Auditor Demands Nebraska Retirement Board Halt Final $7,884 Payment to Former Director
Nebraska State Auditor Mike Foley is asking the Public Employees Retirement Board to stop a third and final payment to former Nebraska Public Employees Retirement Systems Executive Director Thomas Pfeifle, arguing the money covers weeks Pfeifle did not work, 1011now.com reported.
Foley sent a 10-page letter to the board demanding it cancel a check scheduled for Nov. 10 and recover two payments already issued. The board has paid Pfeifle $7,884.81 on Oct. 14 and again on Oct. 28. If the third check goes out, the total reaches $23,654.43 in gross pay. With vacation and sick leave plus employer-paid health insurance and retirement benefits, the cost climbs to $27,878.31.
Payments Cover Six Weeks Pfeifle Did Not Work
Pfeifle submitted his resignation on Sept. 21, citing a desire to be closer to his children in Colorado. His letter set Oct. 31 as his last day, and the board approved the resignation at a Sept. 30 special meeting. But Foley said Pfeifle turned in his state cellphone, keys, laptop and identification on Sept. 21 and has had no further contact of consequence with the agency. NPERS staff told the auditor Pfeifle has not worked in the office since that date.
Under his employment agreement approved June 15, Pfeifle earned an annual base salary of $205,000, equivalent to $98.557 per hour. He began with NPERS in early June and left after less than four months.
Foley Exposes Pfeifle’s Employment Inquiries
Foley’s letter also raised concerns about Pfeifle’s work history. According to the auditor’s letter, Pfeifle sent an inquiry from his personal email on July 8 to a major financial services company and retirement plan provider to solicit possible employment. The letter claims Pfeifle drafted multiple resignation letters in early September that were later deleted and that he was placed on a personal improvement plan.
Foley also alleged NPERS failed to follow internal policies for handling credible allegations of offensive or illegal workplace behavior. The letter notes the complaints were not sent to required offices until “well over a month” after they were initially filed, though Foley’s office did not determine the validity of the allegations.
Board Lacks Enforcement Threat From Auditor’s Office
Foley’s office has no authority to force the board to act. “Everyone knows exactly what is going on — from the retirement board members themselves to the director of Administrative Services, who processed this payout, to the highest state officials,” Foley said in a release quoted by Yahoo. “But nobody will lift a finger to stop it.”
NPERS responded that the board intends to develop reporting procedures to address oversight of the executive director’s working hours and in-office work, and will consider policies addressing leadership employment and end-of-employment matters. Foley said he was not satisfied with that response.
Questions Readers Are Asking
How much has Pfeifle already received?
The board issued two payments of $7,884.81 each on Oct. 14 and Oct. 28.
When is the final payment scheduled?
The third check for $7,884.81 is scheduled for Tuesday, Nov. 10.
Can the auditor force the board to stop the payment?
No. Foley’s office lacks enforcement authority, so the decision rests entirely with the Public Employees Retirement Board.
The full 10-page letter is available on the Nebraska Auditor’s website.
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