Providence police agree to pension changes

PROVIDENCE POLICE OFFICERS voted to approve the pension and retirement benefit changes agreed to with the city in May.
Posted 12/14/12

PROVIDENCE – Providence police officers have approved the package of pension and retirement benefit changes agreed to with the city in May, clearing the way for its implementation. Police were the last group of rank-and-file municipal employees to ratify the landmark cost-cutting settlement.

The pact is projected to save the city $18.5 million during the current fiscal year and reduce the unfunded pension liability by at least $170 million.

It also should end a lawsuit filed by public employees over retiree health care benefits and expected challenges to pension changes passed by the City Council this year.

“Through collaboration, we have pulled Rhode Island’s capital city back from the brink of bankruptcy while sparing taxpayers the unnecessary expense of a long, costly legal challenge that threatened our future,” said Providence Mayor Angel Taveras in a news release.

Measures in the settlement with police include:

  • A 10-year suspension of annual cost-of-living pension increases with future reinstatement only for retirees making less than 150 percent of the state median income or salary of current corresponding employee.

  • A 3 percent cap on future cost-of-living increases.

  • A one-time $1,500 stipend in fiscal 2017 for retirees with annual pensions of less than $100,000.

  • Another $1,500 stipend in fiscal 2020 if savings are achieved through a self-insured dental plan.

  • Future pensions set by four highest years of earnings instead of three.

  • Calendar
    PBN Hosted

    Join PBN and two panels of successful female executives, business owners and entrepreneurs as we delve into what women should do to advance their careers, and become leaders in the corporate world and their own enterprises.
    • Book of Lists Party
      Save the date - January 15, 2015 for PBN's Book of Lists Party at the Providence ...
    Purchase Data
    Book of Lists
    Book of Lists cover
    PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
    Data icons
    Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News