NEW: State’s Retirement System Lost $204 Million During 2012 Fiscal Year
Friday, January 11, 2013
In all, the state has a nearly two billion dollar unfunded liability for its Employees’ Retirement Plan, an account that is 57.4 percent funded, and has funded just short of 60 percent of its Teachers Retirement Plan, leaving an unfunded balance of $2.5 billion dollars.
Rhode Island’s three other pension plans are all in much healthier shape as the state’s Judicial Retirement Plan is currently 86.1 percent funded, leaving a balance of $6.4 million, and the state’s State Police and Municipal Retirement Plans are 98.6 and 84.3 percent funded, leaving unfunded liabilities of approximately $1 million and $224 million, respectively.
The four plans covered more than 66,000 members in 2012 and had an approximate value of $7.3 billion at the end of the fiscal year. Overall, pension benefits paid out during 2012 were $881 million while employee and employer contributions amounted to a total of $582.7 million.
OPEB sees large increase
In much more positive news for the state, the auditor general announced that the state’s OPEB system, which covers retiree healthcare benefits for nearly 26,000 members, saw an increase of $22 million in the last fiscal year to a total of $37 million overall.
OPEB or retiree health benefits paid to retirees during the fiscal year ended June 30, 2012 totaled $58.3 million, and member and employer contributions totaled $76.1 million.
According to the auditor general, the State began contributing “on an actuarially determined basis in fiscal year 2011 and 100 percent of required contributions were made to the plans in fiscal 2011 and 2012.”
The valuations, performed as of June 30, 2011, estimate an OPEB liability at $917 million for all plans included within the System.
To see the full audit reports, click here.