Firefighters Lose as Rising Pensions Spur Broken Promises
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It has been more than 20 years since Gilbert McLaughlin ran the fire department in Providence, Rhode Island. Yet the former chief stands to be the biggest loser as the capital of the smallest U.S. state flirts with insolvency.
McLaughlin, 75, is the highest paid of Providence’s 3,000 retired workers, collecting a $196,813 pension this year, the result of yearly 6 percent cost-of-living increases the city once bestowed on firefighters and police. Lawmakers, facing a $1 billion deficit and squeezed for cash, ended the automatic raises and capped annual payouts. Now retirees such as Gillie, as he is known, won’t see their pay outs double every 12 years.