2025 -- S 0450
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LC001400
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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' RETIREMENT
Introduced By: Senators Ciccone, Tikoian, and Urso
Date Introduced: February 26, 2025
Referred To: Senate 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
completed at least ten (10) years of contributory service. For teachers in service as of October 1, 19
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2009, who were not eligible to retire as of September 30, 2009, but became eligible to retire prior 1
to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in 2
proportion to the amount of service the member has earned as of September 30, 2009. The 3
proportional formula shall work as follows: 4
(A) The formula shall determine the first age of retirement eligibility under the laws in 5
effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of 6
sixty-two (62). 7
(B) The formula shall then take the teacher’s total service credit as of September 30, 2009, 8
as the numerator and the years of service credit determined under (A) as the denominator. 9
(C) The fraction determined in (B) shall then be multiplied by the age difference in (1) to 10
apply a reduction in years from age sixty-two (62). 11
(b)(i) Any member, who has not completed at least ten (10) years of contributory service 12
on or before July 1, 2005, may retire upon his or her written application to the retirement board as 13
of the first day of the calendar month in which the application was filed; provided, the member was 14
separated from service prior thereto; and further provided, however, that if separation from service 15
occurs during the month in which application is filed, the effective date shall be the first day 16
following that separation from service; provided, the member on his or her retirement date had 17
attained the age of fifty-nine (59) and had completed at least twenty-nine (29) years of total service; 18
or provided, that the member on his or her retirement date had attained the age of sixty-five (65) 19
and had completed at least ten (10) years of contributory service; or provided, that the member on 20
his or her retirement date had attained the age of fifty-five (55) and had completed twenty (20) 21
years of total service and provided, that the retirement allowance, as determined according to the 22
formula in § 16-16-13 is reduced actuarially for each month that the age of the member is less than 23
sixty-five (65) years and who retire before October 1, 2009, or are eligible to retire as of September 24
30, 2009. 25
(ii) For teachers who become eligible to retire on or after October 1, 2009, and prior to July 26
1, 2012, benefits are available to teachers who have attained the age of sixty-two (62) and have 27
completed at least twenty-nine (29) years of total service or have attained the age of sixty-five (65) 28
and completed at least ten (10) years of contributory service. For teachers in service as of October 29
1, 2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior 30
to July 1, 2012, who have a minimum retirement age of sixty-two (62), the retirement age will be 31
adjusted downward in proportion to the amount of service the member has earned as of September 32
30, 2009. The proportional formula shall work as follows: 33
(A) The formula shall determine the first age of retirement eligibility under the laws in 34
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effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of 1
sixty-two (62). 2
(B) The formula shall then take the teacher’s total service credit as of September 30, 2009, 3
as the numerator and the years of service credit determined under (A) as the denominator. 4
(C) The fraction determined in (B) shall then be multiplied by the age difference 5
determined in (A) to apply a reduction in years from age sixty-two (62). 6
(c) Effective July 1, 2012, the following shall apply to all teachers not eligible to retire 7
prior to July 1, 2012: 8
(i) A teacher with contributory service on or after July 1, 2012, shall be eligible to retire 9
upon the completion of at least five (5) years of contributory service and attainment of the teacher’s 10
Social Security retirement age. 11
(ii) For teachers with five (5) or more years of contributory service as of June 30, 2012, 12
with contributory service on and after July 1, 2012, who have a retirement age of Social Security 13
Retirement Age, the retirement age will be adjusted downward in proportion to the amount of 14
service the teacher has earned as of June 30, 2012, but in no event shall a teacher’s retirement age 15
under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the teacher’s 16
retirement age determined under the laws in effect on June 30, 2012. The proportional formula shall 17
work as follows: 18
(1) The formula shall determine the first age of retirement eligibility under the laws in 19
effect on June 30, 2012, which shall then be subtracted from Social Security retirement age; 20
(2) The formula shall then take the teacher’s total service credit as of June 30, 2012, as the 21
