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Rhode Island House Bill H5762

Rhode Island 2025 Regular Session

Rhode Island House Bill H5762 Compare Versions

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99 S T A T E O F R H O D E I S L A N D
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2025
1212 ____________
1313
1414 A N A C T
1515 RELATING TO EDUCATION -- TEACHER'S RETIREMENT
1616 Introduced By: Representatives Slater, Diaz, Morales, and DeSimone
1717 Date Introduced: February 26, 2025
1818 Referred To: House Finance
1919
2020
2121 It is enacted by the General Assembly as follows:
2222 SECTION 1. Section 16-16-13 of the General Laws in Chapter 16-16 entitled "Teachers’ 1
2323 Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby 2
2424 amended to read as follows: 3
2525 16-16-13. Amount of service retirement allowance. 4
2626 (a)(1)(i) For teachers eligible to retire on or before September 30, 2009, upon retirement 5
2727 from service under § 16-16-12 a teacher whose membership commenced before July 1, 2005, and 6
2828 who has completed at least ten (10) years of contributory service on or before July 1, 2005, shall 7
2929 receive a retirement allowance which shall be determined in accordance with schedule A for service 8
3030 prior to July 1, 2012. 9
3131 SCHEDULE A 10
3232 YEARS OF SERVICE PERCENTAGE ALLOWANCE 11
3333 1st through 10th inclusive 1.7% 12
3434 11th through 20th inclusive 1.9% 13
3535 21st through 34th inclusive 3.0% 14
3636 35
3737 th
3838 2.0% 15
3939 (ii) For teachers eligible to retire on or after October 1, 2009, who were not eligible to retire 16
4040 on or before September 30, 2009, upon retirement for service under § 16-16-12, a teacher whose 17
4141 membership commenced before July 1, 2005, and who has completed at least ten (10) years of 18
4242 contributory service on or before July 1, 2005, shall receive a retirement allowance which shall be 19
4343
4444
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4646 determined in accordance with schedule A above for service on before September 30, 2009, and 1
4747 shall be determined in accordance with schedule B in subsection (a)(2) below for service on or after 2
4848 October 1, 2009, and prior to July 1, 2012. 3
4949 (2) Upon retirement from service under § 16-16-12 a teacher whose membership 4
5050 commenced after July 1, 2005, or who has not completed at least ten (10) years of contributory 5
5151 service as of July 1, 2005, shall receive a retirement allowance which shall be determined in 6
5252 accordance with Schedule B for service prior to July 1, 2012. 7
5353 SCHEDULE B 8
5454 YEARS OF SERVICE PERCENTAGE ALLOWANCE 9
5555 1st through 10th inclusive 1.60% 10
5656 11th through 20th inclusive 1.80% 11
5757 21st through 25th inclusive 2.0% 12
5858 26th through 30th inclusive 2.25% 13
5959 31st through 37th inclusive 2.50% 14
6060 38
6161 th
6262 2.25% 15
6363 (b) The retirement allowance of any teacher whose membership commenced before July 1, 16
6464 2005, and who has completed at least ten (10) years of contributory service on or before July 1, 17
6565 2005, shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of the 18
6666 member’s average highest three (3) consecutive years of compensation multiplied by the number 19
6767 of years of total service, but in no case to exceed eighty percent (80%) of the compensation, payable 20
6868 at completion of thirty-five (35) years of service; provided, however, for teachers retiring on or 21
6969 after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation 22
7070 shall be based on the average highest five (5) consecutive years of compensation; provided, 23
7171 however for teachers retiring on or after July 1, 2024, the calculation shall be based on the average 24
7272 highest three (3) consecutive years of compensation; provided, however for teachers retiring on or 25
7373 after July 1, 2024, the calculation shall be based on the average highest three (3) consecutive years 26
7474 of compensation. 27
7575 The retirement allowance of any teacher whose membership commenced after July 1, 2005, 28
7676 or who has not completed at least ten (10) years of contributory service as of July 1, 2005, shall be 29
7777 in an amount equal to the percentage allowance specified in Schedule B of the member’s average 30
7878 highest three (3) consecutive years of compensation multiplied by the number of years of total 31
7979 service, but in no case to exceed seventy-five percent (75%) of the compensation, payable at 32
8080 completion of thirty-eight (38) years of service; provided, however, for teachers retiring on or after 33
