LEBANON — The city has filed suit against its former electric department director and the state retirement system to get back almost $170,000.

        Former Director Bob Newton and his attorney, who had not yet seen the lawsuit, had no comment Friday.

        The action comes 13 months after the scandal first erupted over three top officials taking advantage of an early retirement program meant for electric department employees.

        The buyouts, which totaled $486,416 in city money, were completed without City Council's knowledge, council members said.

        “We've been saying ever since it started that we were going to get the money back,” Councilman James Reinhard said. “If you don't do anything, you're saying that it's OK. And it's not. It doesn't follow the written rules.”

        The city also referred the matter to the Ohio Ethics Commission last year; Warren County Prosecutor Tim Oliver had no comment Friday on the possibility of criminal charges.

        The Public Employees Retirement System has returned the payments made on behalf of two of the employees — retired City Attorney Bill Duning and retired City Auditor Debbie Biggs. Mr. Duning voluntarily gave up claim to the money; Mrs. Biggs has sued to get hers reinstated.

        But PERS has refused to return $169,549 paid on behalf of the third retiree, Mr. Newton.

        The city's lawsuit contends he was not eligible for the early retirement incentive program on several counts, including:

        • City Council did not authorize renewal of the buyout program after it expired at the end of 1997.

        • The buyout program was part of a contract with union members in Lebanon's electric department, and therefore they were the only eligible employees. Mr. Newton was not a union member.

        PERS, however, says state law forbids the city from treating union members differently than others in the same department. PERS had not yet seen the lawsuit, benefits supervisor Craig Scholz said Friday, but he expected the agency would fight it.

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