To All Delegates and Members

SETTLEMENT REACHED IN “SECTION 1127” CASE

On Thursday, March 8, 2001, New York Supreme Court Judge Stanley L. Sklar signed the Stipulation of Settlement in the case of Ganley, et al. v. Giuliani, et al. (i.e., the “Section 1127” case involving former members of the New York City Transit and Housing Police Departments who were involuntarily transferred to the New York City Police Department as part of the April 1995 Transit and Housing Mergers), in accordance with the terms previously discussed at the February 16, 2001 Delegates’ Meeting. This settlement represents a major victory for PBA members vindicating the rights of approximately four thousand (4,000) police officers who since April 1995, were wrongfully subjected to Section 1127 deductions.  

Terms of the Settlement

The settlement provides for the refund of 1127 payments with interest in accordance with the following terms:

• The City shall refund 1127 payments [i.e., all amounts paid and/or wrongfully withheld pursuant to Section 1127] to each affected member and shall use best efforts to issue such refunds within sixty (60) days [of the March 8, 2001 “So Ordered” Stipulation], but in no event later than ninety (90) days.

• The City, by a separate mailing, not later than sixty (60) days after the refunds are mailed, shall mail to each affected member a Substitute Form W-9, with an instructional letter advising the affected members how to make a claim for interest.

• Each affected member claiming interest shall return a completed W-9 Form within sixty (60) days after the date the W-9 Form is mailed by the City.   FAILURE TO SUBMIT THE W-9 FORM WITHIN THE TIME PROVIDED WILL RESULT IN A WAIVER OF THE MEMBER’S CLAIM FOR THE INTEREST PAYMENT.

• The City shall pay to each of the affected members making a claim for interest an amount equal to 14% of the all 1127 payments wrongfully withheld from each respective member.

• The City shall mail the interest payments not later than 60 days after receipt of the properly completed W-9 Form.

To ensure that all affected members receive payment under the terms of the Stipulation, it is crucial that we receive the assistance of Delegates and Trustees.  Under the terms of the settlement, the City will provide the PBA with a list of affected members and their respective social security numbers.   We will also receive a list of those affected members for whom the United States Postal Service has returned W-9 Forms to the City as undeliverable.  Upon receipt of this list, we will have sixty (60) days to contact the members and advise them to submit their W-9 Forms.  We do not want any member to forfeit any monies rightfully due to them for failing to submit their W-9 Form.  Accordingly, the PBA through its Transit and Housing Bureau Trustees will be coordinating with Delegates to apprise all affected members of their rights and responsibilities regarding payment.

If you have any questions, or need further information, please contact Transit Financial Secretary Mubarak Abdul-Jabbar at (212) 298-9128, Transit Trustee Michael Morgillo at (212) 298-9133, Housing Financial Secretary Richard Diana at (212) 298-9161, or Trustee Robert Genco at (212) 298-9155.