Bob Lewis Hearing

Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF DELAWARE STATE BOARD OF PENSION TRUSTEES AND OFFICE OF PENSIONS RE: ROBERT A. LEWIS APPEAL NO. 12-02/119556 860 Silver Lake Boulevard - Suite 1 McArdle Building Dover, Delaware July 11, 2012 9:00 a.m. BEFORE: THOMAS J. COOK NANCY SHEVOCK CYNTHIA L. COLLINS, ESQ., Deputy Attorney General for State Board of Pension Trustees DAVID CRAIK, Pension Administrator, Office of Pensions NICHOLE DOBO, The News Journal THOMAS H. ELLIS, ESQ., Deputy Attorney General for Office of Pensions ROBERT A. LEWIS, SR. ROBERT F. MINNEHAN, PH. D. JAMES DARLINGTON TAYLOR, JR., ESQ.

ALSO PRESENT:

CORBETT & ASSOCIATES - A VERITEXT COMPANY 300 Delaware Avenue - Suite 815 Wilmington, Delaware 19801 (302) 571-0510 VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510

Page 2 1 2 MICHAEL SCANLAN 3 4 5 6 7 8 9 Direct by Mr. Ellis 10 11 12 13 14 Direct by Mr. Ellis 15 16 17 18 19 INDEX TO EXHIBITS 20 21 22 23 24 OFFICE OF PENSION EXHIBIT NOS. Exhibit 1 Letter dated October 24, 2011 from Ann E. Lewis, Ph.D., to Robert Lewis PAGE 53 HARRIE ELLEN MINNEHAN Questions by Ms. Collins Direct by Mr. Ellis 87 DAVID CRAIK Direct by Mr. Ellis KIMBERLY SUE VINCENT 55 Direct by Mr. Lewis Cross by Mr. Ellis ROBERT A. LEWIS, SR. 48 53 Direct by Mr. Lewis Cross by Mr. Ellis ANN E. LEWIS, PH.D. 23 36 INDEX TO TESTIMONY PAGE

76

96 101

VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510

Page 3 1 2 Exhibit 3 3 4 5 Exhibit 5 6 7 Exhibit 6 8 Exhibit 7 9 10 11 Exhibit 9 12 13 14 15 16 17 18 19 20 21 22 23 24VERITEXT NATIONAL COURT REPORTING COMPANY 888-777-6690 ~ 215-241-1000 ~ 610-434-8588 ~ 302-571-0510

Exhibit 2

Letter dated August 22, 2002 from David C. Craik to Robert A. Lewis Robert Lewis Mathematics Department Schedule Letter dated September 28, 2011 from David C. Craik to Robert A. Lewis Letter dated October 17, 2011 from David C. Craik to Dr. Ann Lewis Copies of various e-mail Letter dated April 17, 2011 from David C. Craik to Robert A. Lewis Packet of Kim Vincent's prepared material E-mail from Debbie Scanlan to Kim Vincent dated October 9, 2011 - - - - -

57

62 80

Exhibit 4

81

82 84 86

Exhibit 8

93

Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MS. COLLINS: Good morning, everybody.

We're here this morning for the appeal hearing of Mr. Robert A. Lewis, Sr. No. 12-02/119556. The file number is Appeal

And before we get started, I just want

to go over a couple of housekeeping items. Since you're not represented, Mr. Lewis, I just want to let you know how the hearing proceeds and the kind of ground rules. And one of the things that I

want to make sure is that there is certain personal and confidential information that's protected from disclosure -- your home address, your Social Security number, any medical information. So please be cautious.

You do not have to disclose those things. If you're unsure if something is protected, you could ask for a pause. We could go out in

the hall and discuss and see if we need to go into executive session or not to discuss any of that. Generally, most things are open in the hearing. And --

but things -- retiree information -- once you are no longer an employee of the state, it is confidential. there may be certain aspects of the case that might be confidential; others that, while you were receiving retirement benefits and you were employed by the State of Delaware, don't have that confidentiality provision. So


Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 They're excluded from the statute. So it's a little bit

tricky with -- usually our hearings don't have quite as many folks in them, so we're not as concerned about that. But up front I just want to make sure. Mr. Ellis, if you think we're treading into dangerous waters, just, you know, speak up or, you know, question if we need to do a sidebar and discuss that. The way we normally proceed -- we're fairly informal, although we do introduce evidence as necessary. We examine witnesses. We'll start off with

an opening statement, which you will be able to go first. Then Mr. Ellis will have an opening statement. After

that you'll be able to put on your case and explain what the appeal is about and what you're seeking from the Board. As a matter just of general information, the two pension trustees that are sitting as hearing officers in the case have not seen your files. They do

not have any knowledge of any of the facts or the situation of this matter. clearly explain. So it's important that you

Don't assume that they know anything, So they're hear as impartial judges

because they don't. of the matter.


Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Once the hearing has concluded, they will discuss the information that they received and the testimony. We will research the law and review the That opinion is then

statutes and then draft an opinion.

presented to the Board of Pension Trustees at their monthly meeting and it's discussed. And then the Board

either votes to approve the recommendation of the hearing officers or not. This is a strange month. It's July. We

probably won't have the transcript and the hearing opinion ready for the Board meeting this month. there's no Board meeting in August. And

So we probably will

not have an answer until the final Board meeting -- the Board meeting in September. month. And that's at the end of the You can

It's the last Friday of every month.

look on the state's website.

And that tells you when the And the

different hearing -- hearing Board meetings are.

hearing will be discussed at the September Board meeting. Once a determination has been made and the Board actually votes on the determination, the Board of Pension Office will send you the opinion. We have

your e-mail address, so we can send it to you -MR. LEWIS: MS. COLLINS: Yes. -- via e-mail, as well as


Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 mail, just so you can get it more promptly. At that point, depending on what the decision is, you will then have 30 days from when you receive that if you wish to appeal to Superior Court if you disagree with the decision. administrative process. If you have any questions as we're going through the hearing, just say "I don't understand" or "I'm not quite sure what" -- you know, "what is going on." There aren't any silly questions. We understand And so that's the

this is the first time you've been through something like this. So we'll, you know, accommodate questions. The other thing is that everybody will be sworn who's a witness. that. So the court reporter will do

And then when you call witnesses, you'll have an The Pension Office

opportunity first to examine them. will then cross-examine them.

And if you have any

questions or follow-up questions that you want, we'll allow you short rebuttal questions, if you feel you need that. When the Pension Office calls a witness, the same. So you'll be able to cross-examine

It's just flipped. them.

Do you have any questions or -MR. LEWIS: No, I do not.


Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 proceeding.) witnesses? MR. ELLIS: He's a party. I reserve the Tom? MR. ELLIS: MS. COLLINS: MR. ELLIS: MS. COLLINS: Move to sequester witnesses. Oh, okay. Both sides. Right. Okay. Who are MS. COLLINS: MR. ELLIS: MS. COLLINS: Okay. All right.

Move to sequester. Move to sequester what,

right to have Mr. Craik remain in the room. MS. COLLINS: Okay. So, I guess,

whoever is a witness, if you can go out. Kim, do you want to see if you can -MS. LEWIS: MS. COLLINS: MS. LEWIS: MS. COLLINS: MS. LEWIS: MS. COLLINS: THE REPORTER: MS. COLLINS: Do I need to leave as well? Are you a witness? I guess, yeah. Okay. Okay. Tom -Can I go off the record? Yes.

(Whereupon there was a recess in the


Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MS. COLLINS: Back on the record.

Mr. Lewis, if you want to make your opening statement. MR. LEWIS: Yes. I really -- you know, I've never been

I don't have a great deal to say. through something like this. me. I'm nervous.

This is a total surprise to

And yet I was an administrator when I I listened to expert

retired. advice.

I have followed the law.

And at the time I thought it was expert advice.

