Riley: RI Has $600 Million Shortfall for Fiscal Year 2015
Michael G. Riley, GoLocalProv MINDSETTER™
Riley: RI Has $600 Million Shortfall for Fiscal Year 2015
Providence finally posted various financial reports from Wainwright Investment Counsel LLC in the past week. Though the new commission has maybe met just once in 2015, the City of Providence according to Wainwrights unaudited submitted reports achieved returns of 6.2% for the Calendar year 2014. The return of 6.2% badly lagged that the 8.25% the city estimated last June (by 250 basis points) and underperformed the S&P 500 return by a WHOPPING 750 basis points. The S&P 500 return was 13.7% in 2014.
Providence's big 2014 flop was confirmed by this report which was finally posted on the city data website last week.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe new Finance Director and Auditor appear to be sticking with the Discount rate of 8.25%. Properly correcting the city’s discount rate to 6% would add nearly $1 billion dollars to the pension fund and those dollars are due from Providence Taxpayers. We believe this is part of the continuing effort of the last 4 consecutive Mayors to mislead municipal bond investors about the true condition of Providence finances. Other evidence includes strange accounting for what is essentially the City borrowing from the pension fund every year. Despite auditor concerns and warnings in January 2014 the Elorza administration appears to be continuing to mislead bond investors as to the true level of Assets in the pension fund, therefore distorting liabilities as well.
It’s a mystery to me why Moody’s or the SEC has not commented on this misleading behavior in accounting for assets and the outrageous discount rate used. The SEC warned about this behavior a few years back, but they seem unaware of the Providence malfeasance. I welcome any other journalist from any newspaper to ask the city about these two items. Providence won’t talk to me.
How is the State Pension Fund doing?
The State has also had a pretty poor investment record over the last 13 months. The return for calendar year 2014 was even more disappointing with a return over the 12 months 2014 of just 4.4%. January 2015 started with a loss of .31% so fiscal 2015 looks awful at -1% vs. the 7.5% discount rate with just 5 months left in the calendar year. While both are badly underperforming the market in general. The state of Rhode Island is struggling even more than the city of Providence. This amounts to a roughly $600 million dollar shortfall in investment returns in the state of Rhode Island for fiscal 2015.
I would think this would be front page news. In many states pensions ARE the daily story and people really care about returns and reform. In a bull market, like in the last 5 years huge run, the unusually positive returns help keep Investment decisions & performance from being scrutinized. That period is over and both the Investment Commission for the state of Rhode Island and the city of Providence need to explain their poor performance and the crazy discount rates. Why are they so high? Who decided to use these rates?
Top Providence Pensions
#49
Name- Daniel Guertin
Annual Earning- $95,050.92
Postition- Police-5
City- Providence
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 19,1991
Source: This information was secured through a FOIA request from the city of Providence.
#48
Name- Carmine Vallante
Annual Earning- $95,140.20
Postition- Fire-4
City- Johnston
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 19,1991
Source: This information was secured through a FOIA request from the city of Providence.
#47
Name- Alfred Millard
Annual Earning- $95,368.32
Postition- Fire-4
City- Warwick
State- RI
Retirement Type- Accidental Disability
Retirement Date- March 24, 1994
Source: This information was secured through a FOIA request from the city of Providence.
#46
Name- James Rattigan
Annual Earning- $95,983.44
Postition- Fire-4
City- North Providence
State- RI
Retirement Type- Service
Retirement Date- June 30, 2003
Source: This information was secured through a FOIA request from the city of Providence.
#45
Name- Frank Deangelis
Annual Earning- $95,986.80
Postition- Fire-4
City- North Providence
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 19, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#44
Name- Stephen Lowe
Annual Earning- $96,156.36
Postition- Fire-4
City- Bristol
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 17, 1992
Source: This information was secured through a FOIA request from the city of Providence.
#43
Name- Mary Gonsalves
Annual Earning- $97,463.04
Postition- Police-5
City- Warwick
State- RI
Retirement Type- Beneficiary
Retirement Date- December 1, 1993
Source: This information was secured through a FOIA request from the city of Providence.
#42
Name- William O'Neill
Annual Earning- $98,160.96
Postition- Fire-4
City- Cumberland
State- RI
Retirement Type- Accidental Disability
Retirement Date- August 22, 1990
Source: This information was secured through a FOIA request from the city of Providence.
#41
Name- Paul Healy
Annual Earning- $98,183.28
Postition- Fire-4
City- Cranston
State- RI
Retirement Type- Service
Retirement Date- October 20, 1993
Source: This information was secured through a FOIA request from the city of Providence.