8181 October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation shall be 34
8282
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8585 based on the average highest five (5) consecutive years of compensation; provided, however, for 1
8686 teachers retiring on or after July 1, 2024, the calculation shall be based on the average highest three 2
8787 (3) consecutive years of compensation; provided, however for teachers retiring on or after July 1, 3
8888 2024, the calculation shall be based on the average highest three (3) consecutive years of 4
8989 compensation. 5
9090 Any teacher who has in excess of thirty-five (35) years on or before June 2, 1985, shall not 6
9191 be entitled to any refund, and any teacher with thirty-five (35) years or more on or after June 2, 7
9292 1985, shall contribute from July 1, 1985, until their retirement. 8
9393 (c) For service prior to July 2012, the retirement allowance of a teacher shall be determined 9
9494 in accordance with subsections (a)(1) and (a)(2) above. For service on and after July 1, 2012: 10
9595 (i) For teachers with fewer than twenty (20) years of total service as of June 30, 2012, a 11
9696 teacher’s retirement allowance shall be equal to one percent (1%) of the teacher’s average 12
9797 compensation multiplied by the teacher’s years of total service on and after July 1, 2012; and 13
9898 (ii) For teachers with twenty (20) or more years of total service as of June 30, 2012, a 14
9999 teacher’s retirement allowance shall be equal to one percent (1%) of the teacher’s average 15
100100 compensation multiplied by the teacher’s years of total service between July 1, 2012, and June 30, 16
101101 2015, and two percent (2%) of the teacher’s average compensation multiplied by the teacher’s years 17
102102 of total service on and after July 1, 2015. For purposes of computing a teacher’s total service under 18
103103 the preceding sentence, service purchases shall be included in total service only with respect to 19
104104 those service purchases approved prior to June 30, 2012, and those applications for service 20
105105 purchases received by the retirement system on or before June 30, 2012. In no event shall a 21
106106 teacher’s retirement allowance exceed the maximum limitations set forth in subsection (b) above. 22
107107 (iii) Effective July 1, 2025, a teacher’s retirement allowance shall be calculated as follows: 23
108108 1-20 years of service 1% per year 24
109109 21-30 years of service 1.5% per year 25
110110 31-35 years of service 2% per year 26
111111 36-40 years of service 3% per year 27
112112 SECTION 2. Section 36-10-10 of the General Laws in Chapter 36-10 entitled "Retirement 28
113113 System — Contributions and Benefits" is hereby amended to read as follows: 29
114114 36-10-10. Amount of service retirement allowance. 30
115115 (a)(1)(i) For employees eligible to retire on or before September 30, 2009, upon retirement 31
116116 for service under § 36-10-9, a member whose membership commenced before July 1, 2005, and 32
117117 who has completed at least ten (10) years of contributory service on or before July 1, 2005, shall 33
118118 receive a retirement allowance which shall be determined in accordance with schedule A below for 34
119119
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122122 service prior to July 1, 2012: 1
123123 Schedule A 2
124124 Years of Service Percentage Allowance 3
125125 1st through 10th inclusive 1.7% 4
126126 11th through 20th inclusive 1.9% 5
127127 21st through 34th inclusive 3.0% 6
128128 35
129129 th
130130 2.0% 7
131131 (ii) For employees eligible to retire on or after October 1, 2009, who were not eligible to 8
132132 retire on or before September 30, 2009, upon retirement from service under § 36-10-9, a member 9
133133 whose membership commenced before July 1, 2005, and who has completed at least ten (10) years 10
134134 of contributory service on or before July 1, 2005, shall receive a retirement allowance which shall 11
135135 be determined in accordance with schedule A above for service on before September 30, 2009, and 12
136136 shall be determined in accordance with schedule B in subsection (a)(2) below for service on or after 13
137137 October 1, 2009, and prior to July 1, 2012. 14
138138 (2) Upon retirement for service under § 36-10-9, a member whose membership 15
139139 commenced after July 1, 2005, or who has not completed at least ten (10) years of contributory 16
140140 service as of July 1, 2005, shall, receive a retirement allowance which shall be determined in 17
141141 accordance with Schedule B below for service prior to July 1, 2012: 18
142142 Schedule B 19