And it seems like there's a discrepancy here, which I can't understand. Okay? Probably the best way to go

about it is in a chronological way back to the beginning. Three years ago -- or over three years ago -- Brad Catts, who was the school leader at Pencader Charter, had interviewed Ann Lewis for a position there for mathematics and found out that her credentials went way beyond the classroom because of her business experience, as well as her teaching and administrative experience. So the math position was still open there. Brad Catts came to me when I was in the building just to see where -- you know, what it looked like and what went on there -- asked me -- he said he knew that through the interview with Ann Lewis that I was a former administrator and math person. So he asked me


Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 if I knew of any math people within the state that were available or looking for work. And I jokingly said, I said, "But, you You know, I'll

well -- I said, "I'm a math person." know, I'm retired. I'm a consultant.

see, you know, what I can find." And the more I thought about it -- you know, I spoke to Ann at home and told her what Brad Catts had said. And she -- the more I thought about it -- I

had already been working for the University of Phoenix and consulting and, you know, basically just enjoying retired life. And I missed the kids. I missed the kids. So I

I miss -- I love to help people, especially kids.

said, geez, you know, I'd love to be -- help in some way. Is there any way, you know, I can do this? So I called the Pension Office. spoke to -- Robin was her name. And I

And I spoke to two of

her superiors, okay, and explained what my position was and, you know, would I be able to work in a charter school. I said I know I can't work in a normal public

school, otherwise I would have to pause or postpone my pension until, you know, I retired again. know, said they would get back to me. this went back and forth for a bit. So they, you

And I spoke -And they said it was

okay that I could, you know, work in a charter school.


Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 this? 2012. Okay. I also -- the HR person at the

time, I spoke to her and asked her, you know, the same thing. And she said there's no problem at all. So based

upon, you know, my understanding of the law or if I had questions about the law or what I can and cannot do, I figured I would go to the source. Pension Office. Okay. And that was the

And then also the HR person. And when was that? Well, let's see. What's

MS. COLLINS: MR. LEWIS:

So it would be three years ago or four This -- let's see. '8-9, '9-10, '10-11. Okay? I mean, I So No.

years ago.

It would be three years ago.

So, you know, it was great.

just like -- you know, help working with the kids. that's why I'm surprised that I'm here today.

I don't know what else to say except to answer your questions as to, you know -- if you have particulars. I don't feel that I've done anything wrong.

I don't feel that -- I didn't try to do anything wrong. I tried to be above board. before I made decisions. I tried to get the facts And yet I'm sitting here today. I've

And I'm -- I'm not working for Pencader right now.

been -- you know, I was terminated from there in March. Okay. But, you know, I want to be able to continue to


Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 work with kids, help kids. And -- but I also go by what the law is and the directives of the Pension office. I don't have a

lot of faith in the Pension Office right now because they've steered me wrong to this point. So I just want I want

to -- you know, I just want to do what's right. to help kids.

I'm somebody that will probably work in

some capacity while helping kids until I'm 90. That's just the way I am. way I think. That's the way I'm built. That's the I

All right.

I've done nothing wrong.

want to help people.

And that's it. And what is it that you're

MS. COLLINS:

asking the Board of Trustees to rule on today? MR. LEWIS: I just want to know what the I don't want to be --

rules of the playing field are.

you know, it mentions here, you know, that I might have to forfeit something. law. I don't know why. I followed the

I have followed the law.

I have followed the

advice of the Pension Office. MS. COLLINS: Board of Trustees to -MR. LEWIS: I don't want to forfeit any So are you asking the

money that I've already been paid because it was in good faith, above board, okay, and on the advice of people in


Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 be clear. that area of expertise, which is the Pension Office and the human -- yeah, human resources office, okay, to make my decisions. MS. COLLINS: And which determination is

it that you're -- just so that we have the record as clear, which determination by the Pension Office are you appealing? MR. LEWIS: ahead and work at Pencader. to work with kids. They said that I could go And I did because I wanted

Now, if that has to change, I'm

willing to abide by rules in writing, okay, of what I can and cannot do. Okay? I mean, I signed a contract in

good faith and I abided by that contract in good faith, you know, over the years. this. MS. COLLINS: So but I'm just trying to I just can't understand all

You're appealing the April 17th, 2011 letter Is that what

that you received from Mr. Craik. this hearing -MR. ELLIS: MS. COLLINS:

Suspending benefits. For suspending your

benefits and seeking recoupment back to October 1st of 2011? Is that what you're -MR. LEWIS: I mean, I didn't take


Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 recouped. MS. COLLINS: But -- so that's what benefits while I worked there. the spouse. It was out of my wife's,

I mean, I haven't taken any money out of the I haven't put any money into the

pension illegally. pension.

MS. COLLINS:

Well, we're -- I'm just

trying to clarify what it is that you're appealing and what you're asking the hearing officers to do. MR. LEWIS: I just want to know, you

know -- I want to be able to work. MS. COLLINS: MR. LEWIS: MS. COLLINS: MR. LEWIS: Okay. Okay? But what -So I don't know what I'm I understand.

appealing if I don't know what it is that I've done wrong. MS. COLLINS: Okay. You received a

letter on April 17th from Mr. Craik my understanding is. And that in that letter he said that your pension benefits that were paid from October to March while you were working at Pencader were going to be recouped and that you were -MR. LEWIS: I don't think they should be


Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 you're asking the Board to rule on -- whether or not the pension -MR. LEWIS: MS. COLLINS: MR. LEWIS: MS. COLLINS: were an employee -MR. LEWIS: Now, if it changes from here If that's what it says. -- benefits -Yes. -- paid to you while you

forward, then I think that the State of Delaware and the pension people should change the law, change the ruling, get it out there so that everybody is not kept in the dark. MS. COLLINS: Okay. I understand that.

I just want to make sure we had -- that it was clear what it was that you were asking the trustees to do. MR. COOK: And maybe just to make sure

we have the timeline here, you referenced an April 17th, 2011 -MS. COLLINS: MR. COOK: '11 letter.

-- which -2011 or '12? 2011. It's -- that's a mistake. Is that --

MS. SHEVOCK: MS. COLLINS: MR. ELLIS: MS. COLLINS:


Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Pencader. 2012. MR. LEWIS: Which I wasn't a teacher at 2011 -MR. COOK: '11. -- through March 31st of 2012. MS. COLLINS: MR. COOK: '12. you. Okay. MR. COOK: So it should be April 17th, MR. COOK: Oh, okay. I got confused. Thank

MS. COLLINS:

Now, at that point, once

again, your relationship with Pencader had been terminated in March. Is that correct? Yes. So this was after that But it was saying to go

MR. LEWIS: MR. COOK:

subsequently the letter came.

from October to March to recoup. MS. COLLINS: Yeah. October 1st,

MS. COLLINS:

I was a contractor. MS. COLLINS: MR. COOK: Okay. Well, that gets --

Okay. Okay.

MS. COLLINS: MR. COOK:

All right.


Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 at a time -MS. COLLINS: THE REPORTER: transcript like this. MS. COLLINS: Okay. MR. LEWIS: And that's why I have the HR Okay. Sorry. Yes. -- because I can't make a thing. MR. LEWIS: And that was the other

I mean, The News Journal misrepresented that and That was totally

said I was a teacher. misrepresentation.

MS. COLLINS:

Okay.

Well, that's part

of what the hearing is going to be. MR. LEWIS: MS. COLLINS: determination on that. THE REPORTER: Ms. Collins, I need one Okay. I was a contractor.

They'll make a

person, the current one, Michael Scanlan, here today to attest to that, you know, so you know what was going on from October till the current time. MS. COLLINS: wanted to make sure -MR. COOK: Yeah. -- we understood what was Okay. Thank you. We just

MS. COLLINS:


Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 opening, please. MR. ELLIS: Yes, please. Thank you. The background very much. Mr. Ellis, would you like to make your being appealed. MR. LEWIS: And if I sound, you know, I'm nervous. You know,

like I have animosity, I don't.

I -- you know, my father always said, "If you do the right thing and you're above board, you know, justice will prevail." I'm sorry. little bit. area. MS. COLLINS: Okay. Well, thank you Well, justice doesn't always prevail. Okay? So I'm not angry. I'm a

It doesn't.

But I'm more upset because I'm in the gray

Good morning, Trustees.

for this proceeding stems from an interpretation of two Delaware statutes that I'm going to read. keep them in mind. You need to

You'll see them, I'm sure, when you They come from the Pension

deliberate on this matter.

