NEW: Providence Retirees Approve Pension Reform
Saturday, June 23, 2012
Providence retirees on Friday overwhelmingly voted in favor of a deal that freezes COLAs, caps pensions and moved those over the age of 65 to Medicare.
The agreement heads off potential litigation over the pension reform ordinance passed by the Providence City Council and signed by Mayor Taveras on April 30. The settlement will generate approximately $18.5 million of savings in FY13 – within $3 million of the anticipated savings included in the administration’s proposed FY13 budget.
Officials expect that the pension reforms agreed to during mediation will reduce the City’s unfunded pension liability by as much as $170 million. The changes to Medicare will save approximately $40 million over the next 10 years.
