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Rhode Island Supreme Court allows city to cut pension benefits to avoid bankruptcy

NOVEMBER 19, 2019 | by Marc Fitch | YANKEE INSTITUTE FOR PUBLIC POLICY

A group of retirees filed suit, saying the ordinance cutting COLAs violated the Contract Clause of the United States. However, the U.S. Supreme Court has held that public contracts can be unilaterally changed by state regulation if there is ‘a significant and legitimate public purpose behind the regulation such as the remedying of a broad and general social or economic problem,’ according the court decision.

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