Tina Rosa

Dear General Treasurer Diossa and PAWG Committee Members:



I am a retired state employee who retired prior to the Pension Reform Act of 2011, a pre-reform retiree. Through the 12 years since 2011, a plethora of letters were written to the General Treasurer, Governor and Legislature by me and other retirees to restore the 3% yearly compounded COLAs suspended by the 2011 legislation. All suggestions on how the State could do so fell on deaf ears.



As General Treasurer Diossa stated in a recent Newsbreak article, “I understand their situation, I really do. But at this point, we’re just setting the stage with the facts.”

https://www.newsbreak.com/news/3253142691743-is-pension-reform-a-lose-l…?



With all the testimony you will hear from other aggrieved pensioners and all the letters that have been written, let me set the stage with some facts of which you may not be aware:



FACT: Our retirement amount today is only worth approximately 70% of what the Employees Retirement System of RI quoted when we retired and had to sign off on stating we understood we would be receiving our contracted retirement pension amount AND a 3% yearly compounded COLA.



FACT: When most of us started employment in the 1970’s, inflation was rampant. To entice talent, the State paid us lower salaries but offered the benefit of an “inflation-proof” retirement. As I did, many accepted a lower salary than we could have made in private industry based on that benefit. Now pre-reform retirees have faced 12 years of financial hardship with high inflation fueling the fire. (A stipend of $500 does little to nothing to ease our 30% loss to date.)



FACT: Pre-Reform Retirees, most of whom are elderly, will never see any COLAs restored in 2031 because most will be dead. It is ludicrous for any one of us to “stay the course” until 2031!



FACT: Losing the 3% yearly COLA is akin to buying an annuity over 30 years and then not being able to collect. We already PAID FOR our retirement through mandatory contributions every pay period throughout our State service. State actuaries calculated the amount (percentage) that was deducted from our salaries to cover our retirement INCLUDING a 3% yearly compounded COLA.



FACT: As I, many retirees made their major life decision to retire based on the amount of our retirement which INCLUDED a 3% COLA. When the Pension Reform Act was passed, we were NOT given the opportunity to return to our jobs…we had NO options to ease our financial burden. As the years passed, and pre-reform retirees aged, returning to work was not an option. Because of the suspended 3% yearly compounded COLA for the last 12 years, we are suffering greatly financially. For many, like myself, luxury items are out of the question. Necessities must be purchased, but it is increasingly more difficult every year to do so. Food, medicine, rent, mortgage interest rates and debt all rise, while our supposed “inflation-proof” retirement loses value each year.



FACT: There was plenty of money throughout the 12 years of COLA suspension for cabinet member and employee raises and a plethora of State projects, including the repayment the Studio 38 Loan. As was widely publicized at the time, Governor Raimondo stated, “the State has an obligation” to do so. The State actually did NOT have an obligation to do so, but did so anyway. The State has an actual obligation to honor retirees’ contracts, including the 3% yearly COLA, but continually ignores this obligation. While I acknowledge this Committee is reporting on the the financial health of the retirement system going forward and must include all stakeholders, including current employees, the State has no greater obligation than to its elderly retirees, many of whom served this State with distinction for decades.



FACT: The State had several budget surpluses in the last 12 years to right the egregious wrong done to retirees by the Pension Reform Act. Yet it chose to place money elsewhere for other groups and projects, too many to name.



FACT: We, retirees, teachers and especially those that retired prior to 2011 ARE the unintended consequences of this Act.



As PAWG Committee Members, I understand you are tasked with making recommendations for the overall health of the retirement system. However, I beg you to not lose sight of the aggrieved retirees whose retirement security has been shattered. You have the opportunity to RIGHT THIS WRONG and return our ALREADY PAID FOR COLAs to us.



Thank you for your time and attention to this very serious matter. We NEED our COLAs restored, and this aggregious wrong made right.

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