RI faces $9.4B retiree shortfall

PROVIDENCE, R.I. (AP/WPRI) - A new report says Rhode Island is facing about $9.4 billion short for public employee pensions and retiree benefit liabilities.

The Rhode Island Public Expenditure Council has released a report, claiming the state faces a dire situation unless cities and towns make changes to retirement plans and how they provide and invest the money.

The shortfall is blamed on generous promises made to public workers, lower than expected investment returns and, in many cases, underfunding by the government entities that approved the benefits .

Council Executive Director John Simmons tells The Providence Journal that city and state governments much find ways to control costs. He says one way is to move to private sector plans.