By Steve Klamkin WPRO News
Pension consultant Ted Siedle Wednesday endorsed Republican Allan Fung’s bid to unseat incumbent Democratic Gov. Gina Raimondo.
Hired by public employee unions, Siedle issued a report critical of the 2011 Raimondo – led pension reforms that included stripping retirees cost of living adjustments. Fung pledged that if he is elected, he would lead an investigation with an aim of restoring the COLA’s.
“We are looking to initiate a potential litigation here in Rhode Island to recover funds on behalf of the pensioners and retirees who have been defrauded by now-Governor Raimondo,” Fung said at a news conference Wednesday morning, prior to a meeting of retirees.
“I endorse Allan Fung as governor, because I believe he has a unique knowledge of the law, prosecuting wrongdoing, and he’s indicated he would follow through to see an investigation is done,” Siedle said.
Both Fung and Siedle criticized Raimondo’s shift of pension assets, since reversed by current General Treasurer Seth Magaziner, toward costly hedge funds.
“Raimondo’s scheme basically became the largest wealth transfer and case of fraud in the history of Rhode Island,” said Fung.
“So, there’s real money available, just in restructuring, better managing the investments,” said Siedle, when asked whether retirees COLA’s could be restored. “The reduction in (hedge fund managers’) fees would go a long way as well.”
In a statement, independent candidate for governor Joe Trillo said Fung was “repeatedly and shamelessly copying platform ideas,” in what he called “Gina Raimondo’s pension reform retiree disaster”.
Raimondo campaign Senior Advisor Mike Raia said Fung was following Trillo in a “desperate pension pander”.
“The dishonesty of both candidates’ pandering is rich: Joe Trillo voted for the reforms and Allan Fung was an active member on the committee that helped shape them,” Raia said in a statement.
