Probing Pensions: The Double-Dippers

PROVIDENCE, R.I. (WPRI) - It's a good deal if you can get it: collecting a pension and a public paycheck at the same time. It's called "double dipping." The state of Rhode Island and some cities limit the practice, but in many cases it's perfectly legal.

A Target 12 investigation has uncovered hundreds of people who are double-dipping and, in some extreme cases, triple-dipping.

So why is it OK for some, but not for all? It all comes down to which public pension plan you're in. Hidden in the pension database we spent five months compiling are some of the state's top double-dippers:

• State Lottery Director Gerald Aubin collects $122,000 a year in state salary, and a $36,000 yearly pension from Providence as a retired police officer.

• John Chartier nets a $101,000 salary as top dog at the state fire marshal's office, and an $86,400 yearly pension as former Warwick fire chief.

• Providence DPW Director John Nickelson gets a $100,000 salary, plus an $87,600 yearly state pension for his time working for the Department of Transportation.

• Providence Communications Director William Trinque has a $98,000 salary, plus a $79,200 yearly take from his state police pension.

Double-dipping often leads to multiple pensions. Here are some heavy hitters in that category:

• Vincent Pallozzi, former chief of staff to Providence Mayor Paolino, nets $58,500 a year from his city pension, and $87,000 a year as a retired state traffic judge.

• Gerald Leddy injured himself on the job as a Providence firefighter, then hurt himself again working at the state fire marshal's office, resulting in two tax-free pensions totaling $56,400 a year.

We also found a handful of triple-dippers:

• Charles Donovan has a state pension, a pension as a legislator, and one from when he was a city politician in Warwick.

It may sound outrageous, but it's not illegal.

"That’s what the statute says, basically," said Frank Karpinski, executive director of the Employees Retirement System of Rhode Island, the state pension system that includes state workers, teachers, and employees from many cities and towns.

By law, Karpinski says, an individual can't collect a state pension and a state paycheck at the same time. You'd have to put your state pension on hold if you went back to work for the state full-time.

But in many circumstances, it's perfectly legal for public employees to collect a pension - or even two - on top of their paychecks. For retirees from cities or towns with their own pension plan, like Providence, Warwick and West Warwick, it's OK to collect a state paycheck and a city pension at the same time.

"The only difference there is they are contributing to one pension plan and they are making contributions to another plan, but again, that is the statute," said Karpinski.

A prime example of this practice is the state fire marshal's office. We found seven out of nine people on the executive staff are collecting a paycheck and a pension from a city or town outside the state pension system. One is even getting a tax-free pension for getting hurt on the job from the Providence Fire Department.

Target 12 asked their boss, state Fire Marshal John Chartier, for his reaction.

When asked if he would have taken his position with the state if he had to suspend his pension with Warwick, Chartier responded: "Um, no, I wouldn't."

Chartier says his executive staff averages $54,000 a year in salary - much lower than what they could get in the private sector. He says collecting the pension is a necessity.

"Quite frankly, I could not get the people I have in this office and their umpteen years of institutional knowledge they bring with them if the situation was different," Chartier said.

After obtaining and comparing pension data from the state and five cities and towns, Target 12 found at least 240 people collecting either multiple pensions or a pension and a full-time government paycheck.

"This idea of a system where you can work and collect is wrong," said Providence Mayor David Cicilline.

Cicilline supports a unified state pension system, meaning the double-dipping statute would apply to everyone.

"Pensions are designed to give people economic security when they are done working, or when they are disabled. And we need to get back to that principle," Cicilline said.

Critics of the double-dipping statute say it's too broad and discourages qualified workers from bringing experience to other positions.

The only exception to the state's double-dipping statute involves retired state troopers, since they are forced to retire once they reach 30 years of service. Their expertise is often used to run local police departments. By Target 12's count, nine towns currently have a retired state trooper as police chief.

twhite@wpri.com