2022 -- S 2860

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LC005605

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

____________

A N   A C T

RELATING TO COURTS AND CIVIL PROCEDURE -- COURTS -- JUSTICES OF

SUPREME, SUPERIOR, AND FAMILY COURTS

     

     Introduced By: Senators Ciccone, F Lombardi, Lombardo, and McCaffrey

     Date Introduced: April 05, 2022

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

1

     SECTION 1. Section 8-3-15 of the General Laws in Chapter 8-3 entitled "Justices of

2

Supreme, Superior, and Family Courts" is hereby amended to read as follows:

3

     8-3-15. Cost-of-living allowance.

4

     (a) All justices of the supreme court, superior court, family court, or district court, or their

5

surviving spouses or domestic partners, who retire after January 1, 1970, and who receive a

6

retirement allowance pursuant to the provisions of this title shall, on the first day of January next

7

following the third anniversary date of retirement, receive a cost-of-living retirement adjustment in

8

addition to his or her retirement allowance in an amount equal to three percent (3%) of the original

9

retirement allowance. In each succeeding year thereafter during the month of January, the

10

retirement allowance shall be increased an additional three percent (3%) of the original allowance,

11

not compounded, to be continued during the lifetime of the justice or his or her surviving spouse

12

or domestic partner. For the purpose of such computation, credit shall be given for a full calendar

13

year regardless of the effective date of the retirement allowance.

14

     (b) Any justice who retired prior to January 31, 1977, shall be deemed for the purpose of

15

this section to have retired on January 1, 1977.

16

     (c) For justices not eligible to retire as of September 30, 2009, and not eligible upon passage

17

of this article, and for their beneficiaries, the cost of living adjustment described in subsection (a)

18

above shall only apply to the first thirty-five thousand dollars ($35,000) of retirement allowance,

 

1

indexed annually, and shall commence upon the third (3rd) anniversary of the date of retirement or

2

when the retiree reaches age sixty-five (65), whichever is later. The thirty-five thousand dollar

3

($35,000) limit shall increase annually by the percentage increase in the Consumer Price Index for

4

all Urban Consumer (CPI-U) as published by the United States Department of Labor Statistics

5

determined as of September 30 of the prior calendar year or three percent (3%), whichever is less.

6

The first thirty-five thousand dollars ($35,000), as indexed, of retirement allowance shall be

7

multiplied by the percentage of increase in the Consumer Price Index for all Urban Consumers

8

(CPI-U) as published by the United States Department of Labor Statistics determined as of

9

September 30 of the prior calendar year or three percent (3%), whichever is less, on the month

10

following the anniversary date of each succeeding year. For justices eligible to retire as of

11

September 30, 2009, or eligible upon passage of this article, and for their beneficiaries, the

12

provisions of this subsection (c) shall not apply.

13

     (d) This subsection (d) shall be effective for the period July 1, 2012, through June 30, 2015.

14

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (d)(2)

15

below, for all present and former justices, active and retired justices, and beneficiaries receiving

16

any retirement, disability, or death allowance or benefit of any kind, whether provided for or on

17

behalf of justices engaged on or prior to December 31, 1989, as a non-contributory justice or

18

engaged after December 31, 1989, as a contributory justice, the annual benefit adjustment provided

19

in any calendar year under this section shall be equal to (A) multiplied by (B) where (A) is equal

20

to the percentage determined by subtracting five and one-half percent (5.5%) (the "subtrahend")

21

from the Five-Year Average Investment Return of the retirement system determined as of the last

22

day of the plan year preceding the calendar year in which the adjustment is granted, said percentage

23

not to exceed four percent (4%) and not to be less than zero percent (0%), and (B) is equal to the

24

lesser of the justice's retirement allowance or the first twenty-five thousand dollars ($25,000) of

25

retirement allowance, such twenty-five thousand dollars ($25,000) amount to be indexed annually

26

in the same percentage as determined under (d)(1)(A) above. The "Five-Year Average Investment

27

Return" shall mean the average of the investment return of the most recent five (5) plan years as

28

determined by the retirement board. Subject to paragraph (d)(2) below, the benefit adjustment

29

provided by this paragraph shall commence upon the third (3rd) anniversary of the date of

30

retirement or the date on which the retiree reaches his or her Social Security retirement age,

31

whichever is later. In the event the retirement board adjusts the actuarially assumed rate of return

32

for the system, either upward or downward, the subtrahend shall be adjusted either upward or

33

downward in the same amount.

34

     (2) Except as provided in paragraph (d)(3), the benefit adjustments under this section for

 

LC005605 - Page 2 of 37

1

any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees'

2

Retirement System of Rhode Island, the Judicial Retirement Benefits Trust, and the State Police

3

Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis, exceeds eighty

4

percent (80%) in which event the benefit adjustment will be reinstated for all justices for such plan

5

year.

6

     In determining whether a funding level under this paragraph (d)(2) has been achieved, the

7

actuary shall calculate the funding percentage after taking into account the reinstatement of any

8

current or future benefit adjustment provided under this section.

9

     (3) Notwithstanding paragraph (d)(2), in each fifth plan year commencing after June 30,

10

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

11

(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

12

(d)(1) above until the Funded Ratio of the Employees' Retirement System of Rhode Island, the

13

Judicial Retirement Benefits Trust, and the State Police Retirement Benefits Trust, calculated by

14

the system's actuary on an aggregate basis, exceeds eighty percent (80%).

15

     (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

16

(d) of § 8-3-15 shall become effective July 1, 2012, and shall apply to any benefit adjustment not

17

granted on or prior to June 30, 2012.

18

     (e) This subsection (e) shall become effective July 1, 2015.

19

     (1)(A) As soon as administratively reasonable following the enactment into law of this

20

subsection (e)(1)(A), a one-time benefit adjustment shall be provided to justices and/or

21

beneficiaries of justices who retired on or before June 30, 2012, in the amount of two percent (2%)

22

of the lesser of either the justice's retirement allowance or the first twenty-five thousand dollars

23

($25,000) of the justice's retirement allowance. This one-time benefit adjustment shall be provided

24

without regard to the retiree's age or number of years since retirement.

