RI budget chief: Retirement change date not firm
11:52 AM Wed, Jan 14, 2009 | Permalink
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PROVIDENCE - In response to worries that Governor Carcieri's pension-cutting plan could spark a rush of mid-year teacher retirements, state budget officer Rosemary Gallogly today told the state Retirement Board there is room for compromise on the proposed April 1 effective date. Carcieri has proposed the elimination of guaranteed annual cost-of-living increases -- and the establishment of age 59 as the minimum retirement age - as part of his plan to avert a $357-million current-year deficit. He is also proposing to slash state and local contributions to the state pension fund by close to $95 million in the final months of this year -- which equates to 75 percent -- to reflect the anticipated savings from these "pension reforms.'' But after hearing mayors, school administrators and union leaders warn of potential chaos 10 weeks before the end of the school year, Gallogly said she consulted with the state's actuarial consultant yesterday and was told the state could move the deadline for employees to retire to any point prior to the June 30 end of the fiscal year, and still book this year's $95-million share of the savings from this long-term reduction in the state's unfunded liability. She said the governor has not yet proposed an amendment to the budget proposal he made last week to reflect this, because he and his budget team are still waiting for the actuaries at Gabriel Roeder Smith & Co. to evaluate the potential costs and savings likely to result from his proposal. Gallogly said she made the announcement that to assure local leaders that the administration is willing to do what it can to minimize the feared disruption in the school year. No action was required by the retirement board. The governor's pension proposals are pending before state lawmakers who have scheduled a public hearing tomorrow, by the House Finance Committee, on the proposed pension cuts. Gallogly did not respond directly when asked if she personally was weighing whether to leave to preserve her pension package, but noted that she has worked for the state long enough to be eligible. In her comments today, Gallogly drew attention to a previously unmentioned feature of the governor's proposal: increases of 1 percentage point in the contributions paid by municipal employees enrolled in the state retirement plan. The majority are currently required to contribute 7 percent of their pay to their pensions. That rate would rise to 8 percent. 
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RI budget chief: No budging on retirement change date
Did I read the article wrong, it seems to me that the article ididcates there can be a change to retirement date?
Rosemary Gallogly today told the state Retirement Board there is room for compromise on the proposed April 1 effective date.
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Why should age even be considered. Why don't they make it for anyone who does not have 25 years. Why penalize people who are ready to retire. Do they know how much this will cost if everybody walks.
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Postpone the date. It will still cause massive upheavel for the school districts. The ones that will suffer the most? OUR CHILDREN.
Good day!
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It's too bad that so many state workers don't really know when to retire. They sit on these fat jobs and suck up big salaries and big benefits at the taxpayer's expense. Well folks, the party is almost over. Governor Carcieri is going to hit these morons where it hurts. These greedy bas---- that are in their 60's and some even in their 70's will be forced the hell out. Welcome to the real world.
These changes should have been made years ago.
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Try to take the unions down. GO AHEAD AND TRY!!!
These poor kids in this state have suffered enough. Enough. I might be old but I can smell a rat.
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The Gov continues to complain the pension fund is underfunded. Yet every change he makes, is followed by the State withholding it's contribution - another $95 million withheld. I believe it was $24 million last time, and several years at zero (when the market was roaring!!) The only ones kicking in are the workers. I wonder how much of his $265k annual pension was made up of his employee contribution ... over 5 years was it? Sorry, I forgot ... he earned his.
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Rhode Island has always been a good place, because although the onions are strong, EVERYBODY EATS!!!
NOT JUST THE FAT CATS!
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How is it everyone keep saying the state retirement is unfunded? Lasted I look the state does not put any money into it. Only the state workers do. The state does not put in a dime. Nor do we get interest off the money we put in. But the state uses the interest like its own bank account. If the state goes to a 401K will the have matching funds? or 2 for 1? Thats when it will cost the tax payer money!
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