The passage of the Rhode Island Retirement Security Act represents what can happen when a thoughtful process and leaders come together for the people of Rhode Island. RIRSA passed because Rhode Islanders called for action and change. This bill is a great step forward as the state continues to work toward a secure path of growth and prosperity.
RIRSA represents the culmination of 11 months of thoughtful, fact-based analysis and input from retirees, employees and taxpayers. It is affordable, sustainable and secure. The law:
RIRSA’s design was rigorously stress-tested through actuarial and legal analyses, and discussed with a wide range of stakeholders across the state.
RIRSA provides a secure retirement for all 66,000 members of our state retirement system. This comprehensive law modernizes and ensures that the pension system is well-funded, while providing a similar level of retirement benefits for active employees as the old system, within a structure that shares the market risk more evenly between taxpayer and employee.
The new design encompasses safeguards to prevent the annual pension line item in the state budget from spiking to unaffordable levels in the future. It also balances the current cost burdens, across all stakeholders – employees, retirees and taxpayers. In addition to stabilizing the state-administered pension system, its self-correcting mechanisms are designed to avoid the need for subsequent reforms.
RIRSA design components include: