WPRO News
Ken Block has released a new report focused on Johnston’s $55 million unfunded pension liability. This is the second study focused on the costs of fire protection in the state.
Block’s research group, Watchdog RI reports Johnston suffers from the largest unfunded pension liability problem in the state is because of what his groups calls “unaffordable” and “generous” municipal pension planning.
The report states the main culprit in Johnston’s high retirement costs are the result of what Block calls “pension spiking.” According to the report, town firefighter pensions are determined by several factors including a large percentage of overtime compensation.
Block pointed to an example of a firefighter who in his final three years of employment -2009 to 2012 – boosted is pension-total by working large amounts of overtime, raising his retirement compensation $70,000 to $110,000.
“With the spiking, the town would have to put in every year to fully fund that pension 34 percent of salary to make sure that firefighter was paid what he was promised,” said Block “Without the spiking the number in 26 percent.”
The data only applies to Johnston fire employees who were hired before July 1 999, all firefighters hired after that date are subject to the state’s pension plan.
Block continued to say the pension agreements were never attainable and was made by policy makers who would never be affected by the unfunded pension plans.
“The people who bear the brunt of Johnston’s $55 million unfunded pension liability are the children of the firefighters who are collecting those benefits right now.”
According to Watch Dog RI, 30 members of the fire department who qualify for the municipal pension have yet to retire.
