2025 -- H 5525
========
LC001302
========
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 PUBLIC OFFICERS AND EMPLOYEES -- TEACHERS' AND STATE
EMPLOYEES RETIREMENT
Introduced By: Representatives Serpa, Ackerman, Read, Noret, Fellela, Donovan,
Caldwell, Azzinaro, Potter, and Corvese
Date Introduced: February 13, 2025
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Section 16-16-40 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
16-16-40. Additional benefits payable to retired teachers. 4
(a) All teachers and all beneficiaries of teachers receiving any service retirement or 5
ordinary or accidental disability retirement allowance pursuant to the provisions of this chapter and 6
chapter 17 of this title, on or before December 31, 1967, shall receive a cost of living retirement 7
adjustment equal to one and one-half percent (1.5%) per year of the original retirement allowance, 8
not compounded, for each year the retirement allowance has been in effect. For purposes of 9
computation credit shall be given for a full calendar year regardless of the effective date of the 10
retirement allowance. This cost of living retirement adjustment shall be added to the amount of the 11
service retirement allowance as of January 1, 1970, and payment shall begin as of July 1, 1970. An 12
additional cost of living retirement adjustment shall be added to the original retirement allowance 13
equal to three percent (3%) of the original retirement allowance on the first day of January, 1971, 14
and each year thereafter through December 31, 1980. 15
(b) All teachers and beneficiaries of teachers receiving any service retirement or ordinary 16
disability retirement allowance pursuant to the provisions of this title who retired on or after January 17
1, 1968, shall, on the first day of January, next following the third (3rd) year on retirement, receive 18
LC001302 - Page 2 of 12
a cost of living adjustment, in addition to their retirement allowance, an amount equal to three 1
percent (3%) of the original retirement allowance. In each succeeding year thereafter, on the first 2
day of January, the retirement allowance shall be increased an additional three percent (3%) of the 3
original retirement allowance, not compounded, to be continued through December 31, 1980. 4
(c)(1) Beginning on January 1, 1981, for all teachers and beneficiaries of teachers receiving 5
any service retirement and all teachers and all beneficiaries of teachers who have completed at least 6
ten (10) years of contributory service on or before July 1, 2005, pursuant to the provisions of this 7
chapter, and for all teachers and beneficiaries of teachers who receive a disability retirement 8
allowance pursuant to §§ 16-16-14 — 16-16-17, the cost of living adjustment shall be computed 9
and paid at the rate of three percent (3%) of the original retirement allowance or the retirement 10
allowance as computed in accordance with § 16-16-40.1, compounded annually from the year for 11
which the cost of living adjustment was determined to be payable by the retirement board pursuant 12
to the provisions of subsection (a) or (b) of this section. Such cost of living adjustments are available 13
to teachers who retire before October 1, 2009, or are eligible to retire as of September 30, 2009. 14
(2) The provisions of this subsection shall be deemed to apply prospectively only and no 15
retroactive payment shall be made. 16
(3) The retirement allowance of all teachers and all beneficiaries of teachers who have not 17
completed at least ten (10) years of contributory service on or before July 1, 2005, or were not 18
eligible to retire as of September 30, 2009, shall, on the month following the third anniversary date 19
of the retirement, and on the month following the anniversary date of each succeeding year be 20
adjusted and computed by multiplying the retirement allowance by three percent (3%) or the 21
percentage of increase in the Consumer Price Index for All Urban Consumers (CPI-U) as published 22
by the United States Department of Labor Statistics, determined as of September 30 of the prior 23
calendar year, whichever is less; the cost of living adjustment shall be compounded annually from 24
the year for which the cost of living adjustment was determined payable by the retirement board; 25
provided, that no adjustment shall cause any retirement allowance to be decreased from the 26
retirement allowance provided immediately before such adjustment. 27
(d) For teachers not eligible to retire in accordance with this chapter as of September 30, 28
2009, and not eligible upon passage of this article, and for their beneficiaries, the cost of living 29
adjustment described in subsection (c)(3) of this section shall only apply to the first thirty-five 30
thousand dollars ($35,000) of retirement allowance, indexed annually, and shall commence upon 31
the third (3rd) anniversary of the date of retirement or when the retiree reaches age sixty-five (65), 32
whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase annually by the 33
percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U) as published 34
LC001302 - Page 3 of 12
by the United States Department of Labor Statistics determined as of September 30 of the prior 1
calendar year or three percent (3%), whichever is less. The first thirty-five thousand dollars 2
($35,000), as indexed, of retirement allowance shall be multiplied by the percentage of increase in 3
the Consumer Price Index for All Urban Consumers (CPI-U) as published by the United States 4
Department of Labor Statistics determined as of September 30 of the prior calendar year or three 5
percent (3%), whichever is less, on the month following the anniversary date of each succeeding 6
year. For teachers eligible to retire as of September 30, 2009, or eligible upon passage of this article, 7
and for their beneficiaries, the provisions of this subsection (d) shall not apply. 8
(e) The provisions of §§ 45-13-7 — 45-13-10 shall not apply to this section. 9
(f) This subsection (f) shall be effective for the period July 1, 2012, through June 30, 2015. 10
(1) Notwithstanding the prior paragraphs of this section, and subject to subsection (f)(2) 11
below, for all present and former teachers, active and retired teachers, and beneficiaries receiving 12
any retirement, disability or death allowance or benefit of any kind, the annual benefit adjustment 13
provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A) 14
is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the 15
“subtrahend”) from the Five-Year Average Investment Return of the retirement system determined 16
as of the last day of the plan year preceding the calendar year in which the adjustment is granted, 17
said percentage not to exceed four percent (4%) and not to be less than zero percent (0%), and (B) 18
is equal to the lesser of the teacher’s retirement allowance or the first twenty-five thousand dollars 19
($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000) amount to be 20
indexed annually in the same percentage as determined under (f)(1)(A) above. The “Five-Year 21
Average Investment Return” shall mean the average of the investment returns of the most recent 22
five (5) plan years as determined by the retirement board. Subject to subsection (f)(2) below, the 23
benefit adjustment provided by this subsection (f)(1) shall commence upon the third (3rd) 24
anniversary of the date of retirement or the date on which the retiree reaches their Social Security 25
retirement age, whichever is later. In the event the retirement board adjusts the actuarially assumed 26
rate of return for the system, either upward or downward, the subtrahend shall be adjusted either 27
upward or downward in the same amount. 28
(2) Except as provided in subsection (f)(3), the benefit adjustments under this section for 29
any plan year shall be suspended in their entirety unless the funded ratio of the employees’ 30
retirement system of Rhode Island, the judicial retirement benefits trust, and the state police 31
retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty 32
percent (80%) in which event the benefit adjustment will be reinstated for all teachers for such plan 33
year. 34
LC001302 - Page 4 of 12
In determining whether a funding level under this subsection (f)(2) has been achieved, the 1
actuary shall calculate the funding percentage after taking into account the reinstatement of any 2
current or future benefit adjustment provided under this section. 3
(3) Notwithstanding subsection (f)(2), in each fifth plan year commencing after June 30, 4
2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five 5
plan years, a benefit adjustment shall be calculated and made in accordance with subsection (f)(1) 6
above until the funded ratio of the employees’ retirement system of Rhode Island, the judicial 7
retirement benefits trust, and the state police retirement benefits trust, calculated by the system’s 8
actuary on an aggregate basis, exceeds eighty percent (80%). 9
(4) Notwithstanding any other provisions of this chapter, the provisions of this subsection 10
(f) shall become effective July 1, 2012, and shall apply to any benefit adjustments not granted on 11
or prior to June 30, 2012. 12
(g) This subsection (g) shall become effective July 1, 2015. 13
(1)(A) As soon as administratively reasonable following the enactment into law of this 14
subsection (g)(1)(A), a one-time benefit adjustment shall be provided to teachers and/or 15
beneficiaries of teachers who retired on or before June 30, 2012, in the amount of two percent (2%) 16
of the lesser of either the teacher’s retirement allowance or the first twenty-five thousand dollars 17
($25,000) of the teacher’s retirement allowance. This one-time benefit adjustment shall be provided 18
without regard to the retiree’s age or number of years since retirement. 19
(B) Notwithstanding the prior subsections of this section, for all present and former 20
teachers, active and retired teachers, and beneficiaries receiving any retirement, disability, or death 21
allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year under 22
this section for adjustments on and after January 1, 2016, and subject to subsection (g)(2) below, 23
shall be equal to (I) multiplied by (II): 24
(I) shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where: 25
(i) is equal to the percentage determined by subtracting five and one-half percent (5.5%) 26
(the “subtrahend”) from the five-year average investment return of the retirement system 27
determined as of the last day of the plan year preceding the calendar year in which the adjustment 28
is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent 29
(0%). The “five-year average investment return” shall mean the average of the investment returns 30
of the most recent five (5) plan years as determined by the retirement board. In the event the 31
retirement board adjusts the actuarially assumed rate of return for the system, either upward or 32
downward, the subtrahend shall be adjusted either upward or downward in the same amount. 33
(ii) is equal to the lesser of three percent (3%) or the percentage increase in the Consumer 34
LC001302 - Page 5 of 12
Price Index for All Urban Consumers (CPI-U) as published by the U.S. Department of Labor 1
Statistics determined as of September 30 of the prior calendar year. 2
In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be less 3
than (0%) percent. 4
(II) is equal to the lesser of either the teacher’s retirement allowance or the first twenty-5
five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount 6
to be indexed annually in the same percentage as determined under subsection (g)(1)(B)(I) above. 7
The benefit adjustments provided by this subsection (g)(1)(B) shall be provided to all 8
retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect, 9
and for all other retirees the benefit adjustments shall commence upon the third anniversary of the 10
date of retirement or the date on which the retiree reaches his or her Social Security retirement age, 11
whichever is later. 12
(2) Except for teachers and/or beneficiaries of teachers who retired on or before June 30, 13
2012, have been retired for more than three (3) full calendar years, the benefit adjustments under 14
subsection (g)(1)(B) for any plan year shall be reduced to twenty-five percent (25%) of the benefit 15
adjustment unless the funded ratio of the employees’ retirement system of Rhode Island, the judicial 16
retirement benefits trust, and the state police retirement benefits trust, calculated by the system’s 17
actuary on an aggregate basis, exceeds eighty percent (80%) in which event the benefit adjustment 18
will be reinstated for all teachers for such plan year. Effective July 1, 2024, the funded ratio of the 19
employees’ retirement system of Rhode Island, the judicial retirement benefits trust, and the state 20
police retirement benefits trust, calculated by the system’s actuary on an aggregate basis, of 21
exceeding eighty percent (80%) for the benefit adjustment to be reinstated for all teachers for such 22
plan year shall be replaced with seventy-five percent (75%). 23
In determining whether a funding level under this subsection (g)(2) has been achieved, the 24
actuary shall calculate the funding percentage after taking into account the reinstatement of any 25
current or future benefit adjustment provided under this section. 26
(3) Effective for teachers and/or beneficiaries of teachers who retired after June 30, 2012, 27
or on or before June 30, 2015, the dollar amount in subsection (g)(1)(B)(II) of twenty-five thousand 28
eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and 29
twenty-six dollars ($31,026) until the funded ratio of the employees’ retirement system of Rhode 30
Island, the judicial retirement benefits trust, and the state police retirement benefits trust, calculated 31
by the system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1, 32
2024, the funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement 33
benefits trust, and the state police retirement benefits trust, calculated by the system’s actuary on 34
LC001302 - Page 6 of 12
an aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent 1
(75%). 2
(4) Effective for teachers and/or beneficiaries of teachers who have retired on or before 3
July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60) 4
days following the enactment of the legislation implementing this provision, and a second one-time 5
stipend of five hundred dollars ($500) in the same month of the following year. These stipends 6
shall be payable to all retired teachers or beneficiaries receiving a benefit as of the applicable 7
payment date and shall not be considered cost of living adjustments under the prior provisions of 8
this section. 9
SECTION 2. Section 36-10-35 of the General Laws in Chapter 36-10 entitled "Retirement 10
System — Contributions and Benefits" is hereby amended to read as follows: 11
36-10-35. Additional benefits payable to retired employees. 12
(a) All state employees and all beneficiaries of state employees receiving any service 13
retirement or ordinary or accidental disability retirement allowance pursuant to the provisions of 14
this title on or before December 31, 1967, shall receive a cost of living retirement adjustment equal 15
to one and one-half percent (1.5%) per year of the original retirement allowance, not compounded, 16
for each calendar year the retirement allowance has been in effect. For the purposes of computation, 17
credit shall be given for a full calendar year regardless of the effective date of the retirement 18
allowance. This cost of living adjustment shall be added to the amount of the retirement allowance 19
as of January 1, 1968, and an additional one and one-half percent (1.5%) shall be added to the 20
original retirement allowance in each succeeding year during the month of January, and provided 21
further, that this additional cost of living increase shall be three percent (3%) for the year beginning 22
January 1, 1971, and each year thereafter, through December 31, 1980. Notwithstanding any of the 23
above provisions, no employee receiving any service retirement allowance pursuant to the 24
provisions of this title on or before December 31, 1967, or the employee’s beneficiary, shall receive 25
any additional benefit hereunder in an amount less than two hundred dollars ($200) per year over 26
the service retirement allowance where the employee retired prior to January 1, 1958. 27
(b) All state employees and all beneficiaries of state employees retired on or after January 28
1, 1968, who are receiving any service retirement or ordinary or accidental disability retirement 29
allowance pursuant to the provisions of this title shall, on the first day of January next following 30
the third anniversary date of the retirement, receive a cost of living retirement adjustment, in 31
addition to their retirement allowance, in an amount equal to three percent (3%) of the original 32
retirement allowance. In each succeeding year thereafter through December 31, 1980, during the 33
month of January, the retirement allowance shall be increased an additional three percent (3%) of 34
LC001302 - Page 7 of 12
the original retirement allowance, not compounded, to be continued during the lifetime of the 1
employee or beneficiary. For the purposes of computation, credit shall be given for a full calendar 2
year regardless of the effective date of the service retirement allowance. 3
(c)(1) Beginning on January 1, 1981, for all state employees and beneficiaries of the state 4
employees receiving any service retirement and all state employees, and all beneficiaries of state 5
employees, who have completed at least ten (10) years of contributory service on or before July 1, 6
2005, pursuant to the provisions of this chapter, and for all state employees, and all beneficiaries 7
of state employees who receive a disability retirement allowance pursuant to §§ 36-10-12 — 36-8
10-15, the cost of living adjustment shall be computed and paid at the rate of three percent (3%) of 9
the original retirement allowance or the retirement allowance as computed in accordance with § 10
36-10-35.1, compounded annually from the year for which the cost of living adjustment was 11
determined to be payable by the retirement board pursuant to the provisions of subsection (a) or (b) 12
of this section. Such cost of living adjustments are available to members who retire before October 13
1, 2009, or are eligible to retire as of September 30, 2009. 14
(2) The provisions of this subsection shall be deemed to apply prospectively only and no 15
retroactive payment shall be made. 16
(3) The retirement allowance of all state employees and all beneficiaries of state employees 17
who have not completed at least ten (10) years of contributory service on or before July 1, 2005, or 18
were not eligible to retire as of September 30, 2009, shall, on the month following the third 19
anniversary date of retirement, and on the month following the anniversary date of each succeeding 20
year be adjusted and computed by multiplying the retirement allowance by three percent (3%) or 21
the percentage of increase in the Consumer Price Index for All Urban Consumers (CPI-U) as 22
published by the United States Department of Labor Statistics determined as of September 30 of 23
the prior calendar year, whichever is less; the cost of living adjustment shall be compounded 24
annually from the year for which the cost of living adjustment was determined payable by the 25
retirement board; provided, that no adjustment shall cause any retirement allowance to be decreased 26
from the retirement allowance provided immediately before such adjustment. 27
(d) For state employees not eligible to retire in accordance with this chapter as of 28
September 30, 2009, and not eligible upon passage of this article, and for their beneficiaries, the 29
cost of living adjustment described in subsection (c)(3) of this section shall only apply to the first 30
thirty-five thousand dollars ($35,000) of retirement allowance, indexed annually, and shall 31
commence upon the third (3rd) anniversary of the date of retirement or when the retiree reaches 32
age sixty-five (65), whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase 33
annually by the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-34
LC001302 - Page 8 of 12
U) as published by the United States Department of Labor Statistics determined as of September 1
30 of the prior calendar year or three percent (3%), whichever is less. The first thirty-five thousand 2
dollars ($35,000) of retirement allowance, as indexed, shall be multiplied by the percentage of 3
increase in the Consumer Price Index for All Urban Consumers (CPI-U) as published by the United 4
