Fire Official Quits to Preserve Higher Pension
Thursday, February 03, 2011
A Providence Fire Department official who asked for a demotion in order to get the better pension benefits that come with being a union member has now retired—and is still fighting to get his pension boosted, according to documents obtained by GoLocalProv.
Battalion Chief Michael Morgan was granted a voluntary demotion to firefighter first class last December—in an attempt to get the annual compounded cost of living adjustment, or COLA, in retirement. Barely more than one week later, Fire Chief George Farrell rescinded the demotion—at the strong urging of incoming Public Safety Commissioner Steven Pare and Mayor-elect Angel Taveras.
But that hasn’t stopped Morgan from trying to get his compounded COLA. And, he is banking on the fact that since he spent 10 days as a member of the union, it will go to bat for him.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTOn December 30, he sent a letter to the union asking it to file a grievance on his behalf against the Fire Department. Morgan claimed the department had violated the union contract by not granting him his demotion. And he asked that the city “restore and retroactively reimburse any and all contractual benefits unjustly denied” to him. (Read the full letter below.)
‘Abusing the system’
The same day he retired, walking out with a severance pay of $79,914.75—comparable to the $88,389.60 salary he collected for the entire year, according to information provided in response to an open records request.
With the 3 percent compounded COLA, Morgan would earn an additional $137,536 in retirement pay over 26 years.
Several city councilmen yesterday condemned what they described as yet another attempt to take advantage of loopholes and abuse the system.
“I think basically the city should fight it all the way—that’s very abusive,” said Councilman Miguel Luna, D-Ward 9. “This is crazy what he’s doing.”
Other council members agreed. “We’re all in this together,” said Councilman Bryan Principe, D-Ward 13. “We’re trying to plug major budget holes and pension gaps—and he’s abusing the system.”
Councilwoman Sabina Matos, D-Ward 15 said Morgan should not get the extra retirement benefits. And Councilman Kevin Jackson, D-Ward 3, said he hopes the city administration blocks his attempt to get a compounded COLA, sending a message to other city employees that they will not receive benefits to which they are not entitled.
Legal loophole?
It is unclear how far Morgan will be able to go. Union President Paul Doughty said if he was a member of the union then he has a legitimate basis for a grievance—but the big question is whether he was ever really a member of the union in December. The executive board for the union is expected to make decision in the next few weeks.
“He wants the union to fight for him—the union is in a very awkward position,” Luna said.
Council President Michael Solomon—who opposed the voluntary demotion—said the situation is legally complicated. “I think this is one for the Law Department,” Solomon said.
A spokeswoman for Mayor Angel Taveras did not comment on the specific case, but said Taveras remains steadfastly opposed to any compounded COLAs, which he publicly spoke out against during his campaign.
‘Who in their right mind would take a promotion?’
Morgan could not be reached for comment yesterday, but Assistant Chief Michael Dillon defended him in an interview with GoLocalProv. He said senior officials like Morgan had started out as union members and paid into the retirement system with the expectation that they would receive the same benefits as other union members—only to lose those benefits when they are promoted to higher non-union positions.
By his calculation, a captain who retires at the same time as a battalion chief will be getting a higher pension pay in his seventh year of retirement, thanks to the compounded COLA. “Who in their right mind would take a promotion as a battalion chief if you’re going to be getting a better benefit as a captain seven years into retirement?” Dillon said.
Of course, senior officials generally earn higher salaries. But Dillon said that isn’t a reason to deny them the benefits they deserve. “We also have a lot more responsibility that comes with the territory,” Dillon said. “If you have more responsibility, you’re going to be compensated at a higher level.”
Dillon said senior fire officials and union members once received the same benefits and he said he supports a change to city ordinances that would restore that equity in benefits.
Morgan was one of two senior fire officials to receive—and then lose—a voluntary demotion last December. The other was Deputy Assistant Chief Daniel Crowley. City records indicate that Crowley has not yet filed for retirement and in a previous interview he said he had no such plans.
READ THE LETTER
Below is the grievance letter Michael Morgan sent to the union last month.
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