RI pension settlement would add $232M to shortfall

By Ted Nesi and Dan McGowan

PROVIDENCE, R.I. (WPRI) – State and union leaders on Friday unveiled a proposed settlement that would end a legal challenge to Rhode Island’s landmark pension changes by adding $232 million to the state’s unfunded shortfall and tweaking how cost-of-living increases, retirement ages and contribution rates work for state retirees and employees.

The settlement asks the General Assembly to approve a 5% increase in Rhode Island’s unfunded pension liability for state employees, teachers and some municipal workers – from $4.8 billion to $5.05 billion – in order to get the unions to drop their lawsuits over the 2011 pension law, as well as previous pension changes passed in 2009 and 2010.

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