HARRISBURG, Pa. -- A handcuffed Jerry Sandusky testified by video link for nearly three hours Tuesday about his Penn State retirement deal and ties between the university and the youth charity he founded, as a hearing began to determine if he should get retirement benefits cancelled over his child molestation conviction. Speaking from the western Pennsylvania prison where he is serving a 30- to 60-year sentence, Sandusky described how he retired from Penn State in mid-1999 to take advantage of an early retirement incentive, and then was immediately rehired on a temporary basis to coach one last season. A hearing examiner is taking evidence about the post-retirement benefits Sandusky received and the universitys connection to The Second Mile charity as part of Sanduskys appeal of the pension forfeiture. Sandusky said that after the 1999 season, he never received another paycheque or W-2 tax form from Penn State, never held himself out to be a Penn State employee and was even given a retirement party. At issue is whether he could be considered a school employee about a decade later, when he committed sex crimes against two boys that meet the states standards for forfeiture. Sandusky disputed documents that claim he received dozens of payments from Penn State after 1999. "I dont know the exact number for sure, but I know it was in the neighbourhood of three," he said. "It was far from 71." Sandusky was the only witness called by his lawyers, and the afternoon session began with a retirement system employee reading a timeline that outlined the former coachs history with the pension agency, starting when he was hired by Penn State in 1969. He lost a $4,900-a-month pension in October 2012, the day he was sentenced for 45 counts of child sexual abuse. The decision also precluded his wife, Dottie Sandusky, from collecting benefits. She attended the hearing Tuesday in Harrisburg. The State Employees Retirement System (SERS) ruled that his convictions for involuntary deviate sexual intercourse and indecent assault fell under Pennsylvanias Public Employee Pension Forfeiture Act. Sandusky had opted to participate in the state-sponsored retirement system while at Penn State, which is a "state-related" university, but he was not a state employee. At the heart of the dispute is whether Sanduskys ties to the university after his retirement, including some payments, made him a "de facto" Penn State employee while committing the crimes in question. His lawyer has argued he was not and that his employment contract was not renewed after the forfeiture law took effect in 1978 so its terms do not apply to him. Sandusky attorney Charles Benjamin has said Penn State made only six payments to Sandusky between 2000 and 2008, and three of them involved travel costs. The other three were speaking fees of $100, $300 and $1,500. In a Dec. 9 filing, Benjamin also argued that Sandusky did not fit the definition of "school employee" under the forfeiture law. "No reported case in the history of Pennsylvania jurisprudence has ever applied a de facto employee analysis to deny someone his retirement earnings, and SERS should not bow to political pressure and mob rule to deny claimant his retirement earnings," Benjamin wrote. In recent weeks, there was a dispute over the SERS witness list, which included two former Penn State administrators facing allegations of a criminal coverup about Sandusky, former athletic director Tim Curley and former vice-president Gary Schultz. A SERS lawyer said at the start of the hearing that both men asserted their Fifth Amendment rights not to testify. There is currently no trial date set for Curley and Schultz, who are being prosecuted in the Dauphin County Courthouse, about two blocks from the SERS headquarters. It likely will be several months before the hearing examiner, Michael Bangs, produces his written recommendation to the retirement system board. If the board rules against Sandusky, he may appeal to Commonwealth Court. Meanwhile, a lawsuit filed by Joe Paternos family and others against the NCAA needs the schools involvement in order for parts of it to proceed, a state judge ruled Tuesday. The 25-page opinion by Judge John Leete delivered a mixed decision by dismissing some elements, keeping others alive and leaving the door open for an amended lawsuit to be filed. Leete said breach of contract claims, however, cannot continue without Penn States participation because the school is an "indispensable party," given that the lawsuit could affect the universitys interests and contractual rights. The lawsuit seeks to void a consent decree between the NCAA and Penn State over handling of the Jerry Sandusky child sex abuse scandal, an agreement that imposed a $60 million fine, a four-year ban on post-season play, a reduction in scholarships and other penalties. "If the consent decree is declared void, as plaintiffs request, Penn State would lose the benefits it bargained for, including avoiding harsher sanctions and limiting further loss that could result from a prolonged investigation," Leete wrote. He added that the NCAA had indicated earlier that the football program could be shut down if the decree was invalidated. Paterno family attorney Wick Sollers said the decision allows the critical claims in the lawsuit to go forward. The ruling will let "the bright light of legal discovery" shine on the facts and records, he said. Paterno died in 2012, weeks after the scandal erupted and he was fired as football coach. A Penn State spokesman declined to comment. "We are exceedingly pleased that the court rejected the plaintiffs effort to undo the consent decree," NCAA chief legal officer Donald Remy said in a statement. "As this was the last remaining legal challenge to the validity of the consent decree, we hope the courts decision finally brings closure to this issue and allows the Penn State community to continue to move forward under the consent decree and the athletic integrity agreement." The judge threw out a claim of interference with contractual relations but kept in place civil conspiracy and commercial disparagement elements. "Plaintiffs identified disparaging statements accusing Joe Paterno of enabling and concealing child sexual abuse and knowledge or reckless disregard with respect to their falsity," Leete wrote. He said that although the family did not meet a legal standard generally required in disparagement claims, the requirement is lifted when the disparaging statements are libelous. 