Tag Archives: Comptroller Thomas P. DiNapoli

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.

A Look Inside NYSLRS

8 Replies

Let’s take a look inside the New York State and Local Retirement System (NYSLRS) and what makes it one of the largest and best retirement systems in the United States.

NYSLRS administers two distinct systems. They are:

  • The Employees’ Retirement System (ERS) with 677,604 members; and
  • The Police and Fire Retirement System (PFRS) with 36,198 members.

In addition, NYSLRS provides pension benefits to more than 520,000 retirees and beneficiaries. Altogether, that’s more than 1.2 million participants!

A Look Inside NYSLRS

New York State Common Retirement Fund

State Comptroller Thomas P. DiNapoli is administrative head of NYSLRS and trustee of the New York State Common Retirement Fund, which was valued at $267.4 billion as of March 31, 2024. The Fund is widely recognized as one of the best-managed and best-funded public pension plans in the nation. Since its establishment in 1921, the Fund’s prudent investment management, solid returns, and constitutionally protected benefits have provided retirement security for generations of hard-working New Yorkers.

NYSLRS Members                                                          

How did NYSLRS earn the distinction of being one of the largest systems? Here are some facts about NYSLRS members:

  • 527,404 active members (that is, members still on the public payroll) work for 2,988 public employers statewide.
  • About one-third of those active members work for New York State. The rest work for counties, cities, towns, villages, school districts and public authorities.
  • Nearly 94 percent of total active members are in ERS while only 6 percent of total active members are in PFRS.
  • Tier 6 is our largest benefit group, with more than 60 percent of all members (62.6 percent in ERS, 56 percent in PFRS).
  • In ERS, Tiers 3 and 4 are the second largest benefit group, with 33.1 percent of members.
  • While, in PFRS, Tier 2 is the second largest benefit group, with 38.7 percent of members.

For more information about our largest ERS tiers, see our blog posts, ERS Tier 6 Milestones and ERS Tiers 3 and 4 Milestones. You can also learn more about the PFRS Milestones our police and fire fighters across New York State will reach over the course of their careers.

NYSLRS Retirees and Beneficiaries

The average pension for an ERS retiree was $27,870; the average for a PFRS retiree was $62,391. But these pension payments don’t just benefit retirees and beneficiaries. During 2022, approximately 78 percent of retirees lived in New York State and were responsible for $17.3 billion in economic activity. By supporting local businesses, helping to create jobs and paying their fair share of taxes, NYSLRS retirees contribute to the economic health of our communities.

Learn More About NYSLRS

Detailed information about NYSLRS members, retirees and beneficiaries as well as the Fund’s position and performance can be found in the 2024 Annual Comprehensive Financial Report.

Note: All data is as of the State fiscal year end, March 31, 2024.

Visit NYSLRS at the New York State Fair

Leave a reply

If you’re visiting the Great New York State Fair, stop by and see us.

The celebration of everything New York begins Wednesday, August 21, and runs through Monday, September 2 (Labor Day). Our information representatives will be at the fairgrounds in Syracuse daily, from 10:00 am to 9:00 pm.

You’ll be able to:

  • Ask questions about your NYSLRS benefits.
  • Pick up retirement plan booklets or brochures.
  • Get help registering for a Retirement Online account.

NYSLRS will be in the Center of Progress Building, Building 3 on the State Fair map, near the Main Gate. Look for us at booth 227.

Visit NYSLRS at the New York State Fair

Find Unclaimed Funds at the State Fair

OSC’s Office of Unclaimed Funds booth will also be in the Center of Progress Building. An unclaimed fund is lost or forgotten money. If an organization such as a bank, insurance company, corporation or state agency owes you money but hasn’t been able to contact you, they turn that money over to the Comptroller’s Office.

You can Search for Lost Money and see if any unclaimed funds are yours. So far this year, State Comptroller Thomas P. DiNapoli and the Office of Unclaimed Funds have returned more than $332 million.

