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Governor Dan McKee endorsed a union-backed proposal on August 20, 2026, to implement the “Rule of 90” pension boost for Rhode Island state workers and teachers, aiming to secure labor support ahead of the September 9 Democratic primary. According to WPRI, the policy would allow public employees aged 60 and older to retire with a full pension when their age and years of service combine to equal at least 90, partially rolling back major benefit cuts enacted in 2011.
The Rule of 90 Mechanics and Projected Costs
Under the proposed Rule of 90, public-sector employees could accelerate their retirement timelines based on accumulated service and age. For instance, a 60-year-old employee with 30 years of service, or a 63-year-old with 27 years of service, would qualify for a full pension under the framework, according to WPRI reporting. A 2024 report from the state’s Pension Advisory Working Group calculated that the policy would increase Rhode Island’s existing $4.5 billion pension shortfall by $106 million over the long term. That increase would lower the plan’s funded level from 62.8% to 62.3%, with first-year taxpayer costs estimated at $12.7 million.
State officials emphasize that demographic shifts could alter those financial projections. According to Carla Rojo, a spokesperson for General Treasurer James Diossa, the initial assessment relied on plan demographics available in 2024. Rojo noted that updated demographic data could yield different cost figures. Treasurer Diossa maintained a neutral stance on the legislation, which failed to advance to a vote during the previous legislative session.
Political Stakes in the 2026 Democratic Primary
The endorsement event featured leaders of labor unions that have already endorsed McKee’s reelection campaign. McKee framed the policy as a correction to past legislative measures championed fifteen years prior by then-Treasurer Gina Raimondo. “Fifteen years ago, a promise was taken away from our workers,” McKee stated at the campaign event, as reported by WPRI. “They didn’t break that promise – they kept showing up and doing the job anyway.”
The debate arrives as Rhode Island confronts structural fiscal challenges, including a projected $260 million budget deficit for the 2027–28 fiscal year that the next governor must address. Meanwhile, primary opponent Helena Foulkes had not issued a public statement on the pension proposal as of Thursday evening, according to WPRI, while early voting for the September 9 primary is already underway.
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