R.I. city asks retirees for significant pension cuts

In a recent letter to the retirees, Flanders said he is seeking $1.75 million in pension cuts and another $725,000 in benefits concessions.

Some retirees would see their pensions cut nearly in half. A public-safety employee who retires at age 55 with 30 years of service, for instance, currently gets a pension of just over $40,000. Under the receiver’s proposal, the employee would receive $21,200.

No benefit would be reduced by more than 50 percent, and anyone with a pension under $10,000 would not see a reduction, officials said.

Without significant concessions from the retirees and other groups, Flanders said, bankruptcy is more likely.

Flanders said he has no authority to impose the cuts. But he urged the retirees to accept the proposal, warning that the changes - or even more drastic ones - could be imposed by a federal judge if the city goes into bankruptcy.

“Better to take something rather than nothing,’’ he said. “Those benefits are unaffordable for the city of Central Falls.’’

Retirees will be asked to vote, by paper ballot, on whether they would accept the concessions.

Michael Long, who retired on a disability pension after 11 years with the Police Department, said during the question period that it seems like retirees are being asked to make a disproportionate sacrifice. “Where is the fairness in this?’’ he said.

He said he would prefer to “take our chances’’ before a bankruptcy judge rather than accept the proposed cuts.

Many retirees stood and clapped in response to Long’s comments.