Retirement benefits for two former New Hanover officials will be reduced following prison sentences.
By: William Wichert
NEW HANOVER After being released from prison, two former township officials are now facing cuts in their retirement benefits.
The state Public Employees Retirement System board recently approved changes to the pensions previously awarded to former Township Administrator James Nash and former Mayor Patrick G. Malloy, said Kathy Hennessy, a spokeswoman for the state Department of the Treasury.
The board voted on April 20 to reduce Mr. Nash’s monthly benefits from $5,479.66 to $3,317.49, starting on June 1, said Ms. Hennessy. The board reached this figure by not including his salaries as township administrator and as treasurer for the New Hanover Board of Education from July 1996 to June 2002 in its calculation of his pension.
It was during this time period that Mr. Nash misapplied federal money received by the school board. Mr. Nash pled guilty in June 2003 to ordering an employee to fabricate a higher bid from another vendor in order to steer a contract to Mr. Malloy’s brother, Donal Malloy. Mr. Nash served a three-month prison sentence, which ended last May.
"When you receive a pension, it’s based on the condition you had honorable service," said Ms. Hennessy. She said Mr. Nash also will have to reimburse the retirement board for the benefits he received while in prison.
Reached by phone at his home on Tuesday, Mr. Nash refused to comment.
The board’s decision regarding Mr. Nash came about a month after it voted to eliminate all of Mr. Malloy’s retirement benefits. Mr. Malloy served a six-month prison sentence last year for witness tampering. Mr. Malloy pleaded guilty in November 2003 to instructing a witness to lie to the grand jury investigating the school board contract awarded to his brother.
Mr. Malloy did not immediately return phone calls made to his home.