Parella v. Retirement Board of the Rhode Island Employees' Retirement System
Court of Appeals for the First Circuit
1Opinion of the Court
LYNCH, Circuit Judge.
Beginning in 1987, retired Rhode Island legislators or their beneficiaries became eligible to receive annual pension benefits that were as much as sixty times greater than the legislators’ annual pre-retirement salaries. When the Rhode Island General Assembly became aware that the generosity of these benefits jeopardized the tax-exempt status of the state’s retirement system, it acted to bring the benefits into compliance with federal tax law by capping annual benefits at $10,000, effective July 1995. The pensioners whose benefits were thereby reduced brought suit under…
2Cases cited55 opinions
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