Worst Crime in Rhode Island History Nobody Wants Investigated

Despite repeated calls for investigation, Gina Raimondo and her Wall Street friends continue to loot the state pension in secrecy.

Not only did Gina Raimondo successfully use workers’ retirement savings to further her politicial ambitions, Wall Street’s capture of Rhode Island pensions continues to dictate state politics.

Spencer Dickinson, a veteran legislator and recent Democratic Party candidate in a special election for Rhode Island’s First Congressional District held on September 5th, had the following to say about Gina Raimondo’s so-called “pension reform” in a series of paid political advertisements leading up to the vote entitled, Worst Crime In Rhode Island History. Like other Rhode Islanders running for elected office who have called for investigations into Raimondo’s pension reform— including Republicans (Allan Fung and James Lathrop), and Independent (Joseph Trillo)—Dickinson was unsuccessful in his bid for office.

While Raimondo has moved on to Washington, China and beyond, her Wall Street friends can rest assured that no incumbent Attorney General, State Auditor or State Treasurer will dare propose investigating her pension dealings and thereby risk losing financial support from Wall Street. Likewise, any challengers proposing forensic investigations will be pummeled by out-of-state campaign contributions from Wall Street. Not only did Raimondo successfully use workers’ retirement savings to further her politicial ambitions, Wall Street’s capture of Rhode Island pensions continues to dictate state politics.

Spencer Dickinson dared to propose an investigation into Raimondo’s state pension dealings and paid the price.

Worst Crime In Rhode Island History

by Spencer Dickinson

In the early morning hours of November 18, 2011, the night the legislature passed the so-called pension reform, Scott Guthrie stood up and said, “What we are about to do is commit a crime.” Many lawmakers in the room knew that he was right. A couple of years later, Ted Siedle, a former SEC lawyer and probably this country’s best-known forensic auditor, said, “Rhode Island’s state pension fund fell victim to a Wall Street coup.” He called the Gina Raimondo pension reform act and its aftermath, the greatest crime in Rhode Island history. I have discussed this issue extensively with Siedle and I believe he is right.

The State of Rhode Island promised a pension that was protected from inflation. Teachers and state employees made life decisions based on that promise. The state broke a contract illegally and Treasurer Raimondo redirected the proceeds in a way that would benefit her friends in the finance industry.

I know what I was looking at. I was fortunate to have served a previous tour of eight years in the Legislature, four of them as Deputy Majority Leader. I know that what happened in November of 2011 was not part of a normal legislative process.

Inflation, a completely predictable event, has eaten away at retirees’ pensions. As of today, a $50,000 pension from 2011 buys what $32,500 used to buy. This is hurting good people. And it will get worse.

In the past twelve years, we have seen frustrating lawsuits that went nowhere. And we have seen legislation – sometimes well-meaning, sometimes insulting – that couldn’t get past the speaker or couldn’t be enacted for lack of specifics.

My Plan

Part 1: If Ted Siedle is right that money has been virtually stolen from teachers and state workers, then it has also been stolen from every taxpayer. We need to pass legislation that makes it possible to hire a new generation of the best teachers and state employees. I have been very frustrated in the past several years watching legislative proposals go nowhere, often because they are incomplete or lacking in detail. First, I will hire an actuary for my congressional staff. His or her first job will be to determine what constitutes a “fully funded” pension fund. We may need some new definitions and assumptions. Next, we will need complete data on who our pension holders are, their life expectancies and the cost of protecting them against inflation with annual adjustments like the ones that social security provides. With a workable plan from my office our legislature can move to restore the COLA’s and solve the problem.

Part 2: I am proposing an inquiry into the way crimes, if any, were committed and by whom. Some may recall a probably in Massachusetts that involved Whitey Bulger, a crime boss who was the brother of the speaker of the house. The problem was intractable until Dan Burton, a congressman from Indiana, brought the House Government Oversight Committee to Boston, armed with subpoena power and investigators. Incredibly, they smoked out five FBI agents who were on the take. Many Rhode Island citizens believe we have problems here that we can’t break open alone. (Add 38 Studios and the belief by many that elections in Rhode Island can be rigged.) I will bring a modern version of the Dan Burton Commission here to dig into the problem. Many veteran legislators have a pretty good idea of what’s happening, but we need to break it open. If we bring out the facts, I believe we’ll have support for restoring the COLA’s.