Rhode Island Moves to Hire Disability Pension Investigator

Rhode Island's retirement system has moved to hire its first independent disability pension investigator, General Treasurer Gina Raimondo announced Wednesday.

According to Raimondo, the State Retirement Board authorized the Employees' Retirement System of Rhode Island to begin contract negotiations with Insight Service Group of Danvers, Mass. ISG would work with retirement system staff to ensure compliance with state law for members receiving a disability pension.

Raimondo also said that ERSRI and Sullivan & Co., an independent Providence, R.I., audit firm, identified about $559,000 in past overpayments to six retirees receiving disability pensions as of Dec. 31, 2011. Overpayments date back as far as 2001, she said.

The state has suspended the benefits to the six and ERSRI is working with law enforcement to further investigate to determine whether criminal or civil claims are appropriate, and whether money is owed to the pension system.

The auditors reviewed 833 total pension files and made 20 recommendations, 19 of them completed. Changes included formalizing the procedure for securing information from members receiving a disability pension and the collection of overpayments owed; creating a hotline where individuals can share information regarding possible disability abuse; and establishing partnerships with local law enforcement.

Rhode Island issued a request for proposals for investigative services in January in response to a Sullivan audit of re-examination procedures relating to members receiving a disability pension. Raimondo said an initial review by her office that revealed a pattern of missing documentation triggered the audit.

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Rhode Island
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