2022 -- H 7124

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LC003376

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO EDUCATION -- TEACHERS' RETIREMENT

     

     Introduced By: Representatives McNamara, Potter, Corvese, Donovan, and Speakman

     Date Introduced: January 20, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-16-13 of the General Laws in Chapter 16-16 entitled "Teachers'

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

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amended to read as follows:

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     16-16-13. Amount of service retirement allowance.

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     (a)(1)(i) For teachers eligible to retire on or before September 30, 2009, upon retirement

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from service under § 16-16-12 a teacher whose membership commenced before July 1, 2005, and

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who has completed at least ten (10) years of contributory service on or before July 1, 2005, shall,

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receive a retirement allowance which shall be determined in accordance with schedule A for service

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prior to July 1, 2012.

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SCHEDULE A

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YEARS OF SERVICE PERCENTAGE ALLOWANCE

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1st through 10th inclusive 1.7%

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11th through 20th inclusive 1.9%

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21st through 34th inclusive 3.0%

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35th 2.0%

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     (ii) For teachers eligible to retire on or after October 1, 2009, who were not eligible to retire

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on or before September 30, 2009, upon retirement for service under § 16-16-12, a teacher whose

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membership commenced before July 1, 2005, and who has completed at least ten (10) years of

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contributory service on or before July 1, 2005, shall receive a retirement allowance which shall be

 

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determined in accordance with schedule A above for service on before September 30, 2009, and

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shall be determined in accordance with schedule B in subsection (a)(2) below for service on or after

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October 1, 2009, and prior to July 1, 2012:

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     (2) Upon retirement from service under § 16-16-12 a teacher whose membership

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commenced after July 1, 2005, or who has not completed at least ten (10) years of contributory

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service as of July 1, 2005, shall receive a retirement allowance which shall be determined in

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accordance with Schedule B for service prior to July 1, 2012.

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SCHEDULE B

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YEARS OF SERVICE PERCENTAGE ALLOWANCE

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1st through 10th inclusive 1.60%

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11th through 20th inclusive 1.80%

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21st through 25th inclusive 2.0%

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26th through 30th inclusive 2.25%

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31st through 37th inclusive 2.50%

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38th 2.25%

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     (b) The retirement allowance of any teacher whose membership commenced before July 1,

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2005, and who has completed at least ten (10) years of contributory service on or before July 1,

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2005, shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of his

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or her average highest three (3) consecutive years of compensation multiplied by the number of

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years of total service, but in no case to exceed eighty percent (80%) of the compensation, payable

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at completion of thirty-five (35) years of service; provided, however, for teachers retiring on or

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after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation

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shall be based on the average highest five (5) consecutive years of compensation.

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     The retirement allowance of any teacher whose membership commenced after July 1, 2005,

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or who has not completed at least ten (10) years of contributory service as of July 1, 2005, shall be

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in an amount equal to the percentage allowance specified in Schedule B of his or her average

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highest three (3) consecutive years of compensation multiplied by the number of years of total

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service, but in no case to exceed seventy-five percent (75%) of the compensation, payable at

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completion of thirty-eight (38) years of service; provided, however, for teachers retiring on or after

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October 1, 2009, who were not eligible to retire as of September 30, 2009 the calculation shall be

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based on the average highest five (5) consecutive years of compensation.

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     Any teacher who has in excess of thirty-five (35) years on or before June 2, 1985, shall not

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be entitled to any refund, and any teacher with thirty-five (35) years or more on or after June 2,

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1985, shall contribute from July 1, 1985, until his or her retirement.

 

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     (c) For service prior to July 2012, the retirement allowance of a teacher shall be determined

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in accordance with subsections (a)(1) and (a)(2) above. For service on and after July 1, 2012:

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     (i) For teachers with fewer than twenty (20) years of total service as of June 30, 2012, a

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teacher's retirement allowance shall be equal to one percent (1%) of the teacher's average

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compensation multiplied by the teacher's years of total service on and after July 1, 2012; and

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     (ii) For teachers with twenty (20) or more years of total service as of June 30, 2012, a

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teacher's retirement allowance shall be equal to one percent (1%) of the teacher's average

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compensation multiplied by the teacher's years of total service between July 1, 2012, and June 30,

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2015, and two percent (2%) of the teacher's average compensation multiplied by the teacher's years

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of total service on and after July 1, 2015. For purposes of computing a teacher's total service under

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the preceding sentence, service purchases shall be included in total service only with respect to

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those service purchases approved prior to June 30, 2012, and those applications for service

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purchases received by the retirement system on or before June 30, 2012. In no event shall a teacher's

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retirement allowance exceed the maximum limitations set forth in subsection (b) above.

