Statement from Governor Chafee Regarding Municipal Pension Reform

As a former Mayor and City Council member, I am deeply committed to the fiscal health and stability of Rhode Island’s municipal pension systems. I am, therefore, encouraged by today’s announcement by the Rhode Island League of Cities and Towns regarding the comprehensive pension reform plan that General Treasurer Raimondo and I proposed earlier this week.

The League clearly acknowledges that comprehensive pension reform must restore financial solvency to both the state-operated and independent municipal pension funds. Since taking office in January, and as I highlighted in my budget address in March, I have consistently stated that we must address our failing state and municipal pension systems. The plain truth is that many of our municipal pensions are in far worse shape than the state pension system. These include Coventry Police at 16.5% funded, Cranston Police & Fire at 15.8% funded, and Smithfield Police at 11.4% funded.

Comprehensive pension reform will require leadership and courage. Failure to comprehensively address our municipal pension problems will result in higher property taxes for homeowners and businesses or severe cuts in municipal services. For our communities to thrive, and for our economy to recover, we must enact comprehensive pension reform that addresses municipalities.

I pledge to work closely with the League and with our Mayors, city and town managers, labor, and state leaders to fix our troubled municipal pension systems. I look forward to receiving the League’s recommendations on improving and strengthening the Chafee-Raimondo pension reform bill.