numerator and the projected service at retirement age in effect on June 30, 2012, as the 22
denominator; 23
(3) The fraction determined in (2) shall then be multiplied by the age difference determined 24
in (1) to apply a reduction in years from Social Security retirement age. 25
(iii) Effective July 1, 2015, a teacher who has completed twenty (20) or more years of total 26
service and who has attained an age within five (5) years of the eligible retirement age under 27
subdivisions (c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the 28
retirement allowance shall be reduced actuarially for each month that the age of the teacher is less 29
than the eligible retirement age under subdivisions (c)(i) or (c)(ii) above or subsection (d) below in 30
accordance with the following table: 31
Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly 32
Reduction 33
For Year 1 9% .75% 34
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For Year 2 8% .667% 1
For Year 3 7% .583% 2
For Year 4 7% .583% 3
For Year 5 7% .583% 4
(iv) Notwithstanding any other provisions of section § 16-16-12(c), a teacher who has 5
completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at 6
his or her eligible retirement date as determined under subsections (a) and (b) above provided that 7
a teacher making an election under this paragraph shall receive the teacher’s retirement benefit 8
determined and calculated based on the teacher’s service and average compensation as of June 30, 9
2012. This provision shall be interpreted and administered in a manner to protect a teacher’s 10
accrued benefit on June 30, 2012. 11
(d)(i) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015, 12
teachers in active service shall be eligible to retire upon the earlier of: 13
(A) The attainment of at least age sixty-five (65) and the completion of at least thirty (30) 14
years of total service, or the attainment of at least age sixty-four (64) and the completion of at least 15
thirty-one (31) years of total service, or the attainment of at least age sixty-three (63) and the 16
completion of at least thirty-two (32) years of total service, or the attainment of at least age sixty-17
two (62) and the completion of at least thirty-three (33) years of total service; or 18
(B) The teacher’s retirement eligibility date under subsections (c)(i) or (c)(ii) above. 19
(ii) Notwithstanding any other provisions of subsection (c) or subsection (d)(i) of this 20
section, commencing July 1, 2025, teachers in active service shall be eligible to retire upon the 21
earlier of: 22
(A) The attainment of at least age sixty (60) and the completion of at least thirty (30) years 23
of total service; or 24
(B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) of this section. 25
(e) Except as specifically provided in §§ 36-10-9.1, 36-10-12 through 36-10-15, and 45-26
21-19 through 45-21-22, no member shall be eligible for pension benefits under this chapter unless 27
(i) The member shall have been a contributing member of the employees’ retirement 28
system for at least ten (10) years; or 29
(ii) For teachers in active contributory service on or after July 1, 2012, the teacher shall 30
have been a contributing member of the employees’ retirement system for at least five (5) years. 31
(2) Provided, however, a person who has ten (10) years service credit shall be vested; 32
provided that for teachers in active contributory service on or after July 1, 2012, a teacher who has 33
five (5) years of contributory service shall be vested. 34
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(3) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall be 1
counted towards vesting. 2
(4) Any person who becomes a member of the employees’ retirement system pursuant to 3
§ 45-21-8 shall be considered a contributing member for the purpose of chapter 21 of title 45 and 4
this chapter. 5
(5) Notwithstanding any other provision of law, no more than five (5) years of service 6
credit may be purchased by a member of the system. The five (5) year limit shall not apply to any 7
purchases made prior to January 1, 1995. A member who has purchased more than five (5) years 8
of service credit before January 1, 1995, shall be permitted to apply the purchases towards the 9
member’s service retirement. However, no further purchase will be permitted. 10
(6) Notwithstanding any other provision of law, effective July 1, 2012, except for purchases 11
under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53: 12
(i) For service purchases for time periods prior to a teacher’s initial date of hire, the 13
purchase must be made within three (3) years of the teacher’s initial date of hire; and 14
(ii) For service purchases for time periods for official periods of leave as authorized by 15
law, the purchase must be made within three (3) years of the time the official leave was concluded 16
by the teacher. Notwithstanding paragraphs (i) and (ii) above, service purchases from time periods 17
prior to June 30, 2012, may be made on or prior to June 30, 2015. 18
(f) No member of the teachers’ retirement system shall be permitted to purchase service 19
