“Providence’s pension payments are growing faster than the City’s revenues – leaving less and less funding for the critical investments that make our neighborhoods better,” – Mayor Jorge O. Elorza
"As a 2018 City Council working group (on which I [Sam Zurier] served) noted in its 2018 Report, the unfunded pension obligation is our City’s version of the global warming crisis, getting progressively worse the longer we fail to address it...
"The proposal is based on the premise that money can be borrowed at a low interest rate and invested to generate a higher rate of return, thereby helping to address a rapidly escalating pension obligation, which currently is growing at 5% annually at a time when City revenues increase at a 2% annual rate...
"If approved, the pension obligation bond would produce a payout schedule that would increase at a sustainable 2% rate, assuming the City can maintain a 7% rate of return on its retirement fund portfolio." –
Sam Zurier 2-6-2022 District Letter
"The proposal has four preconditions to its implementation. In addition to General Assembly approval, the proposal depends upon approval by Providence voters at a June 7 referendum and by the City Council.
The final precondition may prove to be the most difficult, namely the existence of favorable financial markets... Given the recent rise in interest rates, we may go through this approval process but lack the ability to go forward at this time." –
Sam Zurier 5-8-2022 District Letter
"But this much is certain: On Jan.1, 2023, the city is scheduled to resume 3% compounded annual cost-of-living increases for many of its 3,250-plus retirees, a practice suspended for a decade after Angel Taveras took office as mayor and declared a “Category 5” financial hurricane... The net result? The required city contribution will jump by 7.1%, from $93,585,059 this year to a projected $100,323,373 next year." –
Should RI lawmakers OK pension bailout?, by Katherine Gregg and Amy Russo, Providence Journal May 9, 2022
RIPEC President and CEO Michael DiBiase testified before the Rhode Island House Finance Committee in support of the City of Providence’s proposed $515 million pension obligation bond (POB), which includes stronger guardrails than last year’s proposal.
Will the pension ‘Candy Store’ ever close?
Mark Patinkin, Providence Journal 6/12/2022
Pension Working Group and January 2022 Report
City of Providence SAVE PROVIDENCE: VOTE YES ON 1! - City of Providence (providenceri.gov)
Legislation - 2022-06-22 - Signed by Governor
S2321 – Senate Finance Committee recommended Substitute A be held for further study 2022-05-05
H7499 – House Finance Committee recommended measure be held for further study 2022-03-15
Authorizes the city of Providence to finance a contribution towards the unfunded pension liability of the employee retirement system of the city of Providence by the issuance of bonds in the principal amount of $515,000,000.
Con Arguments to the 2021 Providence Pension Obligation Bond proposal
Extraordinary contributions into a pension fund are a prohibited use of ARPA funds.
Why Not Bankruptcy?
Meetings to explain the Pension Obligation Bonds
Thursday, April 21, 2022 at 6:00PM at Nathan Bishop Middle School
Monday, May 2, 2022 at 5:30PM at Mt. Pleasant High School
Thursday, May 26, 2022 at 5:00PM, held virtually via zoom
Tuesday, May 31, 2022 at 5:30PM at Washington Park Community Center
