Key Takeaways
- • Rhode Island Treasurer James Diossa, the Democratic incumbent, is defending his four-year record and says restoring 2011 pension benefit cuts is "not realistic" given the cost, which he says could reach billions of dollars.
- • Republican challenger Micholas Credle has won the backing of public-sector retirees seeking to reverse the 2011 pension reform cuts, but has told NBC 10 he is not promising restoration, only that he will examine what more the state can do.
- • Restoring certain pension cuts would cost tens of millions of dollars or more, according to the report, and the General Assembly would have to act.
- • Reform benchmarks required to restore cost-of-living adjustments have not yet been met; Diossa says the pension fund is on track to meet the 2024-lowered 75% funding threshold in 2029.
- • Diossa cites a first-time homebuyer plan, employer-sponsored retirement fund setup for workers without access, and the purchase of $16 million in medical debt for 9,000 residents at a $300,000 cost to the state.
Summary
Restoring pension benefit cuts made during the state's 2011 pension reform has become a central issue in the race for Rhode Island General Treasurer, according to NBC 10 (WJAR). Republican challenger Micholas Credle has gained the support of public-sector retirees who want the cuts reversed. Credle told NBC 10 that he is not promising to restore benefits but will look into what more the state can do. Any restoration would require action by the General Assembly.
Incumbent Democrat James Diossa, who has served four years in the post, told NBC 10, "I think I've done a good job." He pointed to a lower-interest first-time homebuyer plan, work with employers to establish retirement funds for workers who otherwise lacked them, and the purchase of $16 million in medical debt for 9,000 residents at a cost of $300,000 to the state. Diossa said he understands retirees' frustration with rising costs and inflation, but stated that he has a fiduciary responsibility to retirees, active employees and future retirees alike.
Reform benchmarks for the pension fund's health, required before cost-of-living benefits can be restored, have not yet been met. Restoring certain cuts would cost tens of millions of dollars or more, per the report, and Diossa says some retiree requests could cost billions. Credle contends the restorations could be funded by eliminating waste in the system. Diossa said he has met with retirees and is supportive of their needs, but described some of their requests as very expensive. Calling early restoration unrealistic, he said it creates a "false sense of hope."
Diossa pointed to Central Falls, the city he previously led as mayor, which entered bankruptcy in 2011 and cut employee retirement benefits, as a reason for caution. In 2024, state lawmakers lowered the funding threshold for retirees who retired after 2012 to receive cost-of-living adjustments from 80% funded to 75%. Diossa expressed caution about that change at the time. He now says the pension fund is on track to reach that benchmark in 2029.
Incumbent Democrat James Diossa, who has served four years in the post, told NBC 10, "I think I've done a good job." He pointed to a lower-interest first-time homebuyer plan, work with employers to establish retirement funds for workers who otherwise lacked them, and the purchase of $16 million in medical debt for 9,000 residents at a cost of $300,000 to the state. Diossa said he understands retirees' frustration with rising costs and inflation, but stated that he has a fiduciary responsibility to retirees, active employees and future retirees alike.
Reform benchmarks for the pension fund's health, required before cost-of-living benefits can be restored, have not yet been met. Restoring certain cuts would cost tens of millions of dollars or more, per the report, and Diossa says some retiree requests could cost billions. Credle contends the restorations could be funded by eliminating waste in the system. Diossa said he has met with retirees and is supportive of their needs, but described some of their requests as very expensive. Calling early restoration unrealistic, he said it creates a "false sense of hope."
Diossa pointed to Central Falls, the city he previously led as mayor, which entered bankruptcy in 2011 and cut employee retirement benefits, as a reason for caution. In 2024, state lawmakers lowered the funding threshold for retirees who retired after 2012 to receive cost-of-living adjustments from 80% funded to 75%. Diossa expressed caution about that change at the time. He now says the pension fund is on track to reach that benchmark in 2029.
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