INVESTIGATION: Providence Board Members Rack up Pension Benefits

INVESTIGATION: Providence Board Members Rack up Pension Benefits

A GoLocalProv investigation has found that members of some Providence boards are receiving city pension benefits—in addition to being paid substantial stipends for their service.

Members of two boards—the Board of Canvassers and the Board of Licenses—get credits in the pension system for city workers, according to Mayor Angel Taveras’ office. That is on top of pay each member receives for what is—at least in the case of the Board of Licenses—supposedly a volunteer position. A previous GoLocalProv report revealed that the pay for members of that board averages about $15,572 a member. The Board of Canvassers pays about $21,495 a member.

Members of both boards must contribute 8 percent of their base pay towards their pensions.

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As the city confronts a fiscal crisis, retirement benefits for board members could be one area that is cut, city officials say.

“Given the City’s fiscal situation, everything is being evaluated for possible savings,” said David Ortiz, a spokesman for Mayor Angel Taveras. “Benefits, including pensions, are certainly among the components of the city’s expenditures that need to be considered to create long-term financial stability.”

Because members are appointed to those boards by the mayor, they shouldn’t be getting those pensions, said Councilman Kevin Jackson. “I don’t think that benefit should go with that,” Jackson said. “It’s something that should be looked at definitely … especially in these tough times.”

Board member gets three city pensions

The benefit for board members has allowed one prominent city official to add one more pension to the two he already has from the city.

Andrew Annaldo, Chairman of the Board of Licenses, was already eligible for an elected official pension and a pension through Local 1033 of the International Laborers’ Union of North America because he served for eight years on the city council. Now his 13 years on the Board of Licenses has pushed him over the ten-year minimum for receiving a regular city pension.

Annaldo also happened to be the second highest paid board member in 2010, earning a total of $25,308—second only to Laurence Flynn, the longtime heard of the Board of Canvassers, who earned $37,954 in the same year, according to city pay records.

A city spokesman yesterday was not able to confirm how much of an annual benefit Annaldo could receive through the regular city pension or provide any information regarding his union pension. As for his elected official pension, Annaldo can receive $2,799.96 a year.

Election chief boosts pension benefit

Like Annaldo, Flynn was able to combine his time on the city council and the board of canvassers to earn a bigger pension benefit. In all, Flynn had racked up just over 36 years in the city pension system when he retired at the end of 2010—eight years on the City Council in the 1970s and 28 years on the Board of Canvassers after that.

Flynn will now receive an annual retirement benefit of $20,690—plus $2,799.96 a year from his elected official pension and an undisclosed amount from the union pension he would have received as a councilman in the 1970s.

Boards more demanding than others

Besides the pension benefits, both boards stand out from the others in the city in one other important regard—both demand for more time and commitment from their members than many of the other boards and commissions in the city. The Board of Licenses normally has three meetings a week—which can run anywhere from five minutes to five hours. And positions on the Board of Canvassers are closer to regular full-time jobs—especially during an election season.

Annaldo could not be reached for comment in time for publication, but in a previous interview he pointed out that his board has major responsibilities—it processes about 9,000 licenses a year for everything from bars and clubs to entertainment venues and second-hand stores. Its work not only has an impact on the local economy, but also public safety. For instance, last year the board closed down Club Balloons, a strip club, after a shooting. As chairman, in addition to the three weekly board meetings, Annaldo said he has other meetings with attorneys for the board.

Tomas Avila, the current head of the Board of Canvassers, also did not respond to a request for comment yesterday.

Board members and their pensions

Below is a listing of all board members eligible for pensions and how much time they have served. A city employee needs at least ten years of service in order to be vested in the regular city pension system.

Board of Canvassers
Tomas Avila—1 month of service
George Smith—16 years and 8 months
Claudia Haugen—1 year and 9 months

Board Licenses
Andrew Annaldo—21 years 4 month
Arys Batista—6 years 10 months
Allene Maynard—5 years 1 month
Everett Bianco—1 year 1 month
Jeffrey Williams—1 month

Source: Providence Mayor’s Office.