A lawsuit challenging proposed changes to Rhode Island's state pension system was settled Friday, confirmed Joy Fox, a spokeswoman for the state treasurer's office.
The settlement includes a move to a combined defined benefit and defined contribution plan, an increased retirement age and a cost-of-living adjustment suspension until the system is at a stronger funding level. The full details of the pension settlement can be found here.
A joint statement issued by the defendants — which included Rhode Island Gov. Lincoln D. Chafee and General Treasurer Gina M. Raimondo — and the plaintiffs — public employee unions and retiree coalitions — called the settlement “a proposal that we all support,” adding it “would resolve six pending lawsuits contesting changes made in 2009, 2010 and 2011.”
The plaintiffs sued to block a 2011 overhaul, which raised retirement ages and suspended pension increases as a cost-savings measure. The lawsuit has been the subject of closed-door mediation since 2012.