Category Archives: Pension Fund

News and information about the Common Retirement Fund

Fighting Fraud and Protecting Pension Benefits

Leave a reply
Fighting Fraud and Protecting Pension Benefits

Since taking office, New York State Comptroller Thomas P. DiNapoli has fought the abuse of public funds. One of his top priorities is protecting NYSLRS and its retirees from pension fraud.

The Comptroller’s Division of Investigations regularly partners with federal, state and local law enforcement in New York and across the country to bring corrupt individuals to justice and recoup stolen NYSLRS money. Over the past several years, pension fraud investigations have led to 57 arrests and the recovery of over $5.8 million.

Here are some cases from earlier this year:

Joint Investigation Uncovers Caretaking Scheme

In May 2024, a joint investigation between the Comptroller’s office, the Rensselaer County District Attorney and the New York State Police led to the arrest of an Albany woman and man for allegedly stealing more than $200,000 in pension and Social Security payments from an 86-year-old retiree.

The defendants engaged in a caretaking scheme that left the elderly victim in deplorable living conditions and resulted in home foreclosure. They persuaded the victim to let them pay his bills, however, they did not pay the victim’s mortgage, property taxes or other bills for several years. This caused the foreclosure of the victim’s home, the repossession of his vehicle, and his electricity to be turned off.

As a result of the investigation, the victim was removed from the home and received necessary treatment.

In November 2024, one of the defendants pleaded guilty to grand larceny in the second degree and is awaiting sentencing. The second defendant was indicted by a Rensselaer County Grand Jury on charges of grand larceny in the second degree and the matter is currently pending in court.

Son Impersonates Father to Continue Receiving Pension

In 2017, a NYSLRS pensioner who had retired from the Nassau County Clerk’s Office in 1992, moved to Wyoming with his son. The retiree was never heard from again, and it is believed he died in Wyoming. His pension payments should have stopped when he died, but his son never reported his death.

In fact, the son went to great lengths to conceal his father’s death and continue receiving his pension and social security payments. He even whitened his hair and eyebrows to impersonate his deceased father.

But a call to the Comptroller’s Fraud Hotline prompted an investigation, which included the U.S. Attorney’s Office, the Social Security Administration, the U.S. Postal Inspection Service and the FBI.

The son was arrested on federal fraud charges in 2023. In February 2024, the son was sentenced to five years in prison and ordered to repay the $194,000 he stole in NYSLRS pension and Social Security benefits.

Man Steals Deceased Sister-in-Law’s Pension Payments

In October 1986, a stenographer from the Supreme Court, Appellate Division, retired with a disability retirement and the Single Life Allowance pension payment option. That means, when she died in January 2019, her monthly pension payments should have ended. Once NYSLRS discovered her death in July 2022, payments were stopped, and an investigation was launched.

A forensic analysis was completed on the bank account where the pension payments were being deposited, which was a joint account in the name of the retiree and her brother-in-law. The investigation found that the brother-in-law diverted over $50,000 in pension payments made after his sister-in-law’s death and used the money to pay credit card bills, travel and make online purchases.

The brother-in-law was arraigned on a charge of grand larceny in Albany County Court. The matter is pending in court.

You Can Help Fight Fraud

If you are aware of potential pension fraud, visit the Comptroller’s Fighting Public Corruption page to file a complaint online, or call the Fraud Hotline at 888-672-4555.

Your Pension Fund is Strong
Your Pension is Secure

68 Replies

The COVID-19 pandemic has caused economic uncertainty as well as a public health emergency. Businesses are struggling, more people are unemployed, and markets are volatile. Yet among all the uncertain news we seem to hear daily, there is something NYSLRS members and retirees can have confidence in: your Retirement System and pension fund are strong and secure.

Since it was established in January 1921, NYSLRS has proven its strength and durability. Over the past century, the Retirement System has weathered the Great Depression of the 1930s, the Dotcom bubble burst of 2001, the Great Recession of 2008-2009 and more than a dozen other economic downturns. Each time, NYSLRS recovered and emerged stronger than before.

pension fund

Investing for the Long Term

The New York State Common Retirement Fund, which holds and invests the Retirement System’s assets, has been impacted by this largely unprecedented crisis, but the Fund remains strong. While weighing the risk and benefit of every investment, the Fund employs a diversified investment strategy that is designed for the long-term, allowing it to take advantage of growth opportunities in good times, which helps it to better navigate through hard times.

NYSLRS entered the current crisis in a position of strength. Independent analysts, such as the Pew Charitable Trusts, have long recognized NYSLRS as one of the best-managed and best-funded public retirement systems in the nation. The strength of the Fund provides stability and enhances its ability to recover from market swings.

In recent months, before the COVID-19 outbreak, the Fund’s professional managers recognized increased volatility in the stock market. The managers made adjustments in the Fund’s investment portfolio in preparation for an expected economic downturn and are actively managing the Fund through these difficult times. The Fund has more than enough assets to pay retiree benefits.

What This Means for You

New York State Comptroller Thomas P. DiNapoli has a fiduciary responsibility to manage the Fund’s assets on behalf of NYSLRS members and retirees. Protecting the Fund is the Comptroller’s number one priority. As a NYSLRS member or retiree, your lifetime retirement benefits are guaranteed by the State constitution, and those benefits cannot be diminished.

NYSLRS continues to be well-positioned to meet both its short-term and long-term obligations. If you are already retired, you will continue to receive your pension payments on schedule. If you are a member, your pension will be there for you when you retire and throughout your retirement years.

We’ve faced similar challenges in the past. We will get through this one.