Providence Spends Millions On Workers' Comp Payouts

Providence Spends Millions On Workers' Comp Payouts

Nearly a quarter of the 54 Providence city employees currently receiving workers’ compensation have been doing so for at least a decade and in some cases, almost 30 years, GoLocalProv has learned.

Of the $1,519,207.77 the city paid out in workers’ compensation in 2010, 13 employees (or family members of the employees) have been receiving payments for at least 12 years, including two who have been getting workers’ compensation for 29 years.

13 Receive Workers’ Comp For Over A Decade

According to information provided by the city, there are four employees that have been on workers’ compensation for between 12-19 years. The list includes: Camille Ruggiero (12 years), Sal Box (14 years), Shirley Abrahamson (16 years) and Joseph Campo (19 years).

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Next, there are six members of the list that have been receiving payments for between 23-26 years. They include: Constantino Giusti (23 years), Bruce Melucci (24 years), Robert Carew (25 years), Robert Marfeo (25 years), Alfred Conca (26 years) and Anthony Mancini (26 years).

Finally, the group of city employees receiving workers’ compensation the longest consisted of k. Frank Moratto (27 years), Manuel Rosa (29 years) and Dorothy Savard (29 years).

Anyone receiving workers’ compensation is expected to make regular visits to a doctor to make sure they are still unable to perform their job.

Workers’ Comp Reform

The majority of the long-time compensation earners have been receiving payments for over two decades, dating back to the days prior to the Workers’ Compensation Reform Acts of 1990, 1992, which were led by the late Governor Bruce Sundlun.

At the time, the system was on the verge of insolvency. According to 1991 report by the Rhode Island Department of Economic Development, "The financial burden borne by employers had simply become too great. Insurers had begun to exit the Rhode Island marketplace. And, most importantly, the financial protection required for our state's injured worker's was being placed in jeopardy."

Under Sundlun, a task force was formed to draft legislation that would reform the system to protect injured workers, permanently reduce costs, stabilize the workers' compensation market, eliminate fraud, and avert the collapse of the system. Senator Sheldon Whitehouse, who was an aide to Sundlun, chaired the panel.

Within just four years, claim frequency was cut in half and Rhode Island's system now has "the lowest average medical cost per employee per year in the entire country,” according to a report issued by the International Workers' Compensation Foundation.

Reforming Providence’s Image

Still, just as it is forced to meet pension obligations that were agreed to decades ago, the city continues to pay for employees that were injured prior to the workers’ compensation reforms in the early ‘90s.

According to Providence City Councilman David Salvatore, the only way to move away from what could be viewed as past mistakes is to make responsible financial decisions moving forward. Salvatore said the Council took its first steps in that direction this year.

“The Council and the Administration are committed to moving the city in a direction that shines a positive light on Providence,” he said. “Our commitment includes new policies and law that are fiscally responsible. I welcome a comprehensive review of many of the city's antiquated ordinances as a necessary step in reforming Providence's public image.”

Salvatore said the Council and Mayor Angel Taveras’ administration is proving that it can restore public confidence by passing a more responsible budget and creating measures that will hold everyone more accountable.

“While we recognize that mistakes may have been made in the past, the Mayor and the Council have addressed some of these issues by passing a budget that holds the line on spending,” he said. “Additionally, the corrective action plan that this Council introduced and passed was a good first step in restoring public confidence and the credibility of our local government.”

Pensions Are Next

But while the workers’ compensation may have just a few holdovers from the pre-reform era, pensions are a different story. Asked last week what was next following the passage of a budget that eliminates a $110 million structural deficit, Mayor Taveras was quick to mention pensions.

The Council hopes part of the pension discussions includes bringing in an outside auditor to investigate irregularities in the city’s disability pension system. While disability pensions and workers’ compensation claims are not the same, the Council hopes that similar reforms can be made.

The overall goal: “We need an independent, third-party review of the disability pension system so that the Council and taxpayers can be confident that proper procedures and controls are in place to make sure that those receiving these pensions are truly unable to work,” Salvatore said when he introduced an ordinance to bring in an auditor last month.

Council President Michael Solomon said he supports a plan to take a more in-depth look at former city employees receiving disability pensions.

“It is no secret that Providence is in crisis and that public safety departments are being called on to make enormous sacrifices. We cannot afford, nor is it fair to current public safety employees, to lose one dollar to fraud anywhere in the pension system,” he said. “Conducting this independent review is a critical step toward putting Providence on firm financial footing.”
 

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