Rhode Island’s municipal pensions, <br>like many in U.S., need help

Rhode Island municipalities are not saving enough money to cover their pension plans, according to a recently released report by state Auditor General Ernest A. Almonte. They are Exhibit A for what many consider to be a long-simmering problem for cities and towns across the country, said Bloomberg News columnist Joe Mysak.
In a piece published today, Mysak notes that municipalities across the country are not saving enough money, are not managing the money they have put aside well enough and are making promises for the future that unduly burden future generations.
Almonte’s report notes that 21 of 37 pension plans administered by 25 Rhode Island municipalities are “at risk.” For starters, while the plans should have $2.9 billion in assets to cover their obligations, they only have $1.3 billion. In fact, only 11 of the plans are funded at 80 percent or more of their legal obligations.
“We hear a lot about state pension funds,” says Mysak, “and almost nothing about the ones being run at the local level. That’s going to change, because the real problems are in the cities, towns and counties.”