credits for casual or seasonal employment, for employment as a temporary or emergency employee, 20
a page in the general assembly, or for employment at any state college or university while the 21
employee is a student or graduate of the college or university. 22
(g) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not 23
receive service credit in this retirement system for any year or portion of a year which counts as 24
service credit in any other retirement system in which the member is vested or from which the 25
member is receiving a pension and/or any annual payment for life. This subsection shall not apply 26
to any payments received pursuant to the federal Social Security Act, 42 U.S.C. § 301 et seq. 27
(h) A member who seeks to purchase or receive service credit in this retirement system 28
shall have the affirmative duty to disclose to the retirement board whether or not he or she is a 29
vested member in any other retirement system and/or is receiving a pension, retirement allowance, 30
or any annual payment for life. The retirement board shall have the right to investigate as to whether 31
or not the member has utilized the same time of service for credit in any other retirement system. 32
The member has an affirmative duty to cooperate with the retirement board including, by way of 33
illustration and not by way of limitation, the duty to furnish or have furnished to the retirement 34
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board any relevant information that is protected by any privacy act. 1
(i) A member who fails to cooperate with the retirement board shall not have the time of 2
service credit counted toward total service credit until the time the member cooperates with the 3
retirement board and until the time the retirement board determines the validity of the service credit. 4
(j) A member who knowingly makes a false statement to the retirement board regarding 5
service time or credit shall not be entitled to a retirement allowance and is entitled only to the return 6
of his or her contributions without interest. 7
SECTION 2. Section 36-10-9 of the General Laws in Chapter 36-10 entitled "Retirement 8
System — Contributions and Benefits" is hereby amended to read as follows: 9
36-10-9. Retirement on service allowance — In general. 10
Retirement of a member on a service retirement allowance shall be made by the retirement 11
board as follows: 12
(1)(a)(i) Any member may retire upon his or her written application to the retirement board 13
as of the first day of the calendar month in which the application was filed; provided, the member 14
was separated from service prior thereto; and further provided, however, that if separation from 15
service occurs during the month in which application is filed, the effective date shall be the first 16
day following that separation from service; and provided further that the member on his or her 17
retirement date attained the age of sixty (60) and completed at least ten (10) years of contributory 18
service on or before July 1, 2005, or who, regardless of age, has completed twenty-eight (28) years 19
of total service and has completed at least ten (10) years of contributory service on or before July 20
1, 2005, and who retire before October 1, 2009, or are eligible to retire as of September 30, 2009. 21
(ii) For members who become eligible to retire on or after October 1, 2009, and prior to 22
July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and 23
completed at least ten (10) years of contributory service. For members in service as of October 1, 24
2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior 25
to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in 26
proportion to the amount of service the member has earned as of September 30, 2009. The 27
proportional formula shall work as follows: 28
(1) The formula shall determine the first age of retirement eligibility under the laws in 29
effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of 30
sixty-two (62). 31
(2) The formula shall then take the member’s total service credit as of September 30, 2009, 32
as the numerator and the years of service credit determined under (1) as the denominator. 33
(3) The fraction determined in (2) shall then be multiplied by the age difference determined 34
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in (1) to apply a reduction in years from age sixty-two (62). 1
(b)(i) Any member, who has not completed at least ten (10) years of contributory service 2
on or before July 1, 2005, may retire upon his or her written application to the retirement board as 3
of the first day of the calendar month in which the application was filed; provided, the member was 4
separated from service prior thereto; and further provided, however, that if separation from service 5
occurs during the month in which application is filed, the effective date shall be the first day 6
following that separation from service; provided, the member or his or her retirement date had 7
attained the age of fifty-nine (59) and had completed at least twenty-nine (29) years of total service 8