Statute, 29 Delaware Code, Section 5501, subparagraph E. It says that an employee shall mean an individual who is employed on a full-time or annual basis or on a regular part-time basis, as the terms, quote, full-time or annual basis, close quote, and, quote,


Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 regular part-time basis, close quote, are defined in rules and regulations adopted by the Board of Trustees, by: Subparagraph B, the State Department of Education, a

school district which is part of the state school system, the University of Delaware, Delaware State University; a state agency that is supported wholly or in part by funds granted to the state by the federal government. the definition of "employee." Section 5502 (a) speaks to employing pensioners, like Mr. Lewis, once they've leaved -- once they've left the state service and are receiving pensions. An individual shall not receive a service or That's

disability pension under this chapter for any month during which the individual is an employee unless the individual is: an official elected by popular vote; an

official appointed by the governor; a substitute teacher employed by a school district or state; a temporary justice of the peace appointed pursuant to Title 10; or a temporary, casual, seasonal or substitute employee as defined by the Board of Pension Trustees, actually by the merit rules. I think, as the witness has testified, you will hear that Pencader Charter High School could have but did not opt out of the state's retirement


Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 that again? MR. ELLIS: Mr. Lewis -- you, sir, you system. They're permitted -- they were permitted to have They chose not to. In September of last year -- that's the fall of 2011 -- the Pension Office received an anonymous tip that some teachers at Pencader were state retirees but working full time as teachers at the school. Pension Office commenced an audit. The

done that.

Kim Vincent, the

deputy administrator of this office, will testify this morning about her audit and concluded that Mr. Lewis, a math teacher at Pencader, was in violation of the section I just read to you -- 5502. And Mr. Craik, the

administrator, wrote a letter to Mr. Lewis suspending his pension payments. Mr. Lewis never contacted the Pension Office in the fall of 2011 before returning to -- I'm sorry. Mr. Lewis never contacted the Pension Office

before returning to work there in August of 2009, nor did he reply to Mr. Craik's letter of September 2011. MR. LEWIS: Excuse me. Could you repeat

yourself -- never contacted the Pension Office before returning to work at Pencader in August of 2009. I

understand you just said in the opening statement that


Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 issue. Nor did he reply to Mr. Craik's letter suspending his benefits in September of last year. Instead, Pencader High's school -- or Pencader Charter's school leader wrote a letter and sent an e-mail to Mr. Craik advising him that Mr. Lewis's employment had been, quote, terminated. In reliance on the school you did speak to somebody before you returned. MR. LEWIS: MR. ELLIS: Yes. I understand that's at

leader's representation, Mr. Craik restored Mr. Lewis's pension. Nearly six months later you'll hear Mr. Craik testify while reading a newspaper about the school it became clear to Mr. Craik that Mr. Lewis had never stopped teaching at Pencader. He had been teaching

for that period of six months, roughly, despite having received this termination letter from the school leader. The termination letter, by the way, made no reference to the fact that he was still there as a, quote, independent contractor and doing teaching services. So, in April,

Mr. Craik again suspended Mr. Lewis's pension payments. The Pension Office has a fiduciary obligation to preserve its funds for only deserving


Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 retirees. It now seeks an order of recoupment pursuant

to Statute and Regulation 9.1 against Mr. Lewis's pension benefits from the date of his return to work in August of 2009. The misleading, at best, and arguably dishonest letter by the school leader and the e-mail 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. We will call three witnesses, in addition to Mr. Craik, to explain why the office concluded that Mr. Lewis violated 5502, meaning that the Pension Office's position is that up until October 1st Mr. Lewis was engaged as a full-time teacher, a pensioncredible position. He should not have been receiving a

pension at that time. We will also have something to say about this independent contractor arrangement that was struck with the school after he was terminated, quote/unquote, on October 24th, 2011 before he was subsequently terminated in March of this spring. Thank you. MS. COLLINS: Thank you. Mr. Lewis,

would you like to call your first witness?


Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BY MR. LEWIS: Q. There's been a cloud over this issue about my explain. DIRECT EXAMINATION here. MS. COLLINS: MR. LEWIS: Okay. And I'll let Mr. Scanlan here. MR. LEWIS: -- all I want is the truth MR. LEWIS: MS. COLLINS: Yes. Michael Scanlan. I'll go get him.

Okay.

MICHAEL SCANLAN, the witness herein, having first been duly sworn on oath, was examined and testified as follows: MR. LEWIS: Again, I had no idea that So if I'm out of

this was going to be this formal. order, I apologize. But --

MS. COLLINS: know, we're informal. We do --

If it gets -- we're -- you

MR. LEWIS: MS. COLLINS:

Well --- follow certain rules

status at Pencader -A. Mm-hmm.


Michael Scanlan - Direct Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. -- as a full-time teacher and then as a

contractor -A. Q. Okay. -- implying that I was dishonest as to how I

went about that. A. Q. Okay. I explained that -MS. COLLINS: interrupt you for a second. Mr. Scanlan. Mr. Lewis, let me You need to ask questions of

You shouldn't ask him questions that give Ask him

him the information that you want him to answer. direct questions.

Don't ask him leading questions. MR. ELLIS: I don't have any objection

to leading questions. MS. COLLINS: Okay. All right. But

just, you know, ask Mr. Scanlan, you know, the information you'd like him to share with the Board of Trustees. You'll have an opportunity to make a closing statement and wrap everything up. don't feel like you have to -MR. LEWIS: MS. COLLINS: asking him the questions. Okay. -- do that while you're So, you know,


Michael Scanlan - Direct Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Scanlan. that. MS. COLLINS: THE WITNESS: Okay. Thank you. BY MR. LEWIS: Q. Would you please express what my concerns were

over my position at Pencader and the fact that I received a letter from the Pension Office stating that I had been receiving funds that I shouldn't have been receiving? MS. COLLINS: Could we maybe start with

Mr. Scanlan explaining who you are and what your relationship is with the school? THE WITNESS: I was just about to do

My name is Michael

I'm currently a consultant working with

Innovative Schools Development Corporation out of Wilmington. We were contracted by Pencader School -Charter School September 11th of 2011, right, to provide back office support and financial reporting and FSF invoice reconciliation payments, PBs and that type of thing. In late September or early October is when the

letters came from the Pension office -- just after we had started working there -- where the Pension Office for the three employees -- Mr. Lewis -- stated that there -- they appeared, right -- they appeared to be in pension-covered


Michael Scanlan - Direct Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 is -THE WITNESS: PHRST is the State of positions. And, right, based on the letter, right, they This decision was

could appeal that -- that decision.

already made by the Pension Board -- or the pension administration, right. The fact that they appeared to be

full-time personnel -- that they could get their health benefits and their pension benefits would stop. Based on that letter -- and my function at Pencader School is I'm the data input guy from PHRST. You know, I put the little bits of information into the data fields to make sure that they get -- the employees are paid correctly and the appropriations are done correctly and their benefits are all straight and correct. And that's what I do. MS. COLLINS: So -And, for the record, PHRST

Delaware's software system for human resources payroll and benefits. All right. I have extensive knowledge of

PHRST, having worked there for a number of years before going to Christina School District. When I looked at the letter and then looked at the employees that were concerned -Mr. Lewis -- the Pension Office was correct. appeared to be in pension-covered positions. They All right.


Michael Scanlan - Direct Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Right? They were in position numbers, which means that they were FTE equivalent, which means that basically they were -they looked and appeared and felt like full-time employees with the exception of the fact that their benefits were waived and their pension contributions were waived. And without being too particular, those two

fields, without being populated, right -- those two fields would not withhold benefits or would not support benefit deductions and would not support pension deductions. been set up. Mr. Lewis was hired in 2009. And his This was not the way that this should have

record had remained the same since he was hired that way in 2009. The other two employees we can get to later.

But based on -- based on what I found in there, right, and in conversations, okay, what should these people be, right -- what was your desire that these people appeared in the way PHRST was reflected, right, how should they be? Seasonal, casual/seasonal was the answer. So I changed the records in PHRST. I brought them into -- took them out of those Casual seasonals don't

positions -- position numbers. have positions in PHRST.

Took them out of those

positions, changed the records to reflect what their


Michael Scanlan - Direct Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Office. status should have been all along, which was casual seasonals. We notified the Pension Office that we had

made those changes, right, and these people were intended to be casual seasonals, right, and that we had in fact changed those positions to what they should be reflected. This wasn't satisfactory to the Pension And we were getting to the middle to late -- I We were

don't have the screen shots in front of me.

getting into the middle and late part of October here. And we were really up against -- up against the deadline. You know, these employees -- Mr. Lewis -- were losing their health insurance, losing their pension benefits effective -- you know, their next check should have been October 30th -- or 31st. When we got the negative response from the Pension Office that they were still maintaining that these were full-time -- full-time people and should be -should be hired as full-time people and provided their benefits and everything, right, the only option left for us, right, after -- after some collaboration between the administration staff and -- and was to -- we had people working as contractors -- retirees working as contractors in our school. Right? We had -- actually, we had a

retiree that was a contractor for the Department of


Michael Scanlan - Direct Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Education as part of the discussions when we were deciding what to do. We terminated them. So we turned them into contractors. We -- we terminated them out of the We notified the Pension Office Right? We rehired

payroll system in PHRST.

that they were terminated in PHRST. these individuals as contractors.

