Providence needs $500M bond to fix pension shortfall, report states



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

Corte Madera moves to refinance pension obligation


The town of Corte Madera is moving toward refinancing its $21.4 million pension liability to help manage its budget more effectively while still coping with a loss of revenue from the pandemic.

“We’re not out of the woods yet,” Mayor Eli Beckman said. “We are doing quite well relative to our worst fears and what we are seeing other municipalities get hit with. Corte Madera has been lucky.”

The town’s annual payments to the California Public Employees’ Retirement System, known as CalPERS, have ballooned from $733,000 in 2015 to $1.37 million this year, according to a Nov. 17 staff report. The town projects the annual payments will grow to $2.1 million by 2025 and $2.26 million by 2031.


Publication Date: 20 January 2021

Publication Site: Marin Independent Journal