2022 -- H 6626

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LC003308

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

____________

A N   A C T

RELATING TO EDUCATION -- TEACHER'S RETIREMENT

     

     Introduced By: Representatives Fellela, Serpa, Messier, McNamara, and Amore

     Date Introduced: January 06, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

1

     SECTION 1. Section 16-16-12 of the General Laws in Chapter 16-16 entitled "Teachers'

2

Retirement [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby

3

amended to read as follows:

4

     16-16-12. Procedure for service retirement.

5

     Retirement of a member on a service retirement allowance shall be made by the retirement

6

board as follows:

7

     (a)(i) Any member may retire upon his or her written application to the retirement board

8

as of the first day of the calendar month in which the application was filed, provided the member

9

was separated from service prior to filing the application, and further provided however, that if

10

separation from service occurs during the month in which the application is filed, the effective date

11

shall be the first day following the separation from service, and provided further that the member

12

on retirement date has attained the age of sixty (60) years and has completed at least ten (10) years

13

of contributory service on or before July 1, 2005, or regardless of age has completed twenty-eight

14

(28) years of total service and has completed at least ten (10) years of contributory service on or

15

before July 1, 2005, and who retire before October 1, 2009, or are eligible to retire as of September

16

30, 2009.

17

     (ii) For teachers who become eligible to retire on or after October 1, 2009, and prior to July

18

1, 2012, benefits are available to teachers who have attained the age of sixty-two (62) and

19

completed at least ten (10) years of contributory service. For teachers in service as of October 1,

 

1

2009, who were not eligible to retire as of September 30, 2009, but became eligible to retire prior

2

to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in

3

proportion to the amount of service the member has earned as of September 30, 2009. The

4

proportional formula shall work as follows:

5

     (A) The formula shall determine the first age of retirement eligibility under the laws in

6

effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of

7

sixty-two (62).

8

     (B) The formula shall then take the teacher's total service credit as of September 30, 2009,

9

as the numerator and the years of service credit determined under (A) as the denominator.

10

     (C) The fraction determined in (B) shall then be multiplied by the age difference in (1) to

11

apply a reduction in years from age sixty-two (62).

12

     (b)(i) Any member, who has not completed at least ten (10) years of contributory service

13

on or before July 1, 2005, may retire upon his or her written application to the retirement board as

14

of the first day of the calendar month in which the application was filed; provided, the member was

15

separated from service prior thereto; and further provided, however, that if separation from service

16

occurs during the month in which application is filed, the effective date shall be the first day

17

following that separation from service; provided, the member on his or her retirement date had

18

attained the age of fifty-nine (59) and had completed at least twenty-nine (29) years of total service;

19

or provided, that the member on his or her retirement date had attained the age of sixty-five (65)

20

and had completed at least ten (10) years of contributory service; or provided, that the member on

21

his or her retirement date had attained the age of fifty-five (55) and had completed twenty (20)

22

years of total service and provided, that the retirement allowance, as determined according to the

23

formula in § 16-16-13 is reduced actuarially for each month that the age of the member is less than

24

sixty-five (65) years and who retire before October 1, 2009, or are eligible to retire as of September

25

30, 2009.

26

     (ii) For teachers who become eligible to retire on or after October 1, 2009, and prior to July

27

1, 2012, benefits are available to teachers who have attained the age of sixty-two (62) and have

28

completed at least twenty-nine (29) years of total service or have attained the age of sixty-five (65)

29

and completed at least ten (10) years of contributory service. For teachers in service as of October

30

1, 2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior

31

to July 1, 2012, who have a minimum retirement age of sixty-two (62), the retirement age will be

32

adjusted downward in proportion to the amount of service the member has earned as of September

33

30, 2009. The proportional formula shall work as follows:

34

     (A) The formula shall determine the first age of retirement eligibility under the laws in

 

LC003308 - Page 2 of 15

1

effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of

2

sixty-two (62).

3

     (B) The formula shall then take the teacher's total service credit as of September 30, 2009,

4

as the numerator and the years of service credit determined under (A) as the denominator.

5

     (C) The fraction determined in (B) shall then be multiplied by the age difference

6

determined in (A) to apply a reduction in years from age sixty-two (62).

7

     (c) Effective July 1, 2012, the following shall apply to all teachers not eligible to retire

8

prior to July 1, 2012:

9

     (i) A teacher with contributory service on or after July 1, 2012, shall be eligible to retire

10

upon the completion of at least five (5) years of contributory service and attainment of the teacher's

11

Social Security retirement age.

12

     (ii) For teachers with five (5) or more years of contributory service as of June 30, 2012,

13

with contributory service on and after July 1, 2012, who have a retirement age of Social Security

14

Retirement Age, the retirement age will be adjusted downward in proportion to the amount of

15

service the teacher has earned as of June 30, 2012, but in no event shall a teacher's retirement age

16

under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the teacher's

17

retirement age determined under the laws in effect on June 30, 2012. The proportional formula shall

18

work as follows:

19

     (1) The formula shall determine the first age of retirement eligibility under the laws in

20

effect on June 30, 2012, which shall then be subtracted from Social Security retirement age;

21

     (2) The formula shall then take the teacher's total service credit as of June 30, 2012, as the

22

numerator and the projected service at retirement age in effect on June 30, 2012, as the

23

denominator;

24

     (3) The fraction determined in (2) shall then be multiplied by the age difference determined

25

in (1) to apply a reduction in years from Social Security retirement age.

26

     (iii) Effective July 1, 2015, a teacher who has completed twenty (20) or more years of total

27

service and who has attained an age within five (5) years of the eligible retirement age under

28

subdivisions (c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the

29

retirement allowance shall be reduced actuarially for each month that the age of the teacher is less

30

than the eligible retirement age under subdivisions (c)(i) or (c)(ii) above or subsection (d) below in

31

accordance with the following table:

32

Year Preceding Cumulative Annual Cumulative Monthly

33

Retirement Reduction Reduction

34

For Year 1 9% .75%

 

LC003308 - Page 3 of 15

1

For Year 2 8% .667%

2

For Year 3 7% .583%

3

For Year 4 7% .583%

4

For Year 5 7% .583%

5

     (iv) Notwithstanding any other provisions of section § 16-16-12(c), a teacher who has

6

completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at

7

his or her eligible retirement date as determined under subsections (a) and (b) above provided that

8

a teacher making an election under this paragraph shall receive the teacher's retirement benefit

9

determined and calculated based on the teacher's service and average compensation as of June 30,

10

2012. This provision shall be interpreted and administered in a manner to protect a teacher's accrued

11

benefit on June 30, 2012.

12

     (d)(i) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015,

13

teachers in active service shall be eligible to retire upon the earlier of:

14

     (A) The attainment of at least age sixty-five (65) and the completion of at least thirty (30)

15

years of total service, or the attainment of at least age sixty-four (64) and the completion of at least

16

thirty-one (31) years of total service, or the attainment of at least age sixty-three (63) and the

17

completion of at least thirty-two (32) years of total service, or the attainment of at least age sixty-

18

two (62) and the completion of at least thirty-three (33) years of total service; or

19

     (B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) above.

20

     (ii) Notwithstanding any other provisions of subsection (c) or subsection (d)(i) of this

21

section, commencing July 1, 2022, teachers in active service shall be eligible to retire upon the

22

earlier of:

23

     (A) The attainment of at least age sixty (60) and the completion of at least thirty (30) years

24

of total service; or

25

     (B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) of this section.

26

(e) Except as specifically provided in §§ 36-10-9.1, 36-10-12 through 36-10-15, and 45-21-19

27

through 45-21-22, no member shall be eligible for pension benefits under this chapter unless

28

     (i) The member shall have been a contributing member of the employees' retirement system

29

for at least ten (10) years; or

30

     (ii) For teachers in active contributory service on or after July 1, 2012, the teacher shall

31

have been a contributing member of the employees' retirement system for at least five (5) years.

32

     (2) Provided, however, a person who has ten (10) years service credit shall be vested;

33

provided that for teachers in active contributory service on or after July 1, 2012, a teacher who has

34

five (5) years of contributory service shall be vested.

 

LC003308 - Page 4 of 15

1

     (3) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall be

2

counted towards vesting.

3

     (4) Any person who becomes a member of the employees' retirement system pursuant to §

4

45-21-8 shall be considered a contributing member for the purpose of chapter 21 of title 45 and this

5

chapter.

