SCORI: Retirement Board cannot withhold retirement contribution of convicted (former) N.P. Councilman

The Supreme Court has held that convicted former North Providence City Council member John Zambarano is entitled to the return of over $35,000 that he contributed to the State system while in public employ. Zambarano was sentenced to federal imprisonment, and the federal court also ordered him to forfeit some $46,000, representing the amount he and confederates received in bribes. Ordinarily, a person leaving state service has the right to withdraw funds contributed, but the statute also allows the Retirement Board to refuse the withdrawal under some circumstances when the former public official is guilty public corruption. Reading the statute precisely, our Supreme Court held that the Rhode Island pension statute allows the Retirement Board to withhold funds when the contributing member has been ordered to make restitution to an injured party, but that language does not encompass an order of forfeiture, which benefits not the victim, but the federal government. Zambarano v. Retirement Board. The Supreme Court's decision does not relieve Zambarano of the federal forfeiture, but it does prevent the Retirement Board from holding onto his employee contribution.