Rhode Island Pension Reform Case Study

In 2011, Rhode Island enacted major pension reform legislation spearheaded by State Treasurer and current gubernatorial candidate Gina Raimondo to address an unfunded pension liability of $6.8 billion and a system less than 50 percent funded relative to its obligations. Among the changes, the reforms introduced a hybrid defined-benefit/defined-contribution funding system, suspended cost-of-living-adjustments for retirees, and increased the retirement age. A new Reason Foundation report offers a detailed case study of Rhode Island’s pension reform efforts, reviewing the challenges that prompted the reforms, the specific policies enacted, and the lessons learned for other states and municipalities facing significant unfunded pension liabilities. Read the study: Pension Reform Case Study: Rhode Island

In 2011, Rhode Island enacted major pension reform legislation spearheaded by State Treasurer and current gubernatorial candidate Gina Raimondo to address an unfunded pension liability of $6.8 billion and a system less than 50 percent funded relative to its obligations. Among the changes, the reforms introduced a hybrid defined-benefit/defined-contribution funding system, suspended cost-of-living-adjustments for retirees, and increased the retirement age. A new Reason Foundation report offers a detailed case study of Rhode Island’s pension reform efforts, reviewing the challenges that prompted the reforms, the specific policies enacted, and the lessons learned for other states and municipalities facing significant unfunded pension liabilities. Read the study: Pension Reform Case Study: Rhode Island