Raimondo Talks Pensions With Union Members In Cranston

After presenting a comprehensive report detailing the on Monday, Gina Raimondo, the state’s treasurer, was in Cranston on Tuesday discussing pension reform with state workers.

In front of an audience of about 250 state service workers seated inside the Portuguese Club, Raimondo spoke frankly.

“It’s not fun right now to be here looking at so many faces that are probably displeased with my message,” Raimondo said, “But it’s my job. I can’t in good conscience pretend that we have a stable system. I can’t in good conscience promise you that the money will be there in 25-30 years and that’s why I’ve decided to take this issue on.”

She informed them of the $6.8 million unfunded liability, the pension system that is 48 percent funded and the fact that it is not their fault. She said it is the fault of poor political decisions and risky assumptions made in the past.

“The fault does not lie with you, you have done nothing wrong,” said Raimondo, “On the contrary you have done everything you were told, you have played by the rules. Now you’re being told the system is $7 billion short, that stinks." 

She said that it is too premature to make hard decisions today, but instead will be looking for input as she formulates actual solutions to present to the legislature later.

The event was a question and answer session. The state workers took the opportunity to pepper Raimondo with questions.

Is it possible to float a bond?

Yes, said Raimondo, but only if the unfunded liability is significantly reduced. No one will issue a 6.8 billion bond.

Can you declare today that you will not increase our required contributions by 3 percent?

I’ll consider it said Raimondo. She added that the increase in contributions would be like a “squirt gun to a five-alarm fire.”

Will the judges and state police also face a reduction in their pension benefits?

“Everybody needs to participate in this reform,” said Raimondo, “Young and old, employees, retirees, people with fancy jobs and people who are working people. People in the system and taxpayers alike.”

“This is an everybody issue,” said Raimondo, “The entire future prosperity of this state depends on us fixing this issue.”

Bob Guilbault, a 61-year-old social worker, took the microphone and told his own story. He said he has worked for the state for 26 years. He said 10 years ago he had seven members in his family and he was able to support them all with his state job. Since then, two have died, and his kids have gone off to college. Today, he said, he struggles to support the three that remain. In the past 10 years he has been able to take his family on one vacation.

“I don’t think the raises we’ve gotten have kept up with the cost of living in this country,” said Guilbault, “The parts that we’re paying towards our medical [insurance], that’s really bitten into our ability to survive today.”

“We continue to pay into our pension plan, those who retire don’t, and I don’t see where there’s equity where they’re getting COLAs (cost-of-living increases) when we’re not going to get COLAs most likely. It isn’t fair,” said Guilbault.

“I thought 26 years ago that I’d have a decent pension to live on, now I’m afraid I might not have a pension at all, it’s not easy for a 61-year-old,” said Guilbault.

It’s those types of comments, said Raimondo, that makes her realize just how tough this issue is.

“That’s the hard part about this,” said Raimondo, “It’s a very harsh reality. My position is the quicker we have some reform the quicker they’ll be able to make their plans because they’ll finally have some certainty.”

“If she wants us to be successful,” said Philip Keefe, the president of Local 580, the union that represented the state service workers in attendance, “Then she needs to involve everyone in the process.”

“She’s made it clear that everyone that has a vested interest in this process will be part of the work study group and I’m going to hold her feet to the fire,” Keefe said.

He noted that he couldn’t just sit back and ignore the problem.

“If you want to be a leader, sometimes you have to take positions and be involved with things that sometimes aren’t completely comfortable,” Keefe said.

Local 580 of the Service Employees International Union represents about 1,000 Rhode Island state workers in the departments of business regulation; children, youth and families; human services; labor and training; mental health, retardation and hospitals; division of public utilities; and the office of library services.