The Taxpayers' Spin: Warwick taxpayers time for action
Take for example the disastrous legislation recently passed in the R.I. Senate that would make the terms of existing teacher contracts perpetual.
Thank goodness for groups such as Operation Clean Government (OCG) and the Rhode Island Statewide Coalition (RISC) for sounding the alarm; informing taxpayers to pressure legislators in the RI House of Representatives to defeat the bill.
Now I am sounding the alarm in Warwick. I hope that my friends at OCG and RISC will lend some support.
At the July 13 city council meeting, Republican Councilman Steve Colantuono, along with Democrat Council President Bruce Place, proposed legislation on behalf of Republican Mayor Scott Avedisian, modifying the rules regarding voting procedures on the municipal retirement board and enhancing benefits in the municipal employee pension plan.
The retirement board has exclusive jurisdiction in all matters relating to or affecting the municipal pension funds, including claims for benefits and refunds from employees.
With Warwick pensions severely underfunded by over $250 million and about $350 million more in unfunded health care liabilities, it is critical taxpayer interests are represented on the board, as opposed to enhancing the ability of organized labor in the city to get favorable ruling for its members from the board.
The retirement board consists of 11 members. At least seven of its members have direct ties to the municipal pension fund as future beneficiaries or retirees.
According to section 6-244 and 6-311 of the Warwick code of ordinances, a minimum of six votes are necessary for the board to make a decision. This legislation reduces that requirement to, “a majority of the board members present.”
This means as few as three board members can be present at a meeting and only two affirmative votes are necessary to make a decision. With three members of the board consisting of members of the municipal employee union, this legislation will result in the proverbial “fox in charge of the chicken coop.” It must be defeated.
After the sudden death of one of their colleagues, the municipal employees agreed to contribute one percent more into the pension fund to pay for the cost of a new retroactive benefit that will apply to the family. I commend the employees for their compassionate action.
The problem with this legislation is that all the risk associated with the change will be bore on the backs of taxpayers if at some point the cost of this benefit exceeds the amount contributed by employees.
While on the council I proposed legislation to protect taxpayers by prohibiting modifications to any pension that would increase benefits to retirees or beneficiaries unless the plans are funded at least 90 percent of the actuarial value. Modifications to increase benefits could only occur if employees agree to pay the full cost of the new benefit. The council unanimously voted for these restrictions into law earlier this year, yet Councilman Colantuono, Place and Mayor Avedisian’s legislation will most likely violate it in the future.
Why didn’t they include language to protect Warwick taxpayers? They could have added stipulations mandating an actuarial study occur at specific time intervals to determine if employee contributions should automatically increase to cover the cost of the enhanced benefit.
Luckily, Warwick taxpayers have another opportunity to take action. In order for these changes to become law, the council must pass the legislation a second time and the mayor must sign the legislation into law. These votes will take place at the Aug. 17 city council meeting.
Now its time for Warwick taxpayers to take action and call Mayor Avedisian and city council members and tell them to reject the retirement board change and request modifications to the pension legislation that will protect your interest.
Robert Cushman is a Democrat and former Warwick City Councilman and former Chairman of the Warwick School Committee. Contact him at CushmanR@cox.net.
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Is this really true? If it is taxpayers need to get rid of these people next year.