2025 -- H 5407
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LC001106
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
____________
A N A C T
RELATING TO EDUCATION -- TEACHERS', MUNICIPAL AND STATE EMPLOYEES
EARLY RETIREMENT PEN ALTY
Introduced By: Representatives Bennett, Shanley, Hull, Diaz, Perez, Slater, Casimiro,
Potter, Baginski, and Messier
Date Introduced: February 07, 2025
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Section 16-16-12 of the General Laws in Chapter 16-16 entitled "Teachers’ 1
Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby 2
amended to read as follows: 3
16-16-12. Procedure for service retirement. 4
Retirement of a member on a service retirement allowance shall be made by the retirement 5
board as follows: 6
(a)(i) Any member may retire upon his or her written application to the retirement board 7
as of the first day of the calendar month in which the application was filed, provided the member 8
was separated from service prior to filing the application, and further provided however, that if 9
separation from service occurs during the month in which the application is filed, the effective date 10
shall be the first day following the separation from service, and provided further that the member 11
on retirement date has attained the age of sixty (60) years and has completed at least ten (10) years 12
of contributory service on or before July 1, 2005, or regardless of age has completed twenty-eight 13
(28) years of total service and has completed at least ten (10) years of contributory service on or 14
before July 1, 2005, and who retire before October 1, 2009, or are eligible to retire as of September 15
30, 2009. 16
(ii) For teachers who become eligible to retire on or after October 1, 2009, and prior to July 17
1, 2012, benefits are available to teachers who have attained the age of sixty-two (62) and 18
LC001106 - Page 2 of 15
completed at least ten (10) years of contributory service. For teachers in service as of October 1, 1
2009, who were not eligible to retire as of September 30, 2009, but became eligible to retire prior 2
to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in 3
proportion to the amount of service the member has earned as of September 30, 2009. The 4
proportional formula shall work as follows: 5
(A) The formula shall determine the first age of retirement eligibility under the laws in 6
effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of 7
sixty-two (62). 8
(B) The formula shall then take the teacher’s total service credit as of September 30, 2009, 9
as the numerator and the years of service credit determined under (A) as the denominator. 10
(C) The fraction determined in (B) shall then be multiplied by the age difference in (1) to 11
apply a reduction in years from age sixty-two (62). 12
(b)(i) Any member, who has not completed at least ten (10) years of contributory service 13
on or before July 1, 2005, may retire upon his or her written application to the retirement board as 14
of the first day of the calendar month in which the application was filed; provided, the member was 15
separated from service prior thereto; and further provided, however, that if separation from service 16
occurs during the month in which application is filed, the effective date shall be the first day 17
following that separation from service; provided, the member on his or her retirement date had 18
attained the age of fifty-nine (59) and had completed at least twenty-nine (29) years of total service; 19
or provided, that the member on his or her retirement date had attained the age of sixty-five (65) 20
and had completed at least ten (10) years of contributory service; or provided, that the member on 21
his or her retirement date had attained the age of fifty-five (55) and had completed twenty (20) 22
years of total service and provided, that the retirement allowance, as determined according to the 23
formula in § 16-16-13 is reduced actuarially for each month that the age of the member is less than 24
sixty-five (65) years and who retire before October 1, 2009, or are eligible to retire as of September 25
30, 2009. 26
(ii) For teachers who become eligible to retire on or after October 1, 2009, and prior to July 27
1, 2012, benefits are available to teachers who have attained the age of sixty-two (62) and have 28
completed at least twenty-nine (29) years of total service or have attained the age of sixty-five (65) 29
and completed at least ten (10) years of contributory service. For teachers in service as of October 30
1, 2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior 31
to July 1, 2012, who have a minimum retirement age of sixty-two (62), the retirement age will be 32
adjusted downward in proportion to the amount of service the member has earned as of September 33
30, 2009. The proportional formula shall work as follows: 34
LC001106 - Page 3 of 15
(A) The formula shall determine the first age of retirement eligibility under the laws in 1
effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of 2
sixty-two (62). 3
(B) The formula shall then take the teacher’s total service credit as of September 30, 2009, 4
as the numerator and the years of service credit determined under (A) as the denominator. 5
