Providence’s Pension Plan in “Critical” Status — $1.3B Underfunded, 20 Other Funds in Distress
GoLocalProv News Team
Providence’s Pension Plan in “Critical” Status — $1.3B Underfunded, 20 Other Funds in Distress
Critical funding status is defined by Rhode Island General Treasurer Seth Magaziner as pension funds that are forty percent underfunded.
The Providence pension plan is only funded at 26.3 percent, with more than 2,800 active members in the plan and 3,200 retirees.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTMost concerning is that the situation — the unfunded liability — got worse in the past year for the pension plans across the state. The combined unfunded liability increased from $2.4 billion in Magaziner’s 2018 report to $2.5 billion in this year’s report.
Magaziner on Monday in his capacity as Chair of the Advisory Council for Locally Administered Pension Plans released the report which details key information on the status and trends of each of the 35 locally-administered pension plans in Rhode Island.
SLIDES: SEE EACH OF THE PENSION PLAN'S PERFORMANCE BELOW
Providence’s pension fund is singled out in Magaziner's report for poor pension fund management, “Some plans have investment return and payroll growth assumptions that may not be realistic. The 8% investment return assumption used by the Providence pension plan is the highest of any public pension plan in the state.”
For Providence's 178,000 plus residents, the pension obligation is more than $7,600 per person to fully fund the obligation.
Providence’s Failed Rescue Plan
For the past few years, Providence Mayor Jorge Elorza had proposed selling the Providence Water Supply Board and using the monies to address the pension liability — now more than $1.356 billion. But, in April Elorza abandoned his plan.
At the press conference in April announcing that he would no longer advocate for the sale of the water system, reporters pressed Elorza on what his new plan would be to address the critical status of the pension fund. Elorza said he would work with “stakeholders” to identify a new funding plan.
"All Rhode Islanders deserve security and predictability in retirement, especially those Rhode Islanders who have spent their lives serving the community," said Magaziner. "These report cards continue my commitment to transparency by helping the public understand the financial condition of municipal pension systems."
While Providence is not the only pension plan in a dismal situation, despite a bankruptcy — a fiscal reboot — Central Falls is also only funded its pension fund at 26 percent, Coventry Police is only funded at 20 percent, and West Warwick is funded at just 23 percent.
SEE EACH OF THE PENSION PLANS PERFORMANCE BELOW
Pension Report: April 29, 2019
STATUS: Critical
Central Falls
Market Value of Assets: $9,988,424
Number of Participants: 76 Actives; 66 Retirees; 53 Disabled
Total Accrued Liabilities: $37,631,989
Valuation Date: As of 7/1/18
STATUS: Critical
Coventry Police
Market Value of Assets: $15,974,327
Number of Participants: 57 Actives; 64 Retirees; 11 Terminated Vested and/or Inactive lives; 15 Beneficiaries
Total Accrued Liabilities: $79,641,154
Valuation Date: As of 7/1/18
STATUS: Critical
Coventry - School Plan
Market Value of Assets: $12,462,70
Number of Participants: 224 Actives; 150 Retirees; 26 Terminated Vested
Total Accrued Liabilities: $35,891,579
Valuation Date: As of 7/1/18
STATUS: Critical
Cumberland Police
Market Value of Assets: $17,519,829
Number of Participants: 42 Actives; 69 Retirees; 6 Disabled; 1 Terminated Vested and/or Inactive Lives
Total Accrued Liabilities: $35,862,193
