Board hears round 2 in auditor?s pension dispute

The accusations came during round two in hearings Tuesday before the county?s highest appellate board for auditor Brian Rowe, who resigned in April over a dispute in the way the county calculates certain pensions. County attorney Suzanne Berger pointed to an analysis Rowe provided lawmakers considering calculation changes — in his favor ? that indicated no impact on county revenues.

“But what Mr. Rowe was telling the county council was half the truth,” Berger said. “There was no fiscal impact on revenues, but there was no mention of expenditures.”

But Rowe ? who said the county is illegally withholding about $87,000 from his retirement allowance and similarly shortchanging about 150 other employees ? said the proposal was financially neutral because the county?s retirement system is supposed to fund itself.

Rowe served as chief financial officer of the state?s retirement system for 18 years before the county hired him in 1995. State law requires local governments to accept the transfer of service credit from one retirement system to another.

If the employee transfers from a noncontributory retirement system to a contributory system like Baltimore County?s, the county can deduct the amount the employee would have been contributing. The Attorney General and now General Assembly said the interest must be equal to the amount the county pays on regular employees’ contributions, which is 5 percent compounded annually.

The county is withholding nearly 8 percent compounded monthly from Rowe and others.

The 5 percent rate would add $10,000 to Rowe?s $120,000 annuity and cost $400,000 per year for other employees, officials said.

But the cost is a moot point, said Rowe?s attorney, Virginia Barnhart.

“What it costs to the county as a result of following state law is not the issue,” Barnhart said. “It?s whether the county follows state law.”

The board is expected to issue a ruling within two months.

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