The city's Trust & Investment Commission flagged the following as a major
liability in 2001 and urged the city council and school committee to undertake
an actuarial study ASAP.

It's unfortunate that the 3% collected from the teachers was never put into its
own trust account. (Yet another example of the city's recent legacy of poor
financial practices).

-- Mike Cullen


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Headline > Report finds teacher benefits in jeopardy

NEWPORT - The School Department has a $38.4 million unfunded liability in its
extended health-care benefits program for retired teachers, according to an
actuarial study by a Boston firm.

David M. Mirabito, associate principal at Buck Consultants, said Tuesday that a
fund established by the school district in 1998 after collective bargaining with
the Teachers Association Newport holds about $400,000 to provide health-care
benefits for eligible staff members. He said he anticipates $2.8 million in
contributions from future participants, but the current value of all employees'
benefits is $41.6 million, which leaves a projected shortfall of $38.4 million.

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