PROVIDENCE, R.I. (AP) – Rhode Island General Treasurer Paul Tavares has introduced a pension relief plan he said would save the state and municipalities at least $58 million next year.

The proposal would limit the cost-of-living allowances by having workers not retiring this fiscal year to wait until they reach 62 years of age before the allowance begins. The plan also allows workers with at least 20 years of service to retire at age 55, with a reduced pension. Tavares also would eliminate the Social Security Supplement, a bonus given to pensioners who retire years before they would be eligible for Social Security.

Gov. Don Carcieri in January made public his pension reform plan he said would save $256 million during the next five years. Among the highlights, state employees would have to work 30 years before receiving a pension.

up from 28 years. Workers could not draw from the plan until they reach 60 years of age, and pensioners would be paid a maximum 75 percent of their final salary, down from 80 percent under the current system.

Tavares and Carcieri want to tie the cost-of-living increase to the rate of inflation, and abandon the current fixed, 3-percent rate for retirees.

House Majority Leader Gordon Fox said legislative leaders would have their own proposal in the next several weeks.

AP-ES-03-25-05 0736EST