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PARELLA v. RETIREMENT BOARD, R.I. EMPLOYEES' RETIREMENT SYSTEM

No. 98-1400.

173 F.3d 46 (1999)

Gaetano PARELLA, et al., Plaintiffs, Appellees, v. RETIREMENT BOARD OF THE RHODE ISLAND EMPLOYEES' RETIREMENT SYSTEM, Nancy J. Mayer, in her official capacities as General Treasurer of the State of Rhode Island and as Chairperson, Treasurer, and Custodian of Funds of the Retirement Board of the Rhode Island Employees' Retirement System, and Joann E. Flaminio, in her official capacity as Executive Director of the Retirement Board of the Rhode Island Employees' Retirement System, Defendants, Appellants.

United States Court of Appeals, First Circuit.

Decided April 16, 1999.

Attorney(s) appearing for the Case

Michael P. DeFanti, with whom Laura A. Pisaturo and Hinckley, Allen & Snyder were on brief, for appellants Retirement Board of the Rhode Island Employees' Retirement System and Joann E. Flaminio, in her official capacity as Executive Director of the Retirement Board of the Rhode Island Employees' Retirement System.

Rebecca T. Partington, Assistant Attorney General, for appellant Nancy J. Mayer, in her official capacity as General Treasurer of the State of Rhode Island.

Anthony F. Muri, with whom Barbara S. Cohen and Goldenberg & Muri were on brief, for appellees Gaetano Parella et al.

Before BOUDIN, LYNCH, and LIPEZ, Circuit Judges.

LYNCH, Circuit Judge.

Beginning in 1987, retired Rhode Island legislators or their beneficiaries became eligible to receive annual pension benefits that were as much as sixty times greater than the legislators' annual pre-retirement salaries. When the Rhode Island General Assembly became aware that the generosity of these benefits jeopardized the tax-exempt status of the state's retirement system, it acted to bring the benefits into compliance with federal tax law...

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