6

     (5) Notwithstanding any other provision of law, no more than five (5) years of service

7

credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

8

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

9

of service credit before January 1, 1995, shall be permitted to apply the purchases towards the

10

member's service retirement. However, no further purchase will be permitted.

11

     (6) Notwithstanding any other provision of law, effective July 1, 2012, except for purchases

12

under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53:

13

     (i) For service purchases for time periods prior to a teacher's initial date of hire, the

14

purchase must be made within three (3) years of the teacher's initial date of hire; and

15

     (ii) For service purchases for time periods for official periods of leave as authorized by

16

law, the purchase must be made within three (3) years of the time the official leave was concluded

17

by the teacher. Notwithstanding paragraphs (i) and (ii) above, service purchases from time periods

18

prior to June 30, 2012, may be made on or prior to June 30, 2015.

19

     (f) No member of the teachers' retirement system shall be permitted to purchase service

20

credits for casual or seasonal employment, for employment as a temporary or emergency employee,

21

a page in the general assembly, or for employment at any state college or university while the

22

employee is a student or graduate of the college or university.

23

     (g) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not

24

receive service credit in this retirement system for any year or portion of a year which counts as

25

service credit in any other retirement system in which the member is vested or from which the

26

member is receiving a pension and/or any annual payment for life. This subsection shall not apply

27

to any payments received pursuant to the federal Social Security Act, 42 U.S.C. § 301 et seq.

28

     (h) A member who seeks to purchase or receive service credit in this retirement system

29

shall have the affirmative duty to disclose to the retirement board whether or not he or she is a

30

vested member in any other retirement system and/or is receiving a pension, retirement allowance,

31

or any annual payment for life. The retirement board shall have the right to investigate as to whether

32

or not the member has utilized the same time of service for credit in any other retirement system.

33

The member has an affirmative duty to cooperate with the retirement board including, by way of

34

illustration and not by way of limitation, the duty to furnish or have furnished to the retirement

 

LC003308 - Page 5 of 15

1

board any relevant information that is protected by any privacy act.

2

     (i) A member who fails to cooperate with the retirement board shall not have the time of

3

service credit counted toward total service credit until the time the member cooperates with the

4

retirement board and until the time the retirement board determines the validity of the service credit.

5

     (j) A member who knowingly makes a false statement to the retirement board regarding

6

service time or credit shall not be entitled to a retirement allowance and is entitled only to the return

7

of his or her contributions without interest.

8

     SECTION 2. Section 36-10-9 of the General Laws in Chapter 36-10 entitled "Retirement

9

System - Contributions and Benefits" is hereby amended to read as follows:

10

     36-10-9. Retirement on service allowance -- In general.

11

     Retirement of a member on a service retirement allowance shall be made by the retirement

12

board as follows:

13

     (1)(a)(i) Any member may retire upon his or her written application to the retirement board

14

as of the first day of the calendar month in which the application was filed; provided, the member

15

was separated from service prior thereto; and further provided, however, that if separation from

16

service occurs during the month in which application is filed, the effective date shall be the first

17

day following that separation from service; and provided further that the member on his or her

18

retirement date attained the age of sixty (60) and completed at least ten (10) years of contributory

19

service on or before July 1, 2005, or who, regardless of age, has completed twenty-eight (28) years

20

of total service and has completed at least ten (10) years of contributory service on or before July

21

1, 2005, and who retire before October 1, 2009, or are eligible to retire as of September 30, 2009.

22

     (ii) For members who become eligible to retire on or after October 1, 2009, and prior to

23

July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and

24

completed at least ten (10) years of contributory service. For members in service as of October 1,

25

2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior

26

to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in

27

proportion to the amount of service the member has earned as of September 30, 2009. The

28

proportional formula shall work as follows:

29

     (1) The formula shall determine the first age of retirement eligibility under the laws in

30

effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of

31

sixty-two (62).

32

     (2) The formula shall then take the member's total service credit as of September 30, 2009,

33

as the numerator and the years of service credit determined under (1) as the denominator.

34

     (3) The fraction determined in (2) shall then be multiplied by the age difference determined

 

LC003308 - Page 6 of 15

1

in (1) to apply a reduction in years from age sixty-two (62).

