Council president calls city’s $860M pension fund a ‘crisis’

WARWICK, R.I. – A Rhode Island city council president warns the city’s unfunded liability for employee pensions and other retirement benefits has created a “crisis.”

Warwick City Council President Steven Merolla says he feels comfortable labeling the financial situation a “crisis” after the council completed a review of actuarial reports and received guidance from experts at Monday night’s council meeting.

The Providence Journal reports the city of Warwick’s most recent audit shows an estimated cost of $860 million for employee retirement benefits, including pensions and health insurance that it has promised retired employees.

Merolla says the city’s pay-as-it-goes approach concerns him. But other city officials, including Mayor Joseph J. Solomon, aren’t as comfortable with the term “crisis.”

Solomon says the city is already making progress to address the liabilities and reduce obligations further.