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Rhode Island Senate Bill S0659

Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0659 Compare Versions

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55 2025 -- S 0659
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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: Senators Britto, LaMountain, Appollonio, Felag, Burke, Raptakis,
1717 Tikoian, Ciccone, and DiPalma
1818 Date Introduced: March 07, 2025
1919 Referred To: Senate Finance
2020
2121
2222 It is enacted by the General Assembly as follows:
2323 SECTION 1. Section 16-16-13 of the General Laws in Chapter 16-16 entitled "Teachers’ 1
2424 Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby 2
2525 amended to read as follows: 3
2626 16-16-13. Amount of service retirement allowance. 4
2727 (a)(1)(i) For teachers eligible to retire on or before September 30, 2009, upon retirement 5
2828 from service under § 16-16-12 a teacher whose membership commenced before July 1, 2005, and 6
2929 who has completed at least ten (10) years of contributory service on or before July 1, 2005, shall 7
3030 receive a retirement allowance which shall be determined in accordance with schedule A for service 8
3131 prior to July 1, 2012. 9
3232 SCHEDULE A 10
3333 YEARS OF SERVICE PERCENTAGE ALLOWANCE 11
3434 1st through 10th inclusive 1.7% 12
3535 11th through 20th inclusive 1.9% 13
3636 21st through 34th inclusive 3.0% 14
3737 35
3838 th
3939 2.0% 15
4040 (ii) For teachers eligible to retire on or after October 1, 2009, who were not eligible to retire 16
4141 on or before September 30, 2009, upon retirement for service under § 16-16-12, a teacher whose 17
4242 membership commenced before July 1, 2005, and who has completed at least ten (10) years of 18
4343 contributory service on or before July 1, 2005, shall receive a retirement allowance which shall be 19
4444
4545
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4747 determined in accordance with schedule A above for service on before September 30, 2009, and 1
4848 shall be determined in accordance with schedule B in subsection (a)(2) below for service on or after 2
4949 October 1, 2009, and prior to July 1, 2012. 3
5050 (2) Upon retirement from service under § 16-16-12 a teacher whose membership 4
5151 commenced after July 1, 2005, or who has not completed at least ten (10) years of contributory 5
5252 service as of July 1, 2005, shall receive a retirement allowance which shall be determined in 6
5353 accordance with Schedule B for service prior to July 1, 2012. 7
5454 SCHEDULE B 8
5555 YEARS OF SERVICE PERCENTAGE ALLOWANCE 9
5656 1st through 10th inclusive 1.60% 10
5757 11th through 20th inclusive 1.80% 11
5858 21st through 25th inclusive 2.0% 12
5959 26th through 30th inclusive 2.25% 13
6060 31st through 37th inclusive 2.50% 14
6161 38
6262 th
6363 2.25% 15
6464 (b) The retirement allowance of any teacher whose membership commenced before July 1, 16
6565 2005, and who has completed at least ten (10) years of contributory service on or before July 1, 17
6666 2005, shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of the 18
6767 member’s average highest three (3) consecutive years of compensation multiplied by the number 19
6868 of years of total service, but in no case to exceed eighty percent (80%) of the compensation, payable 20
6969 at completion of thirty-five (35) years of service; provided, however, for teachers retiring on or 21
7070 after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation 22
7171 shall be based on the average highest five (5) consecutive years of compensation; provided, 23
7272 however for teachers retiring on or after July 1, 2024, the calculation shall be based on the average 24
7373 highest three (3) consecutive years of compensation; provided, however for teachers retiring on or 25
7474 after July 1, 2024, the calculation shall be based on the average highest three (3) consecutive years 26
7575 of compensation. 27
7676 The retirement allowance of any teacher whose membership commenced after July 1, 2005, 28
7777 or who has not completed at least ten (10) years of contributory service as of July 1, 2005, shall be 29
7878 in an amount equal to the percentage allowance specified in Schedule B of the member’s average 30
7979 highest three (3) consecutive years of compensation multiplied by the number of years of total 31
8080 service, but in no case to exceed seventy-five percent (75%) of the compensation, payable at 32
8181 completion of thirty-eight (38) years of service; provided, however, for teachers retiring on or after 33
