Gov. Lincoln Chafee and General Treasurer Gina Raimondo on Friday announced the settlement agreement failed and mediation ended "due to a small group of union members." They called it "disappointing and frustrating."
The plaintiffs issued a statement saying the state ended the mediation. Chafee's spokeswoman would not comment.
The law was designed to save the state billions, but public-sector unions and retirees sued.
A proposed settlement was announced in February, but police union members, the smallest of the six groups that had to approve the proposal, rejected it. The judge then ordered continued mediation.