25

     (B) Notwithstanding the prior subsections of this section, for all present and former

26

justices, active and retired justices, and beneficiaries receiving any retirement, disability or death

27

allowance or benefit of any kind, whether provided for or on behalf of justices engaged on or prior

28

to December 31, 1989, as a non-contributory justice or engaged after December 31, 1989, as a

29

contributory justice, the annual benefit adjustment provided in any calendar year under this section

30

for adjustments on and after January 1, 2016, and subject to subsection (e)(2) below, shall be equal

31

to (I) multiplied by (II):

32

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

33

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

34

(the "subtrahend") from the five-year average investment return of the retirement system

 

LC005605 - Page 3 of 37

1

determined as of the last day of the plan year preceding the calendar year in which the adjustment

2

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

3

(0%). The "five-year average investment return" shall mean the average of the investment returns

4

of the most recent five (5) plan years as determined by the retirement board. In the event the

5

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

6

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

7

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

8

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

9

Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of (i)

10

plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%).

11

     (II) Is equal to the lesser of either the justice's retirement allowance or the first twenty-five

12

thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount to be

13

indexed annually in the same percentage as determined under subsection (e)(1)(B)(I) above.

14

     The benefit adjustments provided by this subsection (e)(1)(B) shall be provided to all

15

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

16

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

17

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

18

whichever is later.

19

     (2) Except as provided in subsection (e)(3), the benefit adjustments under subsection

20

(e)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

21

employees' retirement system of Rhode Island, the judicial retirement benefits trust, and the state

22

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

23

eighty percent (80%) in which event the benefit adjustment will be reinstated for all justices for

24

such plan year.

25

     In determining whether a funding level under this subsection (e)(2) has been achieved, the

26

actuary shall calculate the funding percentage after taking into account the reinstatement of any

27

current or future benefit adjustment provided under this section.

28

     (3) Notwithstanding subsection (e)(2), in each fourth plan year commencing after June 30,

29

2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four

30

plan years: (i) A benefit adjustment shall be calculated and made in accordance with paragraph

31

(e)(1)(B) above; and (ii) Effective for members and/or beneficiaries of members who retired on or

32

before June 30, 2015, the dollar amount in subsection (e)(1)(B)(II) of twenty-five thousand eight

33

hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six

34

dollars ($31,026) until the funded ratio of the employees' retirement system of Rhode Island, the

 

LC005605 - Page 4 of 37

1

judicial retirement benefits trust, and the state police retirement benefits trust, calculated by the

2

system's actuary on an aggregate basis, exceeds eighty percent (80%).

3

     (A) Effective for members and or beneficiaries of members who have retired on or before

4

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

5

days following the enactment of the legislation implementing this provision, and a second one-time

6

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

7

shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable

8

payment date and shall not be considered cost of living adjustments under the prior provisions of

9

this § 8-3-15.

10

     (4) Notwithstanding subsection (e)(2) of this section, for all present and former employees,

11

active and retired members, and beneficiaries receiving any retirement, disability or death

12

allowance or benefit of any kind, a one-time benefit adjustment shall be provided under this section

13

for the calendar year beginning January 1, 2022. The adjustment shall be equal to three percent

14

(3%) and is equal to the lesser of either the member's retirement allowance or the first twenty-five

15

thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, indexed by the

16

percentage as determined under subsection (e)(l)(B)(I) of this section. The three percent (3.0%)

17

benefit adjustment amount for calendar year January 1, 2022, shall not be included in the annual

18

indexed percentage as determined under subsection (e)(1)(B)(I) of this section.

19

     The benefit adjustment shall be subject to subsection (e)(3)(ii) of this section and is not in

20

addition to any other benefit adjustments provided under subsection (e)(2) of this section.

21

     The benefit adjustments provided by this subsection shall be provided to all retirees entitled

22

to receive a benefit adjustment as of June 30, 2012, under the law then in effect, and for all other

23

retirees, the benefit adjustments shall commence upon the third anniversary of the date of retirement

24

or the date on which the retiree reaches his or her Social Security retirement age, whichever is later.

25

     SECTION 2. Section 8-8.2-12 of the General Laws in Chapter 8-8.2 entitled "Traffic

26

Tribunal" is hereby amended to read as follows:

27

     8-8.2-12. Additional benefits payable to retired judges and their surviving spouses or

28

domestic partners.

29

     (a) All judges of the administrative adjudication court and all judges of the administrative

30

adjudication court who have been reassigned to the traffic tribunal, or their surviving spouses or

31

domestic partners, who retire after January 1, 1970 and who receive a retirement allowance

32

pursuant to the provisions of this title, shall, on the first day of January, next following the third

33

anniversary of the retirement, receive a cost of living retirement adjustment in addition to his or her

34

retirement allowance in an amount equal to three percent (3%) of the original retirement allowance.

 

LC005605 - Page 5 of 37

1

In each succeeding year thereafter during the month of January, the retirement allowance shall be

2

increased an additional three percent (3%) of the original allowance, compounded annually from

3

the year cost of living adjustment was first payable to be continued during the lifetime of the judge

4

or his or her surviving spouse or domestic partner. For the purpose of such computation, credit shall

5

be given for a full calendar year regardless of the effective date of the retirement allowance.

6

     (b) Any judge who retired prior to January 31, 1980, shall be deemed for the purpose of

7

this section to have retired on January 1, 1980.

8

     (c) For judges not eligible to retire as of September 30, 2009, and not eligible upon passage

9

of this article, and for their beneficiaries, the cost of living adjustment described in subsection (a)

10

above shall only apply to the first thirty-five thousand dollars ($35,000) of retirement allowance,

11

indexed annually, and shall commence upon the third (3rd) anniversary of the date of retirement or

12

when the retiree reaches age sixty-five (65), whichever is later. The thirty-five thousand dollar

13

($35,000) limit shall increase annually by the percentage increase in the Consumer Price Index for

14

all Urban Consumers (CPI-U) as published by the United States Department of Labor Statistics

15

determined as of September 30 of the prior calendar year or three percent (3%), whichever is less.

