Judge gives preliminary approval to pension settlement

SUPERIOR COURT Associate Justice Sarah Taft-Carter has given preliminary approval to the proposed settlement of the so-called state pension reform cases. / COURTESY R.I. JUDICIARY/CRAIG N. BERKE
SUPERIOR COURT Associate Justice Sarah Taft-Carter has given preliminary approval to the proposed settlement of the so-called state pension reform cases. / COURTESY R.I. JUDICIARY/CRAIG N. BERKE

PROVIDENCE – Superior Court Associate Justice Sarah Taft-Carter has given preliminary approval to the proposed settlement of the so-called state pension reform cases.
However, final approval of the settlement will not occur until after the judge conducts a public fairness hearing scheduled for May 20, according to information released Monday by the R.I. Judiciary.

In her 21-page written decision, the judge specifically:

  • Certified the plaintiff classes, subclasses and defendant class
  • Designated class representatives for the plaintiff and defendant classes
  • Designated the attorneys for the plaintiff and defendant classes
  • Gave preliminary approval to the settlement as being “fair, adequate, and reasonable”
  • Set the date for the fairness hearing

Plaintiff lawyers are identified as Lynette Labinger, Thomas Landry, Douglas Steele, Joseph F. Penza, Carly Iafrate and Maame Gyamfi. The defendant counsel was identified as Marc DeSisto and Gerald Petros.

Pension settlement details were released last week after weeks of secrecy due to a court-imposed gag order. The settlement features cost of living adjustments and other payments, including a one-time 2 percent cost of living adjustment for participants or beneficiaries of participants who retired on or before June 30, 2012. It will be applied to the first $25,000 of their pension benefit.
Participants and/or beneficiaries of participants who have retired on or before July 1 also will receive a one-time $500 stipend within 60 days of July 1, and a second one-time $500 stipend next year.
A majority of public-employee unions approved the pension deal earlier this month. The groups had challenged Rhode Island’s pension overhaul.
“The pension cases challenged the constitutionality of certain legislative actions reducing the retirement benefits of state employees, public school teachers and certain municipal employees,” the decision, filed April 16, reads.
Legislators had reduced future retirement benefits to save approximately $4 billion from a shortfall in the state’s pension fund, prompting a lawsuit, which was joined with previous lawsuits for pension changes made under the Gov. Donald L. Carcieri administration.
Gov. Gina M. Raimondo has said that the settlement preserves more than 90 percent of the savings to taxpayers.

- Advertisement -

No posts to display