143143 Years of Service Percentage Allowance 20
144144 1st through 10th inclusive 1.60% 21
145145 11th through 20th inclusive 1.80% 22
146146 21st through 25th inclusive 2.0% 23
147147 26th through 30th inclusive 2.25% 24
148148 31st through 37th inclusive 2.50% 25
149149 38
150150 th
151151 2.25% 26
152152 (b) The retirement allowance of any member whose membership commenced before July 27
153153 1, 2005, and who has completed at least ten (10) years of contributory service on or before July 1, 28
154154 2005, shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of the 29
155155 member’s average highest three (3) consecutive years of compensation multiplied by the number 30
156156 of years of total service, but in no case to exceed eighty percent (80%) of the compensation payable 31
157157 at completion of thirty-five (35) years of service; provided, however, for employees retiring on or 32
158158 after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation 33
159159 shall be based on the average highest five (5) consecutive years of compensation; provided, 34
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163163 however, for employees retiring on or after July 1, 2024, the calculation shall be based on the 1
164164 average highest three (3) consecutive years of compensation. Any member who has in excess of 2
165165 thirty-five (35) years on or before June 2, 1985, shall not be entitled to any refund, and any member 3
166166 with thirty-five (35) years or more on or after June 2, 1985, shall contribute from July 1, 1985, until 4
167167 the member’s retirement. 5
168168 The retirement allowance of any member whose membership commenced after July 1, 6
169169 2005, or who had not completed at least ten (10) years of contributory service as of July 1, 2005, 7
170170 shall, be in an amount equal to the percentage allowance specified in Schedule B of the member’s 8
171171 average highest three (3) consecutive years of compensation multiplied by the number of years of 9
172172 total service, but in no case to exceed seventy-five percent (75%) of the compensation payable at 10
173173 the completion of thirty-eight (38) years of service; provided, however, for employees retiring on 11
174174 or after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation 12
175175 shall be based on the average highest five (5) consecutive years of compensation; provided, 13
176176 however, for employees retiring on or after July 1, 2024, the calculation shall be based on the 14
177177 average highest three (3) consecutive years of compensation. 15
178178 (c) Any member with thirty-eight (38) years or more of service prior to December 31, 1985, 16
179179 shall not be required to make additional contributions. Contributions made between December 31, 17
180180 1985, and July 1, 1987, by members with thirty-eight (38) or more years of service prior to 18
181181 December 31, 1985, shall be refunded by the retirement board to the persons, their heirs, 19
182182 administrators, or legal representatives. 20
183183 (d) For service prior to July 1, 2012, the retirement allowance of a member shall be 21
184184 determined in accordance with subsections (a)(1) and (a)(2) above. For service on and after July 1, 22
185185 2012, a member’s retirement allowance shall be equal to: 23
186186 (i) For members with fewer than twenty (20) years of total service as of June 30, 2012, one 24
187187 percent (1%) of the member’s average compensation multiplied by the member’s years of total 25
188188 service on and after July 1 2012; and 26
189189 (ii) For members with twenty (20) or more years of total service as of June 30, 2012, a 27
190190 member’s retirement allowance shall be equal to one percent (1%) of the member’s average 28
191191 compensation multiplied by the member’s years of total service between July 1, 2012, and June 30, 29
192192 2015, and two percent (2%) of the member’s average compensation multiplied by the member’s 30
193193 years of total service on and after July 1, 2015. For purposes of computing a member’s total service 31
194194 under the preceding sentence, service purchases shall be included in total service only with respect 32
195195 to those service purchases approved prior to June 30, 2012, and those applications for service 33
196196 purchases received by the retirement system on or before June 30, 2012. 34
197197
198198
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200200 (iii) Effective July 1, 2025, an employee’s retirement allowance shall be calculated as 1
201201 follows: 2
202202 1-20 years of service 1% per year 3
203203 21-30 years of service 1.5% per year 4
204204 31-35 years of service 2% per year 5
