Providence, RI – A Senate study released Tuesday finds that pension plans administered by the state's cities and towns face almost two billion dollars in unfunded liability.
State-managed pension plans for municipalities are considered solid. But 23 out of 36 locally administered plans have been called at-risk due to a lack of funding. Senate Finance Chairman Daniel DaPonte says he hopes these findings galvanize support for a fix.
"We hope the upside is to wake everybody up," DaPonte says. "This problem is humungous -- it's very closely approaching crisis levels -- and it's not going away."
A Senate panel recommends raising funding for troubled plans, and creating a new commission to restructure the cost of municipal pensions. But a Senate analyst says there's no silver bullet to fix the situation.
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