An obscure court decision against a Rhode Island town's police officers and firefighters could be a

[mfcorey1]

Ever since the mid-1990s, police officers and fire fighters in the town of Cranston, Rhode Island had been promised state pension benefits upon retirement.

But, facing critical budget shortfalls over the last several years that the Rhode Island government called “fiscal peril,” the state legislature voted to unilaterally reduce public employees’ pension benefits.

Even more, these cuts were retroactive, i.e. they didn’t just apply to new employees.

The changes were applied across the board; workers who had spent their entire careers being promised certain retirement benefits ended up having their pensions cut as well.

Even the court acknowledged that these changes “substantially reduced the value of public employee pensions provided by the Rhode Island system.”

So, naturally, a number of municipal employee unions sued.

And the case of Cranston’s police and fire fighter unions made it all the way to federal court.

The unions’ argument was that the government of Rhode Island was contractually bound to pay benefits– these benefits had been enshrined in long-standing state legislation, and they should be enforced just like any other contract.

The state government disagreed.

In their view, the legislature should be able to change laws, even retroactively, whenever it suits them.

Last week the First Circuit Court issued a final ruling and sided with the state of Rhode Island: the government has no obligation to honor its promises.

News like this will never make major headlines.

https://www.msn.com/en-us/money/retirement/an-obscure-court-decision-against-a-rhode-island-towns-police-officers-and-firefighters-could-be-a-warning-sign-for-social-security/ar-BBIQf5o?li=BBnb7Kz&ocid=mailsignout

[wishstar]

1. Rhode Island broke their budget by paying hundreds of millions yearly in corporate subsidies and

enacting major tax cuts for the wealthy while underfunding their pension plan while their population has been declining, so tax revenues have fallen. For instance they gave Curt Schilling $75 million incentive to move his video game company to RI from MA and then he lost the company, leaving state on hook for over $100 million counting interest on the debt incurred to give him the subsidy.

[uponit7771]

3. +1

[safeinOhio]

2. This is what strikes are for.

NO police or fire protection for the state government.

[Sherman A1]

4. I hope that they get

Every dime that they are owed. A pension is indeed a contract and it appears that the state is in breech of their agreement.

[Demsrule86]

6. The workers lost in court.

[Demsrule86]

5. Private companies have been doing this for quite a while.

[bucolic_frolic]

7. It's just like annuities

that come in several varieties - fixed, guaranteed, variable, defined income, and probably more

But few have the ability to manage it themselves, and brokers are there to make money by hedging
whatever you do

Best solution is probably to invest for income with high quality companies and etf's and even mutual funds

As with anything else, just don't pay too much for what you buy

[Raven123]

8. Are elected officials gov't employees ? We're their benefits cut ?

News like this makes one wonder why anyone would put their lives on the line. It would be interesting to hear what happens the next time police and fire fighter contracts are up,for negotiation. If it were me I'd seriously consider the d&&ed the benefits, just give me the cash approach.

[Va Lefty]

9. This is scary. I'm getting ready to retire in May

I'll have 30 years in the Virginia Retirement System. Will draw a monthly pension of about half of what I am now making.