Budget Commission To Attempt Pension Payback Over 30 years
Law currently calls for unfunded liability to be paid off in five years.
The Budget Commission reviewed an initial 5-year budget plan Tuesday, voting to analyze it to see how taking 30 years to pay the $42 million unfunded pension liability instead of five would affect the numbers. One thing was certain to members: Woonsocket can't afford to pay it off in five. Any change to the 5-year plan will have to be followed up by a change to state law, said Jennifer Findlay, CPA and state-appointed financial advisor to the Budget Commission from the Division of Municipal Finance. During the meeting, Findlay explained that state law requires, in the event the city falls behind on its payments to pensions, that they make it up in five years. From the 2011 report, Pension and OPEB Plans Administered by Rhode Island …
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Mike Kind
3:08 pm on Friday, January 25, 2013
Novan, I did not attribute the pension problem to the WED. In fact, I want to see them funded better to help rebuild our city. My comment refers to the fact that the WED has, in the recent past, been unable to properly account for their funds. more ›