WRNI – Raimondo Says Pensions Can be Cut
State Treasurer Gina Raimondo says she doesn’t believe current pension recipients are legally shielded from possible cuts to their pensions. She outlined her view during a taping today of WRNI’s Political Roundtable, which airs tomorrow at 5:40/7:40 am. Scott MacKay asked Raimondo, as a lawyer and financial expert, whether pensioners currently receiving an annual pension of $80,000 or $90,000 have a property right to their pensions. “If push comes to shove, what happens?” MacKay continued. ”Do we go the United Airlines situation, where they take a haircut?” Here’s how Raimondo responded to the question of whether pension recipients have a property right: “I don’t believe so. That hasn’t been established in law, and I don’t believe they do.”
…Raimondo blames a piecemeal approach. “The reason we’re in this mess” she says, “is because every year we chink away at the problem — let’s tweak the COLA a little bit, let’s tweak this, let’s tweak that. We got to do the whole system. This is not about taking benefits away. This is about securing retirement security for everyone . . . . It is a fallacy to think that those benefits will be there if we don’t fix this system. And the system that we have today calls for a billion dollars to come out of the budget in about 10 years to pay these benefits. I cannot look in the eye of a state worker and promise that that will be there.”
This isn’t (or shouldn’t) be about “hating state workers” or whatever, it’s about fiscal reality.