The Data shows that Rhode Islander taxpayers and teachers have been fed lies by Gina Raimondo, Bob Walsh and Seth Magaziner. The evidence is overwhelming that Rhode Island pension Assets have been badly mismanaged from 2011 to and through 2018. Both Gina Raimondo and Seth Magaziner have performed in the bottom 20% of their peers managing our money. They also finished in the bottom 5% for low expense ratio. They have spent enormous amounts on Wall Street management fees ,in fact double the rest of the Treasurers in the United States.The evidence is real and documented ,but since the Rhode Island media spoon feeds the spin directly from Raimondo and Magaziner ,without fact checking, you get the Government spin.
This blog seeks to tell citizens the truth because our Media is incapable of telling the truth.
For illustration purposes , I have attached a segment from the State of Virginia CAFR 2017 that expressly states the improvement in Virginians funding ratio over the last 4 years.
Rhode Island funding ratio on the other hand has DECLINED after reform and during this record bull market from roughly 61% ,after 2011 Raimondo reform to 52% now. Rhode Island Retirees need to see an 80% funded ratio ,as promised by Raimondo, before their suspended Cost of Living Adjustments are reinstated. Bob Walsh after publicly endorsing Gina Raimondo for Governor defended this performance effectively ignoring retired teachers. Shameful ,but perfectly legal. Virginia had a very similar Hybrid pension reform and yet. in the last 4 years, Virginia's funded ratio has IMPROVED from 65.4% to 74.5%.
Virginia Dramatically Improved , Rhode Island dramatically deteriorated. Virginia 74.5% funded , Rhode Island 52% funded.
The Governor and the Treasurer owe Rhode Island citizens a better explanation of their terrible record over the last 8 years. Had Rhode Island performed as well as Virginia retirees, retirees in Rhode Island would be in reach of reinstated COLAS. Taxpayers would be $ 1.6 billion better off.
The bad news is the market has had a significant decline and pension funds across the nation are suffering but if Magaziner track record holds true, Rhode Island will do worse than 80% of the nation and could soon be under 50% funded.
Below is a passage from Virginia's 2017 Comprehensive Annual Report pg8