Special Fair Days

Wednesday, August 21

  • Opening Day

Thursday, August 22

  • Student Youth Day—Youth and students under 18 years of age are admitted free on this day. ID showing date of birth may be requested.
  • Agriculture Career Day

Friday, August 23

  • Pride Day—The first state fair in America to host an official Pride Day to celebrate the LGBTQIA+ community.
  • New Americans Day
  • Family Fishing Day

Monday, August 26

  • Law Enforcement Day—Free admission to any active or retired law enforcement or corrections personnel who present a badge or picture ID from the department where they are or were employed.
  • Maple Day

Tuesday, August 27

  • Fire, Rescue and EMS Day—Free admission to any active or retired member of a fire department, emergency services or EMS organization who presents a picture ID from that department or organization.
  • Beef Day

Wednesday, August 28

  • Women’s Day

Thursday, August 29

  • Comptroller DiNapoli Visits the Fair—He is the trustee of the New York State Common Retirement Fund, the administrative head of NYSLRS and custodian of unclaimed funds. He will present area residents and organizations with unclaimed funds, and he’ll be stopping by the NYSLRS booth.
  • Armed Forces Day—Free admission to any active-duty service member or veteran with military identification (military ID card, form DD-214 or NYS driver license, learner permit or nondriver ID card with a veteran designation).
  • Dairy Day

Friday, August 30

  • Native American Day—Free admission to all members of Native American tribes, no ID required.

Monday, September 2

  • Labor Day

Public Service Recognition Week

5 Replies

This Public Service Recognition Week, we proudly celebrate more than 695,000 members and 470,000 retirees of the New York State and Local Retirement System (NYSLRS) for their service to the people of New York State.

A Brief History of Public Service Recognition Week

This week was created in 1985 to honor those who serve our nation as federal, state, county and local government employees.

Congress officially designated the first full week of May as Public Service Recognition Week. This year, it is being celebrated May 5 through 11.

NYSLRS Members Deliver Critical Services

From the smallest village to our biggest cities, New York public employees like you provide the essential services that improve our quality of life. You work for employers such as:

  • New York State
  • Couties, Towns and Villages
  • School Districts
  • Correctional Facilities
  • Public Libraries
  • Fire and Water Districts

Whether they are protecting public health and safety, driving our children to school or clearing snow from the roads, NYSLRS members deliver the critical services New Yorkers depend on. Many NYSLRS members and retirees also give back to our state by volunteering in their communities or supporting charitable causes.

Public Service Recognition Week

Comptroller DiNapoli’s Faith in Public Service

New York State Comptroller Thomas P. DiNapoli is the administrator of NYSLRS and trustee of the Common Retirement Fund. His public service career began at 18 years old, when he won his first election to become a trustee on the Mineola Board of Education. That made him the youngest person in New York State history to be elected to public office. He is also the second longest-serving comptroller in New York State history.

Comptroller DiNapoli is understandably proud about the career path he has chosen, and he often speaks about the contributions that New York’s public employees make to their communities and their State. He encourages young people to consider a career in public service. “It’s more than a job,” he says. “It’s a career with purpose.”

A Century of Security and Stability

21 Replies

A century after its creation, the New York State and Local Retirement System (NYSLRS) is widely recognized as one of the best-managed and best-funded public pension systems in the nation. Comptroller DiNapoli recently announced that the New York State Common Retirement Fund (Fund), which holds and invests the assets of NYSLRS, had an estimated value of $268.3 billion as of June 30, 2021. The security and stability of NYSLRS and the Fund are due, in large part, to the stewardship of Comptroller DiNapoli, as well as a long line of State Comptrollers that came before him. The System has also been bolstered by some key events along the way.

NYSLRS History - key events contributing to the security and stability of the Retirement System and the Fund

In the Beginning

NYSLRS’ security and stability were built in at the start. In 1918, the State Legislature created the Commission on Pensions and charged it with recommending a pension system for State workers.

After surveying pension plans in New York and other states, the Pension Commission recognized the need to calculate the cost of the pension plan through actuarial calculations, which take into account such things as employees’ salaries and how long they are expected to be retired. They also saw the need to make provisions to cover those costs through contributions and other income. They recommended a plan supported by the contributions of employers (New York State and, eventually, local governments) and employees. The improved actuarial calculations the System uses today helps to ensure that member contributions and employer annual contributions are sufficient to keep the System adequately funded.

The Pension Commission also recommended a service retirement benefit be made available to workers who reached a certain age, based on average earnings and years of service. Though they didn’t use the term, their pension plan was very similar to the defined-benefit plan NYSLRS members have now.

Unlike the 401k-style defined-contribution plans common in the private sector today, a defined-benefit plan provides a guaranteed, lifetime benefit. With a defined-benefit plan, you don’t have to worry about your money running out during retirement, and your employer has an excellent tool for recruiting and retaining workers.