2

     (b)(i) Any member, who has not completed at least ten (10) years of contributory service

3

on or before July 1, 2005, may retire upon his or her written application to the retirement board as

4

of the first day of the calendar month in which the application was filed; provided, the member was

5

separated from service prior thereto; and further provided, however, that if separation from service

6

occurs during the month in which application is filed, the effective date shall be the first day

7

following that separation from service; provided, the member or his or her retirement date had

8

attained the age of fifty-nine (59) and had completed at least twenty-nine (29) years of total service

9

or provided that the member on his or her retirement date had attained the age of sixty-five (65)

10

and had completed at least ten (10) years of contributory service; or provided, that the member on

11

his or her retirement date had attained the age of fifty-five (55) and had completed twenty (20)

12

years of total service provided, that the retirement allowance, as determined according to the

13

formula in § 36-10-10 is reduced actuarially for each month that the age of the member is less than

14

sixty-five (65) years, and who retire before October 1, 2009, or are eligible to retire as of September

15

30, 2009.

16

     (ii) For members who become eligible to retire on or after October 1, 2009 and prior to

17

July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and

18

completed at least twenty-nine (29) years of total service or have attained the age of sixty-five (65)

19

and completed at least ten (10) years of contributory service. For members in service as of October

20

1, 2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior

21

to July 1, 2012, who have a minimum retirement age of sixty-two (62), the retirement age will be

22

adjusted downward in proportion to the amount of service the member has earned as of September

23

30, 2009. The proportional formula shall work as follows:

24

     (1) The formula shall determine the first age of retirement eligibility under the laws in

25

effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of

26

sixty-two (62).

27

     (2) The formula shall then take the member's total service credit as of September 30, 2009,

28

as the numerator and the years of service credit determined under (1) as the denominator.

29

     (3) The fraction determined in (2) above shall then be multiplied by the age difference

30

determined in (1) to apply a reduction in years from age sixty-two (62).

31

     (c) Effective July 1, 2012, the following shall apply to all members not eligible to retire

32

prior to July 1, 2012:

33

     (i) A member with contributory service on or after July 1, 2012, shall be eligible to retire

34

upon the completion of at least five (5) years of contributory service and attainment of the member's

 

LC003308 - Page 7 of 15

1

Social Security retirement age.

2

     (ii) For members with five (5) or more years of contributory service as of June 30, 2012,

3

with contributory service on and after July 1, 2012, who have a retirement age of Social Security

4

Retirement Age, the retirement age will be adjusted downward in proportion to the amount of

5

service the member has earned as of June 30, 2012, but in no event shall a member's retirement age

6

under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the member's

7

retirement age determined under the laws in effect on June 30, 2012. The proportional formula shall

8

work as follows:

9

     (1) The formula shall determine the first age of retirement eligibility under the laws in

10

effect on June 30, 2012, which shall then be subtracted from Social Security retirement age;

11

     (2) The formula shall then take the member's total service credit as of June 30, 2012, as the

12

numerator and the projected service at retirement age in effect on June 30, 2012, as the

13

denominator;

14

     (3) The fraction determined in (2) shall then be multiplied by the age difference determined

15

in (1) to apply a reduction in years from Social Security retirement age.

16

(iii) Effective July 1, 2015, a member who has completed twenty (20) or more years of total service

17

and who has attained an age within five (5) years of the eligible retirement age under subparagraphs

18

(c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the retirement

19

allowance shall be reduced actuarially for each month that the age of the member is less than the

20

eligible retirement age under subparagraphs (c)(i) or (c)(ii) above or subsection (d) below in

21

accordance with the following table:

22

Year Preceding Cumulative Annual Cumulative Monthly

23

Retirement Reduction Reduction

24

For Year 1 9% .75%

25

For Year 2 8% .667%

26

For Year 3 7% .583%

27

For Year 4 7% .583%

28

For Year 5 7% .583%

29

      (iv) Notwithstanding any other provisions of section 36-10-9(c), a member who has

30

completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at

31

his or her eligible retirement date as determined under paragraphs (1)(a) and (1)(b) above provided

32

that a member making an election under this paragraph shall receive the member's retirement

33

benefit determined and calculated based on the member's service and average compensation as of

34

June 30, 2012. This provision shall be interpreted and administered in a manner to protect a

 

LC003308 - Page 8 of 15

1

member's accrued benefit on June 30, 2012.