(C) The fraction determined in (B) shall then be multiplied by the age difference 6
determined in (A) to apply a reduction in years from age sixty-two (62). 7
(c) Effective July 1, 2012, the following shall apply to all teachers not eligible to retire 8
prior to July 1, 2012: 9
(i) A teacher with contributory service on or after July 1, 2012, shall be eligible to retire 10
upon the completion of at least five (5) years of contributory service and attainment of the teacher’s 11
Social Security retirement age. 12
(ii) For teachers with five (5) or more years of contributory service as of June 30, 2012, 13
with contributory service on and after July 1, 2012, who have a retirement age of Social Security 14
Retirement Age, the retirement age will be adjusted downward in proportion to the amount of 15
service the teacher has earned as of June 30, 2012, but in no event shall a teacher’s retirement age 16
under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the teacher’s 17
retirement age determined under the laws in effect on June 30, 2012. The proportional formula shall 18
work as follows: 19
(1) The formula shall determine the first age of retirement eligibility under the laws in 20
effect on June 30, 2012, which shall then be subtracted from Social Security retirement age; 21
(2) The formula shall then take the teacher’s total service credit as of June 30, 2012, as the 22
numerator and the projected service at retirement age in effect on June 30, 2012, as the 23
denominator; 24
(3) The fraction determined in (2) shall then be multiplied by the age difference determined 25
in (1) to apply a reduction in years from Social Security retirement age. 26
(iii) Effective July 1, 2015, a teacher who has completed twenty (20) or more years of total 27
service and who has attained an age within five (5) years of the eligible retirement age under 28
subdivisions (c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the 29
retirement allowance shall be reduced actuarially for each month that the age of the teacher is less 30
than the eligible retirement age under subdivisions (c)(i) or (c)(ii) above or subsection (d) below in 31
accordance with the following table: 32
Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly 33
Reduction 34
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For Year 1 9% 3% .75% .25% 1
For Year 2 8% 3% .667% .25% 2
For Year 3 7% 3% .583% .25% 3
For Year 4 7% 3% .583% .25% 4
For Year 5 7% 3% .583% .25% 5
(iv) Notwithstanding any other provisions of section § 16-16-12(c), a teacher who has 6
completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at 7
his or her eligible retirement date as determined under subsections (a) and (b) above provided that 8
a teacher making an election under this paragraph shall receive the teacher’s retirement benefit 9
determined and calculated based on the teacher’s service and average compensation as of June 30, 10
2012. This provision shall be interpreted and administered in a manner to protect a teacher’s 11
accrued benefit on June 30, 2012. 12
(d) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015, 13
teachers in active service shall be eligible to retire upon the earlier of: 14
(A) The attainment of at least age sixty-five (65) and the completion of at least thirty (30) 15
years of total service, or the attainment of at least age sixty-four (64) and the completion of at least 16
thirty-one (31) years of total service, or the attainment of at least age sixty-three (63) and the 17
completion of at least thirty-two (32) years of total service, or the attainment of at least age sixty-18
two (62) and the completion of at least thirty-three (33) years of total service; or 19
(B) The teacher’s retirement eligibility date under subsections (c)(i) or (c)(ii) above. 20
(e) Except as specifically provided in §§ 36-10-9.1, 36-10-12 through 36-10-15, and 45-21
21-19 through 45-21-22, no member shall be eligible for pension benefits under this chapter unless 22
(i) The member shall have been a contributing member of the employees’ retirement 23
system for at least ten (10) years; or 24
(ii) For teachers in active contributory service on or after July 1, 2012, the teacher shall 25
have been a contributing member of the employees’ retirement system for at least five (5) years. 26
(2) Provided, however, a person who has ten (10) years service credit shall be vested; 27
provided that for teachers in active contributory service on or after July 1, 2012, a teacher who has 28
five (5) years of contributory service shall be vested. 29
(3) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall be 30
counted towards vesting. 31
(4) Any person who becomes a member of the employees’ retirement system pursuant to 32
§ 45-21-8 shall be considered a contributing member for the purpose of chapter 21 of title 45 and 33
this chapter. 34
LC001106 - Page 5 of 15
(5) Notwithstanding any other provision of law, no more than five (5) years of service 1
credit may be purchased by a member of the system. The five (5) year limit shall not apply to any 2
purchases made prior to January 1, 1995. A member who has purchased more than five (5) years 3