or provided that the member on his or her retirement date had attained the age of sixty-five (65) 9
and had completed at least ten (10) years of contributory service; or provided, that the member on 10
his or her retirement date had attained the age of fifty-five (55) and had completed twenty (20) 11
years of total service provided, that the retirement allowance, as determined according to the 12
formula in § 36-10-10 is reduced actuarially for each month that the age of the member is less than 13
sixty-five (65) years, and who retire before October 1, 2009, or are eligible to retire as of September 14
30, 2009. 15
(ii) For members who become eligible to retire on or after October 1, 2009 and prior to 16
July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and 17
completed at least twenty-nine (29) years of total service or have attained the age of sixty-five (65) 18
and completed at least ten (10) years of contributory service. For members in service as of October 19
1, 2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior 20
to July 1, 2012, who have a minimum retirement age of sixty-two (62), the retirement age will be 21
adjusted downward in proportion to the amount of service the member has earned as of September 22
30, 2009. The 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) above shall then be multiplied by the age difference 29
determined in (1) to apply a reduction in years from age sixty-two (62). 30
(c) Effective July 1, 2012, the following shall apply to all members not eligible to retire 31
prior to July 1, 2012: 32
(i) A member with contributory service on or after July 1, 2012, shall be eligible to retire 33
upon the completion of at least five (5) years of contributory service and attainment of the member’s 34
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Social Security retirement age. 1
(ii) For members with five (5) or more years of contributory service as of June 30, 2012, 2
with contributory service on and after July 1, 2012, who have a retirement age of Social Security 3
Retirement Age, the retirement age will be adjusted downward in proportion to the amount of 4
service the member has earned as of June 30, 2012, but in no event shall a member’s retirement 5
age under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the 6
member’s retirement age determined under the laws in effect on June 30, 2012. The proportional 7
formula shall work as follows: 8
(1) The formula shall determine the first age of retirement eligibility under the laws in 9
effect on June 30, 2012, which shall then be subtracted from Social Security retirement age; 10
(2) The formula shall then take the member’s total service credit as of June 30, 2012, as 11
the numerator and the projected service at retirement age in effect on June 30, 2012, as the 12
denominator; 13
(3) The fraction determined in (2) shall then be multiplied by the age difference determined 14
in (1) to apply a reduction in years from Social Security retirement age. 15
(iii) Effective July 1, 2015, a member who has completed twenty (20) or more years of 16
total service and who has attained an age within five (5) years of the eligible retirement age under 17
subparagraphs (c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the 18
retirement allowance shall be reduced actuarially for each month that the age of the member is less 19
than the eligible retirement age under subparagraphs (c)(i) or (c)(ii) above or subsection (d) below 20
in accordance with the following table: 21
Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly 22
Reduction 23
For Year 1 9% .75% 24
For Year 2 8% .667% 25
For Year 3 7% .583% 26
For Year 4 7% .583% 27
For Year 5 7% .583% 28
(iv) Notwithstanding any other provisions of section 36-10-9(c), a member who has 29
completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at 30
his or her eligible retirement date as determined under paragraphs (1)(a) and (1)(b) above provided 31
that a member making an election under this paragraph shall receive the member’s retirement 32
benefit determined and calculated based on the member’s service and average compensation as of 33
June 30, 2012. This provision shall be interpreted and administered in a manner to protect a 34
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member’s accrued benefit on June 30, 2012. 1
(d)(i) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015, 2
members in active service shall be eligible to retire upon the earlier of: (A) The attainment of at 3
least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the 4
attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of total 5
service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-two 6
(32) years of total service, or the attainment of at least age sixty-two (62) and the completion of at 7
least thirty-three (33) years of total service; or (B) The member’s retirement eligibility date under 8
subsections (c)(i) or (c)(ii) above. 9
(ii) Notwithstanding any other provisions of subsection (c) or subsection (d)(i) of this 10
section, commencing July 1, 2025, teachers in active service shall be eligible to retire upon the 11
