A ruling from a Rhode Island judge will allow a lawsuit file by eight public sector unions to proceed. The judge ruled that pension benefits are an implied contract between the state and employees. The unions are suing to stop recent cuts to pensions. In order to cut the benefits, Rhode Island will have to show that it has no other good alternative. Rhode Island's unfunded pension liability is estimated to be $7 billion, and lawmakers say that they need to find a way to reduce that and other spending.
See "RI judge hands unions a victory in pension suit", David Klepper, The Boston Globe, September 12, 2011