A fight over Rhode Island's 2011 pension overhaul is heading to trial after state officials and public-sector unions to soften the law collapsed Friday. The law decreases one of the nations most unfunded pension systems in the country from about seven billion to four billion and will affect 66,000 active and retired workers. After more mediation recently, members from both sides agreed to decrease the retirement age from 67 to 65 and revising a plan that will include increasing the frequency of cost-of-living adjustments and restoring a traditionally defined retirement plan. Rank and file members from six unions and the state legislature still needed to approve the act and this is why mediation talks have broken down. The dispute is now heading to court with a trial date set for September. A court victory for Rhode Island could settle the dispute on whether or not pensions are contracts that can't be changed under the state constitution. Other states will be keeping a close eye on what decision the courts make to see what their future pension plans will consist of.
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2 comments:
The outcome of this trial will be very interesting. Whatever the court decides, it will set a precedent for the rest of the country. This change seems like it would have a positive effect on Rhode Island. This is a clear example of politics getting in the way of positive changes.
I agree with Sam's comment. The outcome of this trial will have an impact on many other pension problems across the nation. Hopefully the decision will leave a positive mar on the state's laws and other regulations. This is an interesting example of political debates interrupting progressive decisions for the state economy and future of the nation.
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