There were no guidelines or stipulations or anything of the sort -- no law preventing us from hiring them as contractors. Right? We didn't violate anything.

In fact, until this past Monday when the Pension

Office came out with their new directives concerning contractors, there was nothing there. Right? And this

was something that had been a widespread practice throughout the entire state where contractors were hired after they -- or retirees were hired as contractors after they left their full-time employment and started to receive their pension benefits. Contractors were used by OMV, GO -Department of Education -- any number -- and the school districts and -- and other state agencies were doing the same thing. So there was no reason to believe that --

and this was supported by -- by the people that we were -- we were speaking with -- that contractors was -was, in fact, I think you said, a lie. Right? We won't


Michael Scanlan - Direct Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 lie to anybody. We hired them as contractors. Right?

Based on the fact that if -- if the only way to have the -- Mr. Lewis and the other two people receive their pension benefits that they had earned and receive their health insurance that was part of their benefit package with the Pension Office, right -- and certainly Pencader Charter couldn't support any of this. We wouldn't And, in

support -- we turned them into contractors.

fact, we saved -- at Pencader we saved money doing it that way. BY MR. LEWIS: Q. Was there any attempt at all to be dishonest

or to shade -A. No. None. There was no attempt to be

dishonest and no attempt to create any subterfuge or anything like that. We did what we thought was in the

best -- you know, considering the fact that we were now two years in -- we were now two months, rather, into a school year, right, and the fact that we had students -you know, these teachers -- Mr. Lewis only had one class. But -MS. COLLINS: just to Mr. Lewis's case -THE WITNESS: Okay. Yes, ma'am. Maintain your testimony


Michael Scanlan - Direct Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MS. COLLINS: THE WITNESS: MS. COLLINS: THE WITNESS: -- not to the other ones. Yes, ma'am. Thank you. I'll try to back it up.

But, you know, it's just one of those days. Mr. Lewis only had one class to teach. But, you know, we had invested considerable time and effort in scheduling and that type of thing, right. And

turning them into contractors saved the school money, so it was a logical choice. BY MR. LEWIS: Q. Why did I not personally contact Mr. Craik to Why did I not --

respond to the letter that he had sent? did I come to you with that? A. Q. A. Q. You came to me with that. Could you -And Dr. Lewis --

Do you recall what your advice was to me about

responding to it? A. Q. No. I really don't.

Did you tell me not to -- not to get overly

worried about it, that you would -A. Oh, absolutely. I didn't think there was --

once we -- once we took away the -- the -- the shade of


Michael Scanlan - Direct Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 doubt and the shade of uncertainty concerning whether or not they were casual seasonals or anything else like that and turned them into contractors, there was no reason for us to believe -- or for me to believe or for the people that were advising us -- you know, the retirees that were advising us from DOE -- there was no reason to believe there would be any problems with contractors. no law that said you couldn't do it. stipulations. There was

There were no

There were no guidelines, right, that said Right? So no. I would assure

you could not do that.

you and assure anybody at that time that there shouldn't be any problems. You know, we didn't do this in an effort to -- to cheat -- to cheat or lie or manipulate or manufacture. We just went with what had been common It was a known practice.

practice throughout the state. It's widespread.

And it didn't have any of the

appearances of -- of being casual seasonals that were actually full-time employees. Q. It took away that doubt.

To your knowledge, did the school leader

attempt to cover anything up -A. Q. A. Absolutely not. -- or misrepresent? Absolutely not. There was -- there was --


Michael Scanlan - Direct Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Thank you. there was no -- cover up wasn't -- cover up wasn't even a -- even a thought in this process. The whole

process revolved around, okay, we have these people that appeared to be full time. full time appearing, right. I looked at them. They were

We needed to get rid of

this -- this appearance, right, and get into something that was legal, that was -- that couldn't be questioned. Right? So we did this, not in an attempt to -- to lie or

cheat or anything of that nature. Q. If there were misinformation or

misinterpretation of the law, you would -- through your expertise with human resources, how would you expect to handle this going forward or what should be -A. Q. A. Well --- what should take place? -- considering -- considering the fact that --

that this past Monday the Pension Office sent out their guidelines -- and I fully understand the Pension Office's conflicts and their efforts to comply with the IRS to ensure that the pension program remains -- and I've forgotten, Mr. Craik, what your terminology was. MS. COLLINS: THE WITNESS: Tax qualified? Tax qualified, correct.


Michael Scanlan - Direct Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 for this hearing. THE WITNESS: forward, you know. But the question was going But it was to ensure that. We -- there

was -- there was nothing, right, in our hearts or minds to take that, you know, and just forget about it and do our own thing. Right? We're aware of that now. Right?

So going forward, right, our consultants are going to have to do the SS-8. six-month process. Right? It's a

There are some questions in my mind

and there's questions in -- that are going to come down the road since this is a brand new thing, right, and since this is something that's going to have to be -- you know, to work through. I contacted the IRS, right. It

is an absolute six-month wait, right, before you're determined to be either an employee or a contractor. Right? IRS. There is no if, ands or buts when it comes to the Right? And I fully accept that. Right? The

question now becomes, going forward, right, are we permitted to hire them as contractors until the IRS determines whether they are or not and then take action -MS. COLLINS: Well, that's not an issue


Michael Scanlan - Direct Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 for Mr. Scanlan? everything. MS. COLLINS: Okay. Thank you. BY MR. LEWIS: Q. Should there be -- do you see -- is there

justification for forfeiture of what I have received monetarily to this point? A. Well, certainly in the Pension Office's eyes

there was justification because they sent the letter to you. But I can't see where -- I can't see if we don't

have a monitoring system and we don't have -- we don't have the -- the -- the wherewithal to track each and everybody that's doing this -- each and every contractor that's a retiree that's working within another state organization that's part of the pension plan. I don't

see where we can arbitrarily and -- actually, arbitrary and capricious act to -- to ask Mr. Lewis to pay a penalty, right, that isn't shared by everyone in -- in the same -- same situation throughout the state. Right?

I would deem that to be arbitrary and capricious, yes. MR. LEWIS: I think I've asked

Mr. Ellis, do you have some questions


Michael Scanlan - Cross Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BY MR. ELLIS: Q. A. Q. A. Q. A. Q. A. Q. A. Q. Hi, Mr. Scanlan. I know. Are you a CPA? No, I'm not. An accountant? No. Do you have any training in accounting? No. Okay. Uh-uh. Okay. You have a background in HR. You said You're not a lawyer? Tom Ellis. CROSS-EXAMINATION

you were a data person for PHRST for some lengthy period of time; is that right? A. Q. A. Q. That's correct. And PHRST is spelled? PHRST. Thanks. You offered Mr. Lewis advice last

fall regarding his problem with the Pension Office; correct? A. Q. Yes. And it was your idea to have him sign an

independent contractor agreement with Pencader Charter?


Michael Scanlan - Cross Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. Q. A. No. Whose idea was it? That was an administrator. I don't make

decisions, right, for Pencader. Q. A. Q. A. Q. Was it -Pardon me? Go ahead. Go ahead.

That was --

Was it your suggestion that they consider --

that is to say, the administrator, whoever did come up with the independent contractor idea -- that it was a good idea? A. Q. Yes. Okay. What do you know about the IRS 20

Factors Test for determining whether somebody qualifies as an independent contractor? A. Actually I was just introduced to that test by I had never heard of it

Mr. Craik several weeks ago. before. Q. Right.

Did you just hear about this form SS-8

that the IRS has so that -A. Q. Correct. -- folks can get an independent analysis of

whether or not they would qualify as an independent


Michael Scanlan - Cross Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2011. A. Q. That's correct. Would it surprise you that after he signed it? A. Q. Absolutely. Okay. Do you know that after -- did you ever contractor? A. Q. Yes. It was guesswork by you that the independent Correct?

contractor status would fly for Mr. Lewis. A. Q. No.

You thought it would because others were doing

see the independent contractor agreement that Mr. Lewis signed with the school? A. I've seen it. I don't think I've read it

completely, no. Q. Would you disagree with me if I said to you it

was signed -- it was executed October 1st of 2011? A. with you. Q. I'm telling you it was dated October 1st, Disagree with you? No, I would not disagree

that agreement he signed a W-4 allowing the school to withhold his taxes? A. That would surprise me, yes.