of service credit before January 1, 1995, shall be permitted to apply the purchases towards the 4
member’s service retirement. However, no further purchase will be permitted. 5
(6) Notwithstanding any other provision of law, effective July 1, 2012, except for purchases 6
under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53: 7
(i) For service purchases for time periods prior to a teacher’s initial date of hire, the 8
purchase must be made within three (3) years of the teacher’s initial date of hire; and 9
(ii) For service purchases for time periods for official periods of leave as authorized by 10
law, the purchase must be made within three (3) years of the time the official leave was concluded 11
by the teacher. Notwithstanding paragraphs (i) and (ii) above, service purchases from time periods 12
prior to June 30, 2012, may be made on or prior to June 30, 2015. 13
(f) No member of the teachers’ retirement system shall be permitted to purchase service 14
credits for casual or seasonal employment, for employment as a temporary or emergency employee, 15
a page in the general assembly, or for employment at any state college or university while the 16
employee is a student or graduate of the college or university. 17
(g) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not 18
receive service credit in this retirement system for any year or portion of a year which counts as 19
service credit in any other retirement system in which the member is vested or from which the 20
member is receiving a pension and/or any annual payment for life. This subsection shall not apply 21
to any payments received pursuant to the federal Social Security Act, 42 U.S.C. § 301 et seq. 22
(h) A member who seeks to purchase or receive service credit in this retirement system 23
shall have the affirmative duty to disclose to the retirement board whether or not he or she is a 24
vested member in any other retirement system and/or is receiving a pension, retirement allowance, 25
or any annual payment for life. The retirement board shall have the right to investigate as to whether 26
or not the member has utilized the same time of service for credit in any other retirement system. 27
The member has an affirmative duty to cooperate with the retirement board including, by way of 28
illustration and not by way of limitation, the duty to furnish or have furnished to the retirement 29
board any relevant information that is protected by any privacy act. 30
(i) A member who fails to cooperate with the retirement board shall not have the time of 31
service credit counted toward total service credit until the time the member cooperates with the 32
retirement board and until the time the retirement board determines the validity of the service credit. 33
(j) A member who knowingly makes a false statement to the retirement board regarding 34
LC001106 - Page 6 of 15
service time or credit shall not be entitled to a retirement allowance and is entitled only to the return 1
of his or her contributions without interest. 2
SECTION 2. Section 36-10-9 of the General Laws in Chapter 36-10 entitled "Retirement 3
System — Contributions and Benefits" is hereby amended to read as follows: 4
36-10-9. Retirement on service allowance — In general. 5
Retirement of a member on a service retirement allowance shall be made by the retirement 6
board as follows: 7
(1)(a)(i) Any member may retire upon his or her written application to the retirement board 8
as of the first day of the calendar month in which the application was filed; provided, the member 9
was separated from service prior thereto; and further provided, however, that if separation from 10
service occurs during the month in which application is filed, the effective date shall be the first 11
day following that separation from service; and provided further that the member on his or her 12
retirement date attained the age of sixty (60) and completed at least ten (10) years of contributory 13
service on or before July 1, 2005, or who, regardless of age, has completed twenty-eight (28) years 14
of total service and has completed at least ten (10) years of contributory service on or before July 15
1, 2005, and who retire before October 1, 2009, or are eligible to retire as of September 30, 2009. 16
(ii) For members who become eligible to retire on or after October 1, 2009, and prior to 17
July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and 18
completed at least ten (10) years of contributory service. For members in service as of October 1, 19
2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior 20
to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in 21
proportion to the amount of service the member has earned as of September 30, 2009. The 22
proportional formula shall work as follows: 23
(1) The formula shall determine the first age of retirement eligibility under the laws in 24
effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of 25
sixty-two (62). 26
(2) The formula shall then take the member’s total service credit as of September 30, 2009, 27
as the numerator and the years of service credit determined under (1) as the denominator. 28
(3) The fraction determined in (2) shall then be multiplied by the age difference determined 29
