NEW: Governor Chafee Says Pension Reform is “Incomplete”
Friday, November 18, 2011
Governor Chafee last night offered his support for the pension reform bill that passed in the General Assembly, but said the focus should now shift to cities and towns.
Chafee released the follow statement:
"Tonight’s vote marks a turning point in the recent history of our great state. With the passage of the Rhode Island Retirement Security Act, Rhode Island has demonstrated to the rest of the country that we are committed to getting our fiscal house in order.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTI applaud Speaker Fox, Senate President Paiva Weed, Finance Committee Chairmen Melo and Da Ponte, and other members of the General Assembly for the courage they have shown in passing this legislation. I would also like to thank General Treasurer Raimondo for her valuable contribution to this important legislation.
My stated goal throughout this process has been to provide retirement security through reforms that are fair to the three main interested parties: retirees, current employees, and the taxpayer. Everyone has been asked to share in the sacrifice to help get our state back on track.
This vote is cause for encouragement, but not cause for celebration. While this legislation will ensure retirement security for retirees and current workers in state-operated pension plans, many Rhode Islanders will see reduced benefits and will face a retirement different than the one they had planned. I believe that we have the best public employees in the country, the best teachers, and the best State Police troopers. I have a deep respect for these Rhode Islanders and I take no joy in some of the effects this legislation will have on them. But the most important outcome is that the state pension fund will be solvent and retirement security is protected – a goal that has been achieved with tonight’s vote.
While this is an important step toward comprehensive pension reform, it is incomplete. Our job is not done.
It is my firm belief that the single best way we can market Rhode Island is through wise fiscal management. Tonight, we have taken a significant initial step toward that goal. Now we must continue the difficult work of taking on challenges that have been decades in the making: shoring up our independent municipal plans, helping our cities and towns and the Rhode Islanders who are struggling to pay skyrocketing property taxes, and fixing our chronic structural deficits. Taking these steps will do more to bring jobs and economic development to our state than any tax incentive or loan guarantee deal.
Once again, I applaud all those who played a part in the development and passage of the Rhode Island Retirement Security Act. This is an encouraging day for our great state."