#40
Name- James Molloy
Annual Earning- $98,711.16
Postition- Fire-4
City- Providence
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 18, 1987
Source: This information was secured through a FOIA request from the city of Providence.
#39
Name- Livia Miller
Annual Earning- $99,193.80
Postition- Fire-4
City- Warwick
State- RI
Retirement Type- Beneficiary
Retirement Date- May 1, 1997
Source: This information was secured through a FOIA request from the city of Providence.
#38
Name- Joseph Battista
Annual Earning- $99,271.08
Postition- Fire-4
City- Johnston
State- RI
Retirement Type- Accidental Disability
Retirement Date- April 29, 2004
Source: This information was secured through a FOIA request from the city of Providence.
#37
Name- Robert Kerfoot
Annual Earning- $100,140.36
Postition- Fire-4
City- Cranston
State- RI
Retirement Type- Accidental Disability
Retirement Date- March 24, 1994
Source: This information was secured through a FOIA request from the city of Providence.
#36
Name- Ralph Ricci
Annual Earning- $100,357.44
Postition- Fire-4
City- Providence
State- RI
Retirement Type- Accidental Disability
Retirement Date- April 28, 1994
Source: This information was secured through a FOIA request from the city of Providence.
#35
Name- Henry Latek
Annual Earning- $100,502.52
Postition- Fire-4
City- Providence
State- RI
Retirement Type- Service
Retirement Date- June 30, 1995
Source: This information was secured through a FOIA request from the city of Providence.
#34
Name- Joseph Bradley
Annual Earning- $100,898.52
Postition- Fire-4
City- Whitefield
State- NH
Retirement Type- Accidental Disability
Retirement Date- November 20, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#33
Name- Ronald Johnson
Annual Earning- $102,098.64
Postition- Fire-4
City- North Scituate
State- RI
Retirement Type- Accidental Disability
Retirement Date- May 1, 2003
Source: This information was secured through a FOIA request from the city of Providence.
#32
Name- Gloria Pisaturo
Annual Earning- $103,385.76
Postition- Police-5
City- Warwick
State- RI
Retirement Type- Beneficiary
Retirement Date- December 1, 2002
Source: This information was secured through a FOIA request from the city of Providence.
#31
Name- Edmond Malloy
Annual Earning- $103,575.72
Postition- Police-5
City- Chepachet
State- RI
Retirement Type- Accidental Disability
Retirement Date- September 5, 1990
Source: This information was secured through a FOIA request from the city of Providence.
#30
Name- John Reposa
Annual Earning- $104,665.44
Postition- Fire-4
City- Jamestown
State- RI
Retirement Type- Accidental Disability
Retirement Date- June 21, 1995
Source: This information was secured through a FOIA request from the city of Providence.
#29
Name- Pasquale Rocchio
Annual Earning- $105,238.32
Postition- Police-5
City- North Providence
State- RI
Retirement Type- Service
Retirement Date- August 22, 1989
Source: This information was secured through a FOIA request from the city of Providence.
#28
Name- David Deignan
Annual Earning- $105,609.36
Postition- Police-5
City- Providence
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 19, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#27
Name- Lee Podedworny
Annual Earning- $106,838.16
Postition- Fire-4
City- South Kingstown
State- RI
Retirement Type- Accidental Disability
Retirement Date- July 23, 1992
Source: This information was secured through a FOIA request from the city of Providence.
#26
Name- Nancy Donahue
Annual Earning- $107,757.24
Postition- Fire-4
City- Warwick
State- RI
Retirement Type- Beneficiary
Retirement Date- July 1, 2005
Source: This information was secured through a FOIA request from the city of Providence.
#25
Name- Domenic Pono
Annual Earning- $107,850.72
Postition- Fire-4
City- Cranston
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 19, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#24
Name- John Murphy
Annual Earning- $107,892.84
Postition- Fire-4
City- Providence
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 19, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#23
Name- Robert Carlson
Annual Earning- $108,555.36
Postition- Fire-4
City- Greenville
State- RI
Retirement Type- Accidental Disability
Retirement Date- April 24, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#22
Name- Robert Emmett
Annual Earning- $109,256.16
Postition- Police-5
City- Cranston
State- RI
Retirement Type- Service
Retirement Date- November 13, 1990
Source: This information was secured through a FOIA request from the city of Providence.
#21
Name- Thomas Doyle
Annual Earning- $109,329.24
Postition- Fire-4
City- West Warwick
State- RI
Retirement Type- Accidental Disability
Retirement Date- August 26, 1988
Source: This information was secured through a FOIA request from the city of Providence.
