The state House and Senate finance committees approved amended legislation to reform Rhode Island's state-run pension system Thursday night. The bill, also known as the Rhode Island Retirement Security Act, passed the Senate committee 10 to one. In the House committee, the bill passed 13 to two.
The bill will go to the full General Assembly for debate and a floor vote next Thursday.
The 122-page act, proposed by Gov. Lincoln Chafee '75 P'14 and General Treasurer Gina Raimondo, aims to rein in the more than $7 billion shortfall in the state's pension system. The bill would switch the majority of employees to hybrid pension plans, which provide retirees a small guaranteed benefit in addition to an individual investment account and raise the retirement age from 62 to 67 for workers that are currently ineligible to retire.
Following a series of revisions announced Wednesday night, the bill would allow studies to assess the funding levels of municipal pension plans and cost-of-living adjustments to be paid out every five years until the state-run plan is 80 percent funded. The original bill would have frozen cost-of-living adjustments for up to 19 years.
The committee meetings began two hours late after lawmakers finalized a second series of amendments behind the scenes. The amendments announced last night would exclude current disability retirement laws from changes and would alter eligibility requirements used to calculate pension benefits.
Before voting, House Finance Committee Chair Helio Melo, D-East Providence, allowed committee members to ask questions about the amended bill. House Fiscal Adviser Sharon Reynolds Ferland clarified that the bill will not affect those who are eligible to retire before June 30, 2012.
Both the Senate and House committee chairmen acknowledged the long hours committee members spent discussing and revising the legislation. Senate Finance Committee Chair Daniel DaPonte, D-East Providence and Pawtucket, mentioned the 29 1/2 hours of testimony from 205 people that committee members took into consideration. Public input was a driving force in crafting the legislation, he added. "This is a classic example of our democracy, of our legislative process and how it works," he said.
Patrick Mannix, a Providence resident who attended the Senate hearing, told The Herald he supports the reform legislation. "This is the biggest issue facing our state," he said. "It transcends politics."
