Providence has tentative agreement to address finances - ABC6 - Providence, RI and New Bedford, MA News, Weather

Providence has tentative agreement to help fix finances

The landmark deal would save Providence 18-and-a-half million dollars for the 2013 fiscal year, which starts July 1st.

It caps all pensions, suspends COLAs for the next 10-years, moves retirees who are 65-and older into Medicare, and eliminates forever, the 5 and 6 percent COLAs that city leaders have said helped to create the financial crisis, Providence is trying to climb out of.

The deal has to be approved by the police and firefighters unions before it can go into effect.

It also must be approved by a majority of retirees.