Michael Scanlan - Cross Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 later. MS. COLLINS: MR. ELLIS: wasn't making something up. THE WITNESS: I didn't believe you were. Okay. Thank you. to enter that? MR. ELLIS: I'll be introducing that no. Q. Because that's not something an independent

contractor would do? A. An independent contractor does not do that,

The only way that this could be executed -- this -This

this wouldn't be an as an independent contractor.

was a -- this is a form that's used to change the tax exceptions in PHRST. PHRST, so... Q. A. Q. You're surprised to see this? Yes, sir. That's not something that an independent And his record was terminated in

contractor -A. Q. his taxes. A. No, sir, it's not. Right. Right? Certainly. MS. COLLINS: Mr. Ellis, would you like It authorizes the school to withhold

I just wanted to show him I


Michael Scanlan - Cross Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 right now. BY MR. ELLIS: Q. Did you know that his company, Educational

Consulting, invoiced the school for office supplies in December of 2011? A. Q. No, I did not. That's not something typically that an Doesn't an independent

independent contractor would do. contractor supply his own tools? A. Correct. MR. LEWIS: MR. ELLIS: MR. LEWIS:

May I see that? Sure. I've never asked for

anything from -- I have never -MR. ELLIS: MR. LEWIS: MR. ELLIS: THE WITNESS: MR. LEWIS: MR. ELLIS: Mr. Lewis -Okay. Mr. Lewis -That's okay. Okay. -- I'm asking him questions

I'll show it to you later.

BY MR. ELLIS: Q. Were you aware that Mr. Lewis filed a claim

for unemployment insurance after he signed the independent contractor agreement?


Michael Scanlan - Cross Page 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 about. A. Q. yes. Q. Okay. And you said something I'm curious A. Q. No. And, of course, the only relevance of that

would have been that he admits he was employed by the school prior to his termination in October. A. Right?

That's where his paycheck was coming from,

Did you say that you and -- your wife is Debbie? Mm-hmm. Told the Pension Office that Mr. Lewis had

been terminated from PHRST? A. That's correct. Actually, I didn't mention my

wife Debbie. Q. A. Q. A. Q. Your wife Debbie -We informed the Pension Office -Right. -- is what I said. Yeah. And my question to you is: She didn't

inform them that they were -- that teachers had been terminated from PHRST. She informed them that Mr. Lewis There's a

and the others had been terminated, period. difference. A. Q. Okay. Well, I'm telling you.

I'm asking you.


Michael Scanlan - Cross Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BY MR. ELLIS: Q. So it's correct to say you didn't -- neither A. Q. I understand. You said a moment ago. Did you misspeak? You

didn't tell the Pension Office that Mr. Lewis had been terminated from PHRST. he had been terminated. A. Okay. MR. COOK: Can I just ask a question? Your wife told the Pension Office

What we're talking about is still the time frame of October? THE WITNESS: MR. COOK: This is October 26th.

Okay.

you nor your wife nor, to your knowledge, did Leader Lewis ever tell the Pension Office that Mr. Lewis had been terminated from PHRST. he was terminated. A. Q. Okay. Yes. The Pension Office was told

You testified a moment ago that when you

looked at the PHRST payroll records it looked to you as though the Pension Office was right in concluding that Mr. Lewis was full time. A. Q. Yes. And you were saying that because, when you


Michael Scanlan - Cross Page 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 way. looked at the computer screen with those information blocks, whoever had done those had filled them out in a way that would have reasonably led the Pension Office to conclude that Mr. Lewis was full time. A. Q. Pencader? A. set up. That was not the way they were supposed to be That was not the school's desire at the time Correct. Wasn't he in fact a full-time employee of

that he was set up in the system, no. Q. Understood. They didn't want him set up that

But did you ever ask him how many hours a day do

you work? A. Q. No. Okay. Wouldn't that have been -- if somebody

puts in 7.5 hours -- let's say somebody is required to be at school to teach a class at 7:30 and they're required to be there and finish a class at 2:30 in the afternoon. That's 7.4 hours. A. Q. A. Q. A. Are you referring to Mr. Lewis? I am. He had one class. I'm sorry? He only had one class.


Michael Scanlan - Cross Page 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. One class. Okay. How did you discover that?

Or when did you discover that? A. Q. I can't say exactly when I discovered that. Okay. So you spoke to Mr. Lewis about how

many classes he taught and when? A. No. I believe I got that information from the

administration. Q. employees? A. like that. Q. A. Q. A. Q. For full-time employees? Mm-hmm. Do you see his name there? Mm-hmm. So you came to the conclusion that the -- the They weren't set up correctly if Actually, I think 7:15 to 2:45. Something What's a school day at Pencader for full-time

screens looked wrong.

what in fact Pencader wanted to bring about was a conclusion that these folks were casual/seasonal -A. Q. Correct. -- not full time. But you never really pursued with anybody just exactly what the nature of his work was other than at some point, I guess, in October you were


Michael Scanlan - Cross Page 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 seasonal? A. told he taught one class a day. A. Q. That's correct. Okay. Did you -- well, did you know that he

continued to invoice the school for about the same amount of money that he had been paid annually for the previous two years? A. Q. A. Q. I could see that in his records, yes. Okay. Mr. Ellis, I -Why would you think he -- his teaching, if it

was from 7:30 until 2:30 -- just assume he was like those others on that chart -A. Q. a week. Why would that work have been casual/ It wouldn't be, would it? Why wouldn't it have? If his -- no. See, the Mm-hmm. -- working a full day at some point five days

school -- the school administration, right, makes a decision to hire somebody casual/seasonal for a lot of reasons. Right? Right? One of which is they don't get funding.

They don't have the FTEs, right, to cover a fullRight? So they hire

time employee with benefits. somebody casual/seasonal.


Michael Scanlan - Cross Page 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 know, who. people. clear -THE WITNESS: MS. COLLINS: Yes, ma'am. -- when you say the Now, does it mean the definition of casual/seasonal is stipulated by the Pension Office? know, at that time in 2008 I don't know. Mr. Lewis was hired. Or 2009 when I don't You

So I take my direction.

inquire as to -- to what each and every individual in that school or any other one of my clients -- I don't take that -- I take my information from the leader, right, and I transpose that into reality in the PHRST system. Right? MS. COLLINS: Mr. Scanlan, just so we're

"administration," the "leader," who are you speaking about? THE WITNESS: case, it would be Ann Lewis. Well, in -- in Pencader's Right? And in the case of

other schools, it could be an operations specialist. MS. COLLINS: talking about Pencader. THE WITNESS: Well, you asked me, you Okay. But we're just

And in different schools it's different


Michael Scanlan - Cross Page 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 paper? your closing. MR. LEWIS: MS. COLLINS: MR. LEWIS: MS. COLLINS: -- that that's inaccurate? You -- in your closings. Okay. You can make a note of it. BY MR. ELLIS: Q. Mr. and Mrs. Lewis -- we're talking about She's married to Mr. Lewis. Right?

Leader Lewis. A.

That's correct. MR. ELLIS: MS. COLLINS: Thanks, Mr. Scanlan. Mr. Lewis, did you have

any follow-up questions or are you ready to call your next witness? MR. LEWIS: I'll have to ask you here.

Now, there were some things that were stated here that I didn't -- you know, like, for example, when Mr. Ellis said I was to be quiet -- and I understand that. Okay. But how do I address that? How do I

address the fact that that's -MS. COLLINS: You can bring that up in

And then I would mention that in your closing. MR. LEWIS: MS. SHEVOCK: Do you need some paper? Okay. All right.

Do you want a piece of


Michael Scanlan - Cross Page 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BY MR. LEWIS: Q. Can you please tell the people what your role to call next? MR. LEWIS: I -- I -- the only other of Mr. Scanlan. (The witness was excused.) - - - - MS. COLLINS: Okay. Who would you like MR. LEWIS: MS. SHEVOCK: MR. LEWIS: No. I have notes here.

Okay. Thank you.

I -- I -- I don't have no more questions

person would -- would be the school leader. MS. COLLINS: Okay. Let me go get her.

And, Mr. Scanlan, please stay around, because we have the next hearing at 11:00. THE WITNESS: MS. COLLINS: Oh. Yes, ma'am.

Thank you.

