10 Worst-Off State Pension Funds
Efforts are under way to overhaul Rhode Island's state and municipal pensions. The question is whether it is enough, and in time, to help its ailing cities.
On Tuesday, Standard & Poor's downgraded the credit rating for capital city Providence to BBB, just two ratings away from junk bond status. Just one day earlier, city officials unveiled a plan to trim upward of $16 million from its estimated $423 million in pension obligations, with much of those reductions coming from suspending cost-of-living increases as high as 6% per year. Future pensions will also be capped at one and a half times the median state household income (about $55,000).
Providence is hardly alone in facing pension problems. Neighboring Cranston has a mere 25% funding ratio for its pensions, a $245 million shortfall. Estimates for the unfunded liabilities for the 36 Rhode Island municipalities is estimated at between $2.4 billion and $6 billion.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV