Cranston Mayor Allan Fung announced an agreement Monday to improve the condition of one of the worst funded municipal pensions in the state.
Fung says the deal will save Cranston $6.5 million in pension costs over the next fiscal year while solving a lingering problem.
“This issue has been an albatross over the city for decades, close to half a century, and this agreement shows the progress that can be made when all parties come together in a spirit of cooperation,” said Fung.
Cranston’s locally administered police and firefighter pension fund has less than 20 percent of the money to meet its long-term obligations. Fung said the agreement will fully fund the pension over a 30-year period.
The agreement includes a long-term cap on cost of living adjustments and an elimination of COLAs in five of the first 10 years of the deal.
The head of the Cranston firefighters’ union, Paul Valletta, said some workers will lose thousands of dollars in benefits under the agreement. He said his membership recognized the deal was necessary for Cranston’s fiscal health.
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