States scrambling to meet a collective 1-trillion dollar shortfall in their public pension plans might be looking to little Rhode Island for possible answers.
The independent governor Lincoln Chafee and the Democratically-controlled legislature joined forces to push through the biggest pension cutback in the country after facing a 7-billion dollar funding gap.
The cuts raise retirement ages for most public workers to 67, freeze the cost of living raises for retirees and redesign the way new pension funds are invested.
In heavily union and heavily Democratic Rhode Island, the changes amount to heresy and a court battle is likely.
- Gina Raimondo, Rhode Island State Treasurer, who spearheaded the reform
This segment aired on January 3, 2012.