CHART: The Worst Funded Pension Plans in RI
Tuesday, June 14, 2011
Below is GoLocalProv’s ranking of the worst funded retirement systems in Rhode Island.
Where does your community rank?
How the rankings were calculated: GoLocalProv included the unfunded liabilities for pensions as well as retiree health care. In order to make a fair comparison between communities of differing sizes but similar problems—such as Central Falls and Providence—each were ranked on the basis of what percentage of their entire retirement system was unfunded. Those cities or towns with the highest percentages have a poorly funded system and rank higher on the chart than those with healthy retirement systems.
About the numbers: The data was compiled by the Rhode Island Public Expenditure Council and is based on the most recently available municipal audits, which are filed with the state annually. The below data includes the total liability that each town has—combining the liabilities in any local plans the town administers with the liabilities it has in the Municipal Employees Retirement System, which is administered by the state. The data does not include the local share for teacher pensions because those are in the Employees Retirement System of Rhode Island. As a result, the liability for those rests with the state, not local municipalities, according to RIPEC.
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Comments:
Robert Silva
10:20am on Tuesday, June 14, 2011
These numbers are very daunting. It’s important to keep in mind you and your neighbors’ ability to pay for these liabilities before blowing your lid though. In Providence, for instance, the per-household share of this giant liability is equal to 39% of that city’s median household income. OK that is kind of scary.
This number is 7% for #4 Coventry, and 51% for #5 Johnston (holy cow).
I fear that few people in Johnston have savings equal to half their income (which is another scary story), let alone having to pay another half for the retirements of government workers.
I guess I won’t plan on moving to Johnston.
michael riley
4:40pm on Wednesday, June 15, 2011
Narragansett woes are a tragic circumstance as officials were well warned of the issues in 2005 2006....since that time one town manager was fired and the finance director was fired....but the problems remain and unless the town can cut costs in the schools and town hall this will get much worse very quickly...the general voting population is pathetic and indifferent so the town is likely to be in real trouble soon.
The current council and town manager are fighting an uphill battle against unions and they are losing. This will result in massive tax increases going forward.
Michael g riley