Retirement Board Administrator Demoted

Ending a week of closed-door deliberations, the county’s retirement board voted Thursday to demote administrator Mary-Jean Hackwood, who is accused of abusing her authority by ordering employees to run personal errands.

In an unusual settlement, the board agreed to rent office space for Hackwood away from the retirement system’s 35 employees, some of whom raised allegations against her last year.

Hackwood, 60, will work as a portfolio manager through February 1997, when she reaches her 10th year with the county and becomes eligible for full pension benefits. Officials declined to say whether Hackwood will receive a pay cut or how much the board plans to spend establishing an off-site office for her.

Workers reacted with disappointment to the board’s decision, saying Hackwood was treated with a degree of leniency that they would not receive.

“If any other employees did what she did, they would be fired on the spot,” employee Rochelle Babiak told the board as she fought back tears. “I can’t believe that after everything we gave you . . . you still let her work here.”

Hackwood managed the county’s $2.9-billion retirement fund until last month, when the board placed her on paid leave while the allegations were investigated.

The workers accused Hackwood of charging personal calls to the county and requiring them to water her plants and drive her to the airport for personal trips. They also said she ordered them to run personal errands such as picking up her mail from home while she was away on business or vacation.

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The board, which oversees the investments of 20,000 current and retired government workers, voted 7 to 2 to remove Hackwood as administrator.

One of the dissenters, Mary Abbott, said she thought Hackwood created a “very stressful” work environment and should have been fired. Treasurer-Tax Collector John M.W. Moorlach was the other board member opposing the settlement.

Board Chairman Thomas J. Lightvoet said the panel’s decision was a “reasonable response” to the investigation.

“She will no longer be in a position to control the destinies of employees,” Lightvoet said.

Hackwood is known nationally for her investment management skills, Lightvoet said, “and frankly, I didn’t want to lose her expertise.”

She will be the system’s first portfolio manager, though officials said they previously had discussed filling that position.

Hackwood did not attend the Thursday afternoon meeting. But her attorney said earlier in the day that she has been falsely accused.

“She’s demanding. There’s no question about that. She expects people who work for the system to put in a day’s work for a day’s pay,” said attorney Cameron Smith. “But these charges of abuse are wrong. She’s devoted to the system and feels she’s done an excellent job.”

Hackwood had offered to reimburse the system if the board found solid evidence that she made unauthorized phone calls or used employees to do personal chores, Smith said.

“She doesn’t think she did anything wrong,” he said. “If she did, she is willing to make repayment.”

Board members said they have yet to determine how much if anything Hackwood might owe.

This is not the first time Hackwood has come under scrutiny. In 1991, she and four board members were criticized for taking a 26-day trip to Europe. The county’s auditor-controller rejected $5,000 in personal expenses, but board members maintain they never intended for the county to pay for personal items.

Also in 1991, she was the subject of a management audit that raised questions about the way she treated employees.

Former board member Sara Ruckle said Thursday that it doesn’t make sense for Hackwood to remain with the system if the board concluded that the allegations against her are true.

Ruckle also said employees remain concerned that Hackwood’s new job will require her to make frequent trips to the system’s main office. Board members vowed to strictly limit Hackwood’s visits to the main office, even if that means changing the location of some meetings.

The board named Terry Slattery, the agency’s investment officer, as acting administrator. Hackwood will report to him.