16

The first thirty-five thousand dollars ($35,000), as indexed, of retirement allowance shall be

17

multiplied by the percentage of increase in the Consumer Price Index for all Urban Consumers

18

(CPI-U) as published by the United States Department of Labor Statistics determined as of

19

September 30 of the prior calendar year or three percent (3%), whichever is less on the month

20

following the anniversary date of each succeeding year. For judges eligible to retire as of September

21

30, 2009, or eligible upon passage of this article, and for their beneficiaries, the provisions of this

22

subsection (c) shall not apply.

23

     (d) This subsection (d) shall be effective for the period July 1, 2012, through June 30, 2015.

24

     (d)(1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (d)(2)

25

below, for all present and former justices, active and retired justices, and beneficiaries receiving

26

any retirement, disability or death allowance or benefit of any kind, whether provided for or on

27

behalf of justices engaged on or prior to December 31, 1989 as a non-contributory justice or

28

engaged after December 31, 1989 as a contributory justice, the annual benefit adjustment provided

29

in any calendar year under this section shall be equal to (A) multiplied by (B) where (A) is equal

30

to the percentage determined by subtracting five and one-half percent (5.5%) (the "subtrahend")

31

from the Five-Year Average Investment Return of the retirement system determined as of the last

32

day of the plan year preceding the calendar year in which the adjustment is granted, said percentage

33

not to exceed four percent (4%) and not to be less than zero percent (0%), and (B) is equal to the

34

lesser of the justice's retirement allowance or the first twenty-five thousand dollars ($25,000) of

 

LC005605 - Page 6 of 37

1

retirement allowance, such twenty-five thousand dollars ($25,000) amount to be indexed annually

2

in the same percentage as determined under (d)(1)(A) above. The "Five-Year Average Investment

3

Return" shall mean the average of the investment return of the most recent five (5) plan years as

4

determined by the retirement board. Subject to paragraph (d)(2) below, the benefit adjustment

5

provided by this paragraph shall commence upon the third (3rd) anniversary of the date of

6

retirement or the date on which the retiree reaches his or her Social Security retirement age,

7

whichever is later. In the event the retirement board adjusts the actuarially assumed rate of return

8

for the system, either upward or downward, the subtrahend shall be adjusted either upward or

9

downward in the same amount.

10

     (2) Except as provided in paragraph (d)(3), the benefit adjustments under this section for

11

any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees'

12

Retirement System of Rhode Island, the Judicial Retirement Benefits Trust, and the State Police

13

Retirements Benefits Trust, calculated by the system's actuary on an aggregate basis, exceeds eighty

14

percent (80%) in which even the benefit adjustment will be reinstated for all justices for such plan

15

year.

16

     In determining whether a funding level under this paragraph (d)(2) has been achieved, the

17

actuary shall calculate the funding percentage after taking into account the reinstatement of any

18

current or future benefit adjustment provided under this section.

19

     (3) Notwithstanding paragraph (d)(2), in each fifth plan year commencing after June 30,

20

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

21

(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

22

(d)(1) above until the Funded Ratio of the Employees' Retirement System of Rhode Island, the

23

Judicial Retirement Benefits Trust, and the State Police Retirement Benefits Trust, calculated by

24

the system's actuary on an aggregate basis, exceeds eighty percent (80%).

25

     (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

26

(d) of § 8-8.2-12 shall become effective July 1, 2012, and shall apply to any benefit adjustment not

27

granted on or prior to June 30, 2012.

28

     (e) This subsection (e) shall become effective July 1, 2015.

29

     (1)(A) As soon as administratively reasonable following the enactment into law of this

30

subsection (e)(1)(A), a one-time benefit adjustment shall be provided to justices and/or

31

beneficiaries of justices who retired on or before June 30, 2012, in the amount of two percent (2%)

32

of the lesser of either the justice's retirement allowance or the first twenty-five thousand dollars

33

($25,000) of the justice's retirement allowance. This one-time benefit adjustment shall be provided

34

without regard to the retiree's age or number of years since retirement.

 

LC005605 - Page 7 of 37

1

     (B) Notwithstanding the prior subsections of this section, for all present and former

2

justices, active and retired justices, and beneficiaries receiving any retirement, disability or death

3

allowance or benefit of any kind, whether provided for or on behalf of justices engaged on or prior

4

to December 31,1989 as a non-contributory justice or engaged after December 31, 1989 as a

5

contributory justice, the annual benefit adjustment provided in any calendar year under this section

6

for adjustments on and after January 1, 2016, and subject to subsection (e)(2) below, shall be equal

7

to (I) multiplied by (II):

8

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

9

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

10

(the "subtrahend") from the five-year average investment return of the retirement system

11

determined as of the last day of the plan year preceding the calendar year in which the adjustment

12

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

13

(0%). The "five-year average investment return" shall mean the average of the investment returns

14

of the most recent five (5) plan years as determined by the retirement board. In the event the

15

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

16

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

17

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

18

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

19

Statistics determined as of September 30 of the prior calendar year.

20

     In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be less

21

than zero percent (0%).

22

     (II) Is equal to the lesser of either the justice's retirement allowance or the first twenty-five

23

thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount to be

24

indexed annually in the same percentage as determined under subsection (e)(1)(B)(I) above.

25

     The benefit adjustments provided by this subsection (e)(1)(B) shall be provided to all

26

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

27

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

28

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

29

whichever is later.

30

     (2) Except as provided in subsection (e)(3), the benefit adjustments under subsection

31

(e)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

32

employees' retirement system of Rhode Island, the judicial retirement benefits trust, and the state

33

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

34

eighty percent (80%) in which event the benefit adjustment will be reinstated for all justices for

 

LC005605 - Page 8 of 37

1

such plan year.

2

     In determining whether a funding level under this subsection (e)(2) has been achieved, the

3

actuary shall calculate the funding percentage after taking into account the reinstatement of any

4

current or future benefit adjustment provided under this section.

