Retirement System -- Membership And Service Credits
Impact
The bill introduces a financial cost for members wishing to purchase military service credits, which is set at ten percent of the member’s first year earnings as a state employee, multiplied by the years of military service credit requested. However, the bill also includes provisions that exempt specific roles within public safety—such as state police officers and municipal police—from these costs and interest charges. This exemption aims to support public safety professionals in recognizing their military service in their retirement benefits without the associated costs.
Summary
House Bill 7498 is an act that amends the definitions regarding membership and service credits within the Rhode Island Retirement System. Specifically, the bill allows active members who have served in the armed services or the Merchant Marine to purchase credit for their military service, capped at a maximum of four years. This option is only available to those who have received an honorable discharge. Importantly, the bill stipulates that members who are on an official leave of absence due to illness or injury will also be eligible to purchase military credits during their absence.
Contention
A notable point of contention surrounding HB 7498 lies in its cost implications for state employees and how it affects their retirement planning. While proponents argue that allowing the purchase of military service credits is a fair recognition of service, detractors may raise concerns over the financial burden placed on members who wish to maximize their retirement benefits. Furthermore, the exemption for public safety roles could lead to discussions about equity within the retirement system, highlighting disparities between different classes of state employees.
Allows members of the retirement system who served in the national guard or reserves and qualify as veterans, to purchase retirement service credits based on their years of service in the National guard or reserves.
Allows members of the retirement system who served in the national guard or reserves and qualify as veterans, to purchase retirement service credits based on their years of service in the National guard or reserves.
Public retirement systems; Oklahoma Law Enforcement Retirement System; membership; school district board; elections; service credit; effective date; emergency.
Public retirement systems; Oklahoma Law Enforcement Retirement System; membership; school district board; elections; service credit; effective date; emergency.
Allows members of the retirement system who served in the national guard or reserves and who qualifies as veterans to purchase retirement service credits.