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Mallozzi: Town Will Halt Excess Payments to Jeb Walker

First Selectman Robert Mallozzi released a statement concerning Jeb Walker's pension.

 

After former First Selectman following the Board of Finance and Town Council votes on the number of years required for vestment, First Selectman Robert Mallozzi released a statement this week on the issue.

According to New Canaan News, Mallozzi stated that actuary firm Hooker and Holcombe, Inc. would be asked to recalculate Walker’s benefits and the town may seek to collect excess benefits given to Walker. Mallozzi stated that Walker would continue to receive "normal" pension payments, but "additional payments he has been receiving above and beyond will cease."  

The Board of Selectmen voted at their August 7 meeting in favor of Mallozzi seeking out a third party to clarify the processes behind the pension fund. This came after a retroactive amendment to the town’s retirement plan that effectively changed the vestment period from five to four years, thus affecting payments made to Sally Hines and Jeb Walker.

Kendall L Owott August 27, 2012 at 08:14 PM
Roy, I did a quick calculation which follows from your comments. If the Town Government would want to charge 2-3% interest per year, Mr. Walker could extend the payment over 24 months and reduce the amount to $360-365 per month. For a 36 month schedule, the payment would be about $245 per month. For a 48 month schedule, the payment would be about $185 per month. This would be a win/win for both the Town and Mr. Walker. He gets to keep more of the cash flow each month and the Town can defray some bond expenses. It would be good for everybody.
Roy A. Abramowitz August 27, 2012 at 09:04 PM
Kendall: Please let me know where I can get an un-secured loan, with a low credit rating at 2 to 3%. Happy hunting. What does the town charge for in-rem taxes? Interest must be arms-length as between third parties. Unsecured rates today start at 6.78%. Time to recalc.
Four Jacks August 27, 2012 at 09:06 PM
It should be paid in a lump sum. Immediately.
Kendall L Owott August 27, 2012 at 09:42 PM
Roy, at 6.78%, the 24, 36 and 48 month term monthly payments are $380, $261 and $203, I think. At this higher rate, the 24 month option costs more per month than the no interest payback for 23 months. Probably the 36 and 48 month options make sense at the higher rate. I used the lower 2-3% rates because they were bandied about when the infamous Main Street sidewalk project bond funding was being considered before the hear-no-evil, see-no-evil, say-no-evil referendum. The Town has gotten used to bonding expenses, so I thought the loan repayment plan would feel familiar to all parties concerned.
feo mesics August 27, 2012 at 09:43 PM
Agree. Walker should pay the full amount immediately! His Republican cronies should collar him and get him to cough up all of it NOW. It is embarassing for the the town and the party. Then he can move out of town.
Kendall L Owott August 27, 2012 at 09:46 PM
Four Jacks, to be fair, he didn't get it all at once so if the Town wants it paid back all at once, they should discount the amount. As you can see, there is some question about the proper interest or discount rate.
Four Jacks August 27, 2012 at 10:16 PM
Kendall, I totally disagree. When someone STEALS something, they have to give it back, and not in small payments.
Kendall L Owott August 27, 2012 at 10:38 PM
Four Jacks, from a judicial standpoint, I see your point. A judge or jury would look much more favorably on a lump-sum repayment rather than stretching it out over several years. I guess the lawyers will need to figure this one out.
Angie S. August 27, 2012 at 11:47 PM
Ideally, he should repay the full amount immediately. But, practically speaking, he's probably spent the money and so doesn't have the lump sum any more; so, a payment plan with interest is probably the best option at this point.
feo mesics August 28, 2012 at 12:26 AM
Angie: boo hoo hoo . if Walker spent the money than let him take a loan from Bank of New Canaan and pay the bill off! Doesn't he also have a pension and healthcare from Deloitte where he use to work for years?
Four Jacks August 28, 2012 at 12:33 AM
Yay Feo!!!!
NCHammer August 28, 2012 at 01:56 PM
