Wednesday, July 20, 2011

Rhode Island town tells municipal retirees and employees: give up half your pension, or else!

The town of Central Falls, RI (north of Providence) has told city retirees as well as active police and fire, with the “Big Ask”, to give up half their pensions or risk losing it all. Furthermore, the town had opted out of Social Security for its municipal workers.

Lindsay Davis. She said “broken promises” could be coming to a town “near you.”  

I don't think PBGC has anything for municipal employees, right?

Update Aug. 2

According to a New York Times story by Mary Williams Walsh and Katie Zezima, Central Falls, RI has declared bankrupcy, link.  Murky accounting had hid the problems for years. This is an early victim of the "pension tsunami". 

No comments: