PROVIDENCE – On Thursday, Nov. 17, the Rhode Island General Assembly passed a comprehensive overhaul for the state pension system in overwhelming fashion.

By Friday, Nov. 18, Governor Lincoln Chafee had signed the bill into law.

Officials estimate that the action will save Rhode Island taxpayers more than $4 billion over 24 years.

Members of the House of Representatives debated more than five hours, killing each and every amendment that was offered, until finally all that was left was to vote.

They did that, finally, at 7:38 p.m., voting 57 to 15 for a pension overhaul many said will hurt individuals but benefit the state as a whole. Hours earlier, the Senate approved the measure, too.

There was an even wider margin for passage on the Senate side.

Two northern Rhode Island senators, Frank Ciccone III of North Providence and John Tassoni Jr. of Smithfield and North Smithfield, cast the only votes against the pension reform bill that hit both houses of the General Assembly Thursday afternoon.

Senate members gave a thumbs-up to General Treasurer Gina Raimondo's much discussed reform bill, 34-2, after about 90 minutes of deliberation.

Voting against the bill in the House, according to an unofficial tally posted on the General Assembly website, were local representatives: Reps. Roberto DaSilva, Mary Duffy Messier and William San Bento, all of Pawtucket; Rene Menard of Lincoln and Cumberland Hil. And from out of northern Rhode Island area: Reps. Carnevale, DeSimone, Dickinson, Fellela, Guthrie, Hull, Johnston, Lima, Medina, Jacquard, Palumbo. Not voting were Reps. Diaz, Flaherty, McCauley.

General Treasurer Gina M. Raimondo immediately applauded the General Assembly membership in a statement, saying,
"Today we saw what can happen when a thoughtful process and leaders come together for the people of Rhode Island. The Rhode Island Retirement Security Act passed because Rhode Islanders called for action and change. Passage of this bill is a great step forward as we continue to work to put our state on a secure path toward growth and prosperity."

In the final moments, northern Rhode Island representatives stood to explain their votes and urge other to join them.

Minority Leader Brian Newberry, of North Smithfield and Burrillville, suggested that the loss of cost-of-living raises will be mitigated by savings in increases in property and sales taxes that would have been required to continue funding the current system.

Rep. Jon Brien of Woonsocket called for legislation next year that addresses not only the municipal pension plans but the post retirement medical benefits that represent multi-million liabilities in virtually every Rhode Island community.

Rep. Jay O'Grady of Lincoln said more attention must be paid to state employees who have been excluded from the federal Social Security system and are therefore ineligible for that added retirement benefit cushion.

Rep. Robert Phillips of Woonsocket said he couldn't walk down the streets of the city and face state employees if he didn't do something to assure the future of their pension plans. Woonsocket taxpayers, he noted, faced an extra $5.9 million state pension payment next year without the overhaul.

Brien stood a second time to ask representatives: "Are we better off if this bill passes? Absolutely. And that’s a resounding yes. If you’re truthful to the question, are we better off, hopefully we will all go green and pass this piece of legislation."

According to Raimondo, the pension reform legislation represents the culmination of 11 months of thoughtful analysis and input from all stakeholders. The treasurer called the new state pension system "affordable, sustainable and secure."

According to Raimondo, the legislation will:

• Keep costs steady and predictable for taxpayers for decades to come, while sharing the risk fairly among all groups - state employees, teachers, municipal employees and taxpayers.
• Provide retirement security to all public employees.
• Immediately reduce the unfunded liability by about $3 billion.
• And bring the funding status of the state-administered pension system from 48 percent funded to more than 60 percent funded and put it on a healthy path.

"From the beginning, this process has worked to fix the fundamentals of the state-administered pension system in a fair, reasonable and fiscally responsible way," said Raimondo. "In the coming months, I look forward to implementing this reform."