Maybe we should ask the 76 yr old Sallea Antiques salesperson to look into this whole matter...she seems to know what to do when she uncovers possible stealing or theft........
mary August 28, 2012 at 02:12 PM
Walker should definitely be ordered to repay all the money at once. He knew something was wrong with the payments but he kept quiet and did not do anything to rectify the matter. If he has spent it, that simply underlines the stupidity of the man. I agree with the poster who suggested he pay interest for every day this money was in his account and was not returned to the town. If the rest of us have to pay usury type penalties for not paying taxes on time, he should be subject to the same penalties for holding onto government money. There should be zero tolerance for this money not being paid bck in full, immediately. He knew the amounts were incorrect and if he spent the money, that is his problem. While it is good news that the higher pension amounts have ceased and action will be taken to recover the excess paid, this is only the beginning of the series of steps that need to be taken to unravel this mess. Heads still need to roll and members of our community who are able to faithfully and without personal interest, take on the responsibility of holding these offices, need to step up and replace these people who have let us down so badly. I have no idea how any of them are able to hold their heads up in public. They are a disgrace.
marilyn August 28, 2012 at 02:18 PM
The folks who voted for this ought to be deeply ashamed of themselves, as should Walker. I agree with NCHammer--let's get someone on this who recognizes theft when she sees it....
Teri August 28, 2012 at 08:15 PM
I have uploaded Jeb Walker's letter to the Town 'telling' them how he will payback the pension. There is also a letter to the editor (sent to The Advertiser this week)attached calling Walker's plan an interest free loan. http://www.teribuhl.net/2012/08/25/new-canaan-town-council-encourage-to-talk-pension-vote-off-record/
Lisa August 28, 2012 at 08:20 PM
Do we know if Walker made any contributions to pension fund on his own?
Four Jacks August 28, 2012 at 08:49 PM
Teri - great post. Jeb has a lot of nerve telling US how he will repay the over payments. The kids who worked at Waveny camps this summer were specifically told to examine their checks for errors. If 18 year olds can do this, so can Jeb. How dare he. And what's up with these TC members who are too LAZY to read and study their material beforehand? If they don't have time to do the job to which they were elected , they should resign. Props to Roy A. too!
Teri August 28, 2012 at 09:26 PM
I think they talk about this in the TC July 18th meeting. There is a video link so you can review the tape on www.teribuhl.net
Angie S. August 29, 2012 at 02:37 AM
Thanks for your post, Teri. Very informative! I can't believe Jeb's letter. I was more in favor of letting him make monthly payments with interest BEFORE I found out about his letter...really...the nerve! Now I'd favor being a bit tougher on him. I agree with Four Jacks --- kudos to Roy A., too. He and Roger Williams have not disappointed so far and have been doing an outstanding job.
Kendall L Owott August 29, 2012 at 04:04 AM
Teri, your copy of the Walker letter has completely shattered the “oversight” defense by the former First Selectman. If you look carefully, you will see that the payment plan turns the Town account into a Walker piggy bank. Instead of an installment loan, he turns it into a sinking fund. While the money accumulates in a Town Account, the accumulated interest goes to swell the pool of money, not to the Town. When the pool reaches $8496, the payments end. It’s not the amount of money that’s critical. That’s only about $100 plus or minus, depending upon the interest rate. It should be clearly spelled out that any interest on that money goes to the Town. What is critical is that it shows Mr. Walker himself or his adviser has a degree of sophistication inconsistent with the “aw shucks” defense.
Kendall L Owott August 29, 2012 at 04:17 AM
Probably actuarial firm Hooker and Holcombe, Inc., hired by First Selectman Mallozzi, would spell this out but it may be a while before the recommendations are made public. Perhaps Mr. Walker thought that his payments were to be considered in the same way as any pension contributions he may have made. It should not. It is a restitution plan, not a pension plan. He should not earn interest on money he should not have in the first place. In legal terms, he knew or should have known that in my nonbinding opinion.
