Pension Settlement Appears To Be Back On Track After Snag
A settlement that could end a legal dispute over the 2011 overhaul of the state pension system is expected to be unveiled Friday. The deal appears back on track after hitting a snag earlier this week.
The federal mediation service that has overseen more than a year of closed-door pension talks is set to hold a news conference (4:15 pm) at a state building near the Statehouse. The subject is expected to be a proposed settlement between the state and a series of public-employee unions.
The unions went to court to challenge the pension overhaul spearheaded by state Treasurer Gina Raimondo. They said cuts to their pension benefits were too broad and unconstitutional. Raimondo argued the overhaul was needed to ensure the survival of the 8 billion dollar pension plan.
A judge ordered the two sides into closed-door talks, and prohibited them from talking about it. Any settlement that emerges won’t take effect unless it’s approved by the General Assembly, and it remains unclear if the legislature will vote on the deal.
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