in (1) to apply a reduction in years from age sixty-two (62). 30
(b)(i) Any member, who has not completed at least ten (10) years of contributory service 31
on or before July 1, 2005, may retire upon his or her written application to the retirement board as 32
of the first day of the calendar month in which the application was filed; provided, the member was 33
separated from service prior thereto; and further provided, however, that if separation from service 34
LC001106 - Page 7 of 15
occurs during the month in which application is filed, the effective date shall be the first day 1
following that separation from service; provided, the member or his or her retirement date had 2
attained the age of fifty-nine (59) and had completed at least twenty-nine (29) years of total service 3
or provided that the member on his or her retirement date had attained the age of sixty-five (65) 4
and had completed at least ten (10) years of contributory service; or provided, that the member on 5
his or her retirement date had attained the age of fifty-five (55) and had completed twenty (20) 6
years of total service provided, that the retirement allowance, as determined according to the 7
formula in § 36-10-10 is reduced actuarially for each month that the age of the member is less than 8
sixty-five (65) years, and who retire before October 1, 2009, or are eligible to retire as of September 9
30, 2009. 10
(ii) For members who become eligible to retire on or after October 1, 2009 and prior to 11
July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and 12
completed at least twenty-nine (29) years of total service or have attained the age of sixty-five (65) 13
and completed at least ten (10) years of contributory service. For members in service as of October 14
1, 2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior 15
to July 1, 2012, who have a minimum retirement age of sixty-two (62), the retirement age will be 16
adjusted downward in proportion to the amount of service the member has earned as of September 17
30, 2009. The proportional formula shall work as follows: 18
(1) The formula shall determine the first age of retirement eligibility under the laws in 19
effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of 20
sixty-two (62). 21
(2) The formula shall then take the member’s total service credit as of September 30, 2009, 22
as the numerator and the years of service credit determined under (1) as the denominator. 23
(3) The fraction determined in (2) above shall then be multiplied by the age difference 24
determined in (1) to apply a reduction in years from age sixty-two (62). 25
(c) Effective July 1, 2012, the following shall apply to all members not eligible to retire 26
prior to July 1, 2012: 27
(i) A member with contributory service on or after July 1, 2012, shall be eligible to retire 28
upon the completion of at least five (5) years of contributory service and attainment of the member’s 29
Social Security retirement age. 30
(ii) For members with five (5) or more years of contributory service as of June 30, 2012, 31
with contributory service on and after July 1, 2012, who have a retirement age of Social Security 32
Retirement Age, the retirement age will be adjusted downward in proportion to the amount of 33
service the member has earned as of June 30, 2012, but in no event shall a member’s retirement 34
LC001106 - Page 8 of 15
age under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the 1
member’s retirement age determined under the laws in effect on June 30, 2012. The proportional 2
formula shall work as follows: 3
(1) The formula shall determine the first age of retirement eligibility under the laws in 4
effect on June 30, 2012, which shall then be subtracted from Social Security retirement age; 5
(2) The formula shall then take the member’s total service credit as of June 30, 2012, as 6
the numerator and the projected service at retirement age in effect on June 30, 2012, as the 7
denominator; 8
(3) The fraction determined in (2) shall then be multiplied by the age difference determined 9
in (1) to apply a reduction in years from Social Security retirement age. 10
(iii) Effective July 1, 2015, a member who has completed twenty (20) or more years of 11
total service and who has attained an age within five (5) years of the eligible retirement age under 12
subparagraphs (c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the 13
retirement allowance shall be reduced actuarially for each month that the age of the member is less 14
than the eligible retirement age under subparagraphs (c)(i) or (c)(ii) above or subsection (d) below 15
in accordance with the following table: 16
Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly 17
Reduction 18
For Year 1 9% 3% .75% .25% 19
For Year 2 8% 3% .667% .25% 20
For Year 3 7% 3% .583% .25% 21
For Year 4 7% 3% .583% .25% 22
For Year 5 7% 3% .583% .25% 23
(iv) Notwithstanding any other provisions of section 36-10-9(c), a member who has 24
completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at 25
his or her eligible retirement date as determined under paragraphs (1)(a) and (1)(b) above provided 26
that a member making an election under this paragraph shall receive the member’s retirement 27
