PROVIDENCE, R.I. — A landmark proposal to overhaul Rhode Island’s troubled public pension system won the support of two key legislative committees Thursday.

The full General Assembly plans to take up the legislation next week now that the House and Senate finance committees have endorsed the measure.

The 113-page bill is intended to save taxpayers billions of dollars by halting automatic cost-of-living pension increases, adjusting retirement ages and creating a new hybrid retirement system that combines traditional pensions with 401(k)-like accounts.

The state has one of the weakest public pension funds in the nation and faces an unfunded liability of more than $7 billion. The retirement system covers teachers, state workers and many municipal employees.

An earlier version of the bill from Gov. Lincoln Chafee and Treasurer Gina Raimondo would have suspended automatic annual cost-of-living pension increases for most public retirees for about 19 years. The version passed in committee Thursday, however, would award increases every five years but only if pension fund investments meet certain financial targets.

The change was made after thousands of public workers and retirees protested the proposal at the Statehouse. During 30 hours of committee hearings on the bill, hundreds of workers and retirees told lawmakers the initial proposal was too severe.

 


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