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This Tiny Corner Of Rhode Island Shows Us The Future Of Social Security

This Tiny Corner Of Rhode Island Shows Us The Future Of Social Security
 
Authored by Simon Black via SovereignMan.com,
 
The United States Court of Appeals for the First Circuit gave us an interesting glimpse of the future last week when it ruled on an obscure case involving government pension obligations.
 
 
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.