Baltimore County?s former auditor has won the appeal of his pension award after accusing county administrators of withholding $87,000 from his own pockets and shortchanging scores of other employees.
The county?s highest appellate board ruled Tuesday that the county incorrectly calculated the pension of former auditor Brian Rowe, who resigned in April amid the dispute after 12 years with the county.
Rowe said county administrators withhold excessive interest from employees who transfer service credit from other government pension systems, including himself.
“I was a little surprised,” Rowe said of the board?s ruling. “It was very technical and confusing and I wasn?t sure they would understand it, but they did.”
County officials, who said the decision could cost $400,000 per year, vowed to challenge the ruling in circuit court. During two hearings, they accused Rowe of urging lawmakers to adopt pension changes without disclosing his personal benefit and the financial effect on the retirement system.
“We are very confident that when the case reaches the circuit court, the county?s position will be upheld,” said Don Mohler, a spokesman for County Executive Jim Smith.
Before coming to the county in 1995, Rowe worked for 18 years as chief financial officer of the state?s retirement system. State law requires counties to credit employees who transferred from government jobs with noncontributory retirement plans, such as Maryland?s.
The county can reduce pensions by the amount the employees would have contributed during time in the other system, plus 5 percent interest compounded annually. The county withheld almost 8 percent interest, compounded monthly, from the pensions of Rowe and about 150 other employees.
Three attorney general decisions and the state?s retirementagency supported Rowe?s position, board members said, “outweighing” the opinion of the county attorney.
“While the board recognizes that this decision may have an adverse monetary effect on the county?s employee?s retirement system, this can play no part in this board?s decision,” they wrote.
Rowe, who has since resumed employment with the state, said he is considering filing a class-action suit on behalf of other employees affected.
