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Auditor will sue county; pension at issue
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BALTIMORE (Map, News) - Days after announcing his impending resignation, Baltimore County Auditor Brian Rowe said he plans to file a lawsuit against the county for allegedly violating state law and shortchanging his and other employees’ pensions.
The county is deducting too much from the pensions of employees who used to work for other governments with noncontributory plans, Rowe said. The 60-year-old auditor estimated his losses at $87,000 during the course of his retirement. Rowe, who served 18 years as chief financial officer for the Maryland State Retirement and Pension System before his 12-year county stint, said his plans to sue accelerated his resignation.
“It would be unethical for me to continue as auditor while I’m actively engaged in litigation to compel them to comply with state law,” Rowe said.
But Rowe could face ethics charges for urging County Council members to adopt a change that would fix the discrepancy without disclosing his personal benefit.
Rowe told council members the bill had no financial impact on the county — a fact he maintains because employees are only getting what they are owed. But county administrators said a change could cost millions of dollars.
“Even though Mr. Rowe has only worked for 12 years for Baltimore County, his pension will be $120,000 a year,” a source close to the administration said. “We find it rather amazing that someone who has such a generous pension would have tried to mislead the council so that he would get another $6,000 or $7,000 dollars a year on top of that.”
THE DISPUTE
Rowe points to a November 2006 opinion from then-Attorney General Joseph Curran that suggests the county is incorrectly calculating some employees’ pensions. State law allows employees who transfer to the county, and its contribution-based pension system, from other governments with noncontributory systems to bring their retirement plans with them.
The county can reduce the pension by the amount the employee would have contributed during his or her service in the noncontributory system, plus 5 percent interest compounded annually. The county is adding 8 percent interest compounded monthly.
“Our opinion is that they should be paying the regular rate of interest,” said Raquel Guillory, a spokeswoman for the Attorney General’s Office. “If they pay their other employees 5 percent, that’s the regular interest.”
That opinion is nonbinding and wrong, said Fred Homan, director of the county’s budget and finance office, who estimated that between 141 and 220 employees transferred from noncontributory systems.
Homan maintains state law does not specify the interest rate and said county attorneys, actuaries and even a 1998 report penned by Rowe support current methodology. Rowe said he did not know the calculations violated state law at the time.
“All of these things have happened saying this is right, this is the way it should be, this is equitable,” Homan said during a conference call with other county officials.
Thinking that the call had ended, an official in the room said, “Can you believe it? [Homan] actually is making [reporters] believe this.”
jmalarkey@baltimoreexaminer.com
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STUDENT said:
mr.oei has made the name of our school bad. now that he has done this everyone will now bout freedom high school but not in a good way. they will always know it as the school with the bad V.P.
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Rose Johnson said:
I read the complaints about Ross Ridge apartments,I moved in April 22 of this year.I am having the same problems,I have not seen any mice yet and I live on the bottom floor.My air conditioner was leaking and they left nasty brown stains on my wall which have not been fixed yet,2 months ago.My carpet is wet by the door where the air conditioner is.My bathroom has mold and water stains all over the ceiling above shower head,and stain marks streaking all the way down the tile.I was told there is a leak upstairs and that needed to fixed first before they could fix mine,but that was 2 1/2 weeks ago.Also there is mold around the ceiling along with the water spots.My refrigerator door was not shutting for a month,and was leaving cold air out ,running more than it should have,the light stayed on constantly,open the door and water flys out at you.Took door off and said to take out light bulb.Well frig is still dripping.dishwasher is not bolted to counter,it falls out.They do not fix anything.
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Examiner Reader said:
Does anyone have an update on the ongoing suit of Ross Ridge Apartments being sued by tenants? Does anyone here know of someone that currently lives there? Has Ross Ridge made any changes or renovations to their apartments? Thank you in advance for your response.
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Examiner Reader said:
Does anyone have any update on Ross Ridge Apartments being sued by tenants? Thank you.
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Examiner Reader said:
I currently live in Morgan Properties Towson Crossing Apartments. I have been complaining about the mice infestation for over 2 years now. I was told the infestation was because of the renovations. They even put in there newsletter ways to control the infestation by using peppermint oil. This was something I told them I was trying. The exterminator they sent even said there are alot of holes around the baseboard of the floors that needs repairs. With our cheap renovation which consisted of spray painting the bathroom tub and shower, we also got new carpet in the halls, new number signs outside the apt building but no concern, help or remedy to the infestation.
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Examiner Reader said:
whats the status of this case... I live in the apartments now and am having the same problems
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Examiner Reader said:
Towson Crossings Apartments Tenants (Morgan Properties) are experiencing the same horrific living conditions! This morning one of the tenants posted a message in reference to the tenants moving out and the rodents moving in. Ignored work requests, filthy surroundings, trash and filth;I have encountered mice, waterbugs, roaches, crickets, spiders, in less than a month in my newly renovated $880+ top floor, 2-bedroom apartment. I'm so tired of tip toeing through my apartment out of fear of seeing/stepping on something. Its nerve wrecking for someone who maintains cleanliness, work hard to have to find peace outside of "what's considered home". Terrified Unhappy Tenant of Towson Crossings
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