By Rob Moritz
Arkansas News Bureau
LITTLE ROCK — Legislators voted Friday to expand an investigation into possible so-called “double dipping” within state government.
The Legislative Joint Auditing Committee also called on a member of the state employees pension fund board to resign. Larry Fratesi, the Jefferson County assessor, apparently participated in the practice, which involves drawing retirement benefits and a paycheck for the same job.
“These people should be punished for what they are doing,” said Sen. Steve Faris, D-Malvern.
Fratesi did not immediately return a telephone call Friday afternoon seeking comment.
For several months, Gail Stone, executive director of the Arkansas Public Employees Retirement System, and state auditors have been gathering information on how many elected county officials are drawing a paycheck and receiving retirement benefits for the same job.
State Rep. Allen Kerr, R-Little Rock, asked for the information earlier this year after receiving an attorney general’s opinion that the practice is illegal.
On Friday, Stone told the audit panel it appears seven of 250 county elected officials questioned are double dipping.
Stone and APERS attorney Jay Wills declined to reveal the names of the seven or the counties in which they were elected to office, but they said the APERS board would try to recoup money paid to the officials.
Stone said each of the seven elected officials has retained a lawyer and that if they refuse to cooperate, APERS would be forced to go to seek payment through their respective county quorum courts.
“This whole thing is a shame, and it’s a shame it ever happened in the first place,” said Sen. Bobby Glover, D-Carlisle.
During questioning from Faris, Stone confirmed that one of the seven elected officials is Fratesi, the Jefferson County assessor who also sits on the APERS board.
“That person sat on the board and allowed this to happen and really wound up with a bag of money for himself, correct?” Faris asked Stone rhetorically, adding that if Fratesi “doesn’t resign from the board, which I think he should, he ought to recuse from all activities until a legal course of action is taken.”
Sen. Kim Hendren, R-Gravette, later suggested Fratesi resign.
The committee ultimately asked that Stone, Fratesi and the APERS board chairman, state Workforce Services Director Artee Williams, appear before the panel Jan. 8.
During Friday’s meeting, Sen. Jimmy Jeffress, D-Crossett, asked how many state agency directors and state officials who work at will of the governor or commissions and boards had taken advantage of the same retirement program, and if they actually quit their jobs for the required 30 days before being rehired.
The senator asked if they gave up their state cell phones and state vehicles, and if they lost all their accrued sick leave and insurance benefits when they retired, so that when they were rehired they started over with benefits.
The committee asked Stone and state auditors to develop a list, going back three years, and to present it to the committee at its January meeting.
Kerr has said he is considering taking up the issue of “double-dipping’ during next year’s fiscal session.
