Public pensions now private

The state treasurer’s office is no longer making public the pensions of state retirees, citing a prohibition in a 2007 law that had been originally intended to give the public more access to the pay and perks of public officials.

Senate Bill 1546 was initially intended to make bonuses, incentives and other compensation public, reports Dan Kane.

State Sen. David Hoyle, a Gaston County Democrat, filed the legislation after the Carolinas Healthcare System denied that information to The Charlotte Observer. But as the bill moved its way through the Senate, changes were made to limit other information that had previously been public, including pensions.

It’s unclear who added the provision that now prevents the treasurer from disclosing how much taxpayers are paying for a state employee’s pension.

Sara Lang, a spokeswoman for State Treasurer Richard Moore, said no one there requested the change.

“We didn’t ask for this,” she said. “This is the legislation that was passed, and then the Attorney General’s office interpreted it for us, and we’re following the law.”

Read more after the jump.

–––––

The prohibition became public last week, when The Star-News of Wilmington sought to find out from Moore’s office how much state Rep. Thomas Wright’s pension would be if he were to leave this year. Wright, a Wilmington Democrat, is facing state charges of fraud and obstruction of justice and a legislative ethics committee has found probable cause on eight charges of misconduct, which could ultimately lead to his removal.

Former House Speaker Jim Black, who is in federal prison on public corruption charges, stands to receive a maximum benefit of $41,330 a year from his legislative pension. As a result of Black’s wrongdoing, lawmakers last year passed a new law to require state and local elected officials to forfeit their public pensions if they are convicted of felony public corruption or election law crimes.

Those not yet vested as of July 1, 2007, when the law went into effect, would lose their entire pensions. Those vested before July 1, 2007, would lose all future benefits from the point they committed their crimes. Wright, an eight-term lawmaker, was vested in the state retirement system prior to July 1.

Hoyle said he did not insert the provision to keep pensions secret. Legislative records show it was added to Hoyle’s bill shortly before it cleared the Senate.

“I would have never have done that,” Hoyle said. “Why would I have done that? What would I have to gain from doing that?”

Hoyle said he did not know how the pension provision got in the bill, nor did he realize it would be interpreted as a ban on releasing the information.

Some of the changes in the bill before it came to the Senate floor were made by Senate Majority Leader Tony Rand, a Fayetteville Democrat. Rand had filed a separate bill to prohibit the public from learning the details when public hospitals buy medical practices, but decided to merge that bill with Hoyle’s legislation.

An aide to Rand said Monday that the senator is touring Egypt this week and could not be reached for comment.

The pension provision drew little notice as the bill worked its way through the legislature. Much of the focus was on the battle over public access to hospital records.

John Bussian, counsel to the N.C. Press Association, of which The News & Observer is a member, said he was aware of the provision, but the association went along with the legislation because it opened up the full compensation awarded to top public hospital employees and other public officials.

He said the association had been given assurances that problems with the law would be worked out in this year’s session.

Hoyle said he intends to take up the pension provision when the session opens in May.

“If it is public money, if it’s taxpayers money, we have a right to know,” Hoyle said. “And I thought we did.”

Julie White, a spokeswoman for Moore’s campaign for the Democratic gubernatorial nomination, said he believes the information should be public.