61 A.3d 432
R.I.2013Background
- Zambarano was indicted for public official misconduct, pled guilty to eight counts, and was sentenced with a $46,000 federal forfeiture order plus an $800 special assessment and $10,000 fine.
- On resigning from the Department of Corrections, Zambarano contributed to ERSRI; over his municipal service he contributed to MERS; the Retirement Board administers both funds.
- Zambarano requested a refund of his ERSRI (and MERS) contributions; the Board denied refunds citing PEPRRA, specifically 36-10-1-4(c).
- Superior Court revoked Zambarano’s MERS pension, ordered refund of ERSRI contributions, and allowed an innocent-spouse refund for Kathy Zambarano under 36-10.1-3(d).
- On appeal, the Board challenged the interpretation of 36-10.1-4(c); the Rhode Island Supreme Court agreed to decide summarily and affirmed the Superior Court judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Scope of 36-10.1-4(c) and restitution | Zambarano: refunds barred only if there is a restitution order against him. | Board: 'judgments or orders' are modified by 'for the payment of restitution' and may wait until forfeiture is satisfied. | Statute reads 'judgments or orders' and all modifiers; forfeiture is not restitution; board has no basis to refuse refunds. |
| PEPRRA applicability to ERSRI/MERS contributions | Zambarano entitled to refunds since no restitution order exists. | PEPRRA may apply and withhold refunds until restitution orders are satisfied. | Court assumes applicability to both funds for argument purposes but provides alternate grounds; refunds granted. |
Key Cases Cited
- Retirement Bd. of the Emp. Retirement Sys. of Rhode Island v. DiPrete, 845 A.2d 270 (R.I. 2004) (PEPRRA context; revocation of benefits for crimes related to public office)
- Smith v. Retirement Board of the Employees’ Retirement System of Rhode Island, 656 A.2d 186 (R.I. 1995) (plain language interpretation of PEPRRA; literal application)
- United States v. Bajakajian, 524 U.S. 321 (U.S. 1998) (forfeiture as punitive, not restitution; distinction clarified)