Constitutional Protection

In 1938, New York voters approved several amendments to the State Constitution, including Article 5, Section 7, which guarantees that a public pension benefit cannot be “diminished or impaired.” This constitutional language protects the interests of the Fund and its members and beneficiaries, ensuring that the money the Fund holds will be there to pay the pensions for all current and future retirees. The courts have upheld this constitutional provision to protect the Fund several times over the years.

For NYSLRS members and retirees, that means the retirement benefits you were promised when you started your public service career cannot be reduced or taken away.

Sound Investments

Sound investments are crucial to the health of the Fund, but in some cases changes in the law were needed to give Fund managers the flexibility to make the best investments. In 1961, the Fund was allowed to invest in the stock market, opening up the door for growth opportunities. Roughly half of the Fund’s assets are currently invested in stocks.

In 2005, the Legislature expanded the types of investments the Fund could make, allowing the Fund to increase investments in real estate, international stocks and other sectors that had been providing high returns.

Today, under Comptroller DiNapoli’s leadership, the Fund’s investment returns cover the majority of the cost of retirement benefits. After suffering a drop in value at the beginning of the COVID pandemic, the Fund had its best year in history, with estimated investment returns of 33.55 percent for fiscal year 2021.

NYSLRS is well-positioned to face the challenges of the future and provide retirement security for more than 1.1 million members, retirees and beneficiaries.

More Than One Million Strong: The Growth of NYSLRS

Leave a reply

When NYSLRS formed in 1921, it started with a total of 4,721 participants (4,672 members and 43 retirees). Today, NYSLRS provides retirement security to 643,178 members and 430,308 retirees and beneficiaries (the most recent data available).

To say we’ve grown would be an understatement. But no matter how large we get, NYSLRS will continue to provide its members and retirees with lifetime retirement benefits and help them to plan for a financially secure future.

A look back at membership growth through the years.

NYSLRS Membership growth through the years

NYSLRS: Retirement Security Before Social Security

Before NYSLRS began in 1921, many New York public employees who were no longer able to work would fall into poverty. At the time, Social Security didn’t exist to help supplement post-retirement income. While Social Security was created in 1935, it wasn’t made available to public employees until 1950 and didn’t start in New York until 1953.

NYSLRS in 1950

Under State Comptroller Frank C. Moore, NYSLRS was comprised of 161,686 participants in 1950. Of those, 151,326 were Employees’ Retirement System (ERS) members and 10,360 were retirees and beneficiaries.

You may have noticed that there were no Police and Fire Retirement System (PFRS) members in 1950. We had police and fire members – a little more than 12,000, in fact – but they were considered ERS members until 1967. On April 1, 1967, ERS split into the two systems you know today: ERS and PFRS.

NYSLRS in 1970

Participation in NYSLRS grew to 525,763 in 1970. Of these, 463,939 were members and 51,824 were retirees and beneficiaries. The State Comptroller at the time was Arthur Levitt Sr. Comptroller Levitt is known for having the longest tenure as State Comptroller, serving a total of 24 years from 1955 to 1978.

The 1970s also saw the creation of a new member group. Tier 2 began on July 1, 1973. The creation of Tier 2, and the other tiers that followed, were designed to provide members equitable benefits at a reasonable cost.

NYSLRS in 1990

From 1979 to 1993, Edward V. “Ned” Regan served as State Comptroller. During his time in office, participation in NYSLRS continued to climb, growing to 882,410 in 1990. Of these, 649,847 were members and 232,563 were retirees and beneficiaries.

NYSLRS in 2010

Between 2006 and 2007, participation in NYSLRS broke the one-million-participant mark. In 2010, during current Comptroller Thomas P. DiNapoli’s administration, participation rose to 1,055,020. Of these, 679,217 were members and 375,803 were retirees and beneficiaries.

NYSLRS in 2015

In 2015, overall membership in the System reached 1,073,486. This includes 643,178 members and 430,308 retirees and beneficiaries (the most recent data available). The number of retirees is increasing more quickly than members. For example, in 1995, retirees represented 30 percent of the System’s members. By 2015, that number had increased to approximately 40 percent.

What does 2016 hold for NYSLRS? Keep an eye out in future blog posts for the latest NYSLRS demographics.