Editor’s note: these are the candidate’s responses to questions provided by RIPR. The views expressed are the candidate’s alone, edited only in cases of inappropriate or libelous language. No changes have been made to correct errors of fact, spelling or grammar. 

I have 30+years managing complex portfolios and other peoples money. I have also been investigating and writing about Public Pension Issues since 2006. I am currently an Investment adviser and a hedge fund manager.

Overview

        I intend to take a very focused approach on restoring solvency and stability to a broken Rhode Island Pension system. By  “system” I  mean  both the States bottom 10 rated system and the municipal system which is arguably the worst in the United States.

   I. Top 3 priorities:

  1.   Depoliticize RI Treasurer’s office- Remove the link between Wall Street and Rhode Islands Treasurer’s office. There should be no incentives for a politician to favor a manager. My office would eliminate Wall Street fees. I would hope to extend this policy to municipalities.
  2. Restore the chances of retirees once again receiving suspended colas from Treasurer Raimondo’s 2012 reform. Both  Ms. Raimondo and Mr. Magaziner have purposely mislead retirees about the chances of returned cost of living adjustments. Under Magaziner’s current plan the chances of a returned cost of living adjustment for retirees is virtually zero.
  3. I will greatly simplify and enhance the portfolio structure using my experience and focusing on downside risks. i will fire the layers of consultants and advisers who add little value to the process. My job will be to act in the best interest of the beneficiaries in preserving the funds pledged to finance promised benefits.

     What steps can be taken for unfunded municipal systems:

  • It’s clear that many Municipal systems are in crisis status. These systems,  most notably Providence, threaten the entire State of Rhode Island’s financial condition yet the Mayor of Providence  and Governor barely refer to a solution or the risk and have done nothing over the last 4 years. I propose these towns do not deserve the enormous responsibility of funding and managing their own defined benefit plans. I would create a “bad bank ” fund to manage these assets and impose high contribution rates to absorb these risks at the state level. About 15 towns would be absorbed and my cut off would be 65% funded or lower.

Unclaimed Property: I have no particular expertise as I do in managing money  but I believe the system is currently well thought out and implemented. 

Michael G Riley