Taveras Budget: No Pension Reform—Yet

Taveras Budget: No Pension Reform—Yet

Angel Taveras has said pension reform is one of his top priorities—but his budget proposal last night did not include any major reforms to the system, something the new Mayor admitted in his speech.

“[T]his budget does not adequately address our pensions, which are unsustainable,” Taveras said.

But he said his administration hasn’t lost sight of pension reform and added that it will be working out the details in the coming weeks. He said the city will set up a commission to study the possibility of moving city employees from the Providence retirement system to the state system. Local 1033 of the International Laborers Union of North America has agreed to work with the city on the commission.

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“In the coming weeks, as we negotiate with our unions, we will also begin to address our long term pension obligations,” Taveras said. “We will also work closely with the state as the state begins to tackle the same problem at the state level.”

The unfunded pension liability for Providence currently stands at $828 million—meaning that it is 66 percent unfunded.

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