#20
Name- Joseph Errico
Annual Earning- $109,611.60
Postition- Fire-4
City- Warwick
State- RI
Retirement Type- Service
Retirement Date- June 30, 1995
Source: This information was secured through a FOIA request from the city of Providence.
#19
Name- Edward MacDonald
Annual Earning- $110,225.64
Postition- Fire-4
City- Johnston
State- RI
Retirement Type- Accidental Disability
Retirement Date- May 26, 1994
Source: This information was secured through a FOIA request from the city of Providence.
#18
Name- Alfred Lamothe
Annual Earning- $110,505.96
Postition- Fire-4
City- Warwick
State- RI
Retirement Type- Accidental Disability
Retirement Date- September 6, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#17
Name- Ernest Silva
Annual Earning- $112,796.28
Postition- Fire-4
City- Ft. Myers
State- FL
Retirement Type- Accidental Disability
Retirement Date- April 24, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#16
Name- Edward Dolan
Annual Earning- $113,126.04
Postition- Fire-4
City- North Kingstown
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 19, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#15
Name- Paul Marianetti
Annual Earning- $113,331.60
Postition- Fire-4
City- Ormond Beach
State- FL
Retirement Type- Accidental Disability
Retirement Date- November 17, 1994
Source: This information was secured through a FOIA request from the city of Providence.
#14
Name- Rosemary Clark
Annual Earning- $114,725.64
Postition- Police-5
City- Chepachet
State- RI
Retirement Type- Beneficiary
Retirement Date- August 1, 2004
Source: This information was secured through a FOIA request from the city of Providence.
#13
Name- John Gannon
Annual Earning- $117,318.60
Postition-Police-5
City- Coventry
State- RI
Retirement Type- Accidental Disability
Retirement Date- January 24, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#12
Name- Marcia Moise
Annual Earning- $119,791.20
Postition- Fire-4
City- Jupiter
State- FL
Retirement Type- Beneficiary
Retirement Date- April 1, 1997
Source: This information was secured through a FOIA request from the city of Providence.
#11
Name- Robert Read
Annual Earning- $123,105.00
Postition- Fire-4
City- Cranston
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 19, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#10
Name- Alfred Bertoncini
Annual Earning- $123,599.16
Postition- Fire-4
City- Smithfield
State- RI
Retirement Type- Service
Retirement Date- December 19,1994
Source: This information was secured through a FOIA request from the city of Providence.
#9
Name- Victor Dichiara
Annual Earning- $126,845.28
Postition- Fire-4
City- East Greenwich
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 17, 1992
Source: This information was secured through a FOIA request from the city of Providence.
#8
Name- Edmund Calcagni
Annual Earning- $135,702.72
Postition- Police-5
City- North Providence
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 29, 1990
Source: This information was secured through a FOIA request from the city of Providence.
#7
Name- James Kelly
Annual Earning- $137,336.04
Postition- Fire-4
City- Greenville
State- RI
Retirement Type- Accidental Disability
Retirement Date- September 28, 1988
Source: This information was secured through a FOIA request from the city of Providence.
#6
Name- Vincent Delisi
Annual Earning- $145,520.88
Postition- Fire-4
City- North Providence
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 17, 1992
Source: This information was secured through a FOIA request from the city of Providence.
#5
Name- William Manchester
Annual Earning- $148,839.84
Postition- Fire-4
City- Warwick
State- RI
Retirement Type- Accidental Disability
Retirement Date- December 19, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#4
Name- William D'Iorio
Annual Earning- $156,870.60
Postition- Fire-4
City- Smithfield
State- RI
Retirement Type- Accidental Disability
Retirement Date- Novemver 29, 1990
Source: This information was secured through a FOIA request from the city of Providence.
#3
Name- Anthony Sauro
Annual Earning- $161,487.24
Postition- Fire-4
City- Johnston
State- RI
Retirement Type- Accidental Disability
Retirement Date- July 5, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#2
Name- Robert Anthony
Annual Earning- $162,944.04
Postition- Fire-4
City- Smithfield
State- RI
Retirement Type- Accidental Disability
Retirement Date- September 25, 1991
Source: This information was secured through a FOIA request from the city of Providence.
#1
Name- Gilbert McLaughlin
Annual Earning- $196,813.08
Postition- Fire-4
City- Warwick
State- RI
Retirement Type- Accidental Disability
Retirement Date- October 24, 1991
Source: This information was secured through a FOIA request from the city of Providence.
