Feb. 15 (Bloomberg) — Rhode Island officials and union leaders said they reached a deal to settle challenges to public pension-overhaul laws aimed at strengthening one of the U.S.'s most underfunded retirement programs.

Under the settlement of lawsuits filed by public-employee unions, the state agreed to restore pension increases more quickly than provided for in the revised law, according to an e- mailed statement by Governor Lincoln Chafee. The accord allows Rhode Island officials to maintain changes to the pension system that offer potential savings of about $4 billion.

"We believe this proposal is fair for our public employees, retirees, taxpayers and cities and towns," Chafee, Rhode Island Treasurer Gina Raimondo and union leaders said in a joint statement yesterday.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.