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Iowa workforce agency head retires from job

DES MOINES, Iowa (AP) - The embattled head of the Iowa agency that oversees benefits for unemployed workers has retired from the post, Gov. Terry Branstad announced Sunday.

Iowa Workforce Development Director Teresa Wahlert submitted a formal retirement notice to Branstad on Friday, according to a press release from the governor's office. Her retirement is effective immediately.

Beth Townsend, executive director of the Iowa Civil Rights Commission, will be acting director of the agency. No timeline has been set to name a permanent director, according to the release, which offered no other details.

Wahlert was named to the post by Branstad in late 2010. The governor remained supportive of her as she faced accusations of mismanaging the department and creating a hostile work environment.

"Lt. Governor (Kim) Reynolds and I wish her all the best as she begins her retirement," Branstad said in a brief statement.

Sen. Janet Petersen was the Democratic leader of the Senate Government Oversight Committee that investigated Wahlert's agency last year after it provided unemployment benefits to some people who didn't seek them and staff was urged to stay quiet about what happened. Wahlert said at the time that there was no effort to cover up the overpayment problem, which she said was caused by a technical glitch.

"I believe it's safe to say that (Wahlert) had zero chance of obtaining the votes necessary to make it through a Senate confirmation again," Petersen said about the retirement announcement.

Wahlert was also accused of demanding tallies on how often judges ruled in favor of employers and workers and requested that the judges create tip sheets to help employers. Democratic Sen. Bill Dotzler, of Waterloo, asked the U.S. Department of Labor to investigate her.

Wahlert also is facing a lawsuit from Joe Walsh, the state's former top unemployment appeals judge. He claims Wahlert fired him for opposing her efforts to change his job into a political appointment. A trial has been set for September.