Two days ago we ran an op-ed asking – What Happened to Pension Reform in Wicomico County?. Many commenters argued that it wasn’t necessary. Here’s one example of what’s happening to towns and counties across the nation who continue to keep defined benefit pensions.
Is it better to fix a problem today, or go back on promises made tomorrow?
- - - - - - - - - - - - - - - - - - - - - - - - - -
The state-appointed receiver seeking to rescue Central Falls from financial ruin told about 100 retired firefighters and police officers on Tuesday that their pensions must be slashed in half to save the city $2.5 million annually or face the possibility of bankruptcy, an alternative that could leave them with a lot less.
Receiver Robert G. Flanders Jr., a retired Supreme Court justice, calmly told the group of retirees in the steamy auditorium at Central Falls High School that difficult times call for drastic actions to tackle an estimated $25 million in deficits for the city over the next five years.
The city’s annual budget is about $17 million, and it faces $80 million in unfunded pension and benefit obligations.
Flanders’ proposal, which is voluntary on the part of the retirees, sets 60 as the “normal” retirement age, with a minimum of 10 years of service for a full pension of 40 percent of compensation.
Currently, public safety employees can retire after 20 years on the job and get 50 percent of their compensation, regardless of age. His proposal is for them to work a minimum of 25 years and get 40 percent of compensation, regardless of age.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.