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| 4 | 4 | | |
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| 5 | 5 | | 2023 -- H 6006 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC002423 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO EDUCATION -- TEACHERS' RETIREMENT |
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| 16 | 16 | | Introduced By: Representatives O'Brien, Casey, Kazarian, Casimiro, McEntee, Craven, |
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| 17 | 17 | | Caldwell, Dawson, Serpa, and Bennett |
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| 18 | 18 | | Date Introduced: March 01, 2023 |
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| 19 | 19 | | Referred To: House Finance |
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| 20 | 20 | | (General Treasurer) |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Section 16-16-40 of the General Laws in Chapter 16-16 entitled "Teachers’ 1 |
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| 24 | 24 | | Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby 2 |
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| 25 | 25 | | amended to read as follows: 3 |
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| 26 | 26 | | 16-16-40. Additional benefits payable to retired teachers. 4 |
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| 27 | 27 | | (a) All teachers and all beneficiaries of teachers receiving any service retirement or 5 |
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| 28 | 28 | | ordinary or accidental disability retirement allowance pursuant to the provisions of this chapter and 6 |
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| 29 | 29 | | chapter 17 of this title, on or before December 31, 1967, shall receive a cost of living retirement 7 |
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| 30 | 30 | | adjustment equal to one and one-half percent (1.5%) per year of the original retirement allowance, 8 |
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| 31 | 31 | | not compounded, for each year the retirement allowance has been in effect. For purposes of 9 |
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| 32 | 32 | | computation credit shall be given for a full calendar year regardless of the effective date of the 10 |
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| 33 | 33 | | retirement allowance. This cost of living retirement adjustment shall be added to the amount of the 11 |
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| 34 | 34 | | service retirement allowance as of January 1, 1970, and payment shall begin as of July 1, 1970. An 12 |
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| 35 | 35 | | additional cost of living retirement adjustment shall be added to the original retirement allowance 13 |
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| 36 | 36 | | equal to three percent (3%) of the original retirement allowance on the first day of January, 1971, 14 |
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| 37 | 37 | | and each year thereafter through December 31, 1980. 15 |
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| 38 | 38 | | (b) All teachers and beneficiaries of teachers receiving any service retirement or ordinary 16 |
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| 39 | 39 | | disability retirement allowance pursuant to the provisions of this title who retired on or after January 17 |
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| 40 | 40 | | 1, 1968, shall, on the first day of January, next following the third (3rd) year on retirement, receive 18 |
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| 41 | 41 | | a cost of living adjustment, in addition to his or her retirement allowance, an amount equal to three 19 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | LC002423 - Page 2 of 17 |
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| 45 | 45 | | percent (3%) of the original retirement allowance. In each succeeding year thereafter, on the first 1 |
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| 46 | 46 | | day of January, the retirement allowance shall be increased an additional three percent (3%) of the 2 |
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| 47 | 47 | | original retirement allowance, not compounded, to be continued through December 31, 1980. 3 |
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| 48 | 48 | | (c)(1) Beginning on January 1, 1981, for all teachers and beneficiaries of teachers receiving 4 |
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| 49 | 49 | | any service retirement and all teachers and all beneficiaries of teachers who have completed at least 5 |
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| 50 | 50 | | ten (10) years of contributory service on or before July 1, 2005, pursuant to the provisions of this 6 |
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| 51 | 51 | | chapter, and for all teachers and beneficiaries of teachers who receive a disability retirement 7 |
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| 52 | 52 | | allowance pursuant to §§ 16-16-14 — 16-16-17, the cost of living adjustment shall be computed 8 |
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| 53 | 53 | | and paid at the rate of three percent (3%) of the original retirement allowance or the retirement 9 |
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| 54 | 54 | | allowance as computed in accordance with § 16-16-40.1, compounded annually from the year for 10 |
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| 55 | 55 | | which the cost of living adjustment was determined to be payable by the retirement board pursuant 11 |
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| 56 | 56 | | to the provisions of subsection (a) or (b) of this section. Such cost of living adjustments are available 12 |
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| 57 | 57 | | to teachers who retire before October 1, 2009, or are eligible to retire as of September 30, 2009. 13 |
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| 58 | 58 | | (2) The provisions of this subsection shall be deemed to apply prospectively only and no 14 |
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| 59 | 59 | | retroactive payment shall be made. 15 |
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| 60 | 60 | | (3) The retirement allowance of all teachers and all beneficiaries of teachers who have not 16 |
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| 61 | 61 | | completed at least ten (10) years of contributory service on or before July 1, 2005, or were not 17 |
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| 62 | 62 | | eligible to retire as of September 30, 2009, shall, on the month following the third anniversary date 18 |
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| 63 | 63 | | of the retirement, and on the month following the anniversary date of each succeeding year be 19 |
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| 64 | 64 | | adjusted and computed by multiplying the retirement allowance by three percent (3%) or the 20 |
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| 65 | 65 | | percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published 21 |
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| 66 | 66 | | by the United States Department of Labor Statistics, determined as of September 30 of the prior 22 |
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| 67 | 67 | | calendar year, whichever is less; the cost of living adjustment shall be compounded annually from 23 |
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| 68 | 68 | | the year for which the cost of living adjustment was determined payable by the retirement board; 24 |
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| 69 | 69 | | provided, that no adjustment shall cause any retirement allowance to be decreased from the 25 |
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| 70 | 70 | | retirement allowance provided immediately before such adjustment. 26 |
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| 71 | 71 | | (d) For teachers not eligible to retire in accordance with this chapter as of September 30, 27 |
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| 72 | 72 | | 2009, and not eligible upon passage of this article, and for their beneficiaries, the cost of living 28 |
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| 73 | 73 | | adjustment described in subsection (3) above shall only apply to the first thirty-five thousand 29 |
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| 74 | 74 | | dollars ($35,000) of retirement allowance, indexed annually, and shall commence upon the third 30 |
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| 75 | 75 | | (3rd) anniversary of the date of retirement or when the retiree reaches age sixty-five (65), whichever 31 |
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| 76 | 76 | | is later. The thirty-five thousand dollar ($35,000) limit shall increase annually by the percentage 32 |
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| 77 | 77 | | increase in the Consumer Price Index for all Urban Consumer (CPI-U) as published by the United 33 |
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| 78 | 78 | | States Department of Labor Statistics determined as of September 30 of the prior calendar year or 34 |
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| 79 | 79 | | |
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| 80 | 80 | | |
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| 81 | 81 | | LC002423 - Page 3 of 17 |
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| 82 | 82 | | three percent (3%), whichever is less. The first thirty-five thousand dollars ($35,000), as indexed, 1 |
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| 83 | 83 | | of retirement allowance shall be multiplied by the percentage of increase in the Consumer Price 2 |
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| 84 | 84 | | Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor 3 |
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| 85 | 85 | | Statistics determined as of September 30 of the prior calendar year or three percent (3%), whichever 4 |
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| 86 | 86 | | is less, on the month following the anniversary date of each succeeding year. For teachers eligible 5 |
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| 87 | 87 | | to retire as of September 30, 2009, or eligible upon passage of this article, and for their 6 |
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| 88 | 88 | | beneficiaries, the provisions of this subsection (d) shall not apply. 7 |
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| 89 | 89 | | (e) The provisions of §§ 45-13-7 — 45-13-10 shall not apply to this section. 8 |
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| 90 | 90 | | (f) This subsection (f) shall be effective for the period July 1, 2012, through June 30, 2015. 9 |
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| 91 | 91 | | (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (f)(2) 10 |
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| 92 | 92 | | below, for all present and former teachers, active and retired teachers, and beneficiaries receiving 11 |
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| 93 | 93 | | any retirement, disability or death allowance or benefit of any kind, the annual benefit adjustment 12 |
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| 94 | 94 | | provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A) 13 |
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| 95 | 95 | | is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the 14 |
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| 96 | 96 | | “subtrahend”) from the Five-Year Average Investment Return of the retirement system determined 15 |
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| 97 | 97 | | as of the last day of the plan year preceding the calendar year in which the adjustment is granted, 16 |
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| 98 | 98 | | said percentage not to exceed four percent (4%) and not to be less than zero percent (0%), and (B) 17 |
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| 99 | 99 | | is equal to the lesser of the teacher’s retirement allowance or the first twenty-five thousand dollars 18 |
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| 100 | 100 | | ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000) amount to be 19 |
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| 101 | 101 | | indexed annually in the same percentage as determined under paragraph (f)(1)(A) above. The 20 |
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| 102 | 102 | | “Five-Year Average Investment Return” shall mean the average of the investment returns of the 21 |
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| 103 | 103 | | most recent five (5) plan years as determined by the retirement board. Subject to paragraph (f)(2) 22 |
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| 104 | 104 | | below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd) 23 |
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| 105 | 105 | | anniversary of the date of retirement or the date on which the retiree reaches his or her Social 24 |
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| 106 | 106 | | Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially 25 |
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| 107 | 107 | | assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted 26 |
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| 108 | 108 | | either upward or downward in the same amount. 27 |
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| 109 | 109 | | (2) Except as provided in paragraph (f)(3), the benefit adjustments under this section for 28 |
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| 110 | 110 | | any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees’ 29 |
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| 111 | 111 | | Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police 30 |
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| 112 | 112 | | Retirement Benefits Trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty 31 |
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| 113 | 113 | | percent (80%) in which event the benefit adjustment will be reinstated for all teachers for such plan 32 |
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| 114 | 114 | | year. 33 |
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| 115 | 115 | | In determining whether a funding level under this paragraph (f)(2) has been achieved, the 34 |
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| 116 | 116 | | |
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| 117 | 117 | | |
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| 118 | 118 | | LC002423 - Page 4 of 17 |
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| 119 | 119 | | actuary shall calculate the funding percentage after taking into account the reinstatement of any 1 |
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| 120 | 120 | | current or future benefit adjustment provided under this section. 2 |
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| 121 | 121 | | (3) Notwithstanding paragraph (f)(2), in each fifth plan year commencing after June 30, 3 |
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| 122 | 122 | | 2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five 4 |
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| 123 | 123 | | plan years, a benefit adjustment shall be calculated and made in accordance with paragraph (f)(1) 5 |
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| 124 | 124 | | above until the Funded Ratio of the Employees’ Retirement System of Rhode Island, the Judicial 6 |
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| 125 | 125 | | Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by the 7 |
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| 126 | 126 | | system’s actuary on an aggregate basis, exceeds eighty percent (80%). 8 |
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| 127 | 127 | | (4) Notwithstanding any other provisions of this chapter, the provisions of this paragraph 9 |
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| 128 | 128 | | (f) of § 16-16-40 shall become effective July 1, 2012, and shall apply to any benefit adjustments 10 |
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| 129 | 129 | | not granted on or prior to June 30, 2012. 11 |
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| 130 | 130 | | (g) This subsection (g) shall become effective July 1, 2015. 12 |
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| 131 | 131 | | (1)(A) As soon as administratively reasonable following the enactment into law of this 13 |
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| 132 | 132 | | subsection (g)(1)(A), a one-time benefit adjustment shall be provided to teachers and/or 14 |
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| 133 | 133 | | beneficiaries of teachers who retired on or before June 30, 2012, in the amount of two percent (2%) 15 |
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| 134 | 134 | | of the lesser of either the teacher’s retirement allowance or the first twenty-five thousand dollars 16 |
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| 135 | 135 | | ($25,000) of the teacher’s retirement allowance. This one-time benefit adjustment shall be provided 17 |
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| 136 | 136 | | without regard to the retiree’s age or number of years since retirement. 18 |
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| 137 | 137 | | (B) Notwithstanding the prior subsections of this section, for all present and former 19 |
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| 138 | 138 | | teachers, active and retired teachers, and beneficiaries receiving any retirement, disability or death 20 |
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| 139 | 139 | | allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year under 21 |
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| 140 | 140 | | this section for adjustments on and after January 1, 2016, and subject to subsection (g)(2) below, 22 |
