Rhode Island Retirees Begin Voting on Pension Settlement

Retirees across Rhode Island are voting Monday on the proposed settlement to the long-running lawsuit against the state’s pension reforms.

If the settlement passes a vote by retirees, it will then need to be approved by state lawmakers and a judge.

The settlement would scale back benefit cuts and other changes enacted in 2011 as part of the state’s massive pension overhaul.

What can retirees expect if the settlement is approved? A stipend, occasional COLAs, and lower retirement ages, among other things.

PlanSponsor explains the terms of the proposed settlement:

* Two, one-time $500 stipends to current retirees, with the first payment a month after enactment, and the second paid a year later;

* A once-every-four years increase in the pensions paid to current retirees on their first $30,000 in retirement benefits, as opposed to the first $25,000; and

* A tweak in the retirement age to allow workers to retire with full benefits at age 65 after 30 years of service; age 64 (31 years): age 63 (32 years) and age 62 (33 years).

* Also under discussion is a proposal to allow police officers and firefighters to retire with full benefits at age 50, after 25 years of service, and at any age, after 27 years of service.

The settlement could cost cities and towns $13.7 million collectively, according to calculations from the Providence Journal.

Photo credit: “Flag-map of Rhode Island” by Darwinek – self-made using Image:Flag of Rhode Island.svg and Image:USA Rhode Island location map.svg. Licensed under CC BY-SA 3.0 via Wikimedia Commons