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Raimondo offers support for revised pension bill

November 10, 2011

State Treasurer Gina Raimondo offers this statement in response to the revised pension bill rolled out by lawmakers earlier this evening:

After listening to countless hours of public testimony and meeting continually with legislative leaders it remains clear that comprehensive pension reform is in the interest of every Rhode Islander.  The pension system currently does not provide for retirement security and is not sustainable for taxpayers. 

Senate President Teresa Paiva Weed and House Speaker Gordon Fox understand how important enacting meaningful pension reform is to the future of our state. Their steadfast commitment over the last few months has demonstrated a strong willingness to solve this problem. I remain committed to working with them and to moving this bill to passage.

The Rhode Island Retirement Security Act has been amended to provide a more gradual transition to the new Social Security retirement age and to allow cost-of-living adjustments tied to investment returns to come back once every five years until the system is 80 percent funded. 

While there is a cost to all changes, the package, as amended, will keep the pension system on the same path toward healthy funded status as the original proposal as well as keep the pension costs in next year’s budget steady and costs predictable for taxpayers in the decades to come.

In the coming days, I will continue to work with legislative leaders as they move toward final passage. Re-designing the state pension system is critical to moving toward a thriving economy. At this point, I urge caution that further amendments, which could compromise the principles of affordability, sustainability, and security must be avoided.

The revised measure is set for House and Senate Finance votes Thursday evening.

One Comment leave one →
  1. Mister Guy permalink
    November 10, 2011 3:30 am

    “The Rhode Island Retirement Security Act has been amended to provide a more gradual transition to the new Social Security retirement age and to allow cost-of-living adjustments tied to investment returns to come back once every five years until the system is 80 percent funded.”

    This is just a hollow bone being thrown to current retirees that have already signed legal contracts stating that they would get a COLA in the future. As long as the 5-year average pension fund investment return is used in the calculation of future COLAs, they will effectively never been issued again.

    “While there is a cost to all changes, the package, as amended, will keep the pension system on the same path toward healthy funded status as the original proposal”

    There’s simply no way that the math will work on this claim. It’s bogus!

    “At this point, I urge caution that further amendments, which could compromise the principles of affordability, sustainability, and security must be avoided.”

    LOL…good luck with that empty threat Mrs. Raimondo…you’re about to learn how legislative affairs are dealt with in a democracy…watch & learn newbie!

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