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| 141 | 141 | | shall be equal to (I) multiplied by (II): 23 |
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| 142 | 142 | | (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where: 24 |
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| 143 | 143 | | (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%) 25 |
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| 144 | 144 | | (the “subtrahend”) from the five-year average investment return of the retirement system 26 |
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| 145 | 145 | | determined as of the last day of the plan year preceding the calendar year in which the adjustment 27 |
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| 146 | 146 | | is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent 28 |
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| 147 | 147 | | (0%). The “five-year average investment return” shall mean the average of the investment returns 29 |
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| 148 | 148 | | of the most recent five (5) plan years as determined by the retirement board. In the event the 30 |
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| 149 | 149 | | retirement board adjusts the actuarially assumed rate of return for the system, either upward or 31 |
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| 150 | 150 | | downward, the subtrahend shall be adjusted either upward or downward in the same amount. 32 |
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| 151 | 151 | | (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer 33 |
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| 152 | 152 | | Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor 34 |
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| 153 | 153 | | |
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| 154 | 154 | | |
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| 155 | 155 | | LC002423 - Page 5 of 17 |
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| 156 | 156 | | Statistics determined as of September 30 of the prior calendar year. 1 |
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| 157 | 157 | | In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be less 2 |
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| 158 | 158 | | than (0%) percent. 3 |
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| 159 | 159 | | (II) is equal to the lesser of either the teacher’s retirement allowance or the first twenty-4 |
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| 160 | 160 | | five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount 5 |
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| 161 | 161 | | to be indexed annually in the same percentage as determined under subsection (g)(1)(B)(I) above. 6 |
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| 162 | 162 | | The benefit adjustments provided by this subsection (g)(1)(B) shall be provided to all 7 |
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| 163 | 163 | | retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect, 8 |
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| 164 | 164 | | and for all other retirees the benefit adjustments shall commence upon the third anniversary of the 9 |
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| 165 | 165 | | date of retirement or the date on which the retiree reaches his or her Social Security retirement age, 10 |
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| 166 | 166 | | whichever is later. 11 |
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| 167 | 167 | | (2) Except as provided in subsection (g)(3), the benefit adjustments under subsection 12 |
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| 168 | 168 | | (g)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the 13 |
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| 169 | 169 | | employees’ retirement system of Rhode Island, the judicial retirement benefits trust and the state 14 |
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| 170 | 170 | | police retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds 15 |
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| 171 | 171 | | eighty percent (80%) in which event the benefit adjustment will be reinstated for all teachers for 16 |
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| 172 | 172 | | such plan year. 17 |
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| 173 | 173 | | In determining whether a funding level under this subsection (g)(2) has been achieved, the 18 |
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| 174 | 174 | | actuary shall calculate the funding percentage after taking into account the reinstatement of any 19 |
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| 175 | 175 | | current or future benefit adjustment provided under this section. 20 |
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| 176 | 176 | | (3) Notwithstanding subsection (g)(2), in each fourth plan year commencing after June 30, 21 |
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| 177 | 177 | | 2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four 22 |
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| 178 | 178 | | plan years: (i) A benefit adjustment shall be calculated and made in accordance with subsection 23 |
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| 179 | 179 | | (g)(1)(B) above; and (ii) Effective for teachers and/or beneficiaries of teachers who retired on or 24 |
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| 180 | 180 | | before June 30, 2015, the dollar amount in subsection (g)(1)(B)(II) of twenty-five thousand eight 25 |
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| 181 | 181 | | hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six 26 |
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| 182 | 182 | | dollars ($31,026)until the funded ratio of the employees’ retirement system of Rhode Island, the 27 |
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| 183 | 183 | | judicial retirement benefits trust and the state police retirement benefits trust, calculated by the 28 |
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| 184 | 184 | | system’s actuary on an aggregate basis, exceeds eighty percent (80%). 29 |
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| 185 | 185 | | (4) Effective for teachers and or beneficiaries of teachers who have retired on or before 30 |
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| 186 | 186 | | July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60) 31 |
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| 187 | 187 | | days following the enactment of the legislation implementing this provision, and a second one-time 32 |
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| 188 | 188 | | stipend of five hundred dollars ($500) in the same month of the following year. These stipends 33 |
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| 189 | 189 | | shall be payable to all retired teachers or beneficiaries receiving a benefit as of the applicable 34 |
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| 190 | 190 | | |
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| 191 | 191 | | |
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| 192 | 192 | | LC002423 - Page 6 of 17 |
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| 193 | 193 | | payment date and shall not be considered cost of living adjustments under the prior provisions of 1 |
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| 194 | 194 | | this § 16-16-40. 2 |
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| 195 | 195 | | (h) An additional one-time allowance shall be paid to eligible members of the retirement 3 |
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| 196 | 196 | | system, or any beneficiary of such member, in accordance with the provisions of this subsection. 4 |
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| 197 | 197 | | (1) Effective for eligible members and/or beneficiaries of members a one-time allowance 5 |
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| 198 | 198 | | of five hundred dollars ($500). 6 |
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| 199 | 199 | | (2) For purposes of this subsection an "eligible member" is a retired member of the 7 |
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| 200 | 200 | | retirement system, or any beneficiary of such member, that has retired on or before July 1, 2022. 8 |
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| 201 | 201 | | (3) The allowances provided under this subsection shall be payable as soon as 9 |
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| 202 | 202 | | administratively reasonable following the effective date of this subsection. 10 |
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| 203 | 203 | | (4) The allowances provided under this subsection shall be payable to eligible members or 11 |
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| 204 | 204 | | beneficiaries receiving a benefit as of the payment date and shall not be considered cost of living 12 |
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| 205 | 205 | | adjustments under the prior provisions of this section. 13 |
