The mediation process over a lawsuit concerning Rhode Island’s 2011 pension overhaul has ended after a proposed settlement was rejected, said Joy Fox, a spokeswoman for state Treasurer Gina Raimondo, who oversees the state’s investment commission.
“We find this disappointing and frustrating,” said Gov. Lincoln D. Chafee and Ms. Raimondo in a joint statement issued Friday.
The state is now beginning preparations for litigation.
The settlement, the details of which can be found online, was issued in February. It was rejected by members of the police union on Monday.
The plaintiffs, which include public employee unions and retiree coalitions, sued to block a 2011 overhaul, which created a hybrid plan, raised retirement ages and suspended cost-of-living increases for participants in the $8.3 billion Rhode Island Employees’ Retirement System, Providence, as a cost-savings measure. The lawsuit has been the subject of closed-door mediation since 2012.