PROVIDENCE — With House Speaker William J. Murphy saying “the state must reduce the high cost of its employee pension system,” a 19-member pension-study commission met for the first time yesterday with glum union leaders on one side, lawyers and accountants on the other and a smattering of legislators in the middle.

In a rare appearance in a House hearing room, Murphy sat behind the microphone to remind the panel the state is facing what he called “a major, major deficit.” Without prejudging where the panel inquiry may lead, he said he was looking to have “some answers and directions from it” by May 15.

He said his only charge to the panel was “to do what’s best” for Rhode Island.

The study marks the second time in recent years the lawmakers have embarked on pension overhaul. In 2005, they raised the minimum retirement age-and-work requirements for new employees and those not yet vested in an effort to save millions of dollars. But the state’s annual pension costs went up nonetheless, as did its unfunded liability to its current and future retirees, which stands at $4.9 billion.

When he launched the commission, Murphy said he expects it to consider options to either finance that debt or reduce it, since the state has difficulty finding the money to meet those obligations each year.

“Given the state’s financial situation, we can’t afford not to consider every option that might result in some savings. The pension system represents a sizable chunk of the state’s budget and its debt, and I have no doubt that there are many ways that it could be changed to make it less of a burden on the state budget each year,” he said.

“Doing that in a way that is fair to the employees and retirees who have worked for years and contributed to the pension system — as well as to the taxpayers — will be one of the major tasks taken on by the House this year,” he said in a recent statement released by the legislative press office.

State workers contribute 8.75 percent of their pay.

But the state is paying more than twice that — 20.77 percent of payroll this year and a projected 21.13 percent next year — to finance the defined-benefit packages crafted for the workers in flusher times that pay longtime workers here more in retirement than they would get in any other New England state.

In dollars and cents, the state’s annual cost for these benefits has skyrocketed from $31.8 million in fiscal year 2002 to $135.6 million this year, to an anticipated $148.2 million next year for state employees alone. The state’s share of the state and local pension tab for retired public school teachers spiraled during this same six-year period — from $30.7 million to $80.2 million this year, to a projected $94.8 million next year.

As its first order of business, the panel elected Murphy’s fellow West Warwick Democrat — Rep. Timothy A. Williamson — as its chairman, and he, in turn, told the panel that part of its job will be to “demystify” the state’s multi-tiered public employee pension system. Williamson doubles as West Warwick town solicitor.

According to the speaker’s office, the panel, when fully assembled, will include: Representatives Nicholas A. Mattiello, D-Cranston; Gregory J. Schadone, D-North Providence; Elaine A. Coderre, D-Pawtucket; Steven John Coaty, R-Newport; John J. Loughlin II, R-Tiverton; Peter L. Lewiss, D-Westerly; Mark Dingley, chief of staff to the state treasurer; state police Inspector Stephen Bannon; accountants Grafton “Cap” Willey of Tofias Rhode Island and Edward Sullivan of KPMG; George Nee, secretary-treasurer of the AFL-CIO; J. Michael Downey, president Council 94, American Federation of State, County & Municipal Employees; Robert A. Walsh Jr., executive director of the National Education Association of Rhode Island; District Court Judge Elaine Bucci; Providence Mayor David N. Cicilline; Cumberland Mayor Daniel J. McKee; lawyer Jeffrey A. Mega from Hinkley, Allen & Snyder; and lawyer David C. Morganelli from Partridge, Snow and Hahn to represent the Greater Providence Chamber of Commerce.

kgregg@projo.com