Projo 7 to 7 News Blog

PROVIDENCE -- The Rhode Island Economic Development Corporation's governing board, chaired by Governor Carcieri, is scheduled to vote today on eliminating 3 percent compounded annual increases for the quasi-public agency's retirees.

The meeting will be held at 4 p.m. at 315 Iron Horse Way, Suite 101, Providence.

The elimination of these so-called cost-of-living adjustments -- or COLAs -- would affect those who retire after Dec. 1. The increases currently kick in when a retiree turns 65.

The elimination of the 3 percent COLA for future retirees is expected to reduce the agency's 2009-10 pension expense from $1,217,175 to $817,175, said Melissa Withers, a spokeswoman for the EDC.

Withers said the agency stopped offering pensions to new employees several years ago, offering them instead the opportunity to enroll in the equivalent of a 401k.

 Tags  Carcieri economy Providence R.I. Economic Development Corporation retirement

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