Projo Politics Blog

The State of RI pension MUST be reformed ASAP.
Significant benefits reductions are in order as part of any reform. Working 20 years and getting well over 80% of pay is crazy. Perhaps 40 to 50% of average salary after age 60 years old. For earlier pension collection a reduction of 8% per year for example 8% x 5 years would be an additional 40 % reduction in 50% of base pension. Oh, medical and other benefits a significant reduction. The RI Governor Don Carcieri has identified this and championed a bi partisan solution with the General Assembly Leadership. Today General Assembly house has a committee studying this very topic. I viewed their deliberation on the State House TV channel recently. Oh, the union members did not seem to be engaged in solving the problem, or playing nice - big surprise!

The present pension benefits (even prior to the Wall Street Bailout) was not supportable. Moreover it was well beyond the norms for both Federal government or private pension plans. ON top of that we lacked affordability previously and now even more. The suggestion that this can be cured by raising taxes is just a flawed logic. Moreover an extension of the Legacy Liberal largeness that caused this situation. The tax well is dry brothers and sisters. RI has a companion problem in that resisting Reform and change towards making RI business friendly with all the foot dragging and passive aggressive behaviors has resulted in pushing RI even further into the non business friendly category. The business, employee e.g real motivate people create wealth by adding value with innovative ideas coupled to employee team work. Clearly lacking in RI education and training is a fundamental course in economics and job creation etc. Until RI citizens become agents for change and reform this state will in all likely hood slip even further behind resulting in even additional lost opportunities. Last please do not expect the pols in Washington DC to bail you out this time. They have been very busy taking "donations" from lobbies t and PACs while on duty watching your national and personal wealth. Yes, including Mr Frank, Mr Jack Reed , Mr Chris Dodd of near by CT. Why they all so turned their head and did nothing to halt the open age discrimination / benefits reductions of those 65 years old and still working towards their official Social Security retirement date.
So why would they be interested in our self inflicted mess?
Brothers and sisters we must come together and resolve this mess our self's this time.
The first step is to vote for RI on election day vs lobbyists and unions etc.
Billyhoran@aol.com

Please see;
http://www.ripec.com/matriarch/d.asp?PageID=66&PageName2=pdfsdoc&p=&PageName=RIPEC+Pension+Report+-+Final+-+Web(1).pdf

State Pension Reform in Rhode Island
In October 2003, Governor Donald Carcieri initiated a process to evaluate the State’s public pension plans and develop recommendations to ensure their long-term financial viability.

Years of ServiceAnnual AccrualYears of ServiceAnnual AccrualYears of ServiceAnnual AccrualYears of ServiceAnnual Accrual (from referenced report)
First 10 (0-10)1.70%First 5 (0-5)1.70%First 5 (0-5)1.70%First 10 (0-10)1.60%Next 10 (10-20)1.90%Next 10 (5-15)1.90%Next 15 (5-20)2.00%Next 10 (10-20)1.80%Next 14 (20-34)3.00%Next 10 (15-25)2.20%Next 10 (20-30)2.50%Next 5 (20-25)2.00%35th Year2.00%Next 10 (25-35)2.30%Next 5 (30-35)2.00%Next 5 (25-30)2.25%Thereafter (30- )2.50%
Maximum Accrual 80.00% of Salary
Plus COLA
Plus Free ride on Medical benefit cost.

This must be reformed and reduced to 50 % max
(Typical industry standards)
Plus no COLA
Plus Medical Benefits significant reform / reduction to prevailing market shared cost.
The free ride ion RI must end.