8282 October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation shall be 34
8383
8484
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8686 based on the average highest five (5) consecutive years of compensation; provided, however, for 1
8787 teachers retiring on or after July 1, 2024, the calculation shall be based on the average highest three 2
8888 (3) consecutive years of compensation; provided, however for teachers retiring on or after July 1, 3
8989 2024, the calculation shall be based on the average highest three (3) consecutive years of 4
9090 compensation. 5
9191 Any teacher who has in excess of thirty-five (35) years on or before June 2, 1985, shall not 6
9292 be entitled to any refund, and any teacher with thirty-five (35) years or more on or after June 2, 7
9393 1985, shall contribute from July 1, 1985, until their retirement. 8
9494 (c) For service prior to July 2012, the retirement allowance of a teacher shall be determined 9
9595 in accordance with subsections (a)(1) and (a)(2) above. For service on and after July 1, 2012: 10
9696 (i) For teachers with fewer than twenty (20) years of total service as of June 30, 2012, a 11
9797 teacher’s retirement allowance shall be equal to one percent (1%) of the teacher’s average 12
9898 compensation multiplied by the teacher’s years of total service on and after July 1, 2012; and 13
9999 (ii) For teachers with twenty (20) or more years of total service as of June 30, 2012, a 14
100100 teacher’s retirement allowance shall be equal to one percent (1%) of the teacher’s average 15
101101 compensation multiplied by the teacher’s years of total service between July 1, 2012, and June 30, 16
102102 2015, and two percent (2%) of the teacher’s average compensation multiplied by the teacher’s years 17
103103 of total service on and after July 1, 2015. For purposes of computing a teacher’s total service under 18
104104 the preceding sentence, service purchases shall be included in total service only with respect to 19
105105 those service purchases approved prior to June 30, 2012, and those applications for service 20
106106 purchases received by the retirement system on or before June 30, 2012. In no event shall a 21
107107 teacher’s retirement allowance exceed the maximum limitations set forth in subsection (b) above. 22
108108 (iii) Effective July 1, 2025, a teacher’s retirement allowance shall be calculated as follows: 23
109109 1-20 years of service 1% per year 24
110110 21-30 years of service 1.5% per year 25
111111 31-35 years of service 2% per year 26
112112 36-40 years of service 3% per year 27
113113 SECTION 2. Section 36-10-10 of the General Laws in Chapter 36-10 entitled "Retirement 28
114114 System — Contributions and Benefits" is hereby amended to read as follows: 29
115115 36-10-10. Amount of service retirement allowance. 30
116116 (a)(1)(i) For employees eligible to retire on or before September 30, 2009, upon retirement 31
117117 for service under § 36-10-9, a member whose membership commenced before July 1, 2005, and 32
118118 who has completed at least ten (10) years of contributory service on or before July 1, 2005, shall 33
119119 receive a retirement allowance which shall be determined in accordance with schedule A below for 34
120120
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123123 service prior to July 1, 2012: 1
124124 Schedule A 2
125125 Years of Service Percentage Allowance 3
126126 1st through 10th inclusive 1.7% 4
127127 11th through 20th inclusive 1.9% 5
128128 21st through 34th inclusive 3.0% 6
129129 35
130130 th
131131 2.0% 7
132132 (ii) For employees eligible to retire on or after October 1, 2009, who were not eligible to 8
133133 retire on or before September 30, 2009, upon retirement from service under § 36-10-9, a member 9
134134 whose membership commenced before July 1, 2005, and who has completed at least ten (10) years 10
135135 of contributory service on or before July 1, 2005, shall receive a retirement allowance which shall 11
136136 be determined in accordance with schedule A above for service on before September 30, 2009, and 12
137137 shall be determined in accordance with schedule B in subsection (a)(2) below for service on or after 13
138138 October 1, 2009, and prior to July 1, 2012. 14
139139 (2) Upon retirement for service under § 36-10-9, a member whose membership 15
140140 commenced after July 1, 2005, or who has not completed at least ten (10) years of contributory 16
141141 service as of July 1, 2005, shall, receive a retirement allowance which shall be determined in 17
142142 accordance with Schedule B below for service prior to July 1, 2012: 18
143143 Schedule B 19
144144 Years of Service Percentage Allowance 20