5

     (3) Notwithstanding subsection (e)(2), effective for members and/or beneficiaries of

6

members who retired on or before June 30, 2015, in each fourth plan year commencing after June

7

30, 2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of

8

four plan years: (i) A benefit adjustment shall be calculated and made in accordance with subsection

9

(e)(1)(B) above; and (ii) The dollar amount in subsection (e)(1)(B)(II) of twenty-five thousand

10

eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and

11

twenty-six dollars ($31,026) until the funded ratio of the employees' retirement system of Rhode

12

Island, the judicial retirement benefits trust, and the state police retirement benefits trust, calculated

13

by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

14

     (A) Effective for members and or beneficiaries of members who have retired on or before

15

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

16

days following the enactment of the legislation implementing this provision, and a second one-time

17

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

18

shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable

19

payment date and shall not be considered cost of living adjustments under the prior provisions of

20

this § 8-8.2-12.

21

     (B) Notwithstanding subsection (e)(2) of this section, for all present and former employees,

22

active and retired members, and beneficiaries receiving any retirement, disability or death

23

allowance or benefit of any kind, a one-time benefit adjustment shall be provided under this section

24

for the calendar year beginning January 1, 2022, the adjustment shall be equal to three percent (3%)

25

and is equal to the lesser of either the member's retirement allowance or the first twenty-five

26

thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance. indexed by the

27

percentage as determined under subsection (e)(l)(B)(I) of this section. The three percent (3%)

28

benefit adjustment amount for calendar year January 1, 2022, shall not be included in the annual

29

indexed percentage as determined under subsection (e)(l)(B)(I) of this section.

30

     The benefit adjustment shall be subject to subsection (e)(3)(ii) of this section and is not in

31

addition to any other benefit adjustments provided under subsection (e)(2) of this section.

32

     The benefit adjustments provided by this subsection shall be provided to all retirees entitled

33

to receive a benefit adjustment as of June 30, 2012, under the law then in effect, and for all other

34

retirees, the benefit adjustments shall commence upon the third anniversary of the date of retirement

 

LC005605 - Page 9 of 37

1

or the date on which the retiree reaches his or her Social Security retirement age, whichever is later.

2

     SECTION 3. Section 16-16-40 of the General Laws in Chapter 16-16 entitled "Teachers'

3

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

4

amended to read as follows:

5

     16-16-40. Additional benefits payable to retired teachers.

6

     (a) All teachers and all beneficiaries of teachers receiving any service retirement or

7

ordinary or accidental disability retirement allowance pursuant to the provisions of this chapter and

8

chapter 17 of this title, on or before December 31, 1967, shall receive a cost of living retirement

9

adjustment equal to one and one-half percent (1.5%) per year of the original retirement allowance,

10

not compounded, for each year the retirement allowance has been in effect. For purposes of

11

computation credit shall be given for a full calendar year regardless of the effective date of the

12

retirement allowance. This cost of living retirement adjustment shall be added to the amount of the

13

service retirement allowance as of January 1, 1970, and payment shall begin as of July 1, 1970. An

14

additional cost of living retirement adjustment shall be added to the original retirement allowance

15

equal to three percent (3%) of the original retirement allowance on the first day of January, 1971,

16

and each year thereafter through December 31, 1980.

17

     (b) All teachers and beneficiaries of teachers receiving any service retirement or ordinary

18

disability retirement allowance pursuant to the provisions of this title who retired on or after January

19

1, 1968, shall, on the first day of January, next following the third (3rd) year on retirement, receive

20

a cost of living adjustment, in addition to his or her retirement allowance, an amount equal to three

21

percent (3%) of the original retirement allowance. In each succeeding year thereafter, on the first

22

day of January, the retirement allowance shall be increased an additional three percent (3%) of the

23

original retirement allowance, not compounded, to be continued through December 31, 1980.

24

     (c)(1) Beginning on January 1, 1981, for all teachers and beneficiaries of teachers receiving

25

any service retirement and all teachers and all beneficiaries of teachers who have completed at least

26

ten (10) years of contributory service on or before July 1, 2005, pursuant to the provisions of this

27

chapter, and for all teachers and beneficiaries of teachers who receive a disability retirement

28

allowance pursuant to §§ 16-16-14 -- 16-16-17, the cost of living adjustment shall be computed

29

and paid at the rate of three percent (3%) of the original retirement allowance or the retirement

30

allowance as computed in accordance with § 16-16-40.1, compounded annually from the year for

31

which the cost of living adjustment was determined to be payable by the retirement board pursuant

32

to the provisions of subsection (a) or (b) of this section. Such cost of living adjustments are available

33

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

34

     (2) The provisions of this subsection shall be deemed to apply prospectively only and no

 

LC005605 - Page 10 of 37

1

retroactive payment shall be made.

2

     (3) The retirement allowance of all teachers and all beneficiaries of teachers who have not

3

completed at least ten (10) years of contributory service on or before July 1, 2005, or were not

4

eligible to retire as of September 30, 2009, shall, on the month following the third anniversary date

5

of the retirement, and on the month following the anniversary date of each succeeding year be

6

adjusted and computed by multiplying the retirement allowance by three percent (3%) or the

7

percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published

8

by the United States Department of Labor Statistics, determined as of September 30 of the prior

9

calendar year, whichever is less; the cost of living adjustment shall be compounded annually from

10

the year for which the cost of living adjustment was determined payable by the retirement board;

11

provided, that no adjustment shall cause any retirement allowance to be decreased from the

12

retirement allowance provided immediately before such adjustment.

13

     (d) For teachers not eligible to retire in accordance with this chapter as of September 30,

14

2009, and not eligible upon passage of this article, and for their beneficiaries, the cost of living

15

adjustment described in subsection (3) above shall only apply to the first thirty-five thousand

16

dollars ($35,000) of retirement allowance, indexed annually, and shall commence upon the third

17

(3rd) anniversary of the date of retirement or when the retiree reaches age sixty-five (65), whichever

18

is later. The thirty-five thousand dollar ($35,000) limit shall increase annually by the percentage

19

increase in the Consumer Price Index for all Urban Consumer (CPI-U) as published by the United

20

States Department of Labor Statistics determined as of September 30 of the prior calendar year or

21

three percent (3%), whichever is less. The first thirty-five thousand dollars ($35,000), as indexed,

22

of retirement allowance shall be multiplied by the percentage of increase in the Consumer Price

23

Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor

24

Statistics determined as of September 30 of the prior calendar year or three percent (3%), whichever

25

is less, on the month following the anniversary date of each succeeding year. For teachers eligible

26

to retire as of September 30, 2009, or eligible upon passage of this article, and for their

27

beneficiaries, the provisions of this subsection (d) shall not apply.

