RI Disability Pension Tab Hits $19M
Thursday, July 28, 2011
The cost of disability pensions for state workers and other retirees in the state system hit nearly $19 million last year, according to a GoLocalProv review of the pension payroll.
The release of the latest cost comes as disability pensions locally and statewide are coming under renewed scrutiny—especially after a state audit found key records missing for disability pensions.
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The cost of the pensions breaks down as follows:
■ $3.4 million a year for teachers
■ $9 million a year for state workers
■ $5.4 million a year for municipal workers in the state system
■ $1 million for state police
In all the state paid out 630 in pensions for job-related disabilities, totaling $18,994,100, as of June 30. The only group that did not have any disability pensions was judges.
‘Discrepancies … degrade the integrity of entire system’
In a pension payroll that totals more than $800 million, the disability pensions may not exactly be breaking the bank, but a spokeswoman for General Treasurer Gina Raimondo said they are nonetheless a significant cause for concern, after an audit found widespread cases of missing records.
“While disability pensions are a relatively small portion of the overall system, the discrepancies and omissions detailed in the disability pension audit degrade the integrity of the entire system,” said Dara Chadwick, spokeswoman for the retirement system. “Protocols that formalize the disability pension documentation process will boost the accuracy and standardization of the process.”
That audit found that major gaps in record-keeping for the pensions. For two years, 2003 and 2005, all of the affidavits that pensioners have to file stating that they are still disabled was missing from state files. In two other years, 2001 and 2004, more than half of the necessary paperwork was missing.
“The Treasurer has consistently called for accurate, clear and transparent numbers across all sectors of Rhode Island’s pension system,” Chadwick added. “This audit confirmed significant lapses in documentation and the need to formalize disability data collection to ensure the integrity of the system. These kinds of discrepancies and omissions won’t be tolerated in the Treasurer’s administration.”
In the wake of the audit, Chadwick said the state retirement board, which Raimondo chairs, will be drafting a new set of formal protocols, including a manual with standards for verifying and tracking down information and documentation on disability pensions.
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