Raimondo Finds More Than $1 Million For Pension Fund

PROVIDENCE, R.I. – On Wednesday, October 8, 2014, at the State Retirement Board Meeting, Treasurer Raimondo and her team announced that improvements to disability compliance over the course of her term have resulted in finding more than $1 million in overearnings dating back to 2000.

ERSRI staff acting on recommendations and findings of Blum Shapiro, an independent audit firm, identified $1,052,406.42 in overearnings attributed to 16 retirees receiving disability pensions.  Of that, $593,097.63 has already been collected.  The retirees had earned income in excess of what is allowed by law.  ERSRI has been recouping the monies owed to the pension trust through pension payment suspensions.

“This is a true example of government working,” said Treasurer Gina Raimondo. “By finding overearnings, we are saving taxpayers’ money, increasing public confidence in disability compliance and improving the integrity of the entire retirement system.”

Disability compliance has been a priority of the Treasurer’s throughout her entire administration. Below are previous actions and updates of the ERSRI board:

May 2011: A disability audit was initiated by Treasurer Raimondo following irregularities within the disability compliance process.

July 2011: The auditors gave a presentation to the Retirement Board highlighting significant deficiencies in compliance regarding retirees receiving a disability pension.

September 2012: The auditors provided the Retirement Board and ERSRI with recommendations to improve the disability compliance process.

November 2012: ERSRI staff provided the Retirement Board with a comprehensive review of disability statistics.

March 2013: An update was provided to the Retirement Board regarding processing of disability applications.

June 2013: The State Retirement Board authorized ERSRI to engage with Insight Service Group (ISG), ERSRI’s first external and independent disability pension investigator. Raimondo also announced that ERSRI and Sullivan & Company (now Blum Shapiro), an independent audit firm, identified $558,833.99 in past overearnings attributed to six retirees receiving disability pensions dating back to 2001.

April 2014: ERSRI staff presented a disability compliance status update to the Retirement Board.

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