Pension system settles lawsuit

Ex-worker gives up claims in exchange for $98,000

The Arkansas Teacher Retirement System has agreed to pay $98,000 to settle a lawsuit by former senior investment analyst Susan Crosby, who alleged she was wrongfully terminated by system Executive Director George Hopkins in February 2011.

Under the terms of the settlement, the system agreed to pay $55,105.14 to Crosby and $42,894.86 to her attorneys, The Brad Hendricks Law Firm, according to a copy of the settlement provided by the attorney general’s office this week.

Aaron Sadler, a spokesman for Attorney General Dustin McDaniel, said Thursday that the settlement has been paid by the retirement system’s insurance carrier, Chubb Insurance.

The teacher retirement system is the state government’s largest retirement system with more than $14 billion in investments.

Crosby started work for the system in December 2009 and was fired Feb. 24, 2011, according to system records. Her annual salary was $94,365. Hopkins, a former state senator who has been the system’s executive director since December 2008, has an annual salary of $174,811.

Crosby told the system’s board of trustees in a letter after she was fired that Hopkins spearheaded “a misrepresentation” of a $40 million investment in a fund managed by Santa Monica, Calif.-based Tennenbaum Capital Partners.

But Hopkins disputed her allegation, saying he fired her for insubordination after she told an employee to disobey his instructions about how to describe Crosby’s title on the system’s website.

In September 2012, Crosby filed suit in Pulaski County circuit court against Hopkins and 10 system trustees, alleging that she was wrongly terminated by Hopkins in retaliation for reporting abuse. Among other things, she requested back pay, front pay in lieu of reinstatement and compensatory damages exceeding $75,000.

Pulaski County Circuit Judge Tim Fox dismissed the lawsuit with prejudice in an order signed Feb. 28 after a settlement was reached.

In the settlement agreement dated Feb. 5 and signed by Crosby and Hopkins, the system denies violating Crosby’s rights and denies any liability to Crosby in any respect.

Crosby agreed to release and waive “each and every claim for injuries, damages, and consequences, known and unknown, developed or which might develop in the future, resulting from any practices, acts or omissions of ATRS prior to the effective day of this settlement agreement and full release.”

As part of the six-page settlement, the system agreed to provide Crosby with a letter that states that she was employed by the system from Dec. 27, 2009, to Feb. 24, 2011, as the senior investment analyst with an annual salary of $94,365 and that her “performance exceeded expectations, and she is eligible for rehire.”

Crosby agreed in the settlement to waive any right to employment in the future with the system and that she won’t apply for or accept employment with the system in the future.

She also agreed not to make any written or oral statements concerning her claims against the system orthe terms of the settlement agreement in most circumstances. She is allowed to disclose the information to her spouse, lawyers, accountants, any state or federal agency or tax authority, and, if required to do so, by subpoena, appearance in lieu of a subpoena or a court order.

The system agreed that its “executive management” will not make any written or oral statements concerning her claims against the system or the terms of the settlement agreement except that the system may disclose such information to its lawyers, accountants and individuals within the system “on a needto-know basis, any state or federal governmental agency or tax authority, to any legislator or legislative committee upon request, to any person requesting this agreement under the Freedom of Information Act if ATRS determines that it is subject to a properly made FOIA request, and, if required to do so, by subpoena, appearance in lieu of a subpoena, or court order.”

Hopkins on Thursday declined to comment on the settlement of the lawsuit.

Crosby’s attorney, Lloyd W. “Trey” Kitchen III of The Brad Hendricks Law Firm, said, “We are just happy to have it resolved.” He said Crosby and her husband own By the Glass Wine Bar in Little Rock.

The teacher retirement system includes 70,660 working members with annual average salaries of $34,920; 4,265 deferred retirement participants with annual average salaries of $60,927; and 36,254 retired members with average annual pensions of $21,067, according to system actuary Gabriel, Roeder, Smith & Co. of Southfield, Mich.

Northwest Arkansas, Pages 20 on 03/23/2014

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