ANN E. LEWIS, PH. D., the witness herein, having first been duly sworn on oath, was examined and testified as follows: DIRECT EXAMINATION

was as far as your communication with Mr. Craik as far as


Ann E. Lewis, PH.D. - Direct Page 49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of 2011. MS. COLLINS: THE WITNESS: Thank you. And then I was named Was my position goes? A. Actually, we didn't even talk until this year.

We -- my understanding was -- both Mr. Lewis and myself were hired by the previous administrator, Mr. Catts. had several pensioners working at that time. really nothing to do with his initial hiring. I had The past We

year when the past administrator was let go in February, nothing much had changed. MS. COLLINS: THE WITNESS: MS. COLLINS: Which year is that? I'm sorry? Which year? If you can

just tell us the dates, it would make it easier. THE WITNESS: Oh, I'm sorry. February

interim school leader in February after he left. made school leader in April at a board meeting.

Mrs. Minnehan had already questioned Mr. Catts relative to salaries and contracts. With the

jobs that had came in, she wanted to bring all the salaries up to speed. So she had agreed that all the --

she had actually agreed to apply the new salaries to everybody that was on staff -- the teaching staff.


Ann E. Lewis, PH.D. - Direct Page 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 School. Sorry. MS. COLLINS: THE WITNESS: Thank you. At the end of last year, We went is school leader. So by the end of -MS. COLLINS: THE WITNESS: At Pencader? At Pencader Charter High MS. COLLINS: And, Mrs. Lewis, can you

tell us what your current position is right now? THE WITNESS: Yes. My current position

all salaries were approved by Mrs. Minnehan. forward.

There was an e-mail that came to us relative to

the status of the pensioners that they were coded incorrectly. I think most of the e-mails were back and

forth between Michael Scanlan and the -- and Kim Vincent and/or Mr. Craik. So I was involved from the perspective I didn't make any official

that I knew it was going on.

changes but actually just handled things as status quo, you know, really didn't do much of anything other than talk to Michael Scanlan about following through with what we thought we were supposed to do. BY MR. LEWIS: Q. Pencader -When I was first asked by Brad Catts to join


Ann E. Lewis, PH.D. - Direct Page 51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. Q. A. Mm-hmm. -- did I contact the Pension Office? Yes. THE WITNESS: We were concerned about

the fact that Bob was a pensioner, just on a personal level. So Bob called the Pension Office, spoke -- I He was told at

think it was with Robin and someone else.

that time that there was no conflict, that he could come to Pencader as an employee and that it would not affect his pension. So we went forward with that. And that was

several years ago. BY MR. LEWIS: Q. A. Q. October? A. Yes. The understanding was that -- the Okay. Mm-hmm. -- arose last fall, was I terminated in When this problem with the pension --

sequence of events was we were told that these particular people were coded incorrectly in the system. So we --

Michael actually moved them to -- it looked like they were in pension-credible positions but not paying into the pension or getting medical benefits. moved into that position then. So they were

Michael heard from --

from the Pension Office that they could not be in that


Ann E. Lewis, PH.D. - Direct Page 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 portion.) THE WITNESS: MR. ELLIS: THE WITNESS: Yeah. I honestly don't. confused. MR. ELLIS: Excuse me. Read that back. position. So they had to be out of the payroll. He took

them out of the payroll and put them in a contract position. Q. Did I -- when I was terminated, did I apply

for unemployment? A. Q. A. Q. No, no. Did I apply for unemployment at any time? No. Did I apply for unemployment and then notify

the employment office that in fact I was rehired under another guise -- under another position? A. remember. MR. ELLIS: question and answer? THE WITNESS: Yeah. I'm a little Could you repeat the Yes. No. I don't think so. I don't even

(The reporter read the requested

You don't remember? No. I mean, we talked

about unemployment, but I don't think -- I don't think we


Ann E. Lewis, PH.D. - Direct Page 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BY MR. ELLIS: Q. Mrs. Lewis -to cross-examine? MR. ELLIS: Just one. ever did that. MR. LEWIS: Well, the only reason -I agree with

well, I don't know if I'm allowed to speak. you that I applied for unemployment. THE WITNESS: MR. LEWIS: Okay.

That's not an issue.

But

you should also have in the record that I notified them within 24 to 48 hours saying it wasn't necessary anymore because I had a -- you know, let's tell the whole story, the truth. That's what I'm trying to get at. I didn't

need the unemployment.

But I didn't know whether I was This is what I

going to be hired or not -- hired back. mean by the lack of justice.

I have no more questions. THE WITNESS: MS. COLLINS: Okay. Mr. Ellis, would you like

Office of Pension 1. (Office of Pension Exhibit No. 1 was marked for identification.) CROSS-EXAMINATION


Page 54 Ann E. Lewis, PH.D. - Cross 54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. Q. A. Yes. What is it? It is the letter that I signed stating that he A. Q. Office 1. Have you ever seen that before? Mm-hmm. -- I'm handing you a document marked Pension

cannot work as a seasonal employee and was terminated effective October 1 because we were told to take the pensioners out of the system. of the payroll system. Q. A. Q. A. Q. A. Okay. So we terminated them out

I did it for all the pensioners.

Read what you wrote.

Due to -Just what you wrote. I am. Just what you wrote. I am. Due to the Office of Pension stance

that you cannot work as a seasonal employee, your employment with Pencader Charter High School is terminated effective October 1st, 2011. Q. A. Who did you copy it to? I copied it to Harrie Ellen Minnehan and to

David Craik. Q. Very well. Did you send a copy of that to


Robert A. Lewis, Sr. - Direct Page 55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 information. please? BY MR. ELLIS: Q. Mr. Lewis, you live at 27 Tremont Court in -MS. COLLINS: That's personal Mr. Lewis. MS. COLLINS: Okay. other witnesses? MR. LEWIS: MS. COLLINS: No, I do not. Okay. Thank you. Mr. Lewis? A. Yes. It's in his personnel file. MR. ELLIS: THE WITNESS: Nothing further. Okay.

(The witness was excused.) - - - - MS. COLLINS: Did you wish to call any

Mr. Ellis, who would you like to call? MR. ELLIS: I'm going to cross-examine,

ROBERT A. LEWIS, SR., the witness herein, having first been duly sworn on oath, was examined and testified as follows: DIRECT EXAMINATION

Can you strike that from the record,


Robert A. Lewis, Sr. - Direct Page 56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BY MR. ELLIS: Q. You live at 27 Tremont Court in Newark, and -MS. COLLINS: Okay. you. MR. ELLIS: Counsel, I disagree with It is relevant

This is a public hearing.

information. business.

It's also the address of his consulting

So I disagree. MS. COLLINS: Perhaps you could ask what

the address of his business is. MR. ELLIS: I'm going to ask my question

Delaware; correct? A. Q. Yes. You are married to the school leader of

Pencader Charter School, Ann Lewis? A. Q. Yes. Your birthday is July 24th, 1946. So you will

be turning 66 later this month. A. Q. Yes. You retired from your position as assistant

principal at Middletown Middle School at the age of 55 on July 1st, two-thousand- -- I'm sorry -- 2002. A. Q. Yes. And that was after more than 31 years of state


Robert A. Lewis, Sr. - Direct Page 57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 service. A. Q. Correct? Yes. On August 22nd you were sent a letter by the

pension administrator, David Craik, advising you that your pension application had been approved effective July 1, 2002. A. retirement. MR. ELLIS: Pension Office 2, please. Do you recall that? I don't dispute it. Confirming my

I assume.

(Office of Pension Exhibit No. 2 was marked for identification.) BY MR. ELLIS: Q. That's the letter I'm referring to. More than ten years ago. I mean, I don't dispute it. You've

seen that before? A. Q. A. Q. A.

I assume.

That's your address? That's my address, yes. It hasn't changed? No. MS. COLLINS: Could we mark that as a

confidential document since it refers to retiree information and at the time Mr. Lewis was not an employee pursuant to the pension statute?


Robert A. Lewis, Sr. - Direct Page 58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BY MR. ELLIS: Q. I'm reading from this letter. It says,

"Please contact our office if you plan to return to state employment or have any questions regarding the above." And your testify -- in your testimony a little while ago, you said in fact you did speak to somebody named Robin here who gave you -A. Q. A. Q. Years later -Understood. -- yes. You began receiving monthly pension benefits But you did come back --

after August 22nd, 2002? A. Q. I assume. You got an increase in that monthly benefit in

December of 2006? A. Q. A. Q. I assume. You don't remember? No. You received a letter from Mr. Craik dated

September 28th last fall advising you that your pension benefits were being suspended; correct? A. Q. Yes. And you personally never responded to

Mr. Craik's letter?


