John A. Zambarano et al. v. The Retirement Board of the Employees’ Retirement System of the State of Rhode Island

Summary

The Rhode Island Supreme Court affirmed a Superior Court judgment requiring the Retirement Board to return John A. Zambarano’s retirement contributions. The Court held that the Rhode Island Public Employee Pension Revocation and Reduction Act applies to judgments or orders for restitution, and that a federal criminal forfeiture order is not an order of restitution. The Court also concluded that the forfeiture judgment did not provide a statutory basis for withholding Zambarano’s contributions.

Holdings

1. The phrase "for the payment of restitution" modifies both "judgments" and "orders," as do the other qualifying phrases in the provision.
2. A criminal forfeiture paid to the sovereign is not an order or judgment for restitution; therefore, the federal forfeiture judgment did not authorize the Board to refuse Zambarano’s demand for a return of his retirement contributions.

Questions Presented

1. Whether Rhode Island General Laws § 36-10.1-4(c) permits the Retirement Board to withhold a former public employee’s retirement contributions until satisfaction of a federal forfeiture judgment.
2. Whether the phrase "for the payment of restitution" in § 36-10.1-4(c) modifies both "judgments" and "orders."
3. Whether a criminal forfeiture paid to the federal government constitutes restitution for purposes of § 36-10.1-4(c).

Disposition

affirmed