Judge rules against Providence retirees in suit

Feb. 03--PROVIDENCE, R.I. -- A group of 67 retired police officers and firefighters are not entitled to lifetime health benefits and an annual cost-of-living adjustment as they asserted in a lawsuit against Providence, according to a decision issued Thursday in Superior Court, Kent County.

The decision of Judge Sarah Taft-Carter is a response to litigation dating back to the administration of Providence Mayor Angel Taveras and his efforts to stave off bankruptcy with what he described as "shared sacrifice."

In early 2011, Providence had faced a $109.9 million structural deficit for the fiscal year ending June 30, 2012. In July 2011, the city passed an ordinance that called for retirees to enroll in Medicare for health insurance and then receive supplements when applicable to cover the gap between the government funded offerings and the previous coverage.

In 2012, the city passed an ordinance that called for the suspension of living adjustments until the funding ratio of the city's pension system reaches 70 percent. The change would reduce the city's unfunded pension liability by $236 million, says the decision, which also says that 27 percent of retirees had received a compounded cost-of-living adjustment that doubled their annual pensions every 13 years or every sixteen years based on their percentage.

The fire and police unions as well as retiree association and other groups negotiated settlement agreements and made concessions on benefits. But the plaintiffs in the case decided Thursday by Taft-Carter, the 67 police officers and firefighters, excluded themselves and filed lawsuits, arguing that the suspension of their lifetime health-care benefits and cost-of-living adjustments violated the contract clause of the Rhode Island Constitution and also the U.S. Constitution.

Taft-Carter's 95-page decision says that the plaintiffs "failed to meet the burden of demonstrating their claims."

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