earlier of: 12
(A) The attainment of at least age sixty (60) and the completion of at least thirty (30) years 13
of total service; or 14
(B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) of this section. 15
(2) Any faculty employee at a public institution of higher education under the jurisdiction 16
of the council on postsecondary education shall not be involuntarily retired upon attaining the age 17
of seventy (70) years. 18
(3)(i) Except as specifically provided in § 36-10-9.1, §§ 36-10-12 — 36-10-15, and §§ 45-19
21-19 — 45-21-22, (I) On or prior to June 30, 2012 no member shall be eligible for pension benefits 20
under this chapter unless the member shall have been a contributing member of the employee’s 21
retirement system for at least ten (10) years, or (II) For members in active contributory service on 22
or after July 1, 2012, the member shall have been a contributing member of the retirement system 23
for at least five (5) years. 24
(ii) Provided, however, a person who has ten (10) years service credit on or before June 16, 25
1991, shall be vested. 26
(iii) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall be 27
counted towards vesting. 28
(iv) Any person who becomes a member of the employees’ retirement system pursuant to 29
§ 45-21-4 shall be considered a contributing member for the purpose of chapter 21 of title 45 and 30
this chapter. 31
(v) Notwithstanding any other provision of law, no more than five (5) years of service 32
credit may be purchased by a member of the system. The five (5) year limit shall not apply to any 33
purchases made prior to January 1, 1995. A member who has purchased more than five (5) years 34
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of service credits before January 1, 1995, shall be permitted to apply those purchases towards the 1
member’s service retirement. However, no further purchase will be permitted. Repayment in 2
accordance with applicable law and regulation of any contribution previously withdrawn from the 3
system shall not be deemed a purchase of service credit. 4
(vi) Notwithstanding any other provision of law, effective July 1, 2012, except for 5
purchases under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53, (A) For service 6
purchases for time periods prior to a member’s initial date of hire, the purchase must be made 7
within three (3) years of the member’s initial date of hire, (B) For service purchases for time periods 8
for official periods of leave as authorized by law, the purchase must be made within three (3) years 9
of the time the official leave was concluded by the member. Notwithstanding the preceding 10
sentence, service purchases from time periods prior to June 30, 2012, may be made on or prior to 11
June 30, 2015. 12
(4) No member of the employees’ retirement system shall be permitted to purchase service 13
credits for casual, seasonal, or temporary employment, or emergency appointment, for employment 14
as a page in the general assembly, or for employment at any state college or university while the 15
employee is a student or graduate assistant of the college or university. 16
(5) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not 17
receive service credit in this retirement system for any year or portion of it, which counts as service 18
credit in any other retirement system in which the member is vested or from which the member is 19
receiving a pension and/or any annual payment for life. This subsection shall not apply to any 20
payments received pursuant to the federal Social Security Act or to payments from a military 21
pension earned prior to participation in state or municipal employment, or to military service credits 22
earned prior to participation in state or municipal employment. 23
(6) A member who seeks to purchase or receive service credit in this retirement system 24
shall have the affirmative duty to disclose to the retirement board whether or not he or she is a 25
vested member in any other retirement system and/or is receiving a pension, retirement allowance, 26
or any annual payment for life. The retirement board shall have the right to investigate as to whether 27
or not the member has utilized the same time of service for credit in any other retirement system. 28
The member has an affirmative duty to cooperate with the retirement board including, by way of 29
illustration and not by way of limitations the duty to furnish or have furnished to the retirement 30
board any relevant information which is protected by any privacy act. 31
(7) A member who fails to cooperate with the retirement board shall not have the time of 32
service counted toward total service credit until such time as the member cooperates with the 33
retirement board and until such time as the retirement board determines the validity of the service 34
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credit. 1
(8) A member who knowingly makes a false statement to the retirement board regarding 2
service time or credit shall not be entitled to a retirement allowance and is entitled only to the return 3
of his or her contributions without interest. 4
