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Providence's suit against actuary allowed to proceed

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By News staff

PROVIDENCE, R.I. (AP) - A federal judge has dismissed part of a lawsuit the city of Providence filed against its longtime actuary but is letting the rest go ahead.

The city sued Buck Consultants in February over what it called "fundamental and inexcusable errors" in calculating the projected savings from its pension overhaul - a mistake it says cost over $10 million.

Buck sought dismissal of the whole suit, which claimed breach of contract and fiduciary duty, negligence and violation of the Rhode Island False Claims Act.

But in a ruling earlier this month, U.S. District Judge William Smith sided with Buck only in throwing out the False Claims Act claim.

The suit says Buck overstated the city's savings by $700,000 a year, meaning its pension liability is $10.8 million more than expected.


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