The Raimondo Roadmap
State General Treasurer Gina Raimondo unveiled her roadmap for pension reform today (ProJo covers here and WPRI’s Ted Nesi is live-tweeting). Here’s the report (pdf) and a new website, “Secure Path RI“. Her report takes a “where we are now and how we got there” approach. Here are some ideas she’s floating:
1) Set retirement age at 67.
2) Current accrual rate is in the 1.6 to 3% range (example: a 2% rate leads to a 70% pension benefit). Raimondo mentions that most private funds are 1%.
3) Deal with COLAs.
4) Look at hybrid plans (part defined-benefit, part defined-contribution).
5) Anti-spiking provisions to prevent “end-of-career increases in pension levels.”
6) Coordinate with Social Security when determining pensions.
To stress: these are just ideas being floated, not concrete recommendations. A study group is going to be convened prior to the July budget submittal.