Pension law loophole favors fundraiser

Treasurer's office vendor gets retirees' data while others are still denied

A controversial change in the state personnel law last year is giving a leg up to a politically connected firm in reaching state and local government retirees to sell them supplemental insurance.

State Insurance Services of Raleigh continues to receive monthly lists of 210,000 retirees' home addresses from the state Treasurer's Office, while competitors and employee associations that also market insurance are being denied. Among State Insurance Services' principals are two prominent fundraisers who have raised money for Treasurer Richard Moore in past elections.

The ban on the release of the retiree lists continues today, even after the lawmaker who wrote the provision said that was not his intent. State Attorney General Roy Cooper also recently said that the legislation, while poorly worded, was not intended to close off public information. The legislation initially drew fire after the treasurer's office and an assistant attorney general had interpreted it to mean that the pensions of public employees were no longer public.

Officials in the treasurer's office say their intent was not to favor State Insurance Services over other companies and employee associations that offer insurance coverage. They said that State Insurance was entitled to the information because it has a contract with the office to market vision and dental insurance to retirees. The treasurer's office manages pensions for state and local government retirees.

"They are an extension of our organization," said Michael Williamson, director of the Retirement Systems Division. "We contract with them to deliver services and we count on them to deliver services and therefore they are in a different category."

He said he did not know that State Insurance Services of Raleigh was formed, in part, by two individuals who are well-known for fundraising in statewide races -- former state Sen. Joe Thomas of New Bern and Wilson attorney Allen Thomas. Both are Democrats who have raised money for Moore in his two successful runs for treasurer. Another prominent founder is Wilson County Sheriff Wayne Gay.

Allen Thomas said he is supporting Moore for governor, but so far has raised money only from family members, while Joe Thomas said he is supporting Lt. Gov. Beverly Perdue, a New Bern Democrat, for governor. (The men are not related.) Moore's campaign said that Gay is a fundraiser, but could not say how much he has raised.

Williamson said he did not talk to Moore or representatives with State Insurance Services about the pension information issue. Moore could not be reached for comment; Julie White, a campaign spokeswoman, said Moore would support changing the law to make the information public.

Vendor status sways

Correspondence from the treasurer's office shows that Williamson asked Joyce Rutledge, an assistant attorney general assigned to the treasurer's office, to review the legislation. She initially said that State Insurance Services would also be prohibited from receiving retirees' addresses, but changed her opinion after talking with Williamson.

Rutledge said in an Oct. 4 e-mail message to Williamson that "any and all information about members and/or retirees necessary for a vendor's performance of its contract with (the retirement services division), even if such information is expressly designated as confidential data ... may be shared with the employees of that vendor."

Noelle Talley, a department spokeswoman, said Rutledge would not be made available for comment. Talley also said that the department has not issued a formal opinion on the release of retirees' addresses.