Central Falls Bankruptcy Casts Pall on Rhode Island Pensions
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Central Falls, Rhode Island, whose motto is “a city with a bright future,” has cast a shadow across the rest of the state by entering bankruptcy.
Rhode Island’s poorest city sought court protection yesterday after retirees failed to accept cuts in pensions and benefits. That pushed the municipality into insolvency, according to Robert Flanders, a former state Supreme Court justice named to oversee Central Falls finances earlier this year. The city asked the court to let it impose “a prudent plan” to adjust what it pays retired workers.