Valuation Date: For plan year ending 10/31/1
STATUS: Critical
East Providence - Police & Fire
Market Value of Assets: $130,039,860
Number of Participants: 195 Actives; 175 Retirees; 45 Disabled; 8 Terminated Vested and/or Inactive Lives; 50 Beneficiaries
Total Accrued Liabilities: $219,314,469
Valuation Date: As of 7/1/18
STATUS: Non-Critical
Jamestown - Police
Market Value of Assets: $10,469,099
Number of Participants: 13 Actives; 14 Retirees; 2 Terminated Vested and/or Inactive Lives
Total Accrued Liabilities: $10,589,532
Valuation Date: As of 1/1/18
STATUS: Non-Critical
Lincoln
Market Value of Assets: $27,567,174
Number of Participants: 114 Active; 84 Retirees; 22 Terminated Vested and/or Inactive Lives; 14 Beneficiaries
Total Accrued Liabilities: $40,011,582
Valuation Date: As of 1/1/18
STATUS: Non-Critical
Little Compton
Market Value of Assets: $10,886,463
Number of Participants: 45 Active; 34 Retirees; 10 Terminated Vested and/or Inactive Lives;
Total Accrued Liabilities: $13,015, 759
Valuation Date: As of 7/1/117
STATUS: Non-Critical
Narragansett Town Plan
Market Value of Assets: $90,104,936
Number of Participants: 247 Actives; 185 Retirees; 15 Disabled; 20 Terminated Vested and/or Inactive Lives; 10 Beneficiaries
Total Accrued Liabilities: $140,878,874
Valuation Date: As of 7/1/18
STATUS: Critical
Newport - Fire
Market Value of Assets: $53,692,014
Number of Participants: 95 Actives; 87 Retirees; 7 Disabled; 1 Terminated Vested/Inactive; 21 Beneficiaries
Total Accrued Liabilities: $106,788,608
Valuation Date: As of 7/1/17
STATUS: Non-Critical
North Providence - Police
Market Value of Assets: $41,736,189
Number of Participants: 64 Actives; 69 Retirees; 18 Disabled; 3 Terminated Vested and/or Inactive Lives; 8 Beneficiaries
Total Accrued Liabilities: $48,668,362
Valuation Date: As of 7/1/18
STATUS: Pay as You Go
North Providence Fire COLA Plan
Market Value of Assets: $0
Number of Participants: 86 Active plan members; 80 Inactive plan members and beneficiaries currently receiving benefits; 1 Inactive plan member entitled to, but not receiving benefits
Total Accrued Liabilities: $25,292,677
Valuation Date: As of 6/30/18
STATUS: Critical
Pawtucket - Police and Fire
Market Value of Assets: $114,866,911
Number of Participants: 274 Actives; 371 Retirees; 47 Disabled;
Total Accrued Liabilities: $267,723,250
Valuation Date: As of 7/1/17
STATUS: Providence
Providence
Market Value of Assets: $348,644,000
Number of Participants: 2,891 Actives; 3,234 Retirees; 533 Terminated and/or Inactive Lives
Total Accrued Liabilities: $1,356,171,912
Valuation Date: As of 7/1/17
STATUS: Non-Critical
Tiverton - Police
Market Value of Assets: $11,051,030
Number of Participants: 32 Actives; 30 Retirees
Total Accrued Liabilities: $16,938,557
Valuation Date: As of 7/1/17
STATUS: Non-Critical
Warwick - City Employees
Market Value of Assets: $124,934,249
Number of Participants: 366 Actives; 369 Retirees; 31 Terminated Vested and/or Inactive Lives
Total Accrued Liabilities: $171,947,157
Valuation Date: As of 7/1/17
STATUS: Non-Critical
Warwick - Fire II
Market Value of Assets: $64,558,640
Number of Participants: 195 Actives; 17 Retirees
Total Accrued Liabilities: $74,002,098
Valuation Date: As of 7/1/17
STATUS: Non-Critical
Warwick - Police II
Market Value of Assets: $193,183,186
Number of Participants: 158 Actives; 184 Retirees; 4 Terminated Vested and/or Inactive Lives
Total Accrued Liabilities: $232,361,869
Valuation Date: As of 7/1/17
STATUS: Non-Critical
Warwick - School Employees
Market Value of Assets: $42,643,238
Number of Participants: 350 Actives; 103 Retirees; 28 Disabled/Other
Total Accrued Liabilities: $0