28

     (e) The provisions of §§ 45-13-7 -- 45-13-10 shall not apply to this section.

29

     (f) This subsection (f) shall be effective for the period July 1, 2012, through June 30, 2015.

30

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (f)(2)

31

below, for all present and former teachers, active and retired teachers, and beneficiaries receiving

32

any retirement, disability or death allowance or benefit of any kind, the annual benefit adjustment

33

provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A)

34

is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the

 

LC005605 - Page 11 of 37

1

"subtrahend") from the Five-Year Average Investment Return of the retirement system determined

2

as of the last day of the plan year preceding the calendar year in which the adjustment is granted,

3

said percentage not to exceed four percent (4%) and not to be less than zero percent (0%), and (B)

4

is equal to the lesser of the teacher's retirement allowance or the first twenty-five thousand dollars

5

($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000) amount to be

6

indexed annually in the same percentage as determined under paragraph (f)(1)(A) above. The

7

"Five-Year Average Investment Return" shall mean the average of the investment returns of the

8

most recent five (5) plan years as determined by the retirement board. Subject to paragraph (f)(2)

9

below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

10

anniversary of the date of retirement or the date on which the retiree reaches his or her Social

11

Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially

12

assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted

13

either upward or downward in the same amount.

14

     (2) Except as provided in paragraph (f)(3), the benefit adjustments under this section for

15

any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees'

16

Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police

17

Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis, exceeds eighty

18

percent (80%) in which event the benefit adjustment will be reinstated for all teachers for such plan

19

year.

20

     In determining whether a funding level under this paragraph (f)(2) has been achieved, the

21

actuary shall calculate the funding percentage after taking into account the reinstatement of any

22

current or future benefit adjustment provided under this section.

23

     (3) Notwithstanding paragraph (f)(2), in each fifth plan year commencing after June 30,

24

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

25

plan years, a benefit adjustment shall be calculated and made in accordance with paragraph (f)(l)

26

above until the Funded Ratio of the Employees' Retirement System of Rhode Island, the Judicial

27

Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by the system's

28

actuary on an aggregate basis, exceeds eighty percent (80%).

29

     (4) Notwithstanding any other provisions of this chapter, the provisions of this paragraph

30

(f) of § 16-16-40 shall become effective July 1, 2012, and shall apply to any benefit adjustments

31

not granted on or prior to June 30, 2012.

32

     (g) This subsection (g) shall become effective July 1, 2015.

33

     (1)(A) As soon as administratively reasonable following the enactment into law of this

34

subsection (g)(1)(A), a one-time benefit adjustment shall be provided to teachers and/or

 

LC005605 - Page 12 of 37

1

beneficiaries of teachers who retired on or before June 30, 2012, in the amount of two percent (2%)

2

of the lesser of either the teacher's retirement allowance or the first twenty-five thousand dollars

3

($25,000) of the teacher's retirement allowance. This one-time benefit adjustment shall be provided

4

without regard to the retiree's age or number of years since retirement.

5

     (B) Notwithstanding the prior subsections of this section, for all present and former

6

teachers, active and retired teachers, and beneficiaries receiving any retirement, disability or death

7

allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year under

8

this section for adjustments on and after January 1, 2016, and subject to subsection (g)(2) below,

9

shall be equal to (I) multiplied by (II):

10

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

11

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

12

(the "subtrahend") from the five-year average investment return of the retirement system

13

determined as of the last day of the plan year preceding the calendar year in which the adjustment

14

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

15

(0%). The "five-year average investment return" shall mean the average of the investment returns

16

of the most recent five (5) plan years as determined by the retirement board. In the event the

17

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

18

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

19

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

20

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

21

Statistics determined as of September 30 of the prior calendar year.

22

     In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be less

23

than (0%) percent.

24

     (II) is equal to the lesser of either the teacher's retirement allowance or the first twenty-five

25

thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount to be

26

indexed annually in the same percentage as determined under subsection (g)(1)(B)(I) above.

27

     The benefit adjustments provided by this subsection (g)(1)(B) shall be provided to all

28

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

29

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

30

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

31

whichever is later.

32

     (2) Except as provided in subsection (g)(3), the benefit adjustments under subsection

33

(g)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

34

employees' retirement system of Rhode Island, the judicial retirement benefits trust and the state

 

LC005605 - Page 13 of 37

1

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

2

eighty percent (80%) in which event the benefit adjustment will be reinstated for all teachers for

3

such plan year.

4

     In determining whether a funding level under this subsection (g)(2) has been achieved, the

5

actuary shall calculate the funding percentage after taking into account the reinstatement of any

6

current or future benefit adjustment provided under this section.

7

     (3) Notwithstanding subsection (g)(2), in each fourth plan year commencing after June 30,

8

2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four

9

plan years: (i) A benefit adjustment shall be calculated and made in accordance with subsection

10

(g)(1)(B) above; and (ii) Effective for teachers and/or beneficiaries of teachers who retired on or

11

before June 30, 2015, the dollar amount in subsection (g)(1)(B)(II) of twenty-five thousand eight

12

hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six

13

dollars ($31,026)until the funded ratio of the employees' retirement system of Rhode Island, the

14

judicial retirement benefits trust and the state police retirement benefits trust, calculated by the

15

system's actuary on an aggregate basis, exceeds eighty percent (80%).

16

     (4) Effective for teachers and or beneficiaries of teachers who have retired on or before

17

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

18

days following the enactment of the legislation implementing this provision, and a second one-time

19

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

20

shall be payable to all retired teachers or beneficiaries receiving a benefit as of the applicable

21

payment date and shall not be considered cost of living adjustments under the prior provisions of

22

this § 16-16-40.

