Unauthorized spending
The money was part of $486,000 the city paid under its electric department's early retirement incentive program in December.
The problem is two of the three retiring employees — Mrs. Biggs and City Attorney Bill Duning — did not work solely for the electric department.
Also, the buyouts for them and for Deputy Electric Department Director Bob Newton were approved only by Mrs. Biggs and Mr. Newton.
City Council members said they were not aware they authorized the spending.
Refund processing
The Public Employees Retirement System sent the city a letter Aug. 1 agreeing to return Mrs. Biggs' portion of the money because City Manager James Patrick certified that she was not an electric department employee, said Craig Scholz, a PERS supervisor.
The refund is being processed, he said, but he's not sure when the city will receive it.
Stuck at work
Mr. Patrick's letter said Mr. Newton was an electric employee, so that money won't be returned, Mr. Scholz said.
The decision means Mrs. Biggs, who has not been receiving retirement payments, either must work for a public body another six months to reach the 30-year mark or wait until she's 55 — four more years — before she can start receiving benefits.
“I probably should have showed up for work this morning,” Mrs. Biggs joked Monday.
“I'm not sure what I'm going to do. ... We definitely disagree with their decision.”
Lebanon pleased
Her lawyer has asked the city for an arbitration hearing to settle the dispute.
But City Attorney Mark Yurick says she may not be eligible for one.
Employees have a right to a hearing under the city's contract with the electrical workers union, Mr. Yurick said, but she's not a union member.
While pleased with PERS' decision on Mrs. Biggs' money, Lebanon will keep trying to get back the $169,549 paid on behalf of Mr. Newton, said Bill Gustavson, special legal council for the city.
Under the buyout plan that PERS contends was in effect, Mr. Newton would not be eligible because he had not reached age 55 by January 1995, Mr. Gustavson said.
Mr. Duning voluntarily returned the $206,302 the city paid for his buyout.
The Ohio Ethics Commission has interviewed council members and others involved with the controversy but has not yet taken action.
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