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| 206 | 206 | | (5) The provisions of this subsection shall be paid from the state's general fund, subject to 14 |
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| 207 | 207 | | an appropriation by the general assembly. 15 |
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| 208 | 208 | | SECTION 2. Section 36-10-35 of the General Laws in Chapter 36-10 entitled "Retirement 16 |
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| 209 | 209 | | System — Contributions and Benefits" is hereby amended to read as follows: 17 |
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| 210 | 210 | | 36-10-35. Additional benefits payable to retired employees. 18 |
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| 211 | 211 | | (a) All state employees and all beneficiaries of state employees receiving any service 19 |
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| 212 | 212 | | retirement or ordinary or accidental disability retirement allowance pursuant to the provisions of 20 |
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| 213 | 213 | | this title on or before December 31, 1967, shall receive a cost of living retirement adjustment equal 21 |
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| 214 | 214 | | to one and one-half percent (1.5%) per year of the original retirement allowance, not compounded, 22 |
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| 215 | 215 | | for each calendar year the retirement allowance has been in effect. For the purposes of computation, 23 |
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| 216 | 216 | | credit shall be given for a full calendar year regardless of the effective date of the retirement 24 |
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| 217 | 217 | | allowance. This cost of living adjustment shall be added to the amount of the retirement allowance 25 |
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| 218 | 218 | | as of January 1, 1968, and an additional one and one-half percent (1.5%) shall be added to the 26 |
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| 219 | 219 | | original retirement allowance in each succeeding year during the month of January, and provided 27 |
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| 220 | 220 | | further, that this additional cost of living increase shall be three percent (3%) for the year beginning 28 |
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| 221 | 221 | | January 1, 1971, and each year thereafter, through December 31, 1980. Notwithstanding any of the 29 |
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| 222 | 222 | | above provisions, no employee receiving any service retirement allowance pursuant to the 30 |
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| 223 | 223 | | provisions of this title on or before December 31, 1967, or the employee’s beneficiary, shall receive 31 |
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| 224 | 224 | | any additional benefit hereunder in an amount less than two hundred dollars ($200) per year over 32 |
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| 225 | 225 | | the service retirement allowance where the employee retired prior to January 1, 1958. 33 |
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| 226 | 226 | | (b) All state employees and all beneficiaries of state employees retired on or after January 34 |
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| 227 | 227 | | |
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| 228 | 228 | | |
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| 229 | 229 | | LC002423 - Page 7 of 17 |
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| 230 | 230 | | 1, 1968, who are receiving any service retirement or ordinary or accidental disability retirement 1 |
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| 231 | 231 | | allowance pursuant to the provisions of this title shall, on the first day of January next following 2 |
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| 232 | 232 | | the third anniversary date of the retirement, receive a cost of living retirement adjustment, in 3 |
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| 233 | 233 | | addition to his or her retirement allowance, in an amount equal to three percent (3%) of the original 4 |
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| 234 | 234 | | retirement allowance. In each succeeding year thereafter through December 31, 1980, during the 5 |
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| 235 | 235 | | month of January, the retirement allowance shall be increased an additional three percent (3%) of 6 |
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| 236 | 236 | | the original retirement allowance, not compounded, to be continued during the lifetime of the 7 |
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| 237 | 237 | | employee or beneficiary. For the purposes of computation, credit shall be given for a full calendar 8 |
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| 238 | 238 | | year regardless of the effective date of the service retirement allowance. 9 |
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| 239 | 239 | | (c)(1) Beginning on January 1, 1981, for all state employees and beneficiaries of the state 10 |
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| 240 | 240 | | employees receiving any service retirement and all state employees, and all beneficiaries of state 11 |
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| 241 | 241 | | employees, who have completed at least ten (10) years of contributory service on or before July 1, 12 |
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| 242 | 242 | | 2005, pursuant to the provisions of this chapter, and for all state employees, and all beneficiaries 13 |
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| 243 | 243 | | of state employees who receive a disability retirement allowance pursuant to §§ 36-10-12 — 36-14 |
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| 244 | 244 | | 10-15, the cost of living adjustment shall be computed and paid at the rate of three percent (3%) of 15 |
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| 245 | 245 | | the original retirement allowance or the retirement allowance as computed in accordance with § 16 |
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| 246 | 246 | | 36-10-35.1, compounded annually from the year for which the cost of living adjustment was 17 |
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| 247 | 247 | | determined to be payable by the retirement board pursuant to the provisions of subsection (a) or (b) 18 |
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| 248 | 248 | | of this section. Such cost of living adjustments are available to members who retire before October 19 |
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| 249 | 249 | | 1, 2009, or are eligible to retire as of September 30, 2009. 20 |
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| 250 | 250 | | (2) The provisions of this subsection shall be deemed to apply prospectively only and no 21 |
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| 251 | 251 | | retroactive payment shall be made. 22 |
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| 252 | 252 | | (3) The retirement allowance of all state employees and all beneficiaries of state employees 23 |
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| 253 | 253 | | who have not completed at least ten (10) years of contributory service on or before July 1, 2005, or 24 |
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| 254 | 254 | | were not eligible to retire as of September 30, 2009, shall, on the month following the third 25 |
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| 255 | 255 | | anniversary date of retirement, and on the month following the anniversary date of each succeeding 26 |
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| 256 | 256 | | year be adjusted and computed by multiplying the retirement allowance by three percent (3%) or 27 |
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| 257 | 257 | | the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as 28 |
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| 258 | 258 | | published by the United States Department of Labor Statistics determined as of September 30 of 29 |
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| 259 | 259 | | the prior calendar year, whichever is less; the cost of living adjustment shall be compounded 30 |
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| 260 | 260 | | annually from the year for which the cost of living adjustment was determined payable by the 31 |
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| 261 | 261 | | retirement board; provided, that no adjustment shall cause any retirement allowance to be decreased 32 |
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| 262 | 262 | | from the retirement allowance provided immediately before such adjustment. 33 |
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| 263 | 263 | | (d) For state employees not eligible to retire in accordance with this chapter as of 34 |