23

     (5) Notwithstanding subsection (g)(2) of this section, for all present and former employees,

24

active and retired members and beneficiaries receiving any retirement, disability or death allowance

25

or benefit of any kind, a one-time benefit adjustment shall be provided under this section for the

26

calendar year beginning January 1. 2022, the adjustment shall be equal to three percent (3%) and

27

is equal to the lesser of either the member's retirement allowance or the first twenty-five thousand

28

eight hundred and fifty-five dollars ($25,855) of retirement allowance, indexed by the percentage

29

as determined under subsection (g)(l)(B)(I) of this section. The three percent (3%) benefit

30

adjustment amount for calendar year January 1, 2022, shall not be included in the annual indexed

31

percentage as determined under subsection (g)(1)(B)(I) of this section.

32

     The benefit adjustment shall be subject to subsection (g)(3)(ii) of this section and is not in

33

addition to any other benefit adjustments provided under subsection (g)(2) of this section.

34

     The benefit adjustments provided by this subsection shall be provided to all retirees entitled

 

LC005605 - Page 14 of 37

1

to receive a benefit adjustment as of June 30, 2012. under the law then in effect, and for all other

2

retirees, the benefit adjustments shall commence upon the third anniversary of the date of retirement

3

or the date on which the retiree reaches his or her Social Security retirement age, whichever is later.

4

     SECTION 4. Section 28-30-18 of the General Laws in Chapter 28-30 entitled "Workers'

5

Compensation Court" is hereby amended to read as follows:

6

     28-30-18. Additional benefits payable to retired judges and their surviving spouses or

7

domestic partners.

8

     (a) All judges of the workers' compensation court, or their surviving spouses or domestic

9

partners, who retire after January 1, 1970, and who receive a retirement allowance pursuant to the

10

provisions of this title, shall, on the first day of January next following the third anniversary date

11

of their retirement, receive a cost of living retirement adjustment in addition to his or her retirement

12

allowance in an amount equal to three percent (3%) of the original retirement allowance. In each

13

succeeding subsequent year during the month of January the retirement allowance shall be

14

increased an additional three percent (3%) of the original allowance, compounded annually from

15

the year the cost of living adjustment was first payable to be continued during the lifetime of that

16

judge or his or her surviving spouse or domestic partner. For the purpose of that computation, credit

17

shall be given for a full calendar year regardless of the effective date of the retirement allowance.

18

     (b) Any judge who retired prior to January 31, 1980, shall be deemed for the purpose of

19

this section to have retired on January 1, 1980.

20

     (c) For judges not eligible to retire as of September 30, 2009, and not eligible upon passage

21

of this article, and for their beneficiaries, the cost of living adjustment described in subsection (a)

22

above shall only apply to the first thirty-five thousand dollars ($35,000) of retirement allowance,

23

indexed annually, and shall commence upon the third (3rd) anniversary of the date of retirement or

24

when the retiree reaches age sixty-five (65), whichever is later. The thirty-five thousand dollar

25

($35,000) limit shall increase annually by the percentage increase in the Consumer Price Index for

26

all Urban Consumers (CPI-U) as published by the United States Department of Labor Statistics

27

determined as of September 30 of the prior calendar year or three percent (3%), whichever is less.

28

The first thirty-five thousand dollars ($35,000), as indexed, of retirement allowance shall be

29

multiplied by the percentage of increase in the Consumer Price Index for all Urban Consumers

30

(CPI-U) as published by the United States Department of Labor Statistics determined as of

31

September 30 of the prior calendar year or three percent (3%), whichever is less on the month

32

following the anniversary date of each succeeding year. For judges eligible to retire as of September

33

30, 2009 or eligible upon passage of this article, and for their beneficiaries, the provisions of this

34

subsection (c) shall not apply.

 

LC005605 - Page 15 of 37

1

     (d) This subsection (d) shall be effective for the period July 1, 2012, through June 30, 2015.

2

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (d)(2)

3

below, for all present and former justices, active and retired justices, and beneficiaries receiving

4

any retirement, disability or death allowance or benefit of any kind, whether provided for or on

5

behalf of justices engaged on or prior to December 31, 1989, as a non-contributory justice or

6

engaged after December 31, 1989, as a contributory justice, the annual benefit adjustment provided

7

in any calendar year under this section shall be equal to (A) multiplied by (B) where (A) is equal

8

to the percentage determined by subtracting five and one-half percent (5.5%) (the "subtrahend")

9

from the Five-Year Average Investment Return of the retirement system determined as of the last

10

day of the plan year preceding the calendar year in which the adjustment is granted, said percentage

11

not to exceed four percent (4%) and not to be less than zero percent (0%), and (B) is equal to the

12

lesser of the justice's retirement allowance or the first twenty-five thousand dollars ($25,000) of

13

retirement allowance, such twenty-five thousand dollars ($25,000) amount to be indexed annually

14

in the same percentage as determined under (d)(1)(A) above. The "Five-Year Average Investment

15

Return" shall mean the average of the investment return of the most recent five (5) plan years as

16

determined by the retirement board. Subject to paragraph (d)(2) below, the benefit adjustment

17

provided by this paragraph shall commence upon the third (3rd) anniversary of the date of

18

retirement or the date on which the retiree reaches his or her Social Security retirement age,

19

whichever is later. In the event the retirement board adjusts the actuarially assumed rate of return

20

for the system, either upward or downward, the subtrahend shall be adjusted either upward or

21

downward in the same amount.

22

     (2) Except as provided in paragraph (d)(3), the benefit adjustments under this section for

23

any plan year shall be suspended in their entirely unless the Funded Ratio of the Employees'

24

Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police

25

Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis, exceeds eighty

26

percent (80%) in which event the benefit adjustment will be reinstated for all justices for such plan

27

year.

28

     In determining whether a funding level under this paragraph (d)(2) has been achieved, the

29

actuary shall calculate the funding percentage after taking into account the reinstatement of any

30

current or future benefit adjustment provided under this section.

31

     (3) Notwithstanding paragraph (d)(2), in each fifth plan year commencing after June 30,

32

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

33

(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

34

(d)(1) above until the Funded Ratio of the Employees' Retirement System of Rhode Island, the

 

LC005605 - Page 16 of 37

1

Judicial Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by

2

the system's actuary on an aggregate basis, exceeds eighty percent (80%).

3

     (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

4

(d) of § 28-30-18 shall become effective July 1, 2012, and shall apply to any benefit adjustment not

5

granted on or prior to June 30, 2012.

