Economy
9:23 am
Wed February 12, 2014

Pension Settlement Unveiling Delayed

The details of a settlement that could end a legal challenge to a 2011 overhaul of the state pension system were expected to be unveiled Wednesday. But that announcement has been delayed indefinitely. 

Yet even when details are made public, what will happen next remains unclear.

An announcement of the pension settlement has been delayed.
Credit Kristin Gourlay / RIPR

The federal mediation agency that facilitated more than a year of confidential pension negotiations had planned to hold a news conference this Wednesday. That was to be after the state retirement board was expected to approve the settlement during a closed portion of a morning meeting. Yet that entire process has been postponed for now, with no explanation from those involved in the process.

For the settlement to become effective, it has to be approved by the General Assembly. Legislative leaders have signaled their opposition to major changes to the 2011 pension overhaul, but it remains unclear if the legislature will vote on a settlement, and if so, how.

The pension overhaul spearheaded by state Treasurer Gina Raimondo, now a candidate for governor, cut three billion dollars from the state’s long-term obligations. A series of public-employees union said the overhaul was an unconstitutional attack on their benefits, and they sued to challenge it in court.

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