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Judicial pensions under fire

01:00 AM EDT on Wednesday, March 26, 2008

By Edward Fitzpatrick

Journal Staff Writer

PROVIDENCE — The Rhode Island Bar Association is calling on legislative leaders to reject proposals that would scale back pensions for state judges, but Governor Carcieri and the sponsor of a House bill say the judiciary shouldn’t be exempt from pension cuts already applied to other state employees.

Carcieri, a Republican, is proposing a budget article that would slash judicial pensions by the amount of Social Security benefits the judges are due to receive. And Rep. Edwin R. Pacheco, a Burrillville Democrat, has proposed a bill that would give judges and state police officers the same pension benefits as other state workers.

The Bar Association’s president-elect, Richard A. Pacia, sent a letter to House Speaker William J. Murphy and Senate President Joseph A. Montalbano on March 7, urging them to kill the budget article and the bill.

“We believe that these bills would have significant, immediate and long-term adverse effects upon the administration of justice in Rhode Island,” Pacia wrote. “If these bills are signed into law, we would expect many simultaneous judicial retirements before the effective dates of these bills. The result would be an immediate and devastating impact upon the Rhode Island judiciary’s ability to address cases in a timely manner, seriously impacting the administration of justice in Rhode Island.”

The letter also noted that despite repeated prodding, Carcieri has not filled six judicial vacancies and that another judge is retiring at the end of this month.

“Clearly, if these bills pass, the existing vacancies, coupled with the expected judicial retirements, will create extreme hardship for our taxpayers and the administration of justice in our trial courts,” Pacia wrote. “We respectfully request that you do everything in your power to defeat the governor’s proposed budget Article 35 and [House bill] 7404.”

The letter said that under budget Article 35, judges would stand to lose between $20,000 and $30,000 a year in pension payments. And Pacheco’s bill would require judges to be on the bench for 37 years to receive 75 percent of their annual salary, the letter said, adding that the average starting age of current judges is 46.

Under existing law, judges may receive pensions equal to 75 percent of their annual salary if they have been on the job for 20 years, or have served for 10 years and reached the age of 65. Also, judges may receive pensions equal to 100 percent of their annual salary if they have been on the job for 20 years and have reached the age of 65, or have served for 15 years and reached the age of 70.

When asked for comment on the Bar Association letter yesterday, Carcieri spokesman Jeff Neal said, “In the final analysis, the governor believes this is an issue of fairness. At the governor’s urging, Rhode Island has already enacted reforms to the pension system for the vast majority of state employees. The governor and the General Assembly are currently considering the need for additional changes to the state pension system. Why should judges — many of whom enjoy much more generous pensions than other state employees — be exempt from these reform efforts?”

Also, Neal said he expects that Carcieri will nominate several judges by the end of this week.

Pacheco yesterday said he finds it “disheartening” that the Bar Association is targeting the pension proposals. “Instead of coming up with solutions, they are trying to discredit both the governor’s budget and my bill,” he said. “I understand the reasons, but the bottom line is this: We can’t afford to give the packages we give the judiciary any more.”

Pacheco said the General Assembly changed the state pension system in 2005, placing new limits on cost-of-living raises and reducing the maximum benefit to 75 percent of the employee’s salary after 38 years of service.

Under his bill, judges and state police would have the same pension benefits as other state employees, meaning they could not retire until they are at least 59 years old and have at least 29 years of service — or until they are at least 65 years old and have at least 10 years of service. Like other state employees, their pensions would be a maximum of 75 percent of the last salary. The changes would only apply to judges and state police officers hired after Jan. 1, 2008.

“We made tough decisions on other state employees,” Pacheco said. “For the State of Rhode Island to basically allow select groups to not be touched by any type of reform and to continue down this road of continued deficits doesn’t make any sense.”

He said the state has a projected budget deficit of about $150 million for the current fiscal year and a projected deficit of nearly $400 million for the fiscal year that begins July 1.

“I think it’s quite clear we are in a budget crunch,” Pacheco said. “At the end of the day, if the judicial branch wants to come to the table and talk about a fair and equitable package embracing reform, I’m open to that and I’m sure the governor’s office would be open that. But we can’t continue to offer these types of packages — not in this fiscal climate.”

The pension proposals would not save money immediately, but would offer savings in the long term, the governor said.

The average person in Rhode Island does not have the types of pensions that judges and state police officers enjoy, Pacheco said. “It’s great for Rhode Island to be able to offer these types of packages to get the best of the best to work in public service for Rhode Island,” he said. “But we have to put caps on that and live within our means.”

This marks the second year that Pacheco has introduced this bill. Last year, the legislation received a hearing but died in committee before coming to a vote. “I think this year will be different because our backs are against the wall in this budget situation,” he said.

Pacheco said legislative leaders have not indicated to him whether they support his bill or not, but he said House and Senate leaders have emphasized that “everything is on the table” this year, so he assumes his proposal is on the table, too.

efitzpat@projo.com

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