2

     (d)(i) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015,

3

members in active service shall be eligible to retire upon the earlier of: (A) The attainment of at

4

least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the

5

attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of total

6

service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-two

7

(32) years of total service, or the attainment of at least age sixty-two (62) and the completion of at

8

least thirty-three (33) years of total service; or (B) The member's retirement eligibility date under

9

subsections (c)(i) or (c)(ii) above.

10

     (ii) Notwithstanding any other provisions of subsection (c) or subsection (d)(i) of this

11

section, commencing July 1, 2022, teachers in active service shall be eligible to retire upon the

12

earlier of:

13

     (A) The attainment of at least age sixty (60) and the completion of at least thirty (30) years

14

of total service; or

15

     (B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) of this section.

16

     (2) Any faculty employee at a public institution of higher education under the jurisdiction

17

of the council on postsecondary education shall not be involuntarily retired upon attaining the age

18

of seventy (70) years.

19

     (3)(i) Except as specifically provided in § 36-10-9.1, §§ 36-10-12 -- 36-10-15, and §§ 45-

20

21-19 -- 45-21-22, (I) On or prior to June 30, 2012 no member shall be eligible for pension benefits

21

under this chapter unless the member shall have been a contributing member of the employee's

22

retirement system for at least ten (10) years, or (II) For members in active contributory service on

23

or after July 1, 2012, the member shall have been a contributing member of the retirement system

24

for at least five (5) years.

25

     (ii) Provided, however, a person who has ten (10) years service credit on or before June 16,

26

1991, shall be vested.

27

     (iii) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall be

28

counted towards vesting.

29

     (iv) Any person who becomes a member of the employees' retirement system pursuant to

30

§ 45-21-4 shall be considered a contributing member for the purpose of chapter 21 of title 45 and

31

this chapter.

32

     (v) Notwithstanding any other provision of law, no more than five (5) years of service

33

credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

34

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

 

LC003308 - Page 9 of 15

1

of service credits before January 1, 1995, shall be permitted to apply those purchases towards the

2

member's service retirement. However, no further purchase will be permitted. Repayment in

3

accordance with applicable law and regulation of any contribution previously withdrawn from the

4

system shall not be deemed a purchase of service credit.

5

     (vi) Notwithstanding any other provision of law, effective July 1, 2012, except for

6

purchases under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53, (A) For service

7

purchases for time periods prior to a member's initial date of hire, the purchase must be made within

8

three (3) years of the member's initial date of hire, (B) For service purchases for time periods for

9

official periods of leave as authorized by law, the purchase must be made within three (3) years of

10

the time the official leave was concluded by the member. Notwithstanding the preceding sentence,

11

service purchases from time periods prior to June 30, 2012, may be made on or prior to June 30,

12

2015.

13

     (4) No member of the employees' retirement system shall be permitted to purchase service

14

credits for casual, seasonal, or temporary employment, or emergency appointment, for employment

15

as a page in the general assembly, or for employment at any state college or university while the

16

employee is a student or graduate assistant of the college or university.

17

     (5) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not

18

receive service credit in this retirement system for any year or portion of it, which counts as service

19

credit in any other retirement system in which the member is vested or from which the member is

20

receiving a pension and/or any annual payment for life. This subsection shall not apply to any

21

payments received pursuant to the federal Social Security Act or to payments from a military

22

pension earned prior to participation in state or municipal employment, or to military service credits

23

earned prior to participation in state or municipal employment.

24

     (6) A member who seeks to purchase or receive service credit in this retirement system

25

shall have the affirmative duty to disclose to the retirement board whether or not he or she is a

26

vested member in any other retirement system and/or is receiving a pension, retirement allowance,

27

or any annual payment for life. The retirement board shall have the right to investigate as to whether

28

or not the member has utilized the same time of service for credit in any other retirement system.

29

The member has an affirmative duty to cooperate with the retirement board including, by way of

30

illustration and not by way of limitations the duty to furnish or have furnished to the retirement

31

board any relevant information which is protected by any privacy act.

32

     (7) A member who fails to cooperate with the retirement board shall not have the time of

33

service counted toward total service credit until such time as the member cooperates with the

34

retirement board and until such time as the retirement board determines the validity of the service

 

LC003308 - Page 10 of 15

1

credit.