benefit determined and calculated based on the member’s service and average compensation as of 28
June 30, 2012. This provision shall be interpreted and administered in a manner to protect a 29
member’s accrued benefit on June 30, 2012. 30
(d) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015, 31
members in active service shall be eligible to retire upon the earlier of: (A) The attainment of at 32
least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the 33
attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of total 34
LC001106 - Page 9 of 15
service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-two 1
(32) years of total service, or the attainment of at least age sixty-two (62) and the completion of at 2
least thirty-three (33) years of total service; or (B) The member’s retirement eligibility date under 3
subsections (c)(i) or (c)(ii) above. 4
(2) Any faculty employee at a public institution of higher education under the jurisdiction 5
of the council on postsecondary education shall not be involuntarily retired upon attaining the age 6
of seventy (70) years. 7
(3)(i) Except as specifically provided in § 36-10-9.1, §§ 36-10-12 — 36-10-15, and §§ 45-8
21-19 — 45-21-22, (I) On or prior to June 30, 2012 no member shall be eligible for pension benefits 9
under this chapter unless the member shall have been a contributing member of the employee’s 10
retirement system for at least ten (10) years, or (II) For members in active contributory service on 11
or after July 1, 2012, the member shall have been a contributing member of the retirement system 12
for at least five (5) years. 13
(ii) Provided, however, a person who has ten (10) years service credit on or before June 16, 14
1991, shall be vested. 15
(iii) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall be 16
counted towards vesting. 17
(iv) Any person who becomes a member of the employees’ retirement system pursuant to 18
§ 45-21-4 shall be considered a contributing member for the purpose of chapter 21 of title 45 and 19
this chapter. 20
(v) Notwithstanding any other provision of law, no more than five (5) years of service 21
credit may be purchased by a member of the system. The five (5) year limit shall not apply to any 22
purchases made prior to January 1, 1995. A member who has purchased more than five (5) years 23
of service credits before January 1, 1995, shall be permitted to apply those purchases towards the 24
member’s service retirement. However, no further purchase will be permitted. Repayment in 25
accordance with applicable law and regulation of any contribution previously withdrawn from the 26
system shall not be deemed a purchase of service credit. 27
(vi) Notwithstanding any other provision of law, effective July 1, 2012, except for 28
purchases under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53, (A) For service 29
purchases for time periods prior to a member’s initial date of hire, the purchase must be made 30
within three (3) years of the member’s initial date of hire, (B) For service purchases for time periods 31
for official periods of leave as authorized by law, the purchase must be made within three (3) years 32
of the time the official leave was concluded by the member. Notwithstanding the preceding 33
sentence, service purchases from time periods prior to June 30, 2012, may be made on or prior to 34
LC001106 - Page 10 of 15
June 30, 2015. 1
(4) No member of the employees’ retirement system shall be permitted to purchase service 2
credits for casual, seasonal, or temporary employment, or emergency appointment, for employment 3
as a page in the general assembly, or for employment at any state college or university while the 4
employee is a student or graduate assistant of the college or university. 5
(5) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not 6
receive service credit in this retirement system for any year or portion of it, which counts as service 7
credit in any other retirement system in which the member is vested or from which the member is 8
receiving a pension and/or any annual payment for life. This subsection shall not apply to any 9
payments received pursuant to the federal Social Security Act or to payments from a military 10
pension earned prior to participation in state or municipal employment, or to military service credits 11
earned prior to participation in state or municipal employment. 12
(6) A member who seeks to purchase or receive service credit in this retirement system 13
shall have the affirmative duty to disclose to the retirement board whether or not he or she is a 14
vested member in any other retirement system and/or is receiving a pension, retirement allowance, 15
or any annual payment for life. The retirement board shall have the right to investigate as to whether 16
or not the member has utilized the same time of service for credit in any other retirement system. 17
The member has an affirmative duty to cooperate with the retirement board including, by way of 18
illustration and not by way of limitations the duty to furnish or have furnished to the retirement 19
board any relevant information which is protected by any privacy act. 20
(7) A member who fails to cooperate with the retirement board shall not have the time of 21
