Reduces the number of years from five (5) to three (3), when calculating for retirement purposes, the average of the highest consecutive years of compensation, for state and municipal employees.
If enacted, S2957 will significantly alter the existing retirement benefit calculations for public employees in Rhode Island. The change from a five-year to a three-year average is intended to reflect a more equitable system for those who may serve shorter terms in public service roles. This modification is likely to increase the retirement benefits for new retirees and encourage public service employment by making it potentially more attractive for employees.
S2957 is a legislative act that proposes changes to the retirement calculation for state and municipal employees in Rhode Island. Specifically, the bill reduces the number of years from five to three when determining the average of the highest consecutive years of compensation for calculating retirement benefits for employees. This change is aimed at making the retirement system more accessible and beneficial for employees who may not have lengthy tenures in the public sector.
While proponents argue that this amendment will foster a more appealing retirement system for public employees, critics may express concerns about the long-term financial sustainability of the retirement system. They may argue that reducing the period for compensation calculations could strain municipal budgets and retirement fund reserves. The discussion around this bill could center on balancing fair benefits for employees against the fiscal responsibilities of state and local governments.