Deal voted down in Rhode Island pension overhaul

Published on NewsOK Modified: April 7, 2014 at 4:00 pm •  Published: April 7, 2014
Advertisement

PROVIDENCE, R.I. (AP) — A proposed settlement that would end the legal fight over Rhode Island's 2011 landmark pension overhaul, which has been a model for other states looking to rein in runaway pension costs, was rejected by one of the groups voting on it, officials announced Monday. The parties were ordered back into mediation.

Police union members, the smallest of the six groups that had to approve the proposal, rejected it, said Ray Sullivan, a spokesman for the plaintiffs. Sixty-one percent of police union members voted against the settlement.

Crafted during more than a year of closed-door, court-ordered talks, the proposal overwhelmingly won approval from all of the other groups, including teachers, retirees and firefighters.

But according to the agreement, if more than half of any one of the groups rejected the proposal, the settlement process would end and the original lawsuits would proceed. A trial is scheduled for September.

Because it was rejected by the smallest group — police union members made up less than 2 percent of those eligible to vote in the first round — Superior Court Judge Sarah Taft-Carter "ordered both sides back into mediation to explore whether a settlement can still be reached," according to a statement from the plaintiffs.

Talks resumed Monday, and the parties were due to report back to the court in one week.

Even if the parties reach an agreement that is acceptable to the police unions, the proposed settlement still would have to clear a second vote by a much wider pool of people covered under it. The General Assembly would also have to sign off on it.

The proposal, announced in February, was an attempt to resolve lawsuits filed by public-sector unions and retirees over the state's 2011 pension overhaul. The deal offers retirees a modest pension increase of $500 with the promise of additional increases sooner than the current law calls for. But most of the other sweeping changes approved by lawmakers are preserved.

Continue reading this story on the...