service counted toward total service credit until such time as the member cooperates with the 22
retirement board and until such time as the retirement board determines the validity of the service 23
credit. 24
(8) A member who knowingly makes a false statement to the retirement board regarding 25
service time or credit shall not be entitled to a retirement allowance and is entitled only to the return 26
of his or her contributions without interest. 27
SECTION 3. Section 45-21-16 of the General Laws in Chapter 45-21 entitled "Retirement 28
of Municipal Employees" is hereby amended to read as follows: 29
45-21-16. Retirement on service allowance. 30
Retirement of a member on a service retirement allowance shall be made by the retirement 31
board as follows: 32
(1)(i) Any member who is eligible to retire on or before June 30, 2012, may retire upon the 33
member’s written application to the retirement board as of the first day of the calendar month in 34
LC001106 - Page 11 of 15
which the application was filed, provided the member was separated from service prior to the 1
application, and provided, further, that if separation from service occurs during the month in which 2
application is filed, the effective date is the first day following the separation from service, provided 3
that the member at the time so specified for the member’s retirement has attained the applicable 4
minimum retirement age and has completed at least ten (10) years of total service or who, regardless 5
of age, completed thirty (30) years of total service, and notwithstanding that during the period of 6
notification the member has separated from service. The minimum ages for service retirement 7
(except for employees completing thirty (30) years of service) is fifty-eight (58) years. 8
(ii) Effective July 1, 2012, the following shall apply to all members not eligible to retire 9
prior to July 1, 2012: 10
(A) A member with contributory service on or after July 1, 2012, shall be eligible to retire 11
upon the completion of at least five (5) years of contributory service and attainment of the member’s 12
Social Security retirement age. 13
(B) For members with five (5) or more years of contributory service as of June 30, 2012, 14
with contributory service on and after July 1, 2012, who have a retirement age of Social Security 15
retirement age, the retirement age will be adjusted downward in proportion to the amount of service 16
the member has earned as of June 30, 2012, but in no event shall a member’s retirement age under 17
this subparagraph (B) be prior to the attainment of age fifty-nine (59) or prior to the member’s 18
retirement age determined under the laws in effect on June 30, 2012. The proportional formula shall 19
work as follows: 20
(1) The formula shall determine the first age of retirement eligibility under the laws in 21
effect on June 30, 2012, which shall then be subtracted from Social Security retirement age; 22
(2) The formula shall then take the member’s total service credit as of June 30, 2012, as 23
the numerator and the projected service at retirement age in effect on June 30, 2012, as the 24
denominator; 25
(3) The fraction determined in (2) shall then be multiplied by the age difference determined 26
in (1) to apply a reduction in years from Social Security retirement age. 27
(C) Effective July 1, 2015, a member who has completed twenty (20) or more years of total 28
service and who has attained an age within five (5) years of the eligible retirement age under 29
subparagraphs (ii)(A) or (ii)(B) above or subsection (iii) below, may elect to retire provided that 30
the retirement allowance shall be reduced actuarially for each month that the age of the member is 31
less than the eligible retirement age under subparagraphs (ii)(A) or (ii)(B) above or subsection (iii) 32
below in accordance with the following table: 33
Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly 34
LC001106 - Page 12 of 15
Reduction 1
For Year 1 9% 3% .75% .25% 2
For Year 2 8% 3% .667% .25% 3
For Year 3 7% 3% .583% .25% 4
For Year 4 7% 3% .583% .25% 5
For Year 5 7% 3% .583% .25% 6
(D)(1) Notwithstanding any other provisions of § 42-21-16(1)(ii), a member who has 7
completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at 8
his or her eligible retirement date as determined under paragraph (i) above provided that a member 9
making an election under this paragraph shall receive the member’s retirement benefit determined 10
and calculated based on the member’s service and average compensation as of June 30, 2012. This 11
provision shall be interpreted and administered in a manner to protect a member’s accrued benefit 12
on June 30, 2012. 13
(iii) Notwithstanding any other provisions of subsection (ii) above, effective July 1, 2015, 14
members in active service shall be eligible to retire upon the earlier of: (I) The attainment of at 15
least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the 16
attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of total 17
service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-two 18
(32) years of total service, or the attainment of at least age sixty-two (62) and the completion of at 19
