NEW: Providence City Councilman Calls for Local Pension Reform
Friday, October 21, 2011
Providence City Councilman David Salvatore is calling on Governor Chafee to address municipal pension reform as the state considers comprehensive pension reform.
In a letter too Chafee, Salvatore said:
“Dear Governor Chafee:
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAs a member of the Providence City Council and its Pension Sustainability Commission, I am writing to ask for your support and cooperation in making sure any effort to address the State of Rhode Island's pension crisis also considers the dire situation facing Providence.
While many municipalities face significant unfunded liabilities in their pension systems Providence's situation is particularly daunting. Our most recent actuary reports Providence’s unfunded liability to be $828 million with an additional liability of $1.4 billion in other post-employment benefits. The new Mayoral administration and Council leadership worked diligently and confronted head on our fiscal crisis earlier this year. We shall do the same with the pension crisis facing our City, but we cannot confront it alone. Many issues, such as collectively bargained COLAs, necessitate state intervention if the City is to provide secure retirement for future and current retirees and protect taxpayers.
While my colleagues and I are determined to overcome these hurdles, we cannot do it without the active support and involvement of the state. Rhode Island needs to take a comprehensive approach to pension reform, one which recognizes that the dangers facing the state are not just the problems plaguing the state pension system, but those facing both the state and larger municipal systems. If Providence's significant pension liabilities are not addressed as part of the current reform effort, we will be forced to significantly cut basic city services and jeopardize the quality of life in Providence.
I hope your administration will work to make sure that any legislation which seeks to address the state's pension system also involves a meaningful effort to help Providence and other municipalities bring their pension plans under control. I look forward to working with you on this issue and ensuring a meaningful, comprehensive approach to pension reform is taken in Rhode Island in a manner which benefits all of our citizens.”
