The Subplot - My friends parents let them do it! Why can't I?

“Due to the Office of Pension’s stance that you cannot work as a seasonal employee, your employment with Pencader Charter High School is terminated effective October 1, 2011,” states a one-sentence letter signed by “Ann E. Lewis Ph.D.” addressed to her husband, who was one of the three teachers, and copied to the state. - News Journal, 7/22/12

School leader Ann Lewis instructed those working under her to remove the teachers, including her husband, Bob Lewis, from the state’s payroll system in October. The three teachers were transformed into independent contractors. - News Journal, 7/22/12

 Pension Administrator David Craik said the school told his office the teachers had been terminated. - News Journal, 7/22/12

“The misleading, at best, and arguably dishonest letter by the school leader and the email that was copied to Mr. Lewis is very troubling, to say the least, and should cast real doubt on the credibility of what he is about to say,” Ellis told the pension board.- News Journal, 7/22/12

 The school’s initial solution to the pension office communication was to reclassify the teachers in the state payroll system as “casual/seasonal” in an attempt to allow the teachers to continue collecting a pension and a paycheck, according to testimony presented in the pension board hearing and public documents.
State pension officials rejected this, public records show. Craik, the pension office administrator, wrote a letter dated Oct. 17 to school leader Ann Lewis saying there was a lot at stake.
“Further, the IRS would probably view the method in which these retirees were rehired as a ‘sham transaction.’ Unfortunately, this is a serious violation for both the employee and the State.”
After this letter from Craik, the Pension Office was sent the “termination” communication and the teachers were hired as contractors. - News Journal, 7/22/12

During their hearings, Bob Lewis and Shirley Roccia both said they were told by school leaders that classification as an independent contractor allowed them to collect their pensions while also working at the school. - News Journal, 7/22/12

 In an interview last month, Ann Lewis told The News Journal that her husband only worked part time at the school, and that’s why he could also collect a pension. - News Journal, 7/22/12

 The independent contractor plan at Pencader was used to “save money,” according to testimony at the pension board hearing.
State pension office officials said it is not helpful or legal for schools to seek cost savings in this manner. - News Journal, 7/22/12


There was no intention to trick the pension office by creating the independent contractor plan at Pencader, said Mike Scanlon, a former contractor for Innovative Schools, a Wilmington nonprofit that provides support services to schools.
Innovative Schools has been assisting Pencader this year with its budgeting and human resources.
By keeping the teachers collecting pension benefits, the school saved money because it was not responsible for paying health benefits or contributions to the state pension plan, he said.
Before Pencader moved to the independent contractor plan for the teachers – which Scanlon said was not his idea – the school talked to some other people in the education community, including Department of Education retirees.  - News Journal, 7/22/12