Rhode Island Lawmakers Reach Pension Deal

The Rhode Island legislature has arrived at a deal to reform the state’s pension funds. This comes in the wake of a landmark 2011 attempt at reform that has been tied up in legal wrangling ever since. To reconcile the need for substantive savings and allay complaints about broken promises, some of the more draconian provisions in the 2011 law were rolled back, but the proposed compromise preserves billions in cost savings over the next ten years.

The major provisions in the settlement include hybrid savings accounts that combine features of pensions and 401(k)s, modest cost of living increases every four years and a requirement for employees to contribute slightly more to their plan than under current law.

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