Few cities face a budget crunch as severe as Providence, R.I., where a $110 million gap represents 35 percent of total city revenues this year. Adding to the woe: The city's pension system for public workers is underfunded by some $2.3 billion.
Facing those stark numbers, new mayor Angel Taveras has ordered a top-down review of the city's operations, including its pension system. One stark discovery so far is the degree to which the city's public safety workers have taken advantage of a loosely administered disability system to burnish their own retirements. According to a recent review, accident disability payments make up more than half of what the city's fire department spends on pensions annually. Nearly six-in-ten firefighters have retired on disability. And the five most lucrative pensions in the city all go to former firefighters, including the $175,162 tax-free pension to former Chief Gilbert McLaughlin, who retired on disability in 1991 and receives annual cost-of-living adjustments that double his pension every 13-years.
Facing those stark numbers, new mayor Angel Taveras has ordered a top-down review of the city's operations, including its pension system. One stark discovery so far is the degree to which the city's public safety workers have taken advantage of a loosely administered disability system to burnish their own retirements. According to a recent review, accident disability payments make up more than half of what the city's fire department spends on pensions annually. Nearly six-in-ten firefighters have retired on disability. And the five most lucrative pensions in the city all go to former firefighters, including the $175,162 tax-free pension to former Chief Gilbert McLaughlin, who retired on disability in 1991 and receives annual cost-of-living adjustments that double his pension every 13-years.
One problem with the Providence disability system is that it merely requires a worker's doctor to certify he is disabled, with no verification from an independent physician.
A review panel appointed by Mayor Taveras is now considering a host of changes to the system, including independent appraisal of those claiming injury and a limit on the duration of disability pensions which would convert them to regular pensions once a person reaches retirement age.
A review panel appointed by Mayor Taveras is now considering a host of changes to the system, including independent appraisal of those claiming injury and a limit on the duration of disability pensions which would convert them to regular pensions once a person reaches retirement age.
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