Lombardo Proposes Police Pension Limits

Following is a press release issued by the R.I. General Assembly press bureau:

Legislation introduced this week by Sen. Frank Lombardo III (D-Dist. 25) would limit membership in the Municipal Employees’ Retirement System to officers hired on or after July 1, 2010.

The bill, 2012-S 2121, was introduced at the request of the community, following approval of a resolution by the Town Council, Lombardo said in a statement.

“As with the state and so many other communities, pension costs are a major concern for the Town of Johnston,” said Lombardo. “This legislation is not a panacea for all the problems, but it is a sincere effort by the community to take steps to address the fiscal challenges it faces. This small change will be a great benefit to the town.”

Johnston police officers currently participate in a locally-administered pension plan, which, like the town’s locally-administered firefighter plan, is significantly underfunded.

Lombardo said that beginning to make a shift from the local plan to the MERS plan will be beneficial for future retirees and will prevent any future strain on the town’s existing police pension system.

The move of police officers from the local plan to the MERS plan has the endorsement of the General Treasurer and Auditor General, according to town officials.

The bill is scheduled for a hearing before the Senate Committee on Finance on Feb. 9 in Room 211 of the State House at approximately 4:30 p.m.