The state’s share of the pension bill for teachers alone is expected to soar from $80.2 million this year to a projected $94.8 million next year.
Jan 10, 2008 - In Rhode Island, the Speaker of the House submitted a bill to create a commission to study how to finance state pensions that are currently underfunded by $4.9 Billion.
New age-and-work requirements adopted by lawmakers in 2005 were aimed at stemming the growth in cost.With a $4.9-billion unfunded liability accruing interest at 8.25 percent per year through 2029, Rhode Island struggles every year to come up with enough taxpayer money to pay the annual tab.
But longtime state workers and public school teachers can still retire at any age — and newer employees at age 59 — with an almost unheard of benefit in private industry: a defined-benefit pension that pays them up to 75 percent of what they were making in their final years of work, with guaranteed annual cost-of-living increases of up to 3 percent.
The average pension paid a retired state employee was $22,493, and retired public school teacher, $40,151, during the year that ended June 30.
Rhode Island isn't the only state to have large unfunded pensions.
See HERE and HERE and HERE and HERE and HERE and HERE