Valuation Date: As of 7/1/17
STATUS: Non-Critical
Westerly - Police
Market Value of Assets: $32,601,961
Number of Participants: 48 Actives; 48 Retirees; 1 Terminated Vested and/or Inactive Life
Total Accrued Liabilities: $46,420,634
Valuation Date: As of 7/1/17
STATUS: Critical
West Warwick
Market Value of Assets: $37,614,044
Number of Participants: 321 Actives; 348 Retired; 37 Terminated Vested and/or Inactive Lives
Total Accrued Liabilities: $165,637,204
Valuation Date: As of 7/1/18
STATUS: Critical
Bristol - Police
Closed Plan
Market Value of Assets: $16,767,838
Number of Participants: 44 Members in Pay Status
Total Accrued Liabilities: $29,394,746
Valuation Date: As of 7/1/18
STATUS: Critical
Coventry - Municipal
Closed Plan
Market Value of Assets: $10,447,416
Number of Participants: 85 Actives; 60 Retirees; 6 Disabled; 36 Terminated Vested and/or Inactive Lives; 12 Beneficiaries
Total Accrued Liabilities: $24,819,498
Valuation Date: As of 7/1/18
STATUS: Critical
Cranston - Police, and Fire
Closed Plan
Market Value of Assets: $66,333,847
Number of Participants: 27 Actives; 422 Retirees
Total Accrued Liabilities: $304,595,640
Valuation Date: As of 7/1/17
STATUS: Critical
Johnston - Fire
Closed Plan
Market Value of Assets: $22,644,128
Number of Participants: 19 Actives; 94 Retirees
Total Accrued Liabilities: $79,365,251
Valuation Date: As of 7/1/18
STATUS: Critical
Johnston - Police
Closed Plan
Market Value of Assets: $18,225,467
Number of Participants: 52 Actives; 101 Retirees
Total Accrued Liabilities: $71,048,380
Valuation Date: As of 7/1/17
STATUS: Non-Critical
Middletown
Closed Plan
Market Value of Assets: $57,896,128
Number of Participants: 10 Actives, 109 Retirees; 5 Disabled; 7 Terminated Vested and/or Inactives Lives; 15 Beneficiaries
Total Accrued Liabilities: $58,707,740
Valuation Date: As of 7/1/18
STATUS: Critical
Narragansett - Police
Closed Plan
Market Value of Assets: $934,315
Number of Participants: No Actives; 16 Retirees
Total Accrued Liabilities: $2,373,613
Valuation Date: As of 7/1/17
STATUS: Non-Critical
Newport - Police
Closed Plan
Market Value of Assets: $66,016,785
Number of Participants: 71 Actives; 125 Retirees; 1 Terminated and/or Inactive
Total Accrued Liabilities: $102,420,432
Valuation Date: As of 7/1/17
STATUS: Critical
Portsmouth
Closed Plan
Market Value of Assets: $52,916,280
Number of Participants: 151 Actives; 169 Retirees; 8 Terminated Vested and/or Inactive Lives
Total Accrued Liabilities: $93,596,611
Valuation Date: As of 7/1/17
STATUS: Critical
Scituate - Police
Closed Plan
Market Value of Assets: $5,839,817
Number of Participants: 12 Actives; 20 Retirees; 4 Disabled
Total Accrued Liabilities: $14,226,629
Valuation Date: As of 4/1/18
STATUS: Non-Critical
Smithfield - Fire
Closed Plan
Market Value of Assets: $25,671,203
Number of Participants: 41 Actives; 22 Retirees; 6 Disabled; 2 Terminated Vested and/or Inactive Lives; 5 Beneficiaries
Total Accrued Liabilities: $35,713,672
Valuation Date: As of 7/1/18
STATUS: Critical
Smithfield - Police
Closed Plan
Market Value of Assets: $9,329,942
Number of Participants: 0 Actives; 29 Retirees; 5 Disabled
Total Accrued Liabilities: $24,083,170
Valuation Date: As of 7/1/18
STATUS: Critical
Warwick - Police & Fire I
Closed Plan
Market Value of Assets: $71,756,352
Number of Participants: 24 Actives; 406 Retirees
Total Accrued Liabilities: $298,373,349
Valuation Date: As of 7/1/17
STATUS: Critical
Woonsocket Police & Fire
Closed Plan
Market Value of Assets: $36,318,178
Number of Participants: 0 Actives; 171 Retirees; 50 Disabled
Total Accrued Liabilities: $85,358,949
Valuation Date: As of 7/1/17
