Deal Reached on Rhode Island Pension Reform Lawsuit
Friday, April 03, 2015
An agreement to settle the state's ongoing pension lawsuit was reached Thursday, according to court appointed Special Master Frank Williams.
Williams announced that most parties had voted to approve the deal in a simple majority vote. Two police and fire unions, which represented 800 workers, did not approve of the settlement. The deal puts the trial, which was scheduled to begin on April 20, on hold.
See Special Master Frank Williams’ report to Judge Sarah Taft-Carter HERE
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The Governor's office thought that the move would have a positive impact on the state's bond ratings.
"We anticipate that removing the uncertainty will have a favorable impact," said Raimondo Press Secretary Marie Aberger.
Leaders React
Upon word of the settlement, Speaker Nicholas Mattiello said, “I am pleased that the parties reached a settlement that I believe is in the best interests of the state, its citizens, the retirees and employees. I am aware of the general terms of the settlement and I believe they are in the best interests of all, but I haven’t had the opportunity to review the specifics and I reserve the right to do so. The House of Representatives will conduct its due diligence as part of the legislative process and we have established no timetable at this point.”
“I welcome the news that a potential settlement has been reached in the pension suit. I believe a settlement of pending litigation is in the best interest of all Rhode Islanders. It brings closure and finality for retirees and public employees and fiscal certainty to the state," said Senate President Teresa Paiva Weed. "I am grateful to the employees and to Chief Justice Williams for working together on this settlement proposal. I know this has been difficult for everyone involved. In the weeks ahead, the Senate Finance Committee and all the members of the Senate will be reviewing the proposed settlement and taking public testimony on the legislation required to implement the agreement.”
"This proposed settlement lifts a cloud of uncertainty from our state and allows us to finally move forward, so we can focus our energy on new ideas to rebuild our economy. I am grateful to the settling parties in these lawsuits for being willing to come together to forge a common solutiom," said. General Treasurer Seth Magaziner.
Judge Sara Taft-Carter gave the parties involved until May 18 to implement the terms of the settlement.
The General Assembly must also approve the deal.
The settlement agreement covers almost 59,000 state employees and retirees.
Related Slideshow: See How Much Providence Pays in Pension Fund Fees
Per investment information obtained by GoLocal, the following are the management fees paid by the City of Providence Employees Retirment System (as of April 2013 -- Graham Global funds were moved at the last city Investment commission meeting).
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