A coalition of civic leaders is recommending that Providence issue a $500 million bond to address the city’s massive unfunded pension obligation.
“Doing nothing is simply not an option,” the Pension Working Group wrote in a 27-page report issued Monday. The group of public officials, working with business and nonprofit leaders, released its recommendations after six months spent studying the city’s staggering pension liability problem.
Providence’s pension plan is funded at 22%, making it one of the weakest employee retirement systems in the nation. Since 1991, the city’s unfunded liability has grown by more than $1 billion, and that doesn’t include a $1.1 billion shortfall in retiree health benefits.
“Current and future retiree liabilities are unsustainable,” the report states.
Author(s): Mary Serreze
Publication Date: 1 Feb 2021
Publication Site: Providence Business First