205205 36-40 years of service 3% per year 6
206206 In no event shall a member’s retirement allowance exceed the maximum limitations set 7
207207 forth in paragraph (b) above. 8
208208 SECTION 3. Section 45-21-17 of the General Laws in Chapter 45-21 entitled "Retirement 9
209209 of Municipal Employees" is hereby amended to read as follows: 10
210210 45-21-17. Service retirement allowance. 11
211211 (a) Upon retirement from service after January 1, 1969, a member shall receive a retirement 12
212212 allowance which is a life annuity terminable upon death of the annuitant and is an amount equal to 13
213213 two percent (2%) of final compensation multiplied by the number of years of total service, not to 14
214214 exceed thirty-seven and one-half (37½) years for services on and prior to June 30, 2012. For service 15
215215 on and after July 1, 2012: (i) For members with fewer than twenty (20) years of total service as of 16
216216 June 30, 2012, a member’s retirement allowance shall be equal to one percent (1%) of the member’s 17
217217 final compensation multiplied by the member’s years of total service on and after July 1, 2012; and 18
218218 (ii) For members with twenty (20) or more years of total service as of June 30, 2012, a member’s 19
219219 retirement allowance shall be equal to one percent (1%) of the member’s average compensation 20
220220 multiplied by the member’s years of total service between July 1, 2012, and June 30, 2015, and two 21
221221 percent (2%) of the member’s average compensation multiplied by the member’s years of total 22
222222 service on and after July 1, 2015. For purposes of computing a member’s total service under the 23
223223 preceding sentence, service purchases shall be included in total service only with respect to those 24
224224 service purchases approved prior to June 30, 2012, and those applications for service purchases 25
225225 received by the retirement system on or before June 30, 2012. In no event shall a member’s 26
226226 retirement allowance exceed seventy-five percent (75%) of the member’s final compensation. 27
227227 Provided, however, that every person elected prior to July 1, 2012, who has served as a part time 28
228228 elected official of the city of Cranston for a period of ten (10) years, is entitled to receive, upon 29
229229 retirement from that part time service, and not being otherwise regularly employed by the city of 30
230230 Cranston in which that person has served, a service retirement allowance equivalent to fifty percent 31
231231 (50%) of the salary received at the time of retirement by that part time elected official; and, 32
232232 provided, further, that if that person retires after a period of service greater than ten (10) years, the 33
233233 person is entitled to receive an additional service retirement allowance equivalent to five percent 34
234234
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237237 (5%) of the salary received at the time of retirement for each whole year of service, in excess of ten 1
238238 (10) years up to a maximum additional allowance equivalent to fifty percent (50%) of the salary 2
239239 received. 3
240240 (b) This section also applies to any former part time elected official of the city of Cranston 4
241241 who is presently receiving retirement benefits from the municipal retirement system. 5
242242 (c) Every person elected prior to July 1, 2012, who serves or has served at least four (4) 6
243243 years as a part time elected official of the city of Cranston may include that person’s years of service 7
244244 as a member of the general assembly, and any other credits acquired while serving as a legislator, 8
245245 when computing the person’s period of service to the city of Cranston pursuant to the provisions 9
246246 of this section. 10
247247 (d) Effective July 1, 2025, an employee’s retirement allowance shall be calculated as 11
248248 follows: 12
249249 1-20 years of service 1% per year 13
250250 21-30 years of service 1.5% per year 14
251251 31-35 years of service 2% per year 15
252252 36-40 years of service 3% per year 16
253253 SECTION 4. This act shall take effect upon passage. 17
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260260 EXPLANATION
261261 BY THE LEGISLATIVE COUNCIL
262262 OF
263263 A N A C T
264264 RELATING TO EDUCATION -- TEACHER'S RETIREMENT
265265 ***
266266 This act would recalculate the retirement allowance related to early retirement and pension 1
267267 benefits for teachers, state employees and municipal employees. 2
268268 This act would take effect upon passage. 3
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