Raimondo aide lays out ‘starting point’ for RI pension overhaulOctober 7th, 2011 at 7:53 pm by Ted Nesi under Nesi's Notes
PROVIDENCE, R.I. (WPRI) – The “starting point” for the forthcoming Raimondo-Chafee pension bill is a proposal floated last month that would freeze COLAs for more than a decade and create a new hybrid plan for all workers in the state-run system, according to a top Treasury official.
The proposal – prepared by a state actuary based on input from the two leaders’ pension advisory group – was detailed Friday by Deputy Treasurer Mark Dingley at a meeting of the state Retirement Board. It would immediately raise the pension system’s funding level from 48% to 62%, he said.
It’s possible Treasurer Gina Raimondo and Gov. Lincoln Chafee will unveil their legislation on the same day that the full House and Senate reconvene for the bill to be introduced and referred to their respective finance committees, sources said.
One target date had been next Thursday, but that appeared less likely by late Friday as talks continued between Raimondo’s office, Chafee’s and legislative leaders.
The dramatic changes the actuary’s proposal suggested for the state-run system include a temporary suspension in cost-of-living adjustments (COLAs) and a permanent reduction in their generosity, as well as the transition of all workers into a hybrid plan.
(photo: Ted Nesi/WPRI)