States Department of Labor Statistics determined as of September 30 of the prior calendar year or 5
three percent (3%), whichever is less, on the month following the anniversary date of each 6
succeeding year. For state employees eligible to retire as of September 30, 2009, or eligible upon 7
passage of this article, and for their beneficiaries, the provisions of this subsection (d) shall not 8
apply. 9
(e) All legislators and all beneficiaries of legislators who are receiving a retirement 10
allowance pursuant to the provisions of § 36-10-9.1 for a period of three (3) or more years, shall, 11
commencing January 1, 1982, receive a cost of living retirement adjustment, in addition to a 12
retirement allowance, in an amount equal to three percent (3%) of the original retirement allowance. 13
In each succeeding year thereafter during the month of January, the retirement allowance shall be 14
increased an additional three percent (3%) of the original retirement allowance, compounded 15
annually, to be continued during the lifetime of the legislator or beneficiary. For the purposes of 16
computation, credit shall be given for a full calendar year regardless of the effective date of the 17
service retirement allowance. 18
(f) The provisions of §§ 45-13-7 — 45-13-10 shall not apply to this section. 19
(g) This subsection (g) shall be effective for the period July 1, 2012, through June 30, 2015. 20
(1) Notwithstanding the prior paragraphs of this section, and subject to subsection (g)(2) 21
below, for all present and former employees, active and retired members, and beneficiaries 22
receiving any retirement, disability or death allowance or benefit of any kind, the annual benefit 23
adjustment provided in any calendar year under this section shall be equal to (A) multiplied by (B) 24
where (A) is equal to the percentage determined by subtracting five and one-half percent (5.5%) 25
(the “subtrahend”) from the Five-Year Average Investment Return of the retirement system 26
determined as of the last day of the plan year preceding the calendar year in which the adjustment 27
is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent 28
(0%), and (B) is equal to the lesser of the member’s retirement allowance or the first twenty-five 29
thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000) 30
amount to be indexed annually in the same percentage as determined under (g)(1)(A) above. The 31
“Five-Year Average Investment Return” shall mean the average of the investment returns of the 32
most recent five (5) plan years as determined by the retirement board. Subject to subsection (g)(2) 33
below, the benefit adjustment provided by this subsection (g)(1) shall commence upon the third 34
LC001302 - Page 9 of 12
(3rd) anniversary of the date of retirement or the date on which the retiree reaches their Social 1
Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially 2
assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted 3
either upward or downward in the same amount. 4
(2) Except as provided in subsection (g)(3), the benefit adjustments under this section for 5
any plan year shall be suspended in their entirety unless the funded ratio of the employees’ 6
retirement system of Rhode Island, the judicial retirement benefits trust, and the state police 7
retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty 8
percent (80%) in which event the benefit adjustment will be reinstated for all members for such 9
plan year. 10
In determining whether a funding level under this subsection (g)(2) has been achieved, the 11
actuary shall calculate the funding percentage after taking into account the reinstatement of any 12
current or future benefit adjustment provided under this section. 13
(3) Notwithstanding subsection (g)(2), in each fifth plan year commencing after June 30, 14
2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five 15
plan years, a benefit adjustment shall be calculated and made in accordance with subsection (g)(1) 16
above until the funded ratio of the employees’ retirement system of Rhode Island, the judicial 17
retirement benefits trust, and the state police retirement benefits trust, calculated by the system’s 18
actuary on an aggregate basis, exceeds eighty percent (80%). 19
(4) Notwithstanding any other provision of this chapter, the provisions of this subsection 20
(g) shall become effective July 1, 2012, and shall apply to any benefit adjustment not granted on or 21
prior to June 30, 2012. 22
(h) This subsection (h) shall become effective July 1, 2015. 23
(1)(A) As soon as administratively reasonable following the enactment into law of this 24
subsection (h)(1)(A), a one-time benefit adjustment shall be provided to members and/or 25
beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent 26
(2%) of the lesser of either the member’s retirement allowance or the first twenty-five thousand 27
dollars ($25,000) of the member’s retirement allowance. This one-time benefit adjustment shall be 28
provided without regard to the retiree’s age or number of years since retirement. 29
(B) Notwithstanding the prior subsections of this section, for all present and former 30
employees, active and retired members, and beneficiaries receiving any retirement, disability or 31