145145 1st through 10th inclusive 1.60% 21
146146 11th through 20th inclusive 1.80% 22
147147 21st through 25th inclusive 2.0% 23
148148 26th through 30th inclusive 2.25% 24
149149 31st through 37th inclusive 2.50% 25
150150 38
151151 th
152152 2.25% 26
153153 (b) The retirement allowance of any member whose membership commenced before July 27
154154 1, 2005, and who has completed at least ten (10) years of contributory service on or before July 1, 28
155155 2005, shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of the 29
156156 member’s average highest three (3) consecutive years of compensation multiplied by the number 30
157157 of years of total service, but in no case to exceed eighty percent (80%) of the compensation payable 31
158158 at completion of thirty-five (35) years of service; provided, however, for employees retiring on or 32
159159 after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation 33
160160 shall be based on the average highest five (5) consecutive years of compensation; provided, 34
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164164 however, for employees retiring on or after July 1, 2024, the calculation shall be based on the 1
165165 average highest three (3) consecutive years of compensation. Any member who has in excess of 2
166166 thirty-five (35) years on or before June 2, 1985, shall not be entitled to any refund, and any member 3
167167 with thirty-five (35) years or more on or after June 2, 1985, shall contribute from July 1, 1985, until 4
168168 the member’s retirement. 5
169169 The retirement allowance of any member whose membership commenced after July 1, 6
170170 2005, or who had not completed at least ten (10) years of contributory service as of July 1, 2005, 7
171171 shall, be in an amount equal to the percentage allowance specified in Schedule B of the member’s 8
172172 average highest three (3) consecutive years of compensation multiplied by the number of years of 9
173173 total service, but in no case to exceed seventy-five percent (75%) of the compensation payable at 10
174174 the completion of thirty-eight (38) years of service; provided, however, for employees retiring on 11
175175 or after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation 12
176176 shall be based on the average highest five (5) consecutive years of compensation; provided, 13
177177 however, for employees retiring on or after July 1, 2024, the calculation shall be based on the 14
178178 average highest three (3) consecutive years of compensation. 15
179179 (c) Any member with thirty-eight (38) years or more of service prior to December 31, 1985, 16
180180 shall not be required to make additional contributions. Contributions made between December 31, 17
181181 1985, and July 1, 1987, by members with thirty-eight (38) or more years of service prior to 18
182182 December 31, 1985, shall be refunded by the retirement board to the persons, their heirs, 19
183183 administrators, or legal representatives. 20
184184 (d) For service prior to July 1, 2012, the retirement allowance of a member shall be 21
185185 determined in accordance with subsections (a)(1) and (a)(2) above. For service on and after July 1, 22
186186 2012, a member’s retirement allowance shall be equal to: 23
187187 (i) For members with fewer than twenty (20) years of total service as of June 30, 2012, one 24
188188 percent (1%) of the member’s average compensation multiplied by the member’s years of total 25
189189 service on and after July 1 2012; and 26
190190 (ii) For members with twenty (20) or more years of total service as of June 30, 2012, a 27
191191 member’s retirement allowance shall be equal to one percent (1%) of the member’s average 28
192192 compensation multiplied by the member’s years of total service between July 1, 2012, and June 30, 29
193193 2015, and two percent (2%) of the member’s average compensation multiplied by the member’s 30
194194 years of total service on and after July 1, 2015. For purposes of computing a member’s total service 31
195195 under the preceding sentence, service purchases shall be included in total service only with respect 32
196196 to those service purchases approved prior to June 30, 2012, and those applications for service 33
197197 purchases received by the retirement system on or before June 30, 2012. 34
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201201 (iii) Effective July 1, 2025, an employee’s retirement allowance shall be calculated as 1
202202 follows: 2
203203 1-20 years of service 1% per year 3
204204 21-30 years of service 1.5% per year 4
205205 31-35 years of service 2% per year 5
