Special Session 2011: Leaders React To Pension Ruling
Wednesday, September 14, 2011
Yesterday morning, Superior Court Justice Sarah Taft-Carter handed down a ruling that recognized the “implied contractual relationship” between the public employees and the state pension system. The ruling comes just as state legislators are gearing up to tackle the pension in a special session next month.
The new ruling, however, might tie the hands of lawmakers and prove to be a significant obstacle on the road to drastic and sweeping reform. Already, leaders of various interest groups are strategizing on how to best proceed in light of the recent decision. Here are some of the reactions from the state’s most influential pension players:
Speaker Fox and Sen. President Paiva Weed—“Has no effect…”
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Speaker of the House Gordon Fox and Senate President Teresa Paiva Weed issued a joint statement in which they tried to put the decision in perspective and reassure the public that the pension reform discussions would go on as planned.
“Today’s ruling is an initial decision on one aspect of litigation relating to reforms enacted in 2009 and 2010. The ruling simply allows the employees to make their full argument to the Court in that matter,” the statement emphasized.
“The Court’s decision to deny summary judgment has no effect on the pension reform discussions scheduled to take place before the Joint House and Senate Finance Committees over the next three weeks. Around the time of the conclusion of those hearings we anticipate receiving a proposal from the General Treasurer’s Office and the Governor that will be vetted by the full General Assembly in October.”
The Speaker and President concluded by reaffirming their determination to take “whatever action is reasonable and necessary to address the pension crisis confronting the State of Rhode Island.”
Representative Doreen Costa—“we have to find a way to work together…”
Tea Party affiliate and Republican representative Doreen Costa was “not surprised,” by the decision, and told GoLocal that regardless of the decision, a serious problem still remains.
“We still have a major pension problem in this state and we have to find a way to work together. If we can't find a common ground then nothing will be solved.”
Raimondo and Chafee—“We remain committed…”
Treasurer Gina Raimondo and Governor Lincoln Chafee, perhaps the two most active proponents of pension reform, issued a joint response in which they lamented the court’s ruling, suggesting that an appeal was already in the works and that the two remained committed to affecting lasting and significant reform.
“Today’s lower court ruling recognized this is only the beginning of what could be a long legal process,” the statement began. “We understand that this case will ultimately be decided by the Rhode Island Supreme Court. The state will be seeking immediate Supreme Court review of Judge Taft-Carter’s decision.”
“While we are disappointed that today’s ruling did not grant immediate dismissal of the plaintiff’s claims to the state at this time we remain committed to submitting comprehensive pension reform legislation for the General Assembly to consider during their October special session.” The statement concluded with the two reiterated their desire to “enact reform that is fair to the taxpayers and provides retirement security to retirees and active employees that is sustainable and affordable.”
Rep. Helio Melo—“We cannot let our focus shift…”
In an e-mail to GoLocalProv, House Finance Committee Chairman Helio Melo expressed his determination to move forward as planned, despite the recent court decision.
“We will move forward with our three scheduled joint Finance Committee meetings in September and continue our due diligence on resolving the pension problem. This is a critically important issue for our state’s fiscal health and we cannot let our focus shift from the work before us.”
Michael Downey—“does not represent a full victory…”
Michael Downey, the president of Rhode Island Council 94 of AFSCME—the state’s largest employee union—expressed his pleasure with the judge’s decision, but also acknowledged that the issue was far from resolved—since the ruling does not preclude the state from cutting pension benefits, but rather simply acknowledges that the unions had a case to begin with.
,“Council 94 and other state employee/teacher unions have argued all along that pensions are not simply gratuities. We have to work long and hard to earn a pension.” Downey wrote in a public statement.
“The state’s motion for summary judgment attempted to have our case thrown out of court before a trial was even held. We are grateful that Judge Taft-Carter’s decision will allow Council 94 and impacted employees to have a full hearing and trial upon these very important issues.”
Downey concluded by reminding his supporters that the battle was only just beginning. “Council 94 recognizes that this decision, while important, does not represent a full victory. Judge Taft-Carter’s decision that an implied contract exists will ideally allow for a full hearing on the merits of our case. Council 94 looks forward to our day in court.”
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