PROVIDENCE – A new hybrid plan that combines a traditional pension guarantee with a 401(K)-style plan, a suspension of cost-of-living increases for Rhode Island’s retired government workers for up to 19 years, and a higher retirement age up to 67 years old for current workers 51 years of age are what Governor Lincoln D. Chafee and General Treasurer Gina M. Raimondo propose will save the state from its only 48 percent funded pension system and $7 billion unfunded liability.
State leaders met Tuesday evening during a historic one-day special legislation on the proposed pension reform that Rhode Islanders from state employees, to retirees, to new employees to teachers and cities and towns have been anticipating and what Raimondo has been devising for the past 10 months with a Pension Advisory Group.
The 200 page piece of legislation, Raimondo says will once and for all solve the pension problem and fix the system.
“The focus has been on finding real solutions to real fiscal challenges. Fixing the system is in everyone’s best interest,” Raimondo said. “No one group bears a disproportionate burden. It’s designed to be fair.”
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