Rhode Island

One of the major selling points of the union concessions agreement negotiated between Gov. Dannel Malloy and state union leaders is a new Tier IV hybrid retirement plan, which combines a 401(k) style retirement account with a pension. Proponents claim that this move will save the state money and help stabilize the state employee retirement system, but questions remain as to how the retirement payout would be calculated between the two different plans.

The State of Connecticut employs nearly 50,000 people on a full-time basis and like most employers, they provide benefits to help employees plan for their retirement. Unlike most private sector employers, however, public employees are provided a defined-benefit retirement plan that provides benefits as calculated by a complicated formula rather ...