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| 264 | 264 | | |
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| 265 | 265 | | |
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| 266 | 266 | | LC002423 - Page 8 of 17 |
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| 267 | 267 | | September 30, 2009, and not eligible upon passage of this article, and for their beneficiaries, the 1 |
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| 268 | 268 | | cost of living adjustment described in subsection (c)(3) of this section shall only apply to the first 2 |
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| 269 | 269 | | thirty-five thousand dollars ($35,000) of retirement allowance, indexed annually, and shall 3 |
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| 270 | 270 | | commence upon the third (3rd) anniversary of the date of retirement or when the retiree reaches 4 |
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| 271 | 271 | | age sixty-five (65), whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase 5 |
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| 272 | 272 | | annually by the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-6 |
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| 273 | 273 | | U) as published by the United States Department of Labor Statistics determined as of September 7 |
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| 274 | 274 | | 30 of the prior calendar year or three percent (3%), whichever is less. The first thirty-five thousand 8 |
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| 275 | 275 | | dollars ($35,000) of retirement allowance, as indexed, shall be multiplied by the percentage of 9 |
|---|
| 276 | 276 | | increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United 10 |
|---|
| 277 | 277 | | States Department of Labor Statistics determined as of September 30 of the prior calendar year or 11 |
|---|
| 278 | 278 | | three percent (3%), whichever is less, on the month following the anniversary date of each 12 |
|---|
| 279 | 279 | | succeeding year. For state employees eligible to retire as of September 30, 2009, or eligible upon 13 |
|---|
| 280 | 280 | | passage of this article, and for their beneficiaries, the provisions of this subsection (d) shall not 14 |
|---|
| 281 | 281 | | apply. 15 |
|---|
| 282 | 282 | | (e) All legislators and all beneficiaries of legislators who are receiving a retirement 16 |
|---|
| 283 | 283 | | allowance pursuant to the provisions of § 36-10-9.1 for a period of three (3) or more years, shall, 17 |
|---|
| 284 | 284 | | commencing January 1, 1982, receive a cost of living retirement adjustment, in addition to a 18 |
|---|
| 285 | 285 | | retirement allowance, in an amount equal to three percent (3%) of the original retirement allowance. 19 |
|---|
| 286 | 286 | | In each succeeding year thereafter during the month of January, the retirement allowance shall be 20 |
|---|
| 287 | 287 | | increased an additional three percent (3%) of the original retirement allowance, compounded 21 |
|---|
| 288 | 288 | | annually, to be continued during the lifetime of the legislator or beneficiary. For the purposes of 22 |
|---|
| 289 | 289 | | computation, credit shall be given for a full calendar year regardless of the effective date of the 23 |
|---|
| 290 | 290 | | service retirement allowance. 24 |
|---|
| 291 | 291 | | (f) The provisions of §§ 45-13-7 — 45-13-10 shall not apply to this section. 25 |
|---|
| 292 | 292 | | (g) This subsection (g) shall be effective for the period July 1, 2012, through June 30, 2015. 26 |
|---|
| 293 | 293 | | (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (g)(2) 27 |
|---|
| 294 | 294 | | below, for all present and former employees, active and retired members, and beneficiaries 28 |
|---|
| 295 | 295 | | receiving any retirement, disability or death allowance or benefit of any kind, the annual benefit 29 |
|---|
| 296 | 296 | | adjustment provided in any calendar year under this section shall be equal to (A) multiplied by (B) 30 |
|---|
| 297 | 297 | | where (A) is equal to the percentage determined by subtracting five and one-half percent (5.5%) 31 |
|---|
| 298 | 298 | | (the “subtrahend”) from the Five-Year Average Investment Return of the retirement system 32 |
|---|
| 299 | 299 | | determined as of the last day of the plan year preceding the calendar year in which the adjustment 33 |
|---|
| 300 | 300 | | is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent 34 |
|---|
| 301 | 301 | | |
|---|
| 302 | 302 | | |
|---|
| 303 | 303 | | LC002423 - Page 9 of 17 |
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| 304 | 304 | | (0%), and (B) is equal to the lesser of the member’s retirement allowance or the first twenty-five 1 |
|---|
| 305 | 305 | | thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000) 2 |
|---|
| 306 | 306 | | amount to be indexed annually in the same percentage as determined under (g)(1)(A) above. The 3 |
|---|
| 307 | 307 | | “Five-Year Average Investment Return” shall mean the average of the investment returns of the 4 |
|---|
| 308 | 308 | | most recent five (5) plan years as determined by the retirement board. Subject to paragraph (g)(2) 5 |
|---|
| 309 | 309 | | below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd) 6 |
|---|
| 310 | 310 | | anniversary of the date of retirement or the date on which the retiree reaches his or her Social 7 |
|---|
| 311 | 311 | | Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially 8 |
|---|
| 312 | 312 | | assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted 9 |
|---|
| 313 | 313 | | either upward or downward in the same amount. 10 |
|---|
| 314 | 314 | | (2) Except as provided in paragraph (g)(3), the benefit adjustments under this section for 11 |
|---|
| 315 | 315 | | any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees’ 12 |
|---|
| 316 | 316 | | Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police 13 |
|---|
| 317 | 317 | | Retirement Benefits Trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty 14 |
|---|
| 318 | 318 | | percent (80%) in which event the benefit adjustment will be reinstated for all members for such 15 |
|---|
| 319 | 319 | | plan year. 16 |
|---|
| 320 | 320 | | In determining whether a funding level under this paragraph (g)(2) has been achieved, the 17 |
|---|
| 321 | 321 | | actuary shall calculate the funding percentage after taking into account the reinstatement of any 18 |
|---|
| 322 | 322 | | current or future benefit adjustment provided under this section. 19 |
|---|
| 323 | 323 | | (3) Notwithstanding paragraph (g)(2), in each fifth plan year commencing after June 30, 20 |
|---|
| 324 | 324 | | 2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five 21 |
|---|
| 325 | 325 | | plan years, a benefit adjustment shall be calculated and made in accordance with paragraph (g)(1) 22 |
|---|
| 326 | 326 | | above until the Funded Ratio of the Employees’ Retirement System of Rhode Island, the Judicial 23 |
|---|
| 327 | 327 | | Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by the 24 |
|---|
| 328 | 328 | | system’s actuary on an aggregate basis, exceeds eighty percent (80%). 25 |
|---|
| 329 | 329 | | (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph 26 |
|---|
| 330 | 330 | | (g) shall become effective July 1, 2012, and shall apply to any benefit adjustment not granted on or 27 |
|---|
| 331 | 331 | | prior to June 30, 2012. 28 |
|---|
| 332 | 332 | | (h) This subsection (h) shall become effective July 1, 2015. 29 |
|---|
| 333 | 333 | | (1)(A) As soon as administratively reasonable following the enactment into law of this 30 |
|---|
| 334 | 334 | | subsection (h)(1)(A), a one-time benefit adjustment shall be provided to members and/or 31 |
|---|
| 335 | 335 | | beneficiaries of members who retired on or before June 30, 2012, in the amount of 2% of the lesser 32 |
|---|
| 336 | 336 | | of either the member’s retirement allowance or the first twenty-five thousand dollars ($25,000) of 33 |
|---|
| 337 | 337 | | the member’s retirement allowance. This one-time benefit adjustment shall be provided without 34 |
|---|
| 338 | 338 | | |
|---|
| 339 | 339 | | |
|---|
| 340 | 340 | | LC002423 - Page 10 of 17 |
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| 341 | 341 | | regard to the retiree’s age or number of years since retirement. 1 |
|---|
| 342 | 342 | | (B) Notwithstanding the prior subsections of this section, for all present and former 2 |
|---|
| 343 | 343 | | employees, active and retired members, and beneficiaries receiving any retirement, disability or 3 |
|---|
| 344 | 344 | | death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year 4 |
|---|
| 345 | 345 | | under this section for adjustments on and after January 1, 2016, and subject to subsection (h)(2) 5 |
|---|
| 346 | 346 | | below, shall be equal to (I) multiplied by (II): 6 |
|---|
| 347 | 347 | | (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where: 7 |
|---|
| 348 | 348 | | (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%) 8 |
|---|
| 349 | 349 | | (the “subtrahend”) from the five-year average investment return of the retirement system 9 |
|---|
| 350 | 350 | | determined as of the last day of the plan year preceding the calendar year in which the adjustment 10 |
|---|
