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.
More coverage of the pension debate on Nesi’s Notes:
- RI lawmakers worried about secret talks to rewrite pension law (Oct. 15)
- The legal case for the pension law (March 18) | The legal case against (Dec. 24, 2012)
- Charts: RI pension fund on track to close its shortfall by 2036 (Jan. 24, 2013)
- RI ignored stark warning about poor pension funding – in 1974 (Dec. 20, 2012)
- How lawmakers, union leaders jeopardized the RI pension fund (Dec. 19, 2012)
- Barro: RI came closer than most but didn’t fix pension problem (Dec. 4, 2012)
- Bloomberg examines the high stakes of the RI pension lawsuit (July 27, 2012)
- Q&A: Penn Law’s Skeel on RI pensions, bankruptcy and bonds (March 2, 2012)
- Analysis: Why Rhode Island passed pension reform in 2011 (Nov. 17, 2011)
- WPRI.com presents Pensions for Dummies – a one-stop guide (Oct. 17, 2011)