Rhode Island’s pension fund earned a return on its investment of a little more than 11 percent for the fiscal year that ended June 30th. But state Treasurer Gina Raimondo is sounding a warning about the future of the state’s pension plan.
The 11.1 percent earned by the state pension fund is a big improvement over the 1.4 percent return a year earlier. Still, Rhode Island fared a bit worse than the 12.5 percent earned by the country’s largest public employee pension system, CALPERS, over the same period.
The performance of Rhode Island’s $7.5 billion pension fund was discussed during a meeting of the State Investment Commission. In a statement on her website, state Treasurer Gina Raimondo credits the commission with implementing a strategy that strives to deliver long-term returns while minimizing risk.
Yet Raimondo said that despite a major overhaul in 2011, the pension fund continues to pay out more than it receives each month. She says the state’s pension system has a limited ability to withstand another major financial crisis like the one in 2008 and 2009.
Do you have insight or expertise on this topic? Please email us, we'd like to hear from you. firstname.lastname@example.org