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Settlement Fails in RI Pension Overhaul

Settlement Fails in RI Pension Overhaul
by NewsRadio 920/ Associated Press

   PROVIDENCE, R.I. (AP) _ A proposed settlement that would have ended the legal fight over Rhode Island's 2011 landmark pension overhaul has been rejected, and a judge has ordered the parties back into mediation. 

Lawyers for the unions and retirees who sued said Monday the proposal was rejected by police union members.

The overhaul has been a model for other states seeking to rein in runaway pension costs. The outcome marks a defeat for Gov. Lincoln Chafee and Treasurer Gina Raimondo, who argued it was a good deal for all parties and preferable to continued costly litigation.

 The proposal was an attempt to resolve lawsuits filed by public-sector unions and retirees.  The balloting was for members of the unions and retiree coalitions. Six groups had to approve the deal, and the police group did not.

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