(Reuters) – A lawsuit by retired Rhode Island public employees over the state’s sweeping 2011 pension system overhaul will continue after a judge on Wednesday rejected a move by state officials to have the case thrown out. Superior Court Associate Justice Sarah Taft-Carter found that the retirees’ pension benefits, for which they had previously bargained, suggested enough of a contractual relationship with the state for their claims to continue. Rhode Island’s 2011 pension overhaul, considered among the most far-reaching in the United States, has been used by other state and local governments as a model to rein in the ballooning cost of retirement benefits for public-sector workers. But pension changes also prompted public employees’ unions to sue on the grounds their retirement benefits were contractual relationships that were allegedly violated by reforms. “These retired workers lived up to their end of the deal by dutifully paying into a pension system that was promised to be there when they needed it,” said plaintiffs’ spokesman Ray Sullivan.

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