Outline of Chafee-Raimondo pension overhaul
Governor Lincoln Chafee and State General Treasurer Gina Raimondo have been keeping their pension proposal under wraps meet quietly with business and labor leaders to fashion a solution to billions in potential red ink in the state retirement system.
But State House sources tell Rhode Island Public Radio that any plan will include 4 major elements:
- A sharp cut in cost-of-living allowances for retirees.
- An increase in the retirement age to become eligible for a full pension.
- Refinancing the state’s long-term pension liabilities under a system known in pension lingo as reamortization.
- Phase in of a hybrid system that will include elements of a 410k contributory plan that will have the most effect on younger employees.