death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year 32
under this section for adjustments on and after January 1, 2016, and subject to subsection (h)(2) 33
below, shall be equal to (I) multiplied by (II): 34
LC001302 - Page 10 of 12
(I) shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where: 1
(i) is equal to the percentage determined by subtracting five and one-half percent (5.5%) 2
(the “subtrahend”) from the five-year average investment return of the retirement system 3
determined as of the last day of the plan year preceding the calendar year in which the adjustment 4
is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent 5
(0%). The “five-year average investment return” shall mean the average of the investment returns 6
of the most recent five (5) plan years as determined by the retirement board. In the event the 7
retirement board adjusts the actuarially assumed rate of return for the system, either upward or 8
downward, the subtrahend shall be adjusted either upward or downward in the same amount. 9
(ii) is equal to the lesser of three percent (3%) or the percentage increase in the Consumer 10
Price Index for All Urban Consumers (CPI-U) as published by the U.S. Department of Labor 11
Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of (i) 12
plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%). 13
(II) is equal to the lesser of either the member’s retirement allowance or the first twenty-14
five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount 15
to be indexed annually in the same percentage as determined under subsection (h)(1)(B)(I) above. 16
The benefit adjustments provided by this subsection (h)(1)(B) shall be provided to all 17
retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect, 18
and for all other retirees the benefit adjustments shall commence upon the third anniversary of the 19
date of retirement or the date on which the retiree reaches their Social Security retirement age, 20
whichever is later. 21
(2) Except for members and/or beneficiaries of members who retired on or before June 30, 22
2012, have been retired for more than three (3) full calendar years, the benefit adjustments under 23
subsection (h)(1)(B) for any plan year shall be reduced to twenty-five percent (25%) of the benefit 24
adjustment unless the funded ratio of the employees’ retirement system of Rhode Island, the judicial 25
retirement benefits trust, and the state police retirement benefits trust, calculated by the system’s 26
actuary on an aggregate basis, exceeds eighty percent (80%) in which event the benefit adjustment 27
will be reinstated for all members for such plan year. Effective July 1, 2024, the funded ratio of the 28
employees’ retirement system of Rhode Island, the judicial retirement benefits trust, and the state 29
police retirement benefits trust, calculated by the system’s actuary on an aggregate basis, of 30
exceeding eighty percent (80%) for the benefit adjustment to be reinstated for all members for such 31
plan year shall be replaced with seventy-five percent (75%). 32
In determining whether a funding level under this subsection (h)(2) has been achieved, the 33
actuary shall calculate the funding percentage after taking into account the reinstatement of any 34
LC001302 - Page 11 of 12
current or future benefit adjustment provided under this section. 1
(3) Effective for members and/or beneficiaries of members who retired after June 30, 2012, 2
or on or before June 30, 2015, the dollar amount in subsection (h)(1)(B)(II) of twenty-five thousand 3
eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and 4
twenty-six dollars ($31,026) until the funded ratio of the employees’ retirement system of Rhode 5
Island, the judicial retirement benefits trust, and the state police retirement benefits trust, calculated 6
by the system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1, 7
2024, the funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement 8
benefits trust, and the state police retirement benefits trust, calculated by the system’s actuary on 9
an aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent 10
(75%). 11
(i) Effective for members and/or beneficiaries of members who have retired on or before 12
July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60) 13
days following the enactment of the legislation implementing this provision, and a second one-time 14
stipend of five hundred dollars ($500) in the same month of the following year. These stipends 15
shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable 16
payment date and shall not be considered cost of living adjustments under the prior provisions of 17
this section. 18
SECTION 3. This act shall take effect upon passage. 19
========
LC001302
========
LC001302 - Page 12 of 12
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- TEACHERS' AND STATE
EMPLOYEES RETIREMENT
***
This act would exempt teachers and state employees who have been retired for more than 1
three (3) full calendar years, from having their retirement benefit adjustment reduced based upon 2
the funded ratio of the employees' retirement system of Rhode Island. 3
This act would take effect upon passage. 4
========
LC001302
========