Robert A. Lewis, Sr. - Direct Page 59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. No, I did not. I asked for advice as to how

to handle it. Q. And on October 24th, 2011, Mrs. Lewis replied

to Mr. Craik explaining that your employment with Pencader Charter was being terminated because you could not work there as a seasonal employee. A. Q. A. Q. A. Q. A. Q. I assume, yes. Well, you saw the letter -Yes. -- that she read. Yes. There is nothing to assume. No. It is correct. Correct?

Did you see the letter before she sent it or

after she sent it? A. Q. I have no way of remembering that at all. It was just this past fall. Do you remember

that she said you were terminated? A. I know I was terminated. As far as the

A-B-B-A, nobody is going to remember what they did and how it occurred on that day. Q. On October 26th, 2011, you filed a claim for Do you remember that now? I did not think I would be

unemployment insurance. A.

I never denied it.


Robert A. Lewis, Sr. - Direct Page 60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 coming back. insurance. Q. A. Right. And then after I applied for it, I realized I I said I applied for unemployment

couldn't collect it because I was being brought back in a different capacity. So I contacted the unemployment

office and told them that I had employment that -- and I never received any money for unemployment. Q. Right. Your independent contractor agreement

with Pencader Charter was signed on October 1st, 2011. Correct? A. Q. A. Q. Yes. I guess, yes.

I'll show you your signature. Yeah. Okay. Okay. I'm not disputing it.

So you had a contract in place as an On

independent contractor as of October 1st.

October 24th your wife wrote a letter that you had been terminated, letting everybody know. A. Q. Okay. Right? And a few days later on the 26th you You say you

filed a claim for unemployment insurance.

were still uncertain about just exactly what your situation was. A. Correct.


Robert A. Lewis, Sr. - Direct Page 61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. Okay. Because you didn't backdate to

October 1st, 2011 that independent contractor -A. Q. A. No, no. -- agreement? I didn't even think to apply for unemployment. Like, you know, I have these I better cover my --

It just slipped my mind.

rights like every other citizen.

cover myself because I don't know what's going to happen here. Q. A. Q. Well -Okay? -- what I'm pointing out is you filed for

unemployment. A. What dates they occurred I don't know. I know

I signed that letter. Q. A. I'm telling you what date. Okay. Well, then, I thank you. I mean, it's

all a matter of public record. I agree. Q.

So, you know, I'm not --

I'm just making -- trying to understand why it

was after you signed a contract you then thought you were still in need of unemployment insurance. A. Because I wasn't fully told that I

definitely -- it would be available -- that I would


Robert A. Lewis, Sr. - Direct Page 62 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 definitely be back in that position. think I signed a contract. of intent. Q. A. Okay? I didn't

I thought I signed a letter

But I don't know. Well, did you ever sign -The thing is -- I mean, if I were trying to be

dishonest, then why did I rescind my ask for unemployment? Q. Mr. Lewis, what I'm trying to figure out is:

When you learned that you were being terminated from employment but you were actually going to continue your teaching duties, did you ever feel any obligation to communicate that fact to the school? A. Q. Please re-ask the question. Sure. Didn't you think that your wife's Your employment was

letter was misleading, at best?

terminated but your teaching duties continued. A. I didn't have teaching duties. That there is

written up in August each year. supposed to do.

That was what I was Those

And it's just filled-in blocks.

are not classes all. volunteer.

Those are -- a lot of that is

For example, where it says like, you know,

RCM, which is our -- I volunteered -Q. A. Well, let's -Okay.


Robert A. Lewis, Sr. - Direct Page 63 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 times. BY MR. ELLIS: Q. A. I'm handing you Exhibit 3. What is that? Q. A. Let's mark this. Okay. MR. ELLIS: That's Pension Office 3. And I'll let you --

(Office of Pension Exhibit No. 3 was marked for identification.) THE WITNESS: I volunteer a ton of

That's the general math schedule for Pencader

for the past school year. Q. A. Q. Was it 2011-2012? Yes. Okay. And it shows the school day starts

around 7:30 -A. Q. A. Q. A. Q. Yes. -- and ends around 2:30? Yes. You agree that's about 7.5 hours? Yes. Okay. But you're saying that document

reflects periods of time where you're just volunteering your services? A. I was not obligated to be here. There's one,


Robert A. Lewis, Sr. - Direct Page 64 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 two, three, four, five blocks here, because these three are over one block. Q. A. Q. A. For lunch. Okay? Mm-hmm. Now, of these five blocks here, this was a

class, okay, all right, that I was teaching the freshman about morals and ethics coming into the school, okay, which I was -- which met every day. Okay. These here

are classes where I was not obligated to be there all the time every day. I work with kids. I tutor kids. A lot

of my money, or salary, came from Title I funds -federal funds -- okay, because we're a Title I school. Okay. So we have a lot of kids that are underprivileged

with like second or third grade reading levels, and I work with them in -- on their math and English in these resource rooms, so to speak. Q. A. was not. Mm-hmm. Okay. Sometimes I was working. Sometimes I

I did not have to be there, but I was there.

As a matter of fact, I was there early in the morning, because I greeted the kids when they came in on the bus in the morning, and I was there late in the afternoon because I work with kids after school --


Robert A. Lewis, Sr. - Direct Page 65 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 short of staff. Q. A. Q. A. Q. A. Okay. -- without pay. Mr. Lewis -Now --- what does the acronym RCM stand for? RCM stands for -- basically what it is -- it's

the acronym for the discipline room for time out. Q. A. Q. A. What does it stand for? I -- there's a formal name for it. Okay. No. Is it a study hall? It's -- no. Okay. It's called responsible And what that is -- that's Okay.

classroom management.

the name of the time out room, okay, where kids are sent when they're kicked out of class or incorrigible in class. Now, I left these open because we were And if they needed people at that time,

okay, I volunteered to go down and sit there. Q. A. Q. A. Q. every day? That's detention hall? Yes. Okay. Okay. That's Block IV that runs from 11:17 to 1:12 Yeah.


Robert A. Lewis, Sr. - Direct Page 66 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. Q. A. Q. Not required to be there. And it's also lunchtime? Yeah. I'm not required to be there.

And you say this was the schedule -- your Does it

schedule for this past school year 2011-2012.

reflect essentially the same kinds of periods that were true in the two previous years, '09-10 -A. Q. A. Q. A. No. Okay. Not in previous years. This is this year?

That's just this year. All right. This year I spent more time with the

underprivileged kids and using, you know, Federal I funds to help kids close the gap -- learning gap. previously I taught courses. Q. A. Q. Okay. Two years previously. So up until October 1st of 2011, last fall, Okay. Years

you received 26 paychecks over the course of ten months. Correct? A. Q. A. Q. (The witness indicating.) $63,000 a year basically? Yes. Divided 26 --


Robert A. Lewis, Sr. - Direct Page 67 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. Q. Yeah. And you -- the folks who processed that

information calculated an hourly rate based on 7.5 hours a week -- a day? A. Q. A. Q. A. Q. A. Q. I don't know how they did it. But -It wasn't -But it was essentially an annual salary? It was an annual salary, yes. No disagreement about that? No. Full time is 37 and a half or more than 200 You put that work into the school. I don't know.

hours a month. Didn't you? A.

Well, volunteering, I put in 80-90 hours a

week working with kids. Q. A. Okay. On weekends I work with kids. On Saturdays All

and Sundays -- nights, volunteer for functions. kinds of things. Q.

After October 1, 2011, you began to invoice

the school for, quote, teaching services -- that $6,450 a month -- for approximately 58,000 a year for a nine-month school year. Correct?


Robert A. Lewis, Sr. - Direct Page 68 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. Q. Yes. Okay. And that's only slightly less what you

made previously as a full-time employee at Pencader Charter. A. Q. Sixty-three? Yes. Okay. No one from the Pension Office told you

that by executing an independent contract -- I should say an independent contractor contract -- you could avoid the prohibition against working for a pension program participant, like the charter school, and receiving pension benefits. A. regulation. it. Q. A. Q. Okay. No one -Correct?