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The 2014 season will be my last year playing professional baseball," Jeter posted Wednesday in a long letter on his Facebook page. "I have gotten the very most out of my life playing baseball, and I have absolutely no regrets," the shortstop wrote. While it was no secret the team captain was getting close to the end of his brilliant career as he neared 40 -- especially after injuries wrecked him last season -- Jeters announcement caught many by surprise. In fact, some people wondered whether his account had been hacked. But it was quickly confirmed that one of the greatest players in the history of baseballs most storied franchise was serious. A 13-time All-Star shortstop who led the Yankees to five World Series championships, Jeter was the last link to the powerful Yankees teams that won three straight crowns from 1998-2000. Longtime teammates Mariano Rivera and Andy Pettitte retired after last year. "Derek Jeter is Mr. Yankee of his era," Yankees co-chairman Hank Steinbrenner told The Associated Press. "He was the face of one of the greatest teams ever." Jeter was limited to 17 games last season while trying to recover from a broken left ankle sustained during the 2012 playoffs. He hit only .190 with one homer and seven RBIs. "Last year was a tough one for me. As I suffered through a bunch of injuries, I realized that some of the things that always came easily to me and were always fun had started to become a struggle," Jeter wrote. "The one thing I always said to myself was that when baseball started to feel more like a job, it would be time to move forward." "So really it was months ago when I realized that this season would likely be my last. As I came to this conclusion and shared it with my friends and family, they all told me to hold off saying anything until I was absolutely 100 per cent sure," he wrote. "And the thing is, I could not be more sure," he wrote. His agent, Casey Close, said Jeter wanted to declare his intentions before the Yankees start spring training later this week so that his future status wouldnt be a distraction. The Yankees open camp for pitchers and catchers on Friday. Jeter has said hes healthy and ready to go -- at 39, his next birthday is in June. "Derek called me this morning to tell me that he planned to retire following the season," Yankees Managing General Partner Hal Steinbrenner said.dddddddddddd Said Los Angeles Dodgers manager Don Mattingly, a former Jeter teammate: "Im excited for him. Its kind of nice to see him go out on his own terms." Jeter is the Yankees career hits leader with 3,316. Hes ninth on the all-time list; a 200-hit season would put him in fifth place. Jeter is a lifetime .312 hitter in 19 seasons, with 256 home runs and 1,261 RBIs. He has scored 1,876 runs, stolen 348 bases and is a five-time Gold Glove winner. Added up, his numbers put him among the greats in Yankees history, with fans often invoking the names of Babe Ruth, Lou Gehrig, Joe DiMaggio, Mickey Mantle when mentioning Jeters legacy. But No. 2 is defined by so much more than his numbers. His backhanded flip in the playoffs, his diving catch into the stands, his speech to close old Yankee Stadium and his home run for career hit No. 3,000. An October presence for so many years -- Jeter is a career .321 hitter in seven World Series -- he also became Mr. November in 2001. His winning, 10th-inning homer came shortly after midnight in a Game 4 that began on Halloween. Jeter was the AL Rookie of the Year in 1996, the season the Yankees won their first World Series since 1978 and re-established themselves as a major force. He was the MVP of the 2000 World Series. Commissioner Bud Selig said during his tenure, "Major League Baseball has had no finer ambassador than Derek Jeter." A staple for so long in the Yankees lineup, Jeter missed the first 91 games last year. He felt pain in his right quadriceps when he returned July 11 and again went on the disabled list. Jeter came back for three games but strained his right calf. In early September, he was done for the year. The Yankees will open the 2014 regular season on April 1 in Houston. Their final game is scheduled to be at Fenway Park, against the longtime rival Boston Red Sox. Rivera announced a year in advance that he would retire, and was saluted everywhere he played last season. Jeter is sure to get a similar farewell tour. "I wish everybody does it like that," Rivera told ESPN radio. "I think that would be the right thing for him to do." Jeter wrote that he wants to pursue business and other interests "in addition to focusing more on my personal life and starting a family of my own." "And I want the ability to move at my own pace, see the world and finally have a summer vacation," he said. "But before that, I want to soak in every moment of every day this year, so I can remember it for the rest of my life. And most importantly, I want to help the Yankees reach our goal of winning another championship," he said. ' ' '