2

     (8) A member who knowingly makes a false statement to the retirement board regarding

3

service time or credit shall not be entitled to a retirement allowance and is entitled only to the return

4

of his or her contributions without interest.

5

     SECTION 3. Section 45-21-16 of the General Laws in Chapter 45-21 entitled "Retirement

6

of Municipal Employees" is hereby amended to read as follows:

7

     45-21-16. Retirement on service allowance.

8

     Retirement of a member on a service retirement allowance shall be made by the retirement

9

board as follows:

10

     (1)(i) Any member who is eligible to retire on or before June 30, 2012, may retire upon the

11

member's written application to the retirement board as of the first day of the calendar month in

12

which the application was filed, provided the member was separated from service prior to the

13

application, and provided, further, that if separation from service occurs during the month in which

14

application is filed, the effective date is the first day following the separation from service, provided

15

that the member at the time so specified for the member's retirement has attained the applicable

16

minimum retirement age and has completed at least ten (10) years of total service or who, regardless

17

of age, completed thirty (30) years of total service, and notwithstanding that during the period of

18

notification the member has separated from service. The minimum ages for service retirement

19

(except for employees completing thirty (30) years of service) is fifty-eight (58) years.

20

     (ii) Effective July 1, 2012, the following shall apply to all members not eligible to retire

21

prior to July 1, 2012:

22

     (A) A member with contributory service on or after July 1, 2012, shall be eligible to retire

23

upon the completion of at least five (5) years of contributory service and attainment of the member's

24

Social Security retirement age.

25

     (B) For members with five (5) or more years of contributory service as of June 30, 2012,

26

with contributory service on and after July 1, 2012, who have a retirement age of Social Security

27

retirement age, the retirement age will be adjusted downward in proportion to the amount of service

28

the member has earned as of June 30, 2012, but in no event shall a member's retirement age under

29

this subparagraph (B) be prior to the attainment of age fifty-nine (59) or prior to the member's

30

retirement age determined under the laws in effect on June 30, 2012. The proportional formula shall

31

work as follows:

32

     (1) The formula shall determine the first age of retirement eligibility under the laws in

33

effect on June 30, 2012, which shall then be subtracted from Social Security retirement age;

34

     (2) The formula shall then take the member's total service credit as of June 30, 2012, as the

 

LC003308 - Page 11 of 15

1

numerator and the projected service at retirement age in effect on June 30, 2012, as the

2

denominator;

3

     (3) The fraction determined in (2) shall then be multiplied by the age difference determined

4

in (1) to apply a reduction in years from Social Security retirement age.

5

     (C) Effective July 1, 2015, a member who has completed twenty (20) or more years of total

6

service and who has attained an age within five (5) years of the eligible retirement age under

7

subparagraphs (ii)(A) or (ii)(B) above or subsection (iii) below, may elect to retire provided that

8

the retirement allowance shall be reduced actuarially for each month that the age of the member is

9

less than the eligible retirement age under subparagraphs (ii)(A) or (ii)(B) above or subsection (iii)

10

below in accordance with the following table:

11

Year Preceding Cumulative Annual Cumulative Monthly

12

Retirement Reduction Reduction

13

For Year 1 9% .75%

14

For Year 2 8% .667%

15

For Year 3 7% .583%

16

For Year 4 7% .583%

17

For Year 5 7% .583%

18

      (D)(1) Notwithstanding any other provisions of § 42-21-16(1)(ii), a member who has

19

completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at

20

his or her eligible retirement date as determined under paragraph (i) above provided that a member

21

making an election under this paragraph shall receive the member's retirement benefit determined

22

and calculated based on the member's service and average compensation as of June 30, 2012. This

23

provision shall be interpreted and administered in a manner to protect a member's accrued benefit

24

on June 30, 2012.

25

     (iii)(A) Notwithstanding any other provisions of subsection (ii) above, effective July 1,

26

2015, members in active service shall be eligible to retire upon the earlier of: (I) The attainment of

27

at least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the

28

attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of total

29

service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-two

30

(32) years of total service, or the attainment of at least age sixty-two (62) and the completion of at

31

least thirty-three (33) years of total service; or (II) The member's retirement eligibility date under

32

subsections (ii)(A) or (ii)(B) above.

