Reports: R.I. retirees approve pension settlement

LINCOLN – Rhode Island public-sector retirees approved a proposed settlement that would end their lawsuit against the state’s 2011 pension overall.
The retirees voted Monday at Twin River Casino, according to WPRI-TV CBS 12’s website, and while the results were not officially disclosed due to a judicial gag order, several retirees leaving the closed-door meeting told the television station that the vote was 1,168 in favor with 332 against.
According to the television station, the settlement features cost-of-living adjustments that would be calculated on the first $30,000 of a retiree’s pension if he or she retired before the settlement takes effect, versus the first $25,000. Also, those who are already retired when the deal takes effect would receive two payments of $500 each over the next two years.
“Well, know I can plan and I know what I’m going to have and I can plan on adjustments I have to make financially to take care of my family’s future,” retired teacher Bill Murphy told Rhode Island Public Radio.
The 2011 pension overhaul included the suspension of annual cost-of-living increases. Legislators reduced future retirement benefits to save approximately $4 billion from a shortfall in the state’s pension fund, prompting a lawsuit, which was joined with previous lawsuits for pension changes made under the Donald L. Carcieri administration.
WPRI said that current workers are still voting on the settlement and will continue to do so until Friday’s deadline. If all agree on the settlement, a judge would have to approve it, then the General Assembly, to avoid a trial, WPRI said.
The pension reform lawsuit is scheduled to go to trial April 20. Public employee groups and the state had sought a delay, but the state Supreme Court rejected their appeal.
The lawsuit consists of nine consolidated cases challenging the state’s pension reform actions, which reduced pension benefits for public employees and retirees, including teachers, state and municipal employees, firefighters and police.
The employee groups argue that the pension changes and benefit cuts approved by the General Assembly in 2009 and 2010, and the comprehensive retirement system overhaul that followed in 2011, are unconstitutional.
Meanwhile, the R.I. Superior Court will hear oral arguments on a number of motions in the state employee pension litigation on Thursday.
Among motions to be heard will be a motion for summary judgment by the “Clifford” plaintiffs (retired state employees and teachers) regarding their claim that the 2011 changes violate the takings clause of the Rhode Island Constitution with respect to the cost-of-living adjustments issue. The Clifford plaintiffs’ lawyer, Sean O’Leary, did not have any comment on the motion due to the gag order.

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