Almonte releases 20-page report on Pawtucket pension costs

Former Auditor General Ernie Almonte delivered a 20-page report on Pawtucket’s pension and retiree health plans to Mayor Donald Grebien on Thursday, eight months after Grebien asked him to lead an ad hoc commission studying the issue.

“The City of Pawtucket has a seriously underfunded pension system and an unfunded OPEB (other post retirement employee benefits, e.g., health insurance),” the report says. It lists a long list of options for dealing with the problem, including larger contributions from the city and suspending pension cost-of-living adjustments (COLAs) until the plan is 80% funded.

Grebien described the report as “impressive in its scope and depth,” and said he will review its findings “with his administration and finance directors, in conjunction with union leaders, to determine options and recommendations that will be sent to the City Council for approval as required by the state.”

Click here to download the full Pawtucket pension report as a PDF. (Under last year’s pension overhaul, Rhode Island cities and towns are required to submit plans for shoring up their pension plans by next month.)

• Related: Pawtucket panel plans 6-week sprint to solve pension problem (Feb. 23)

5 thoughts on “Almonte releases 20-page report on Pawtucket pension costs

  1. Mr Almonte tackling the tough pensions problems ( cities and towns) while Raimondo turned a blind eye and took the easy road ( state) Ernie Almonte, a fighter, Gina Raimondo a self promoter.

    • Clearly the distorted view of a Public Sector worker with a seriouse case of “entitlement mentality”.

      Public Sector pensions across America are AT LEAST double what they would be in the absence of the Public Sector Union/Politician collusion … the trading of campaign contributions and election support in exchange for favorable votes on pay, pension, and benefits.

      EVERY town, city and STATE should dowhat Raimondo did … and far MORE.

  2. I am glad to see Ernie is back in the news and in the public eye. I was afraid that voters woud forget he has already announced his candidacy for governor in 2014.
    No way would you find me voting for Raimondo if and when she decides to run for governor. She is not a democrat in the true sense. She is a NY investmen capitalist being there for 10 years with her Point Judith Investments. She even borrowed from the state fund to start her business…so now after 10 years she comes back to RI and throws the teachers under the bus…those same teachers she said she loved and who did nothing wrong..She would use her daughter’s tecaher in her examples and then like a true corporater millionaire hypocrite that she is, threw her daughter’s teacher and other hard working teachers like her under the bus….
    Maybe you will vote for a Cicilline supporter but again as the millionaire mulls over a run for governor and accumulates campaign money from her friends, the rich, the corporates, the Republicans, her NY business friends and colleagues, the nameless engage ri cowards who refuse to tell the public who they really are-a bunch of wimps-and the anti union haters…
    I will not vote for anyone who supports Cicilline and Gordon Fox…she campaigns for them, attends fundraisers for them…supports them…the millionaire hypocrite who calims she is helping the middle class when she instead with her propaganda helps the corporate people, believes in charters and will use her “math and numbers” expertise on pensions, liabilities assets, actual reports,and other terminology most people don’t understand, to bamboozle and cheat them out of what is theirs….
    Raimondo tackled the state pension because this is the way to become governor….The municipals she won’t touch with a ten foot pole because those are contractual in her eyes.
    Wait till Ms millionaire finds outthorugh the courts that the state pension she changed are also part of contractual law…and this will put another burden on the taxpayers just like 38 studios which is Gordon Fox’s baby…and she supports him! ha!

  3. Ms Raimondo has nothing to do with a municipal pension. The issues are very different.

    Mr. Almonte is a smart guy, but there is little doubt that a lawsuit would be the result of draconian pension changes.

    The flip side is municipal bankruptcy for Pawtucket which would be a disaster for pensioners and employees.

    Employees and pensioners have the most to lose in a bankruptcy. But how much they lose is not yet defined by any court of law. The problem is that all prior bankruptcies to date, nationwide, have been settled by mediation, not a court judgement.

    A judgement by a court would be the nuclear option because the court hands the problem off to a court appointed actuary. That alone spells disaster for employees and retirees.

    A word of caution to all the employees and retirees. Work out favorable terms before anyone suggests going to court.

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