6

     (e) This subsection (e) shall become effective July 1, 2015.

7

     (1)(A) As soon as administratively reasonable following the enactment into law of this

8

subsection (e)(1)(A), a one-time benefit adjustment shall be provided to justices and/or

9

beneficiaries of justices who retired on or before June 30, 2012, in the amount of two percent (2%)

10

of the lesser of either the justice's retirement allowance or the first twenty-five thousand dollars

11

($25,000) of the justice's retirement allowance. This one-time benefit adjustment shall be provided

12

without regard to the retiree's age or number of years since retirement.

13

     (B) Notwithstanding the prior subsections of this section, for all present and former

14

justices, active and retired justices, and beneficiaries receiving any retirement, disability or death

15

allowance or benefit of any kind, whether provided for or on behalf of justices engaged on or prior

16

to December 31, 1989, as a non-contributory justice or engaged after December 31, 1989, as a

17

contributory justice, the annual benefit adjustment provided in any calendar year under this section

18

for adjustments on and after January 1, 2016, and subject to subsection (e)(2) below, shall be equal

19

to (I) multiplied by (II):

20

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

21

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

22

(the "subtrahend") from the five-year average investment return of the retirement system

23

determined as of the last day of the plan year preceding the calendar year in which the adjustment

24

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

25

(0%). The "five-year average investment return" shall mean the average of the investment returns

26

of the most recent five (5) plan years as determined by the retirement board. In the event the

27

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

28

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

29

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

30

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

31

Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of (i)

32

plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%).

33

     (II) Is equal to the lesser of either the justice's retirement allowance or the first twenty-five

34

thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount to be

 

LC005605 - Page 17 of 37

1

indexed annually in the same percentage as determined under subsection (e)(1)(B)(I) above.

2

     The benefit adjustments provided by this subsection (e)(1)(B) shall be provided to all

3

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

4

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

5

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

6

whichever is later.

7

     (2) Except as provided in subsection (e)(3), the benefit adjustments under subsection

8

(e)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

9

employees' retirement system of Rhode Island, the judicial retirement benefits trust and the state

10

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

11

eighty percent (80%) in which event the benefit adjustment will be reinstated for all justices for

12

such plan year.

13

     In determining whether a funding level under this subsection (e)(2) has been achieved, the

14

actuary shall calculate the funding percentage after taking into account the reinstatement of any

15

current or future benefit adjustment provided under this section.

16

     (3) Notwithstanding subsection (e)(2), in each fourth plan year commencing after June 30,

17

2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four

18

plan years: (i) A benefit adjustment shall be calculated and made in accordance with subsection

19

(e)(1)(B) above; and (ii) Effective for members and/or beneficiaries of members who retired on or

20

before June 30, 2015, the dollar amount in subsection (e)(1)(B)(II) of twenty-five thousand eight

21

hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six

22

dollars ($31,026) until the funded ratio of the employees' retirement system of Rhode Island, the

23

judicial retirement benefits trust and the state police retirement benefits trust, calculated by the

24

system's actuary on an aggregate basis, exceeds eighty percent (80%).

25

     (4) Effective for members and/or beneficiaries of members who have retired on or before

26

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

27

days following the enactment of the legislation implementing this provision, and a second one-time

28

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

29

shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable

30

payment date and shall not be considered cost of living adjustments under the prior provisions of

31

this § 8-8.2-12.

32

     (5) Notwithstanding subsection (e)(2) of this section, for all present and former employees,

33

active and retired members, and beneficiaries receiving any retirement, disability or death

34

allowance or benefit of any kind, a one-time benefit adjustment shall be provided under this section

 

LC005605 - Page 18 of 37

1

for the calendar beginning January 1, 2022, the adjustment shall be equal to three percent (3%)

2

and is equal to the lesser of either the member's retirement allowance or the first twenty-five

3

thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, indexed by the

4

percentage as determined under subsection (e)(1)(B)(I) of this section. The three percent (3%)

5

benefit adjustment amount for calendar year January 1, 2022, shall not be included in the annual

6

indexed percentage as determined under subsection ( e)(1)(B)(I) of this section.

7

     The benefit adjustment shall be subject to subsection (e)(3)(ii) of this section and is not in

8

addition to any other benefit adjustments provided under subsection (e)(2) of this section.

9

     The benefit adjustments provided by this subsection shall be provided to all retirees entitled

10

to receive a benefit adjustment as of June 30, 2012, under the law then in effect, and for all other

11

retirees, the benefit adjustments shall commence upon the third anniversary of the date of retirement

12

or the date on which the retiree reaches his or her Social Security retirement age, whichever is later.

13

     SECTION 5. Section 36-10-35 of the General Laws in Chapter 36-10 entitled "Retirement

14

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

15

     36-10-35. Additional benefits payable to retired employees.

16

     (a) All state employees and all beneficiaries of state employees receiving any service

17

retirement or ordinary or accidental disability retirement allowance pursuant to the provisions of

18

this title on or before December 31, 1967, shall receive a cost of living retirement adjustment equal

19

to one and one-half percent (1.5%) per year of the original retirement allowance, not compounded,

20

for each calendar year the retirement allowance has been in effect. For the purposes of computation,

21

credit shall be given for a full calendar year regardless of the effective date of the retirement

22

allowance. This cost of living adjustment shall be added to the amount of the retirement allowance

23

as of January 1, 1968, and an additional one and one-half percent (1.5%) shall be added to the

24

original retirement allowance in each succeeding year during the month of January, and provided

25

further, that this additional cost of living increase shall be three percent (3%) for the year beginning

26

January 1, 1971, and each year thereafter, through December 31, 1980. Notwithstanding any of the

27

above provisions, no employee receiving any service retirement allowance pursuant to the

28

provisions of this title on or before December 31, 1967, or the employee's beneficiary, shall receive

29

any additional benefit hereunder in an amount less than two hundred dollars ($200) per year over

30

the service retirement allowance where the employee retired prior to January 1, 1958.

