"Hope" is Rhode Island's state motto-- and also its pension accrual method.
Newport, Rhode Island. Image via Wikipedia.
Yesterday the state's treasurer admitted it had been contacted by the SEC and asked for documents. Observers speculate the investigation will focus on disclosures in offering documents relating to the state's public employee pension debt.
Rhode Island has used a technique similar one used by Illinois-- booking big savings for pension reforms it passed, even though the reforms only apply to new workers being hired by the state. Last month the New York Times reported Illinois was under investigation for the practice.
All of this follows on the heels of the SEC citing New Jersey in August for misleading investors in its municipal bonds about the state of its pension system funding.
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