PROVIDENCE, RI – Cranston Mayor Alan Fung says while he applauds the effort made to overhaul the state's pension system, it doesn't go far enough to help local municipalities cut their pension costs. Specifically Fung is concerned that the pension bill fails to freeze cost of living raises for retirees drawing from locally run pension plans. Fung says the special commission that studied the state's pension problem over the summer pushed extending the COLA freeze to towns and cities.
"I've already spoken to both the governor and treasurer's office to relay my concerns and find out why they did the municipal portion in the way that they did," Fung says.
Cranston's police and fire pension is only 15.8 percent funded. Fung says he's also concerned that a Solvency Review Committee will set a financial goal that municipalities must meet in ten years. It's a goal Fung says that would cost Cranston at least $95 million.
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