206206 36-40 years of service 3% per year 6
207207 In no event shall a member’s retirement allowance exceed the maximum limitations set 7
208208 forth in paragraph (b) above. 8
209209 SECTION 3. Section 45-21-17 of the General Laws in Chapter 45-21 entitled "Retirement 9
210210 of Municipal Employees" is hereby amended to read as follows: 10
211211 45-21-17. Service retirement allowance. 11
212212 (a) Upon retirement from service after January 1, 1969, a member shall receive a retirement 12
213213 allowance which is a life annuity terminable upon death of the annuitant and is an amount equal to 13
214214 two percent (2%) of final compensation multiplied by the number of years of total service, not to 14
215215 exceed thirty-seven and one-half (37½) years for services on and prior to June 30, 2012. For service 15
216216 on and after July 1, 2012: (i) For members with fewer than twenty (20) years of total service as of 16
217217 June 30, 2012, a member’s retirement allowance shall be equal to one percent (1%) of the member’s 17
218218 final compensation multiplied by the member’s years of total service on and after July 1, 2012; and 18
219219 (ii) For members with twenty (20) or more years of total service as of June 30, 2012, a member’s 19
220220 retirement allowance shall be equal to one percent (1%) of the member’s average compensation 20
221221 multiplied by the member’s years of total service between July 1, 2012, and June 30, 2015, and two 21
222222 percent (2%) of the member’s average compensation multiplied by the member’s years of total 22
223223 service on and after July 1, 2015. For purposes of computing a member’s total service under the 23
224224 preceding sentence, service purchases shall be included in total service only with respect to those 24
225225 service purchases approved prior to June 30, 2012, and those applications for service purchases 25
226226 received by the retirement system on or before June 30, 2012. In no event shall a member’s 26
227227 retirement allowance exceed seventy-five percent (75%) of the member’s final compensation. 27
228228 Provided, however, that every person elected prior to July 1, 2012, who has served as a part time 28
229229 elected official of the city of Cranston for a period of ten (10) years, is entitled to receive, upon 29
230230 retirement from that part time service, and not being otherwise regularly employed by the city of 30
231231 Cranston in which that person has served, a service retirement allowance equivalent to fifty percent 31
232232 (50%) of the salary received at the time of retirement by that part time elected official; and, 32
233233 provided, further, that if that person retires after a period of service greater than ten (10) years, the 33
234234 person is entitled to receive an additional service retirement allowance equivalent to five percent 34
235235
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238238 (5%) of the salary received at the time of retirement for each whole year of service, in excess of ten 1
239239 (10) years up to a maximum additional allowance equivalent to fifty percent (50%) of the salary 2
240240 received. 3
241241 (b) This section also applies to any former part time elected official of the city of Cranston 4
242242 who is presently receiving retirement benefits from the municipal retirement system. 5
243243 (c) Every person elected prior to July 1, 2012, who serves or has served at least four (4) 6
244244 years as a part time elected official of the city of Cranston may include that person’s years of service 7
245245 as a member of the general assembly, and any other credits acquired while serving as a legislator, 8
246246 when computing the person’s period of service to the city of Cranston pursuant to the provisions 9
247247 of this section. 10
248248 (d) Effective July 1, 2025, an employee’s retirement allowance shall be calculated as 11
249249 follows: 12
250250 1-20 years of service 1% per year 13
251251 21-30 years of service 1.5% per year 14
252252 31-35 years of service 2% per year 15
253253 36-40 years of service 3% per year 16
254254 SECTION 4. This act shall take effect upon passage. 17
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261261 EXPLANATION
262262 BY THE LEGISLATIVE COUNCIL
263263 OF
264264 A N A C T
265265 RELATING TO EDUCATION -- TEACHER'S RETIREMENT
266266 ***
267267 This act would recalculate the retirement allowance related to early retirement and pension 1
268268 benefits for teachers, state employees and municipal employees. 2
269269 This act would take effect upon passage. 3
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