least thirty-three (33) years of total service; or (II) The member’s retirement eligibility date under 20
subsections (ii)(A) or (ii)(B) above. 21
(2) Except as specifically provided in §§ 45-21-19 — 45-21-22, no member is eligible for 22
pension benefits under this chapter unless: 23
(I) On or prior to June 30, 2012, the member has been a contributing member of the 24
employees’ retirement system for at least ten (10) years; or 25
(II) For members in active contributory service on or after July 1, 2012, the member shall 26
have been a contributing member of the employees’ retirement system for at least five (5) years. 27
(i) Provided, however, a person who has ten (10) years service credit on or before June 16, 28
1991, is vested. 29
(ii) Furthermore, any past service credits purchased in accordance with § 45-21-62 are 30
counted towards vesting. 31
(iii) Any person who becomes a member of the employees’ retirement system pursuant to 32
§ 45-21-4 shall be considered a contributing member for the purpose of this chapter. 33
(iv) Notwithstanding any other provision of law, no more than five (5) years of service 34
LC001106 - Page 13 of 15
credit may be purchased by a member of the System. The five (5)-year limit does not apply to any 1
purchases made prior to the effective date of this provision. A member who has purchased more 2
than five (5) years of service credit maximum, before January 1, 1995, shall be permitted to apply 3
the purchases towards the member’s service retirement. However, no further purchase will be 4
permitted. Repayment, in accordance with applicable law and regulation, of any contribution 5
previously withdrawn from the System is not deemed a purchase of service credit. 6
(v) Notwithstanding any other provision of law, effective July 1, 2012, except for purchases 7
under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53: 8
(I) For service purchases for time periods prior to a member’s initial date of hire; the 9
purchase must be made within three (3) years of the member’s initial date of hire; and 10
(II) For service purchases for time periods for official periods of leave as authorized by 11
law, the purchase must be made within three (3) years of the time the official leave was concluded 12
by the member. 13
Notwithstanding (I) and (II) above, service purchases from time periods prior to June 30, 14
2012, may be made on or prior to June 30, 2015. 15
(3) No member of the municipal employees’ retirement system is permitted to purchase 16
service credits for casual, temporary, emergency or seasonal employment, for employment as a 17
page in the general assembly, or for employment at any state college or university while the 18
employee is a student or graduate assistant of the college or university. 19
(4) A member does not receive service credit in this retirement system for any year or 20
portion of a year, which counts as service credit in any other retirement system in which the member 21
is vested or from which the member is receiving a pension and/or any annual payment for life. This 22
subsection does not apply to any payments received pursuant to the federal Social Security Act or 23
to payments from a military pension earned prior to participation in state or municipal employment, 24
or to military service credits earned prior to participation in state or municipal employment. 25
(5) A member who seeks to purchase or receive service credit in this retirement system has 26
the affirmative duty to disclose to the retirement board whether or not he or she is a vested member 27
in any other retirement system and/or is receiving a pension retirement allowance or any annual 28
payment for life. The retirement board has the right to investigate whether or not the member has 29
utilized the same time of service for credit in any other retirement system. The member has an 30
affirmative duty to cooperate with the retirement board including, by way of illustration and not by 31
way of limitation, the duty to furnish or have furnished to the retirement board any relevant 32
information which is protected by any privacy act. 33
(6) A member who fails to cooperate with the retirement board shall not have the time of 34
LC001106 - Page 14 of 15
service counted toward total service credit until a time that the member cooperates with the 1
retirement board and until a time that the retirement board determines the validity of the service 2
credit. 3
(7) A member who knowingly makes a false statement to the retirement board regarding 4
service time or credit is not entitled to a retirement allowance and is entitled only to the return of 5
his or her contributions without interest. 6
SECTION 4. This act shall take effect upon passage. 7
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO EDUCATION -- TEACHERS', MUNICIPAL AND STATE EMPLOYEES
EARLY RETIREMENT PENALTY
***
This act would reduce the current varying percentages for early retirement penalty for 1
teachers, municipal and state employees to a cumulative annual reduction of three percent (3%) 2
and monthly reduction of twenty-five hundredths percent (.25%). 3
This act would take effect upon passage. 4
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