April 5, 2015

SHE'S THE ONE WHO SHOULD JUMP INTO THE PRESIDENTIAL RACE, SHE ACTUALLY DID SOMETHING

Rhode Island Settles Lawsuit on Union Pension Overhaul (KATHARINE Q. SEELYE, APRIL 2, 2015, NY Times)

The settlement also relieves the new governor, Gina Raimondo, a Democrat, of what could have been a financial and political albatross as she seeks to revive Rhode Island's struggling economy; as the state's former general treasurer, she was the chief architect of the pension overhaul under challenge.

"The state had a very strong case," Ms. Raimondo said Thursday. But, she said, "to take the litigation risk off of the table is the right thing to do."

The settlement gives financial certainty to employees and retirees, she said, and is affordable for taxpayers.

"All of the structural elements of the original pension legislation remain intact," she said, adding that those elements provide "a fundamental restructuring of the system and fundamentally puts the system in a much healthier position."

The $14.8 billion pension system, on the brink of collapse, was overhauled in 2011 and again in 2012. The legislature created a hybrid plan that split direct contributions between the state and employees. It also suspended cost-of-living adjustments and raised the retirement age by five years, measures intended to save $4 billion over 20 years.

Posted by at April 5, 2015 7:54 AM
  

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