Audit finds misconduct cases slipped through reviews in N.J. police and fire pension system, comptroller says

TRENTON, N.J. — An investigation by New Jersey’s Office of the State Comptroller found that 21 members of the state Police and Firemen’s Pension System retired without required honorable service reviews despite histories of misconduct that could have led to forfeiture of some or all pension benefits, according to a report released Wednesday.

The comptroller’s office said the 21 retirees included officers involved in serious and, in some cases, ongoing misconduct over many years, officers who faced criminal charges, and officers who were later required by court order to give up their law enforcement jobs. The report said one member retired while facing child pornography charges and was later convicted. The comptroller’s office said the cases may represent “only the tip of the iceberg.”

“These findings expose a serious gap in efforts to protect underfunded pension funds and deter misconduct by law enforcement officers,” said Acting State Comptroller Kevin Walsh. “Our laws demand that public employees act honorably as a condition of receiving their pensions. These 21 former officers are the ones we found. We don’t know how many are out there who committed misconduct and are getting full pensions simply because no one told the pension board what they did wrong.”

Among other findings, the comptroller’s office said local employees responsible for notifying the Division of Pensions and Benefits at retirement often failed to report necessary details because they misunderstood their roles.

The investigation also found that some agencies used settlement agreements to obscure or alter facts tied to misconduct, which the comptroller’s office said prevented accurate assessments of whether officers served honorably.

The report said the pension board sometimes treated retirements in “good standing” as a factor in its analysis even when the retiring members had been accused of serious wrongdoing, including obstructing criminal investigations for personal benefit, sending unwanted sexually explicit messages to a female victim, repeatedly punching a handcuffed arrestee, posting racist messages on social media, or being repeatedly suspended for unrelated misconduct.

Even when the pension board had full information, its decisions “often appeared illogical or inconsistent,” the comptroller’s office said, allowing some officers accused of serious misconduct to retire with full pensions or minimal forfeitures.

The comptroller’s office said the weaknesses impose monetary and non-monetary costs on the pension system and add to an already unfunded liability of more than $4.4 billion.

The report makes 15 recommendations aimed at strengthening pension integrity, including mandatory self-reporting of disciplinary actions by retiring members, enhanced training for certifying officers and legislative changes to close loopholes. The comptroller’s office said it is also referring certain matters to the Office of Attorney Ethics and the state attorney general for further action as needed.