As reported by nj.com, a double-dipping pension practice that stoked outrage earlier this year may become a thing of the past. The Senate Budget and Appropriations Committee unanimously approved two bills to prevent elected officials from collecting their pensions without actually stepping down from their jobs. The bills would only affect elected officials who have not yet taken advantage of the loophole, which has been broadened since its inception in 1985.

Many elected officials and public employees retire, start collecting a pension, then get a different government job. But the law targeted by the committee allows elected officials like lawmakers and sheriffs to start collecting a pension while still holding the same job and collecting a paycheck, as long as they are eligible to retire and once had a different public job. Five lawmakers, some sheriffs and county surrogates have used the loophole.

Although the overall dollar figure involved is small, state Sen. Steve Oroho, the bill’s sponsor, said it’s important to eliminate lucrative exceptions for elected officials. “The perception and appearance is what really matters,” he said. “It’s an issue of the public trust.”

The bills had been stalled for years until news reports in April said Essex County Executive Joseph N. DiVincenzo, Jr. had been using the loophole since August. He had “retired” three months before winning his unprecedented third term in office. State records peg his monthly pension at almost $5,740, while his salary was $153,207 last year.

The bill now goes to the full Senate for a vote. Similar bills in the Assembly have not yet advanced.     

DiVincenzo has defended his pension as legal and in the best interests of his family. In a statement, he said the committee’s decision “represents a noteworthy shift” in the Legislature. “Pension costs contribute to financial challenges being faced by state, county, and municipal governments,” he said. “I hope today’s vote enables us to continue the discussion and find additional ways to provide relief.”

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Donald C. Barbati Donald C. Barbati

Donald C. Barbati is a shareholder of Crivelli, Barbati & DeRose, L.L.C. His primary practice revolves around the representation of numerous public employee labor unions in various capacities to include contract negotiation, unfair labor practice litigation, contract grievance arbitration, and other diverse issues…

Donald C. Barbati is a shareholder of Crivelli, Barbati & DeRose, L.L.C. His primary practice revolves around the representation of numerous public employee labor unions in various capacities to include contract negotiation, unfair labor practice litigation, contract grievance arbitration, and other diverse issues litigated before the courts and administrative tribunals throughout the State of New Jersey. In addition, Mr. Barbati also routinely represents individuals in various types of public pension appeals, real estate transactions, and general litigation matters. He is a frequent contributor to the New Jersey Public Safety Officers Law Blog, a free legal publication designed to keep New Jersey public safety officers up-to-date and informed about legal issues pertinent to their profession. During his years of practice, Mr. Barbati has established a reputation for achieving favorable results for his clients in a cost-efficient manner.

Mr. Barbati has also handled numerous novel legal issues while representing New Jersey Public Safety Officers. Most notably, he served as lead counsel for the Appellants in the published case In re Rodriguez, 423 N.J. Super. 440 (App. Div. 2011). In that case, Mr. Barbati successfully argued on behalf of the Appellants, thereby overturning the Attorney General’s denial of counsel to two prison guards in a civil rights suit arising from an inmate assault. In the process, the Court clarified the standard to be utilized by the Attorney General in assessing whether a public employee is entitled to legal representation and mandated that reliance must be placed on up-to-date information.

Prior to becoming a practicing attorney, Mr. Barbati served as a judicial law clerk to the Honorable Linda R. Feinberg, Assignment Judge of the Superior Court of New Jersey, Mercer Vicinage. During his clerkship Mr. Barbati handled numerous complex and novel substantive and procedural issues arising from complaints in lieu of prerogative writs, orders to show cause, and motion practice. These include appeals from decisions by planning and zoning boards and local government bodies, bidding challenges under the Local Public Contract Law, Open Public Records Act requests, the taking of private property under the eminent domain statute, and election law disputes. In addition, Mr. Barbati, as a certified mediator, mediated many small claims disputes in the Special Civil Part.

Mr. Barbati received a Bachelor of Arts degree in history, magna cum laude, from Rider University in Lawrenceville, New Jersey. Upon graduating, Mr. Barbati attended Widener University School of Law in Wilmington, Delaware. In 2007, he received his juris doctorate, magna cum laude, graduating in the top five percent of his class. During law school, Mr. Barbati interned for the Honorable Joseph E. Irenas, Senior United States District Court Judge for the District of New Jersey in Camden, New Jersey, assisting on various constitutional, employment, and Third Circuit Court of Appeals litigation, including numerous civil rights, social security, and immigration cases.