Raimondo Launches Audit of Disability Pensions
Tuesday, May 17, 2011
General Treasurer Gina Raimondo announced Tuesday afternoon that she is launching an audit of all the disability pensions administered through the state employee retirement system.
“My office has uncovered a pattern of irregular documentation in the files of disability pension beneficiaries and is taking action to fully understand the matter,” Raimondo said. “As the fiduciary of the pension system, my job is to protect its integrity. Any issues that may weaken the entire system for hardworking employees must be avoided."
Currently there are 556 disability pension recipients through the state system. State law does require annual medical follow-ups and documentation of any employment earnings.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe audit will determine how much of that documentation is missing.
Providence investigation
The announcement comes after an investigative report showed a retired Providence firefighter on a disability pension working out. That firefighter was in the city system, not the state one. Public Safety Commissioner Steven Pare has announced that he will launch his own probe into disability pensions.
“Given this lack of documentation, ERSRI cannot determine the level of compliance that may be occurring within the disability pension program,” Raimondo continued. “Completion of this audit will provide my office with a clear set of priorities to take action on.”
Raimondo said she had hired Sullivan & Company, LLP of Providence to conduct the audit. The audit, which began on Monday, is expected to be completed in a month.
No state fraud cases in a decade
Last year, GoLocalProv first reported that over the last year that over the last nine years there had been no prosecutions for disability pension fraud and abuse. Officials said the state’s chief pension investigator—who was himself on a disability pension as a retired police officer in Woonsocket—had uncovered a dozen possible cases, but had not found merit to ten.
At the time, two cases were still pending.
A survey of other states in the region found that some have more robust investigative units that in at least one instance uncovered several cases of fraud each year.
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