| 351 | 351 | | is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent 11 |
|---|
| 352 | 352 | | (0%). The “five-year average investment return” shall mean the average of the investment returns 12 |
|---|
| 353 | 353 | | of the most recent five (5) plan years as determined by the retirement board. In the event the 13 |
|---|
| 354 | 354 | | retirement board adjusts the actuarially assumed rate of return for the system, either upward or 14 |
|---|
| 355 | 355 | | downward, the subtrahend shall be adjusted either upward or downward in the same amount. 15 |
|---|
| 356 | 356 | | (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer 16 |
|---|
| 357 | 357 | | Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor 17 |
|---|
| 358 | 358 | | Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of (i) 18 |
|---|
| 359 | 359 | | plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%). 19 |
|---|
| 360 | 360 | | (II) Is equal to the lesser of either the member’s retirement allowance or the first twenty-20 |
|---|
| 361 | 361 | | five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount 21 |
|---|
| 362 | 362 | | to be indexed annually in the same percentage as determined under subsection (h)(1)(B)(I) above. 22 |
|---|
| 363 | 363 | | The benefit adjustments provided by this subsection (h)(1)(B) shall be provided to all 23 |
|---|
| 364 | 364 | | retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect, 24 |
|---|
| 365 | 365 | | and for all other retirees the benefit adjustments shall commence upon the third anniversary of the 25 |
|---|
| 366 | 366 | | date of retirement or the date on which the retiree reaches his or her Social Security retirement age, 26 |
|---|
| 367 | 367 | | whichever is later. 27 |
|---|
| 368 | 368 | | (2) Except as provided in subsection (h)(3) of this section, the benefit adjustments under 28 |
|---|
| 369 | 369 | | subsection (h)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio 29 |
|---|
| 370 | 370 | | of the employees’ retirement system of Rhode Island, the judicial retirement benefits trust and the 30 |
|---|
| 371 | 371 | | state police retirement benefits trust, calculated by the system’s actuary on an aggregate basis, 31 |
|---|
| 372 | 372 | | exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all 32 |
|---|
| 373 | 373 | | members for such plan year. 33 |
|---|
| 374 | 374 | | In determining whether a funding level under this subsection (h)(2) has been achieved, the 34 |
|---|
| 375 | 375 | | |
|---|
| 376 | 376 | | |
|---|
| 377 | 377 | | LC002423 - Page 11 of 17 |
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| 378 | 378 | | actuary shall calculate the funding percentage after taking into account the reinstatement of any 1 |
|---|
| 379 | 379 | | current or future benefit adjustment provided under this section. 2 |
|---|
| 380 | 380 | | (3) Notwithstanding subsection (h)(2), in each fourth plan year commencing after June 30, 3 |
|---|
| 381 | 381 | | 2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four 4 |
|---|
| 382 | 382 | | plan years: 5 |
|---|
| 383 | 383 | | (i) A benefit adjustment shall be calculated and made in accordance with subsection 6 |
|---|
| 384 | 384 | | (h)(1)(B) above; and 7 |
|---|
| 385 | 385 | | (ii) Effective for members and/or beneficiaries of members who retired on or before June 8 |
|---|
| 386 | 386 | | 30, 2015, the dollar amount in subsection (h)(1)(B)(II) of twenty-five thousand eight hundred and 9 |
|---|
| 387 | 387 | | fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six dollars 10 |
|---|
| 388 | 388 | | ($31,026) until the funded ratio of the employees’ retirement system of Rhode Island, the judicial 11 |
|---|
| 389 | 389 | | retirement benefits trust and the state police retirement benefits trust, calculated by the system’s 12 |
|---|
| 390 | 390 | | actuary on an aggregate basis, exceeds eighty percent (80%). 13 |
|---|
| 391 | 391 | | (i) Effective for members and/or beneficiaries of members who have retired on or before 14 |
|---|
| 392 | 392 | | July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60) 15 |
|---|
| 393 | 393 | | days following the enactment of the legislation implementing this provision, and a second one-time 16 |
|---|
| 394 | 394 | | stipend of five hundred dollars ($500) in the same month of the following year. These stipends 17 |
|---|
| 395 | 395 | | shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable 18 |
|---|
| 396 | 396 | | payment date and shall not be considered cost of living adjustments under the prior provisions of 19 |
|---|
| 397 | 397 | | this section. 20 |
|---|
| 398 | 398 | | (j) An additional one-time allowance shall be paid to eligible members of the retirement 21 |
|---|
| 399 | 399 | | system, or any beneficiary of such member, in accordance with the provisions of this subsection. 22 |
|---|
| 400 | 400 | | (1) Effective for eligible members and/or beneficiaries of members a one-time allowance 23 |
|---|
| 401 | 401 | | of five hundred dollars ($500). 24 |
|---|
| 402 | 402 | | (2) For purposes of this subsection an "eligible member" is a retired member of the 25 |
|---|
| 403 | 403 | | retirement system, or any beneficiary of such member, that has retired on or before July 1, 2022. 26 |
|---|
| 404 | 404 | | (3) The allowances provided under this subsection shall be payable as soon as 27 |
|---|
| 405 | 405 | | administratively reasonable following the effective date of this subsection. 28 |
|---|
| 406 | 406 | | (4) The allowances provided under this subsection shall be payable to eligible members or 29 |
|---|
| 407 | 407 | | beneficiaries receiving a benefit as of the payment date and shall not be considered cost of living 30 |
|---|
| 408 | 408 | | adjustments under the prior provisions of this section. 31 |
|---|
| 409 | 409 | | (5) The provisions of this subsection shall be paid from the state's general fund, subject to 32 |
|---|
| 410 | 410 | | an appropriation by the general assembly. 33 |
|---|
| 411 | 411 | | SECTION 3. Section 45-21-52 of the General Laws in Chapter 45-21 entitled "Retirement 34 |
|---|
| 412 | 412 | | |
|---|
| 413 | 413 | | |
|---|
| 414 | 414 | | LC002423 - Page 12 of 17 |
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| 415 | 415 | | of Municipal Employees" is hereby amended to read as follows: 1 |
|---|
| 416 | 416 | | 45-21-52. Automatic increase in service retirement allowance. 2 |
|---|
| 417 | 417 | | (a) The local legislative bodies of the cities and towns may extend to their respective 3 |
|---|
| 418 | 418 | | employees automatic adjustment increases in their service retirement allowances, by a resolution 4 |
|---|
| 419 | 419 | | accepting any of the plans described in this section: 5 |
|---|
| 420 | 420 | | (1) Plan A. All employees and beneficiaries of those employees receiving a service 6 |
|---|
| 421 | 421 | | retirement or disability retirement allowance under the provisions of this chapter on December 31 7 |
|---|
| 422 | 422 | | of the year their city or town accepts this section, receive a cost of living adjustment equal to one 8 |
|---|
| 423 | 423 | | and one-half percent (1 |
|---|
| 424 | 424 | | 1 |
|---|
| 425 | 425 | | /2%) per year of the original retirement allowance, not compounded, for 9 |
|---|
| 426 | 426 | | each calendar year the retirement allowance has been in effect. This cost of living adjustment is 10 |
|---|
| 427 | 427 | | added to the amount of the retirement allowance as of January 1 following acceptance of this 11 |
|---|
| 428 | 428 | | provision, and an additional one and one-half percent (1 |
|---|
| 429 | 429 | | 1 |
|---|
| 430 | 430 | | /2%) is added to the original retirement 12 |
|---|
| 431 | 431 | | allowance in each succeeding year during the month of January, and provided, further, that this 13 |
|---|
| 432 | 432 | | additional cost of living increase is three percent (3%) for the year beginning January 1 of the year 14 |
|---|
| 433 | 433 | | the plan is accepted and each succeeding year. 15 |
|---|
| 434 | 434 | | (2) Plan B. All employees and beneficiaries of those employees receiving a retirement 16 |
|---|
| 435 | 435 | | allowance under the provisions of this chapter on December 31 of the year their municipality 17 |
|---|
| 436 | 436 | | accepts this section, receive a cost of living adjustment equal to three percent (3%) of their original 18 |
|---|
| 437 | 437 | | retirement allowance. This adjustment is added to the amount of the retirement allowance as of 19 |
|---|
| 438 | 438 | | January 1 following acceptance of this provision, and an additional three percent (3%) of the 20 |
|---|
| 439 | 439 | | original retirement allowance, not compounded, is payable in each succeeding year in the month 21 |
|---|
| 440 | 440 | | of January. 22 |
|---|
| 441 | 441 | | (3) Plan C. All employees and beneficiaries of those employees who retire on or after 23 |
|---|
| 442 | 442 | | January 1 of the year following acceptance of this section, on the first day of January next following 24 |
|---|
| 443 | 443 | | the date of the retirement, receive a cost of living adjustment in an amount equal to three percent 25 |
|---|
| 444 | 444 | | (3%) of the original retirement allowance. 26 |
|---|
| 445 | 445 | | (b) In each succeeding year in the month of January, the retirement allowance is increased 27 |
|---|
