Press Release  OIG Finds Former Retirement Board CEO Abused Public Funds

Boston, MA — A former CEO of the Worcester Regional Retirement System (WRRS) expanded his private law practice while being paid to work full-time for the retirement board, according to a report released today by the Office of the Inspector General (OIG).

The OIG initiated an investigation in 2023, after receiving a complaint alleging former WRRS CEO Michael Sacco was working extensively for other public retirement boards during WRRS business hours and using his public office and public resources to perform legal services for his private law practice’s clients.

“Mr. Sacco severely undermined the trust placed in him as the CEO of a public retirement system with 14,000 members,” Inspector General Jeffrey Shapiro said. “Beginning in his first week on the job, Sacco attended meetings on behalf of his private clients during business hours, without using leave time. This was not only a direct contradiction of the assurances he gave the Board prior to his hiring that he would confine his outside work to non-business hours, but also suggests that he was improperly paid a full-time salary.”

Through its investigation, the OIG found that Sacco, by his own admission, only worked 20 to 30 hours a week for WRRS, attended 350 outside board meetings, court hearings, and other engagements on behalf of private clients nearly all during WRRS business hours, and did not use leave time while traveling to and vacationing in Florida. At the same time, he neglected or underperformed in his duties as CEO, including failing to produce a single newsletter, ceasing regular staff meetings, failing to attend investment management committee meetings, and severely curtailing public outreach activities for members.

The OIG has 15 findings and made 28 recommendations including that the WRRS Board pursue recovery of funds paid to Sacco for allegedly unused vacation time, which is contradicted by the findings in the report. In addition, WRRS should report to the Public Employee Retirement Administration Commission (PERAC) a recalculated length of service to reflect the number of days he was working for private clients.

Finally, the Inspector General called on the Legislature to prevent passage of House Bill  2931 that would exempt Sacco for the post retiree earnings cap, which then would require him to pay back improper post-retirement earnings, and to consider steps to provide strong oversight of the state’s 104 retirement systems.

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