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     (d) For service prior to July 1, 2022, the retirement allowance of a teacher shall be

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determined in accordance with subsections (a)(1), (a)(2), (b), or (c) of this section, whichever is

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greater. For all service on or after July 1, 2022, a teacher's retirement allowance shall be equal to

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two percent (2%) of the teacher’s average compensation multiplied by the teacher’s years of total

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service, but in no case to exceed eighty percent (80%) of the member's final compensation.

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

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

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     36-10-10. Amount of service retirement allowance.

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     (a)(1)(i) For employees eligible to retire on or before September 30, 2009, upon retirement

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for service under § 36-10-9, a member whose membership commenced before July 1, 2005, and

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who has completed at least ten (10) years of contributory service on or before July 1, 2005, shall

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receive a retirement allowance which shall be determined in accordance with schedule A below for

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service prior to July 1, 2012:

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Schedule A

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     Years of Service Percentage Allowance

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     1st through 10th inclusive 1.7%

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     11th through 20th inclusive 1.9%

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     21st through 34th inclusive 3.0%

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     35th 2.0%

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     (ii) For employees eligible to retire on or after October 1, 2009, who were not eligible to

 

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retire on or before September 30, 2009, upon retirement from service under § 36-10-9, a member

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whose membership commenced before July 1, 2005, and who has completed at least ten (10) years

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of contributory service on or before July 1, 2005, shall receive a retirement allowance which shall

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be determined in accordance with schedule A above for service on before September 30, 2009, and

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shall be determined in accordance with schedule B in subsection (a)(2) below for service on or after

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October 1, 2009, and prior to July 1, 2012.

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     (2) Upon retirement for service under § 36-10-9, a member whose membership commenced

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after July 1, 2005, or who has not completed at least ten (10) years of contributory service as of

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July 1, 2005, shall, receive a retirement allowance which shall be determined in accordance with

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Schedule B below for service prior to July 1, 2012:

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Schedule B

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     Years of Service Percentage Allowance

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     1st through 10th inclusive 1.60%

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     11th through 20th inclusive 1.80%

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     21st through 25th inclusive 2.0%

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     26th through 30th inclusive 2.25%

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     31st through 37th inclusive 2.50%

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     38th 2.25%

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     (b) The retirement allowance of any member whose membership commenced before July

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1, 2005, and who has completed at least ten (10) years of contributory service on or before July 1,

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2005, shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of his

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or her average highest three (3) consecutive years of compensation multiplied by the number of

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years of total service, but in no case to exceed eighty percent (80%) of the compensation payable

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at completion of thirty-five (35) years of service; provided, however, for employees retiring on or

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after October 1, 2009, who were not eligible to retire as of September 30, 2009 the calculation shall

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be based on the average highest five (5) consecutive years of compensation. Any member who has

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in excess of thirty-five (35) years on or before June 2, 1985, shall not be entitled to any refund, and

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any member with thirty-five (35) years or more on or after June 2, 1985, shall contribute from July

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1, 1985, until his or her retirement.

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     The retirement allowance of any member whose membership commenced after July 1,

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2005, or who had not completed at least ten (10) years of contributory service as of July 1, 2005,

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shall, be in an amount equal to the percentage allowance specified in Schedule B of his or her

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average highest three (3) consecutive years of compensation multiplied by the number of years of

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total service, but in no case to exceed seventy-five percent (75%) of the compensation payable at

 

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the completion of thirty-eight (38) years of service; provided, however, for employees retiring on

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or after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation

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shall be based on the average highest five (5) consecutive years of compensation.

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     (c) Any member with thirty-eight (38) years or more of service prior to December 31, 1985,

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shall not be required to make additional contributions. Contributions made between December 31,

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1985, and July 1, 1987, by members with thirty-eight (38) or more years of service prior to

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December 31, 1985, shall be refunded by the retirement board to the persons, their heirs,

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administrators, or legal representatives.

