Johnston Mayor wants to suspend COLAs

Posted: 5/16/2012 10:41:31 AM
Updated: 5/16/2012 10:43:27 AM

Johnston Mayor Joseph Polisena is getting in line with other mayors who have made moves to suspend retiree cost of living adjustments for retirees.

Polisena told the WPRO Morning News with Tara Granahan and Andrew Gobeil that the pension issue in Johnston has to be addressed or the city is going to run out of cash. “I have spoken to some retirees and they agree that something has to be done they are concerned about losing their pension. We are definitely going to run out of money if something is not done,” said Polisena.

Johnston was the first city to shift eligible retirees from the city’s Blue Cross plan to Medicare without of an out of pocket cost for retirees. Polisena said despite these changes the pensions for city retirees continue to be completely unsustainable for tax payers.

Polisena blamed the huge pension deficit on cuts that were made to cities and towns under Governor Don Carcieri. He said it became impossible to sustain the retiree pensions while grappling with deep cuts to the city budget.

Providence city council recently approved an ordinance that will suspend retiree COLA’s but the unions are vowing to take the city to court.