Prometheus 6

Mayor's Republican, if that helps...

The city is demanding that the veterans repay their gross salaries, even though they never saw about a third of the money, which went for taxes and other deductions...[T]he Police Department, which waited as much as four years to begin asking for the money back in the spring, is stepping up its collection efforts. On Thursday, hundreds of officers received letters in their pay envelopes threatening legal action if they did not make repayment arrangements within 15 days.

New York City’s Reservists Are Asked to Return Iraq Pay
By ANDY NEWMAN

When they were called up for military service in the wake of 9/11, hundreds of uniformed city workers in the Reserves faced the suspension of their city health and pension benefits. The city offered them an option: it would keep paying their salaries and continue their benefits, but when they returned they would have to repay the city their city salary or their military pay, whichever was less.

On its face, the offer made sense. And many reservists had only a few days to get their affairs together before shipping out — hardly enough time to consult accountants. Nearly all took the deal. As the war dragged on, more than 1,600 city employees, mostly police officers, signed up for the benefits program.

Now the bills from the city are coming due, for far more than many veterans imagined they would have to pay — as much as $200,000 — and often for more money than they ever received.

The city is demanding that the veterans repay their gross salaries, even though they never saw about a third of the money, which went for taxes and other deductions. The commissioner of administrative services, Martha K. Hirst, said veterans should be able to get back the difference between gross and take-home pay by amending their tax returns. But several tax accountants said the city had created an accounting quagmire.

David Gitel, a tax accountant in Manhattan, said that if the employees paid the money back over several years — which many will have to do — rather than in a lump sum, they could lose thousands of dollars in income-tax and social security payments.

“It’s an interesting experience,” Mr. Gitel said.