| 446 | 446 | | an additional three percent (3%) of the original retirement allowance, not compounded. 28 |
|---|
| 447 | 447 | | (c) This subsection (c) shall be effective for the period July 1, 2012, through June 30, 2015. 29 |
|---|
| 448 | 448 | | (1) Notwithstanding any other paragraphs of this section, and subject to paragraph (c)(2) 30 |
|---|
| 449 | 449 | | below, for all present and former employees, active and retired members, and beneficiaries 31 |
|---|
| 450 | 450 | | receiving any retirement, disability or death allowance or benefit of any kind by reason of adoption 32 |
|---|
| 451 | 451 | | of this section by their employer, the annual benefit adjustment provided in any calendar year under 33 |
|---|
| 452 | 452 | | this section shall be equal to (A) multiplied by (B) where (A) is equal to the percentage determined 34 |
|---|
| 453 | 453 | | |
|---|
| 454 | 454 | | |
|---|
| 455 | 455 | | LC002423 - Page 13 of 17 |
|---|
| 456 | 456 | | by subtracting five and one-half percent (5.5%) (the “subtrahend”) from the Five-Year Average 1 |
|---|
| 457 | 457 | | Investment Return of the retirement system determined as of the last day of the plan year preceding 2 |
|---|
| 458 | 458 | | the calendar year in which the adjustment is granted, said percentage not to exceed four percent 3 |
|---|
| 459 | 459 | | (4%) and not to be less than zero percent (0%), and (B) is equal to the lesser of the member’s 4 |
|---|
| 460 | 460 | | retirement allowance or the first twenty-five thousand dollars ($25,000) of retirement allowance, 5 |
|---|
| 461 | 461 | | such twenty-five thousand dollars ($25,000) amount to be indexed annually in the same percentage 6 |
|---|
| 462 | 462 | | as determined under (c)(1)(A) above. The “Five-Year Average Investment Return” shall mean the 7 |
|---|
| 463 | 463 | | average of the investment returns of the most recent five (5) plan years as determined by the 8 |
|---|
| 464 | 464 | | retirement board. Subject to paragraph (c)(2) below, the benefit adjustment provided by this 9 |
|---|
| 465 | 465 | | paragraph shall commence upon the third (3rd) anniversary of the date of retirement or the date on 10 |
|---|
| 466 | 466 | | which the retiree reaches his or her Social Security retirement age, whichever is later; or for 11 |
|---|
| 467 | 467 | | municipal police and fire retiring under the provisions of chapter 45-21.2, the benefit adjustment 12 |
|---|
| 468 | 468 | | provided by this paragraph shall commence on the later of the third (3rd) anniversary of the date of 13 |
|---|
| 469 | 469 | | retirement or the date on which the retiree reaches age fifty-five (55). In the event the retirement 14 |
|---|
| 470 | 470 | | board adjusts the actuarially assumed rate of return for the system, either upward or downward, the 15 |
|---|
| 471 | 471 | | subtrahend shall be adjusted either upward or downward in the same amount. 16 |
|---|
| 472 | 472 | | (2) Except as provided in paragraph (c)(3) the benefit adjustments provided under this 17 |
|---|
| 473 | 473 | | section for any plan year shall be suspended in their entirety for each municipal plan within the 18 |
|---|
| 474 | 474 | | municipal employees retirement system unless the municipal plan is determined to be funded at a 19 |
|---|
| 475 | 475 | | Funded Ratio equal to or greater than eighty percent (80%) as of the end of the immediately 20 |
|---|
| 476 | 476 | | preceding plan year in accordance with the retirement system’s actuarial valuation report as 21 |
|---|
| 477 | 477 | | prepared by the system’s actuary, in which event the benefit adjustment will be reinstated for all 22 |
|---|
| 478 | 478 | | members for such plan year. 23 |
|---|
| 479 | 479 | | In determining whether a funding level under this paragraph (c)(2) has been achieved, the 24 |
|---|
| 480 | 480 | | actuary shall calculate the funding percentage after taking into account the reinstatement of any 25 |
|---|
| 481 | 481 | | current or future benefit adjustment provided under this section. 26 |
|---|
| 482 | 482 | | (3) Notwithstanding paragraph (c)(2), for each municipal plan that has a Funded Ratio of 27 |
|---|
| 483 | 483 | | less than eighty percent (80%) as of June 30, 2012, in each fifth plan year commencing after June 28 |
|---|
| 484 | 484 | | 30, 2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of 29 |
|---|
| 485 | 485 | | five (5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph 30 |
|---|
| 486 | 486 | | (c)(1) above until the municipal plan’s Funded Ratio exceeds eighty percent (80%). 31 |
|---|
| 487 | 487 | | (d) This subsection (d) shall become effective July 1, 2015. 32 |
|---|
| 488 | 488 | | (1)(A) As soon as administratively reasonable following the enactment into law of this 33 |
|---|
| 489 | 489 | | subsection (d)(1)(A), a one-time benefit adjustment shall be provided to members and/or 34 |
|---|
| 490 | 490 | | |
|---|
| 491 | 491 | | |
|---|
| 492 | 492 | | LC002423 - Page 14 of 17 |
|---|
| 493 | 493 | | beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent 1 |
|---|
| 494 | 494 | | (2%) of the lesser of either the employee’s retirement allowance or the first twenty-five thousand 2 |
|---|
| 495 | 495 | | dollars ($25,000) of the member’s retirement allowance. This one-time benefit adjustment shall be 3 |
|---|
| 496 | 496 | | provided without regard to the retiree’s age or number of years since retirement. 4 |
|---|
| 497 | 497 | | (B) Notwithstanding the prior subsections of this section, for all present and former 5 |
|---|
| 498 | 498 | | employees, active and retired employees, and beneficiaries receiving any retirement, disability or 6 |
|---|
| 499 | 499 | | death allowance or benefit of any kind by reason of adoption of this section by their employer, the 7 |
|---|
| 500 | 500 | | annual benefit adjustment provided in any calendar year under this section for adjustments on and 8 |
|---|
| 501 | 501 | | after January 1, 2016, and subject to paragraph (d)(2) below, shall be equal to (I) multiplied by (II): 9 |
|---|
| 502 | 502 | | (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where: 10 |
|---|
| 503 | 503 | | (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%) 11 |
|---|
| 504 | 504 | | (the “subtrahend”) from the five-year average investment return of the retirement system 12 |
|---|
| 505 | 505 | | determined as of the last day of the plan year preceding the calendar year in which the adjustment 13 |
|---|
| 506 | 506 | | is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent 14 |
|---|
| 507 | 507 | | (0%). The “five-year average investment return” shall mean the average of the investment returns 15 |
|---|
| 508 | 508 | | of the most recent five (5) plan years as determined by the retirement board. In the event the 16 |
|---|
| 509 | 509 | | retirement board adjusts the actuarially assumed rate of return for the system, either upward or 17 |
|---|
| 510 | 510 | | downward, the subtrahend shall be adjusted either upward or downward in the same amount. 18 |
|---|
| 511 | 511 | | (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer 19 |
|---|
| 512 | 512 | | Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor 20 |
|---|
| 513 | 513 | | Statistics determined as of September 30 of the prior calendar year. 21 |
|---|
| 514 | 514 | | In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be less 22 |
|---|
| 515 | 515 | | than zero percent (0%). 23 |
|---|
| 516 | 516 | | (II) Is equal to the lesser of either the member’s retirement allowance or the first twenty-24 |
|---|
| 517 | 517 | | five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount 25 |
|---|
| 518 | 518 | | to be indexed annually in the same percentage as determined under subsection (d)(1)(B)(I) above. 26 |
|---|
| 519 | 519 | | The benefit adjustments provided by this subsection (d)(1)(B) shall be provided to all 27 |
|---|
| 520 | 520 | | retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect, 28 |
|---|
| 521 | 521 | | and for all other retirees the benefit adjustments shall commence upon the third anniversary of the 29 |
|---|
| 522 | 522 | | date of retirement or the date on which the retiree reaches his or her Social Security retirement age, 30 |
|---|
| 523 | 523 | | whichever is later; or for municipal police and fire retiring under the provisions of § 45-21.2-31 |
|---|
| 524 | 524 | | 5(b)(1)(A), the benefit adjustment provided by this paragraph shall commence on the later of the 32 |
|---|
| 525 | 525 | | third anniversary of the date of retirement or the date on which the retiree reaches age fifty-five 33 |
|---|
| 526 | 526 | | (55); or for municipal police and fire retiring under the provisions of § 45-21.2-5(b)(1)(B), the 34 |
|---|
| 527 | 527 | | |
|---|
| 528 | 528 | | |
|---|
| 529 | 529 | | LC002423 - Page 15 of 17 |
|---|
| 530 | 530 | | benefit adjustment provided by this paragraph shall commence on the later of the third anniversary 1 |
|---|
| 531 | 531 | | of the date of retirement or the date on which the retiree reaches age fifty (50). 2 |
|---|
| 532 | 532 | | (2) Except as provided in subsection (d)(3), the benefit adjustments under subsection 3 |
|---|
| 533 | 533 | | (d)(1)(B) for any plan year shall be suspended in their entirety for each municipal plan within the 4 |
|---|
| 534 | 534 | | municipal employees retirement system unless the municipal plan is determined to be funded at a 5 |