SECTION 3. Section 45-21-16 of the General Laws in Chapter 45-21 entitled "Retirement 5
of Municipal Employees" is hereby amended to read as follows: 6
45-21-16. Retirement on service allowance. 7
Retirement of a member on a service retirement allowance shall be made by the retirement 8
board as follows: 9
(1)(i) Any member who is eligible to retire on or before June 30, 2012, may retire upon the 10
member’s written application to the retirement board as of the first day of the calendar month in 11
which the application was filed, provided the member was separated from service prior to the 12
application, and provided, further, that if separation from service occurs during the month in which 13
application is filed, the effective date is the first day following the separation from service, provided 14
that the member at the time so specified for the member’s retirement has attained the applicable 15
minimum retirement age and has completed at least ten (10) years of total service or who, regardless 16
of age, completed thirty (30) years of total service, and notwithstanding that during the period of 17
notification the member has separated from service. The minimum ages for service retirement 18
(except for employees completing thirty (30) years of service) is fifty-eight (58) years. 19
(ii) Effective July 1, 2012, the following shall apply to all members not eligible to retire 20
prior to July 1, 2012: 21
(A) A member with contributory service on or after July 1, 2012, shall be eligible to retire 22
upon the completion of at least five (5) years of contributory service and attainment of the member’s 23
Social Security retirement age. 24
(B) For members with five (5) or more years of contributory service as of June 30, 2012, 25
with contributory service on and after July 1, 2012, who have a retirement age of Social Security 26
retirement age, the retirement age will be adjusted downward in proportion to the amount of service 27
the member has earned as of June 30, 2012, but in no event shall a member’s retirement age under 28
this subparagraph (B) be prior to the attainment of age fifty-nine (59) or prior to the member’s 29
retirement age determined under the laws in effect on June 30, 2012. The proportional formula shall 30
work as follows: 31
(1) The formula shall determine the first age of retirement eligibility under the laws in 32
effect on June 30, 2012, which shall then be subtracted from Social Security retirement age; 33
(2) The formula shall then take the member’s total service credit as of June 30, 2012, as 34
LC001400 - Page 12 of 15
the numerator and the projected service at retirement age in effect on June 30, 2012, as the 1
denominator; 2
(3) The fraction determined in (2) shall then be multiplied by the age difference determined 3
in (1) to apply a reduction in years from Social Security retirement age. 4
(C) Effective July 1, 2015, a member who has completed twenty (20) or more years of total 5
service and who has attained an age within five (5) years of the eligible retirement age under 6
subparagraphs (ii)(A) or (ii)(B) above or subsection (iii) below, may elect to retire provided that 7
the retirement allowance shall be reduced actuarially for each month that the age of the member is 8
less than the eligible retirement age under subparagraphs (ii)(A) or (ii)(B) above or subsection (iii) 9
below in accordance with the following table: 10
Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly 11
Reduction 12
For Year 1 9% .75% 13
For Year 2 8% .667% 14
For Year 3 7% .583% 15
For Year 4 7% .583% 16
For Year 5 7% .583% 17
(D)(1) Notwithstanding any other provisions of § 42-21-16(1)(ii), a member who has 18
completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at 19
his or her eligible retirement date as determined under paragraph (i) above provided that a member 20
making an election under this paragraph shall receive the member’s retirement benefit determined 21
and calculated based on the member’s service and average compensation as of June 30, 2012. This 22
provision shall be interpreted and administered in a manner to protect a member’s accrued benefit 23
on June 30, 2012. 24
(iii)(A) Notwithstanding any other provisions of subsection (ii) above, effective July 1, 25
2015, members in active service shall be eligible to retire upon the earlier of: (I) The attainment of 26
at least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the 27
attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of total 28
service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-two 29
(32) years of total service, or the attainment of at least age sixty-two (62) and the completion of at 30
least thirty-three (33) years of total service; or (II) The member’s retirement eligibility date under 31
subsections (ii)(A) or (ii)(B) above. 32
(B) Notwithstanding any other provisions of subsection (ii) or subsection (iii)(A) of this 33
section, commencing July 1, 2025, members in active service shall be eligible to retire upon the 34
LC001400 - Page 13 of 15
earlier of: 1
(I) The attainment of least age sixty (60) and the completion of at least thirty (30) years of 2