33

     (B) Notwithstanding any other provisions of subsection (ii) or subsection (iii)(A) of this

34

section, commencing July 1, 2022, members in active service shall be eligible to retire upon the

 

LC003308 - Page 12 of 15

1

earlier of:

2

     (I) The attainment of least age sixty (60) and the completion of at least thirty (30) years of

3

total service; or

4

     (II) The member's retirement eligibility date under subsections (ii)(A) or (ii)(B) of this

5

section.

6

     (2) Except as specifically provided in §§ 45-21-19 -- 45-21-22, no member is eligible for

7

pension benefits under this chapter unless:

8

     (I) On or prior to June 30, 2012, the member has been a contributing member of the

9

employees' retirement system for at least ten (10) years; or

10

     (II) For members in active contributory service on or after July 1, 2012, the member shall

11

have been a contributing member of the employees' retirement system for at least five (5) years.

12

     (i) Provided, however, a person who has ten (10) years service credit on or before June 16,

13

1991, is vested.

14

     (ii) Furthermore, any past service credits purchased in accordance with § 45-21-62 are

15

counted towards vesting.

16

     (iii) Any person who becomes a member of the employees' retirement system pursuant to

17

§ 45-21-4 shall be considered a contributing member for the purpose of this chapter.

18

     (iv) Notwithstanding any other provision of law, no more than five (5) years of service

19

credit may be purchased by a member of the System. The five (5)-year limit does not apply to any

20

purchases made prior to the effective date of this provision. A member who has purchased more

21

than five (5) years of service credit maximum, before January 1, 1995, shall be permitted to apply

22

the purchases towards the member's service retirement. However, no further purchase will be

23

permitted. Repayment, in accordance with applicable law and regulation, of any contribution

24

previously withdrawn from the System is not deemed a purchase of service credit.

25

     (v) Notwithstanding any other provision of law, effective July 1, 2012, except for purchases

26

under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53:

27

     (I) For service purchases for time periods prior to a member's initial date of hire; the

28

purchase must be made within three (3) years of the member's initial date of hire; and

29

     (II) For service purchases for time periods for official periods of leave as authorized by

30

law, the purchase must be made within three (3) years of the time the official leave was concluded

31

by the member.

32

     Notwithstanding (I) and (II) above, service purchases from time periods prior to June 30,

33

2012, may be made on or prior to June 30, 2015.

34

     (3) No member of the municipal employees' retirement system is permitted to purchase

 

LC003308 - Page 13 of 15

1

service credits for casual, temporary, emergency or seasonal employment, for employment as a

2

page in the general assembly, or for employment at any state college or university while the

3

employee is a student or graduate assistant of the college or university.

4

     (4) A member does not receive service credit in this retirement system for any year or

5

portion of a year, which counts as service credit in any other retirement system in which the member

6

is vested or from which the member is receiving a pension and/or any annual payment for life. This

7

subsection does not apply to any payments received pursuant to the federal Social Security Act or

8

to payments from a military pension earned prior to participation in state or municipal employment,

9

or to military service credits earned prior to participation in state or municipal employment.

10

     (5) A member who seeks to purchase or receive service credit in this retirement system has

11

the affirmative duty to disclose to the retirement board whether or not he or she is a vested member

12

in any other retirement system and/or is receiving a pension retirement allowance or any annual

13

payment for life. The retirement board has the right to investigate whether or not the member has

14

utilized the same time of service for credit in any other retirement system. The member has an

15

affirmative duty to cooperate with the retirement board including, by way of illustration and not by

16

way of limitation, the duty to furnish or have furnished to the retirement board any relevant

17

information which is protected by any privacy act.

18

     (6) A member who fails to cooperate with the retirement board shall not have the time of

19

service counted toward total service credit until a time that the member cooperates with the

20

retirement board and until a time that the retirement board determines the validity of the service

21

credit.

22

     (7) A member who knowingly makes a false statement to the retirement board regarding

23

service time or credit is not entitled to a retirement allowance and is entitled only to the return of

24

his or her contributions without interest.

25

     SECTION 4. This act shall take effect upon passage.

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LC003308 - Page 14 of 15

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- TEACHER'S RETIREMENT

***

1

     This act would allow teachers, state and municipal employees to retire upon the earlier of

2

reaching age sixty (60) with thirty (30) years of service or the employee's retirement eligibility date

3

under present state statutes.

4

     This act would take effect upon passage.

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LC003308 - Page 15 of 15