PROVIDENCE, R.I. (AP) - A report by Rhode Island’s general treasurer finds that the state’s 35 locally run pension plans have close to $2.5 billion in unfunded obligations.
The Providence Journal reports that General Treasurer Seth Magaziner’s report found that almost two-thirds of the plans that provide retirement benefits to police, firefighters and other municipal employees are in “critical status,” meaning they have less than 60% of what they need to cover their liabilities.
Providence leads the way with a $1 billion gap between its assets and its accumulated liabilities.
The report also expresses concern about how much of some communities’ tax revenue is going to payments to pension plans, leading to the potential of underfunding other important budget priorities.
Magaziner says he hopes his report will promote communities to address the issue.
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Information from: The Providence Journal, http://www.providencejournal.com
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