total service; or 3
(II) The member's retirement eligibility date under subsections (ii)(A) or (ii)(B) of this 4
section. 5
(2) Except as specifically provided in §§ 45-21-19 — 45-21-22, no member is eligible for 6
pension benefits under this chapter unless: 7
(I) On or prior to June 30, 2012, the member has been a contributing member of the 8
employees’ retirement system for at least ten (10) years; or 9
(II) For members in active contributory service on or after July 1, 2012, the member shall 10
have been a contributing member of the employees’ retirement system for at least five (5) years. 11
(i) Provided, however, a person who has ten (10) years service credit on or before June 16, 12
1991, is vested. 13
(ii) Furthermore, any past service credits purchased in accordance with § 45-21-62 are 14
counted towards vesting. 15
(iii) Any person who becomes a member of the employees’ retirement system pursuant to 16
§ 45-21-4 shall be considered a contributing member for the purpose of this chapter. 17
(iv) Notwithstanding any other provision of law, no more than five (5) years of service 18
credit may be purchased by a member of the System. The five (5)-year limit does not apply to any 19
purchases made prior to the effective date of this provision. A member who has purchased more 20
than five (5) years of service credit maximum, before January 1, 1995, shall be permitted to apply 21
the purchases towards the member’s service retirement. However, no further purchase will be 22
permitted. Repayment, in accordance with applicable law and regulation, of any contribution 23
previously withdrawn from the System is not deemed a purchase of service credit. 24
(v) Notwithstanding any other provision of law, effective July 1, 2012, except for purchases 25
under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53: 26
(I) For service purchases for time periods prior to a member’s initial date of hire; the 27
purchase must be made within three (3) years of the member’s initial date of hire; and 28
(II) For service purchases for time periods for official periods of leave as authorized by 29
law, the purchase must be made within three (3) years of the time the official leave was concluded 30
by the member. 31
Notwithstanding (I) and (II) above, service purchases from time periods prior to June 30, 32
2012, may be made on or prior to June 30, 2015. 33
(3) No member of the municipal employees’ retirement system is permitted to purchase 34
LC001400 - Page 14 of 15
service credits for casual, temporary, emergency or seasonal employment, for employment as a 1
page in the general assembly, or for employment at any state college or university while the 2
employee is a student or graduate assistant of the college or university. 3
(4) A member does not receive service credit in this retirement system for any year or 4
portion of a year, which counts as service credit in any other retirement system in which the member 5
is vested or from which the member is receiving a pension and/or any annual payment for life. This 6
subsection does not apply to any payments received pursuant to the federal Social Security Act or 7
to payments from a military pension earned prior to participation in state or municipal employment, 8
or to military service credits earned prior to participation in state or municipal employment. 9
(5) A member who seeks to purchase or receive service credit in this retirement system has 10
the affirmative duty to disclose to the retirement board whether or not he or she is a vested member 11
in any other retirement system and/or is receiving a pension retirement allowance or any annual 12
payment for life. The retirement board has the right to investigate whether or not the member has 13
utilized the same time of service for credit in any other retirement system. The member has an 14
affirmative duty to cooperate with the retirement board including, by way of illustration and not by 15
way of limitation, the duty to furnish or have furnished to the retirement board any relevant 16
information which is protected by any privacy act. 17
(6) A member who fails to cooperate with the retirement board shall not have the time of 18
service counted toward total service credit until a time that the member cooperates with the 19
retirement board and until a time that the retirement board determines the validity of the service 20
credit. 21
(7) A member who knowingly makes a false statement to the retirement board regarding 22
service time or credit is not entitled to a retirement allowance and is entitled only to the return of 23
his or her contributions without interest. 24
SECTION 4. This act shall take effect upon passage. 25
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO EDUCATION -- TEACHERS' RETIREMENT
***
This act would allow teachers, state and municipal employees to retire upon the earlier of 1
reaching age sixty (60) with thirty (30) years of service or the employee's retirement eligibility date 2
under present state statutes. 3
This act would take effect upon passage. 4
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