New data pegs locally run RI pension plans’ shortfall at $2.3BApril 10th, 2012 at 9:35 am by Ted Nesi under Nesi's Notes
Remember those 36 locally run pension plans with the $2.1 billion funding gap? The shortfall is now nearly $2.3 billion and may get bigger, the Projo’s Randy Edgar reports:
The overall health of 36 pension plans managed by individual cities and towns is worse than previously thought — about $170 million worse, members of the state’s Locally Administered Pension Plans Study Commission learned Monday.
The spread between assets and liabilities for those plans, reported by the state auditor general last year to be $2.1 billion, is now thought to be about $2.3 billion, Susanne Greschner, chief of the state Division of Municipal Finance, told the commission.
And the spread could grow as cities and towns revise the assumptions they use to project long-term pension costs, based on a new set of state-mandated studies. Among the assumptions that could change are those for investment returns and longevity. …
Greschner said all but 4 of 24 cities and towns that have locally managed plans submitted the required studies. The state is still waiting for one or more studies from Cumberland, Little Compton, Narragansett and the Warwick School Department, she said.
If you want to find out how your town is doing, all the new studies are posted here. A quick perusal shows Coventry’s police plan [pdf] is just 11% funded, with less than $8 million saved to pay $67 million in benefits.
• Related: 13 local pension plans worse than RI’s; Cranston, Scituate lag (Dec. 5)