Poli-ticks

Merrily we roll along

By Arlene Violet
Posted 3/31/19

Nothing bespeaks how out of touch with taxpayers our legislators can be than the recent bill, HB-5819, sponsored by Representatives Robert Craven, Michael Morin, Carol Hagan McEntee and newcomer, …

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Poli-ticks

Merrily we roll along

Posted

Nothing bespeaks how out of touch with taxpayers our legislators can be than the recent bill, HB-5819, sponsored by Representatives Robert Craven, Michael Morin, Carol Hagan McEntee and newcomer, Justine Caldwell. These legislators want to add to taxpayer costs of funding the pension by avoiding the COLA language in the past reform legislation that requires stabilization of the pension before COLAs are given. This would be achieved by allowing a “stipend” for practically all of the 30,000 retirees, initially costing $12 million more per year and growing thereafter by a bump-up “stipend”.

As you recall, pension reform was passed and implemented to stabilize the pension system. Right before the “reform” the teachers’ pension was funded at 61 percent in 2010. In the last report ending June 30, 2018 on the Treasurer’s site the funded liability dipped to 54.9 percent. The state employees fund also has dipped to 52.9 percent as of this last report. Now, here’s the corker. The funded liability actually decreased notwithstanding an additional $2 billion dollars coughed up by taxpayers well beyond their initial obligation. In other words we are going backwards, despite the lofty promises that by 2031 the pension security ratio will be $4 in for every $5 obligated, i.e. an 80 percent funding. Hogwash!

In effect, despite the $2 billion MORE infusion of taxpayer money into the pension system since “reform” we are basically in the same place as pre-reform. The aforesaid legislators’ proposal adds millions of dollars of further taxpayer obligations.

The pension system continues to be “raided”. As is presently happening in Johnston by its firefighters, they work pretty steadily until their final years where they amass copious overtime in order to boost their pensions since it is based on their last few consecutive years. Absolutely nobody in political office who cloaks themselves with the “reform” mantle has moved a muscle to change this provision to a more realistic picture of service. Similarly, it is not only the sheriffs’ department where workers have been collecting checks ad infinitum for “injured on duty “status. Even when the court of competent jurisdiction rules that the person is not entitled to “injured on duty “status the employee continues unabated to collect the moolah.

Here is the reality: taxpayers will be perennially on the hook. Yes, it is good that the present state treasurer reduced the expected rate of return to 7 percent ( most analysts think that 5 1/2 percent is the realistic figure), nonetheless, the public continues to be sprinkled with fairy dust. The R.I. executive and legislative branches seem incapable of mustering any courage to challenge the unsustainable pensions.

In a recent interview with Ken Block, he noted that despite the initial reform the state is treading water. "Basically, we are as much now in the same situation as before pension reform. How can taxpayers be expected to cough up more and more money without asking the recipients for any giveback? Everybody needs to consider the common good,” he said.

That’s a good question and a gutsy one. Present leaders wear the mantle of reformers yet they dodge the reality which still exists. Anyone who supports HB-5819 should be taken out to the back shed. Right now there are more state retirees than those working, so a vote for this bill drains the pot of gold for present workers. Let’s have real reform!

Arlene Violet is an attorney and former Rhode Island Attorney General.

Arlene Violet

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A lifelong Portsmouth resident, Jim graduated from Portsmouth High School in 1982 and earned a journalism degree from the University of Rhode Island in 1986. He's worked two different stints at East Bay Newspapers, for a total of 18 years with the company so far. When not running all over town bringing you the news from Portsmouth, Jim listens to lots and lots and lots of music, watches obscure silent films from the '20s and usually has three books going at once. He also loves to cook crazy New Orleans dishes for his wife of 25 years, Michelle, and their two sons, Jake and Max.