I thought I was following the law or the I can't answer your question as you phrased

No one told me I couldn't do it. Let me just say this. Back in August of 2009

you went to the source -A. Q. A. Q. A. Q. Correct. -- your words. And they said that I could. And they said you could? Yes. You spoke with somebody named Robin?


Robert A. Lewis, Sr. - Direct Page 69 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I let them. Q. And I completely understand why you would have But my question is: You didn't A. Q. A. Q. A. Q. A. Q. A. people -Q. A. Understood. -- what I should do. And they said, "Let us handle it." And Robin and -This time --- superiors. -- this past fall when you got his letter -Yes. -- you did not go back to the source. No. I --

You had others -That's correct. Because I asked the HR

thought that was fine.

contact the Pension Office in the fall. didn't. A. Q.

You personally

Nobody from the Pension Office -I didn't think there was a need to. -- told you, "Hey, the independent contractor, No problem." Nobody

that's a great way around this. like that.

Nobody -- Mr. Craik, Mrs. Vincent -- nobody

ever said that. A. No.


Robert A. Lewis, Sr. - Direct Page 70 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. I showed you an invoice. You don't recall

invoicing for school supplies? A. And that's -- I wish -- I just -- that's why I

took this out, because I have some of my records on here. But I don't have the records -- you see, I never specifically would or did -- I would not invoice for supplies. As a matter of fact, I donate money for

supplies, because the school is in need of stuff. Q. A. Okay. Now, whether somebody documented it

incorrectly or put it on there -- you know, entered it incorrectly, I don't know. You know, if I had my

computer with me right now and my invoices -- my actual invoices -- okay. entries. Okay. Those aren't actual invoices. They're

I would never ever as a consultant --

and even when I consulted for the -- for the publishing houses, I never invoiced for supplies or office supplies or anything such. That's unprofessional. Now, how they But I

got there, I can't answer that. can't answer that. Q.

They're there.

Is it possible you don't remember invoicing Office supplies? I do remember. And I did not

for school supplies? A.

I do remember.

invoice for office supplies.


Robert A. Lewis, Sr. - Direct Page 71 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. Okay. So whoever prepared this chart must

have got something wrong because you never did invoice for office supplies. A. That is correct. Or logbooks or, you know --

it's the teaching services -- contracted teaching services. Q. A. That's all I ever invoice for. Mm-hmm. Okay. And like I said, if I had the

opportunity to show you my actual invoices submitted, you'd see that there. Q. Pencader Charter never paid for your teaching Correct? You were paid biweekly

services in a lump sum. and then monthly? A.

Whatever the -- when I billed them, yes.

Now,

the two previous years, like you said, were 26 pays spread out. Q. And my question is -- listen to it carefully.

I think you're right -- Pencader Charter never paid for your teaching services in a lump sum. A. Q. A. Right. No one lump sum. They never did? Correct?

The answer is yes? They never did.

When you say "one lump sum,"

you mean the 60- -Q. That's right.


Robert A. Lewis, Sr. - Direct Page 72 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 years. Q. A. Q. A. Q. A. Q. Not even summer school? Oh, summer school. Have you taught summer school? Yeah. Okay. At Pencader. No other school but Pencader? A. Q. No. They did not pay me that way.

After August of 2009, where else, other than

Pencader Charter, have you taught? A. Q. A. Q. A. Other than Pencader Charter? Other than Pencader. These past three years? Yes. I haven't taught anywhere these past three

Correct. Okay. How many employees does Educational

Consulting have? A. Q. Me. Just myself. To satisfy business laws.

And you first became -- you created this

general partnership around the time you were signing the contract -A. Q. Yes. -- the independent contractor agreement. Is that right?


Robert A. Lewis, Sr. - Direct Page 73 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. Q. Yes. Okay. So you got your business license --

your temporary business license -- on October 24th, 2011. Correct? A. Q. A. Q. Mm-hmm. Correct? I guess, yes. Since nobody else was employed by Educational

Consulting, you never delegated your teaching responsibilities to anyone at Pencader. A. Q. I don't understand that. You never had anybody to delegate teaching Correct?

responsibilities to? A. Q. A. Q. Why would I? I can't understand why I would. You had no employees.

Well, that's right. Right.

Did you invest any of your personal money in

Pencader Charter that could return a profit or loss to you? A. A profit or loss? No. It was all in a -- you

know, I've been in the habit of donating to the general fund to buy supplies and stuff for teachers. donated furniture. I've But

You know, just donate and give.

I've never received anything back from it for that.


Robert A. Lewis, Sr. - Direct Page 74 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. A. Q. A. Q. No investment? No. It's not -- no.

Monetary. The investment is education. Got it. Pencader Charter, both before and

after October 1st of 2011, has determined your hours of service. Correct? You don't decide I'm going to do my

teaching on Saturday and Sunday? A. need me. I'm there when they -- when they tell me they Now, some things there's flexibility there. If

I'm tutoring a kid or what have you, you know, I can tutor when I wish. when I wish. I've worked with kids on Saturdays I set

You know, some of it is volunteer.

up the whole volunteer program for our receptionist who couldn't afford to send her child to a private school. Q. You don't decide when to take time off to have The school decides.

in-service days. A. Q.

I don't have to attend in-service days. Understood. But you don't decide when there's The school, as you

going to be a break from classes. said -A. Q. A. Right. -- sets your hours.

There's a formal schedule that I have to


Robert A. Lewis, Sr. - Direct Page 75 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 you. THE WITNESS: Because prior to that and -Q. I'm sure. Mr. Lewis, Pencader had the power adhere to to a certain point. Q. Right. Pencader requires you to submit I assume test scores,

reports from time to time.

evaluations of your students you're required -A. Oh, they have that constantly through the --

through the state testing system. Q. A. Q. A. Well, this -As a matter of fact --- past --- my kids have had tremendous improvement

to terminate your employment both before and after October 1st of 2011. A. Q. At any time they can terminate my employment. Exactly. They didn't terminate -- they didn't

discharge Engineer -- I'm sorry -- Educational Consulting. A. They discharged you. They discharged me. MR. ELLIS: No further questions. Thank Correct?

Education Consulting didn't exist. MR. ELLIS: No further questions --


David Craik - Direct Page 76 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BY MR. ELLIS: Q. Mr. Craik. A. Q. A. Q. A. Q. position? A. I've been in the office for 24 years and the Good morning, Mr. Lewis. I'm sorry. next? MR. ELLIS: I call Mr. Craik. like to -MR. ELLIS: -- of Mr. Lewis. MS. COLLINS: Mr. Ellis, who would you

(The witness was excused.) - - - - MS. COLLINS: Who would you like to call

DAVID CRAIK, the witness herein, having first been duly sworn on oath, was examined and testified as follows: DIRECT EXAMINATION

State your full name for the record. David Craik. How are you employed? I'm employed in the Office of Pensions -For how --- for the State of Delaware. And for how long have you occupied that


David Craik - Direct Page 77 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 past 15 years as the pension administrator. Q. A. Q. The past 15? Yes. In September last year, did the Pension Office

receive an anonymous tip that three teachers at Pencader Charter were collecting pension benefits from the state pension fund while being paid for their full-time teaching duties at Pencader? A. Q. Yes, we did. Was Mr. Lewis one of the three teachers

identified in the tip? A. The tip didn't identify the teachers. But

what we did is went out to their website and got a list of their teachers and matched that to our retirees. we came up with three people. the three. Q. In September of 2011 when you got that tip, And

And Mr. Lewis was one of

was Mr. Lewis presently collecting pension benefits? A. Q. A. Q. Yes. When did he retire? On July 1st, 2002. When he retired, did you send him a letter

explaining to him that you were available for questions and to be careful if he returned to work -- that there


David Craik - Direct Page 78 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 were certain restrictions about returning to work, particularly if it was work for a state entity? A. Yes. That's our normal approval letter that

we send to retirees. Q. I'm handing you a document previously

identified as 2. A. Q. Correct? A. Q. Yes. And I want you to read beginning at the third Yes. That's your letter of August 22, 2002.

full paragraph what it says to Mr. Lewis about returning to work. A. You cannot receive a pension from the state

employees' retirement fund during any month in which you are an employee as defined under the provisions of that plan unless you are, one, an official elected by popular vote at a regular state election or, two, an official appointed directly by the governor and confirmed by the state senate or, three, a temporary employee whose earnings from such temporary employment do not exceed the maximum income allowable by the Social Security Administration without affecting Social Security benefits; four, registration or election official or a


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Bob Lewis Hearing