New Law Would Ban Council Members from Getting Pensions

New Law Would Ban Council Members from Getting Pensions

A state rep has proposed a law that would bar any new local town or city council members from participating in a municipal pension plan.

The bill, sponsored by Rep. Michael Marcello, D- Scituate, Cranston, repeals a section of state law that allows council members to gain pension credits for each year they serve in elected office. The law applies to those who are elected after November 2012.

“Being a public official does not automatically make an individual a public employee,” Marcello said. “Pension credit should only accrue for public careers and not for part-time service, such as time on a town or city council.”

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

Marcello said the issue came to his attention after a controversy over a Scituate council member who was hired as a town employee after he left office. When he retired the council member attempted to buy extra years of pension credit based on his decade of service on the council. The state pension board ruled that he couldn’t get the extra credit on a technicality—he failed to apply for it when he took the full-time position.

Bill aims to help reduce unfunded pension liabilities

“I have introduced the bill because of the detrimental financial impact existing law could have on any community in the state, and especially at a time when unfunded pension liability seems to be the next major fiscal headache facing cities and towns all around Rhode Island,” Marcello said.

He added: “This is a matter of fairness, to individuals paying into the pension system during their many years of full-time work and to the communities that help fund those pensions. I don’t think it’s fair for someone to receive pension payments for serving on a municipal council in a part-time capacity.”

Click here to read the bill.