|---|
| 535 | 535 | | funded ratio equal to or greater than eighty percent (80%) as of the end of the immediately 6 |
|---|
| 536 | 536 | | preceding plan year in accordance with the retirement system’s actuarial valuation report as 7 |
|---|
| 537 | 537 | | prepared by the system’s actuary, in which event the benefit adjustment will be reinstated for all 8 |
|---|
| 538 | 538 | | members for such plan year. 9 |
|---|
| 539 | 539 | | In determining whether a funding level under this subsection (d)(2) has been achieved, the 10 |
|---|
| 540 | 540 | | actuary shall calculate the funding percentage after taking into account the reinstatement of any 11 |
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| 541 | 541 | | current or future benefit adjustment provided under this section. 12 |
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| 542 | 542 | | (3) Notwithstanding subsection (d)(2), in each fourth plan year commencing after June 30, 13 |
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| 543 | 543 | | 2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four 14 |
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| 544 | 544 | | plan years: (i) A benefit adjustment shall be calculated and made in accordance with subsection 15 |
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| 545 | 545 | | (d)(1)(B) above; and (ii) Effective for members and/or beneficiaries of members who retired on or 16 |
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| 546 | 546 | | before June 30, 2015, the dollar amount in subsection (d)(1)(B)(II) of twenty-five thousand eight 17 |
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| 547 | 547 | | hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six 18 |
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| 548 | 548 | | dollars ($31,026) until the municipal plan’s funded ratio exceeds eighty percent (80%). 19 |
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| 549 | 549 | | (e) Upon acceptance of any of the plans in this section, each employee shall on January 1 20 |
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| 550 | 550 | | next succeeding the acceptance, contribute by means of salary deductions, pursuant to § 45-21-41, 21 |
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| 551 | 551 | | one percent (1%) of the employee’s compensation concurrently with and in addition to 22 |
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| 552 | 552 | | contributions otherwise being made to the retirement system. 23 |
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| 553 | 553 | | (f) The city or town shall make any additional contributions to the system, pursuant to the 24 |
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| 554 | 554 | | terms of § 45-21-42, for the payment of any benefits provided by this section. 25 |
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| 555 | 555 | | (g) The East Greenwich town council shall be allowed to accept Plan C of subsection (a)(3) 26 |
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| 556 | 556 | | of this section for all employees of the town of East Greenwich who either, pursuant to contract 27 |
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| 557 | 557 | | negotiations, bargain for Plan C, or who are non-union employees who are provided with Plan C 28 |
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| 558 | 558 | | and who shall all collectively be referred to as the “Municipal-COLA Group” and shall be separate 29 |
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| 559 | 559 | | from all other employees of the town and school department, union or non-union, who are in the 30 |
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| 560 | 560 | | same pension group but have not been granted Plan C benefits. Upon acceptance by the town 31 |
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| 561 | 561 | | council, benefits in accordance with this section shall be available to all such employees who retire 32 |
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| 562 | 562 | | on or after January 1, 2003. 33 |
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| 563 | 563 | | (h) Effective for members and/or beneficiaries of members who have retired on or before 34 |
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| 564 | 564 | | |
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| 565 | 565 | | |
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| 566 | 566 | | LC002423 - Page 16 of 17 |
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| 567 | 567 | | July 1, 2015, and without regard to whether the retired member or beneficiary is receiving a benefit 1 |
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| 568 | 568 | | adjustment under this section, a one-time stipend of five hundred dollars ($500) shall be payable 2 |
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| 569 | 569 | | within sixty (60) days following the enactment of the legislation implementing this provision, and 3 |
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| 570 | 570 | | a second one-time stipend of five hundred dollars ($500) in the same month of the following year. 4 |
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| 571 | 571 | | These stipends shall not be considered cost of living adjustments under the prior provisions of this 5 |
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| 572 | 572 | | section. 6 |
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| 573 | 573 | | (i) An additional one-time allowance shall be paid to eligible members of the retirement 7 |
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| 574 | 574 | | system, or any beneficiary of such member, in accordance with the provisions of this subsection. 8 |
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| 575 | 575 | | (1) Effective for eligible members and/or beneficiaries of members a one-time allowance 9 |
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| 576 | 576 | | of five hundred dollars ($500). 10 |
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| 577 | 577 | | (2) For purposes of this subsection an "eligible member" is a retired member of the 11 |
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| 578 | 578 | | retirement system, or any beneficiary of such member, that has retired on or before July 1, 2022. 12 |
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| 579 | 579 | | (3) The allowances provided under this subsection shall be payable as soon as 13 |
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| 580 | 580 | | administratively reasonable following the effective date of this subsection. 14 |
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| 581 | 581 | | (4) The allowances provided under this subsection shall be payable to eligible members or 15 |
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| 582 | 582 | | beneficiaries receiving a benefit as of the payment date and shall not be considered cost of living 16 |
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| 583 | 583 | | adjustments under the prior provisions of this section. 17 |
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| 584 | 584 | | (5) The provisions of this subsection shall be paid from the state's general fund, subject to 18 |
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| 585 | 585 | | an appropriation by the general assembly. 19 |
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| 586 | 586 | | SECTION 4. This act shall take effect upon passage. 20 |
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| 587 | 587 | | ======== |
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| 588 | 588 | | LC002423 |
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| 589 | 589 | | ======== |
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| 590 | 590 | | |
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| 591 | 591 | | |
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| 592 | 592 | | LC002423 - Page 17 of 17 |
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| 593 | 593 | | EXPLANATION |
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| 594 | 594 | | BY THE LEGISLATIVE COUNCIL |
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| 595 | 595 | | OF |
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| 596 | 596 | | A N A C T |
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| 597 | 597 | | RELATING TO EDUCATION -- TEACHERS' RETIREMENT |
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| 598 | 598 | | *** |
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| 599 | 599 | | This act would provide a one-time allowance of five hundred dollars ($500) for eligible 1 |
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| 600 | 600 | | members of the employees' retirement system of Rhode Island. 2 |
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| 601 | 601 | | This act would take effect upon passage. 3 |
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| 602 | 602 | | ======== |
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| 603 | 603 | | LC002423 |
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| 604 | 604 | | ======== |
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