General Treasurer Raimondo: Some Public Retirees Are Looking at a Pension Haircut of 20%-30%
Normally, it would have been big enough news that the magnitude of Rhode Island’s unfunded pension liability is such that it made PBS’s NewsHour (tonight, best I can tell).
This has been completely dwarfed, however, by some remarkable statements made during the program by Rhode Island’s General Treasurer.
[NewsHour Economics Correspondent] PAUL SOLMAN: So, what’s the hit that the average pensioner of Rhode Island is going to take? What’s the haircut, as it’s called?
GINA RAIMONDO: I think it could be a significant hit.
PAUL SOLMAN: Twenty percent, 30 percent hit, it could be?
GINA RAIMONDO: It could be. It could be.
You know, in Rhode Island, we have 105 pension systems. So, for certain sections, the haircut will be significant, you know, 30, 40-plus percent. For other, you know, systems, it will be less.