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     (d) For service prior to July 1, 2012, the retirement allowance of a member shall be

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determined in accordance with subsections (a)(1) and (a)(2) above. For service on and after July 1,

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2012, a member's retirement allowance shall be equal to:

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     (i) For members with fewer than twenty (20) years of total service as of June 30, 2012, one

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percent (1%) of the member's average compensation multiplied by the member's years of total

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service on and after July 1 2012; and

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     (ii) For members with twenty (20) or more years of total service as of June 30, 2012, a

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member's retirement allowance shall be equal to one percent (1%) of the member's average

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compensation multiplied by the member's years of total service between July 1, 2012, and June 30,

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2015, and two percent (2%) of the member's average compensation multiplied by the member's

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years of total service on and after July 1, 2015. For purposes of computing a member's total service

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under the preceding sentence, service purchases shall be included in total service only with respect

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to those service purchases approved prior to June 30, 2012, and those applications for service

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purchases received by the retirement system on or before June 30, 2012.

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     In no event shall a member's retirement allowance exceed the maximum limitations set

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forth in paragraph (b) above.

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     (e) For service prior to July 1, 2022, the retirement allowance of a member shall be

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determined in accordance with subsections (a)(1), (a)(2), (b), or (d) of this section, whichever is

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greater. For all service on and after July 1, 2022, a member’s retirement allowance shall be equal

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to two percent (2%) of the member’s average compensation multiplied by the member’s years of

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total service, but in no case to exceed eighty percent (80%) of the member's final compensation.

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     SECTION 3. Section 45-21-17 of the General Laws in Chapter 45-21 entitled "Retirement

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

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     45-21-17. Service retirement allowance.

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     (a) Upon retirement from service after January 1, 1969, a member shall receive a retirement

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allowance which is a life annuity terminable upon death of the annuitant and is an amount equal to

 

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two percent (2%) of final compensation multiplied by the number of years of total service, not to

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exceed thirty-seven and one-half (37½) years for services on and prior to June 30, 2012. For service

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on and after July 1, 2012: (i) For members with fewer than twenty (20) years of total service as of

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June 30, 2012, a member's retirement allowance shall be equal to one percent (1%) of the member's

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final compensation multiplied by the member's years of total service on and after July 1, 2012; and

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(ii) For members with twenty (20) or more years of total service as of June 30, 2012, a member's

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retirement allowance shall be equal to one percent (1%) of the member's average compensation

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multiplied by the member's years of total service between July 1, 2012, and June 30, 2015, and two

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percent (2%) of the member's average compensation multiplied by the member's years of total

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service on and after July 1, 2015. For purposes of computing a member's total service under the

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preceding sentence, service purchases shall be included in total service only with respect to those

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service purchases approved prior to June 30, 2012, and those applications for service purchases

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received by the retirement system on or before June 30, 2012. In no event shall a member's

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retirement allowance exceed seventy-five percent (75%) of the member's final compensation.

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Provided, however, that every person elected prior to July 1, 2012, who has served as a part time

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elected official of the city of Cranston for a period of ten (10) years, is entitled to receive, upon

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retirement from that part time service, and not being otherwise regularly employed by the city of

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Cranston in which that person has served, a service retirement allowance equivalent to fifty percent

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(50%) of the salary received at the time of retirement by that part time elected official; and,

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provided, further, that if that person retires after a period of service greater than ten (10) years, the

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person is entitled to receive an additional service retirement allowance equivalent to five percent

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(5%) of the salary received at the time of retirement for each whole year of service, in excess of ten

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(10) years up to a maximum additional allowance equivalent to fifty percent (50%) of the salary

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received.

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     (b) For service prior to July 1, 2022, the retirement allowance of a member shall be

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determined in accordance with subsection (a) of this section. For all service on and after July 1,

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2022, a member’s retirement allowance shall be equal to two percent (2%) of the member’s average

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compensation multiplied by the member’s years of total service, but in no case to exceed seventy-

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five percent (75%) of the member's final compensation.

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     (b)(c) This section also applies to any former part time elected official of the city of

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Cranston who is presently receiving retirement benefits from the municipal retirement system.

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     (c)(d) Every person elected prior to July 1, 2012, who serves or has served at least four (4)

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years as a part time elected official of the city of Cranston may include that person's years of service

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as a member of the general assembly, and any other credits acquired while serving as a legislator,

 

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when computing the person's period of service to the city of Cranston pursuant to the provisions of

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this section.

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     SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- TEACHERS' RETIREMENT

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     This act would increase the retirement allowance for teachers, state employees, and

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municipal workers in the Municipal Employees' Retirement System (MERS) or the state retirement

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system. This act would apply to a member's service on and after July 1, 2022.

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     This act would take effect upon passage.

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LC003376

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