Audit finds rampant favoritism in Corrections Department

The public calls it double dipping. State officials call it "post retirement re-employment."

Whatever the term, a legislative audit on state retirees returning to state employment has concluded that Utah's lax restrictions, coupled with the manipulation of state law's intent, has led to abusive practices, substantially increasing the compensation for a small group of state employees.

The audit was requested by House Speaker Greg Curtis, R-Sandy, who also co-chairs the legislative committee that reviewed the report Wednesday.

The report found that while not rampant, the practice of "retiring" from an agency, then working part-time for six months there and resuming the same position at the end of that period, sometimes at a far higher salary, has happened in the departments of Corrections and Public Safety, as well as the state Department of Alcoholic Beverage Control.

In some cases, departments bypassed the wait-time altogether, justifying it by shuffling "retired" employees from one division to another to continue drawing salary and retirement. State agencies also claimed appointed employees are exempt from any post-retirement employment restrictions.

State officials, responding to the audit report, largely defended the practice, saying it is legal and provides a way to retain valued employees.

The audit says state law requires that the retirement benefit be suspended and that the employer resume contributions unless exceptions are met, including: The retiree goes to work for another agency, the retiree is retired for at least six months and returns to the same agency or the retiree is employed for fewer than 20 hours per week.

While the statute allows part-time or full-time work after that "six-month cooling-off period," auditors said it wasn't intended as a "bridge" to return to full-time work in the same department.

Examples of concerns raised in the audit include:

• Since 2000, 12 retirees returned to full-time positions at DABC after the six-month cooling-off period, the majority in their same job positions. At least one was hired at a higher-level position with a salary increase, with little to no recruitment for the "open positions."