Chafee/Raimondo preview pension reform in letter to state employees
Reiterating many previously publicized points, state Treasurer Gina Raimondo and Governor Lincoln Chafee have sent a “pension preview” letter to state employees. Here are some excerpts:
— “We want to make clear that first and foremost, we will propose no change in the retirement age for those already eligible to retire, and we will not propose any incentives to retire. Continuing to work means you will continue to accrue benefits.”
— “Any pension solution must be comprehensive and solve this problem once and for all.”
— “[O]ur pension reforrm proposal will not reduce any benefits that have been accrued by both active employees and retirees.”
— [P]ension reform must limit COLAs. We are exploring . . . . a temporary COLA suspension; tying COLAs to investment returns and pension plan fiscal stability; and/or limiting COLAs to a lower fixed dollar amount.”
— “We . . . . expect that taxpayers will continue to do their share to ensure the solvency of the pension system.”
The formal details of the Raimondo-Chafee plan is expected to be made public in the first half of October.