Red Dragon August 30, 2012 at 04:46 PM
Walker made no contributions to the plan, period. I wonder if he is even entitled to the medical he is receiving. Look at today's New Canaan Advertiser, pathetic, Wilson the town's pension administrator is blaming this all on Hooker and Holcombe, Inc and Vanguard. Cheryl Jones is doing the same. Does anyone here ever take responsibility. It is evident no one does their job. No matter how much they cry no, this is cronyism plan and simple.
Teri August 30, 2012 at 05:01 PM
It's timely that Mallozzi commented in Today's Advertiser story that 'the town' would determine how Walker paid back his over paid pension after I published Walker's letter telling the town what to do and frustration was voiced here in the comments. The New Canaan Advertiser story is just quoting what was said at the July 18th town council meeting about why the issue was coming up for vote then. There is no new info in today's story Red Dragon and the tone was clearly in favor of town officials. The Advertiser needs to investigate if Walker should get medical benifits and report on it. It's public information with a FOIA request needed and wouldn't be hard to report. They also should look into if Conrad could be fined for what he did oking Vanguard to up the pension payment before there was a vote. That paragraph was about taking blame off the paper's owner, Hersam, because it looked like his rubber stamp was ued to sign Walker's pension checks.
Teri August 30, 2012 at 05:05 PM
Of course the Patch's new editor isn't doing any original reporting or investition into the Walker pension vote either. Why is that Emily? This is an easy story for local reporters to work on and an important one.
rough1 August 31, 2012 at 01:02 AM
I have no idea where RM is coming out on this; six on the TC voted to defraud us taxpayers; the former CFO authorized it- and they want to form some sort of "audit committee" to prevent future fraud like this- what a joke? Oh, silly me, the Advertiser is owned by whom? The TOWN TREASURER? WHERE IS HE ON THIS/? WHAT'S HIS SALARY AND PENSION ARRANGEMENT?
Red Dragon December 11, 2012 at 10:12 PM
Just in. The same pension cmttee made up of Jebby Walker's cronies that was complacent in "pesiongate" just refused to investigate Jebby boy and his CFO criminally. What a joke!. Will this town ever do a real investigation of anything?
Esprit de Corps December 12, 2012 at 12:17 AM
PENSIONGATE COVERUP In this joyful season, rather than complain about the failure to bring criminal charges in the Pensiongate affair, we should praise the NCPD and the State Prosecutor. Let us not forget the NCPD prevented two Wilton students from liberating the NCHS’s sacred flag from the football field. Not only were these two miscreants blocked from completing their evil task, the 18-year old was appropriately charged with felony burglary and both were charged with misdemeanors. Unfortunately, the Court in Norwalk rewarded the NCPD’s efforts with a turn ‘em loose goose egg by unjustifiably releasing the pair. The negative publicity, legal expenses and eventual cost of expungement will teach these two students a well-earned lesson. The NCHS sports totem will remain safe and unsullied and we salute the NCPD and those who made the complaint upon which the police acted. Unfortunately, there is no more room left in this post to explain why the criminal investigation of Pensiongate has been terminated by the political appointees on the Pension Committee, which has not yet posted its minutes. Please be patient and know you still remain safe at all times from nongovernmental misdeeds. Happy Hanukkah.
Four Jacks December 12, 2012 at 12:27 AM
VERY disappointing. This is like a shoplifter getting caught and then offering to pay for the item.
Jaimie Cura (Editor) December 12, 2012 at 06:46 AM
Here is a link to the article from the Tuesday, Dec. 11, meeting: http://newcanaan.patch.com/articles/pension-committee-opts-not-to-launch-criminal-investigation
Esprit de Corps December 12, 2012 at 10:33 AM
"Politics: A strife of interests masquerading as a contest of principles. The conduct of public affairs for private advantage." Ambrose Bierce

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