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Invest $6,650, Get $500,000

September 7, 2011 By E.J. Smith - Your Survival Guy

On August 24, in a 4 to 3 vote, the North Providence, RI, School Committee agreed to pay School Supt. Donna Ottaviano an extra $35,000 for taking over the duties of the vacant assistant supt. position. Before getting the raise, Ottaviano planned on retiring in two years and would have qualified for a pension payment of 80% of her pre-raise salary of $123,000. But, by adding $35,000 to her pay for her final two years, her pension would go up by more than $18,600 a year, or nearly $500,000 over the next 20 with cost-of-living adjustments. Ottaviana would only have to contribute $6,650 or 9.5% of $35,000 twice.

Thankfully word got out as N. Prov. Mayor Charles A. Lombardi said Wednesday, “The phones have been ringing off the hook with people complaining about this. The School Committee just doesn’t get it.” A committee meeting was planned for that night. The four committee members who voted for Ottaviano’s sweetheart deal were Chairman Anthony Marciano, Donald Cataldi, Helen Reall, and Ronald Iannetta. Earlier in the day Marciano and Cataldi were adamant that the meeting was not called to deal with the controversial pay package.

Although meeting behind closed doors, a lively debate could be overheard before the committee publicly voted 6 to 0 to overturn Ottaviano’s extra $35,000 in compensation. Clearly, leadership was not pleased about having their feathers ruffled by taxpayers. What’s even more appalling, though, is that they did this deal in the light of day, while for months Rhode Islanders have been reading about the pension deficit. Enough is enough.

For more, listen to interviews with Tom Ward of The Valley Breeze Newspapers, and N. Prov. Mayor Charles A. Lombardi on the Helen Glover Show.

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E.J. Smith - Your Survival Guy
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998.

E.J. has trained at Sig Sauer Academy in Epping, NH, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention.

E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@yoursurvivalguy.com

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