Raimondo Pension Suspensions Challenged

General Treasurer Gina Raimondo drew attention last week by saying that $1 million has been saved by reducing or suspending the disability pensions of 16 former state and municipal workers who had been overpaid.

The Providence Journal reported that in at least two cases, the retirees hired a lawyer who is contesting the legality of the actions taken by the state retirement board, chaired by Raimondo, to suspend their pensions. One retiree’s complaint is pending in Superior Court.

The board also is accused of disregarding a 1980 law revoking the state retirement board’s power to adjust accidental disability pensions based on other earnings, according to ABC6.

The retirees, all “earned income in excess” of what they were allowed to earn and continue to collect their full disability pensions, according to the treasurer’s office. The state retirement system hired an independent auditing firm and investigator who identified a total of $1,052,406.42 in “over-earnings” by the 16 retirees. The disability-pension payments to all 16 individuals were either reduced or suspended for varying periods of time, because of the overpayments.

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