31

     (b) All state employees and all beneficiaries of state employees retired on or after January

32

1, 1968, who are receiving any service retirement or ordinary or accidental disability retirement

33

allowance pursuant to the provisions of this title shall, on the first day of January next following

34

the third anniversary date of the retirement, receive a cost of living retirement adjustment, in

 

LC005605 - Page 19 of 37

1

addition to his or her retirement allowance, in an amount equal to three percent (3%) of the original

2

retirement allowance. In each succeeding year thereafter through December 31, 1980, during the

3

month of January, the retirement allowance shall be increased an additional three percent (3%) of

4

the original retirement allowance, not compounded, to be continued during the lifetime of the

5

employee or beneficiary. For the purposes of computation, credit shall be given for a full calendar

6

year regardless of the effective date of the service retirement allowance.

7

     (c)(1) Beginning on January 1, 1981, for all state employees and beneficiaries of the state

8

employees receiving any service retirement and all state employees, and all beneficiaries of state

9

employees, who have completed at least ten (10) years of contributory service on or before July 1,

10

2005, pursuant to the provisions of this chapter, and for all state employees, and all beneficiaries

11

of state employees who receive a disability retirement allowance pursuant to §§ 36-10-12 -- 36-10-

12

15, the cost of living adjustment shall be computed and paid at the rate of three percent (3%) of the

13

original retirement allowance or the retirement allowance as computed in accordance with § 36-

14

10-35.1, compounded annually from the year for which the cost of living adjustment was

15

determined to be payable by the retirement board pursuant to the provisions of subsection (a) or (b)

16

of this section. Such cost of living adjustments are available to members who retire before October

17

1, 2009, or are eligible to retire as of September 30, 2009.

18

     (2) The provisions of this subsection shall be deemed to apply prospectively only and no

19

retroactive payment shall be made.

20

     (3) The retirement allowance of all state employees and all beneficiaries of state employees

21

who have not completed at least ten (10) years of contributory service on or before July 1, 2005, or

22

were not eligible to retire as of September 30, 2009, shall, on the month following the third

23

anniversary date of retirement, and on the month following the anniversary date of each succeeding

24

year be adjusted and computed by multiplying the retirement allowance by three percent (3%) or

25

the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as

26

published by the United States Department of Labor Statistics determined as of September 30 of

27

the prior calendar year, whichever is less; the cost of living adjustment shall be compounded

28

annually from the year for which the cost of living adjustment was determined payable by the

29

retirement board; provided, that no adjustment shall cause any retirement allowance to be decreased

30

from the retirement allowance provided immediately before such adjustment.

31

     (d) For state employees not eligible to retire in accordance with this chapter as of

32

September 30, 2009, and not eligible upon passage of this article, and for their beneficiaries, the

33

cost of living adjustment described in subsection (c)(3) of this section shall only apply to the first

34

thirty-five thousand dollars ($35,000) of retirement allowance, indexed annually, and shall

 

LC005605 - Page 20 of 37

1

commence upon the third (3rd) anniversary of the date of retirement or when the retiree reaches

2

age sixty-five (65), whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase

3

annually by the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-

4

U) as published by the United States Department of Labor Statistics determined as of September

5

30 of the prior calendar year or three percent (3%), whichever is less. The first thirty-five thousand

6

dollars ($35,000) of retirement allowance, as indexed, shall be multiplied by the percentage of

7

increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United

8

States Department of Labor Statistics determined as of September 30 of the prior calendar year or

9

three percent (3%), whichever is less, on the month following the anniversary date of each

10

succeeding year. For state employees eligible to retire as of September 30, 2009, or eligible upon

11

passage of this article, and for their beneficiaries, the provisions of this subsection (d) shall not

12

apply.

13

     (e) All legislators and all beneficiaries of legislators who are receiving a retirement

14

allowance pursuant to the provisions of § 36-10-9.1 for a period of three (3) or more years, shall,

15

commencing January 1, 1982, receive a cost of living retirement adjustment, in addition to a

16

retirement allowance, in an amount equal to three percent (3%) of the original retirement allowance.

17

In each succeeding year thereafter during the month of January, the retirement allowance shall be

18

increased an additional three percent (3%) of the original retirement allowance, compounded

19

annually, to be continued during the lifetime of the legislator or beneficiary. For the purposes of

20

computation, credit shall be given for a full calendar year regardless of the effective date of the

21

service retirement allowance.

22

     (f) The provisions of §§ 45-13-7 -- 45-13-10 shall not apply to this section.

23

     (g) This subsection (g) shall be effective for the period July 1, 2012, through June 30, 2015.

24

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (g)(2)

25

below, for all present and former employees, active and retired members, and beneficiaries

26

receiving any retirement, disability or death allowance or benefit of any kind, the annual benefit

27

adjustment provided in any calendar year under this section shall be equal to (A) multiplied by (B)

28

where (A) is equal to the percentage determined by subtracting five and one-half percent (5.5%)

29

(the "subtrahend") from the Five-Year Average Investment Return of the retirement system

30

determined as of the last day of the plan year preceding the calendar year in which the adjustment

31

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

32

(0%), and (B) is equal to the lesser of the member's retirement allowance or the first twenty-five

33

thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000)

34

amount to be indexed annually in the same percentage as determined under (g)(1)(A) above. The

 

LC005605 - Page 21 of 37

1

"Five-Year Average Investment Return" shall mean the average of the investment returns of the

2

most recent five (5) plan years as determined by the retirement board. Subject to paragraph (g)(2)

3

below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

4

anniversary of the date of retirement or the date on which the retiree reaches his or her Social

5

Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially

6

assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted

7

either upward or downward in the same amount.

8

     (2) Except as provided in paragraph (g)(3), the benefit adjustments under this section for

9

any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees'

10

Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police

11

Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis, exceeds eighty

12

percent (80%) in which event the benefit adjustment will be reinstated for all members for such

13

plan year.

14

     In determining whether a funding level under this paragraph (g)(2) has been achieved, the

15

actuary shall calculate the funding percentage after taking into account the reinstatement of any

16

current or future benefit adjustment provided under this section.

17

     (3) Notwithstanding paragraph (g)(2), in each fifth plan year commencing after June 30,

18

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

19

plan years, a benefit adjustment shall be calculated and made in accordance with paragraph (g)(1)

20

above until the Funded Ratio of the Employees' Retirement System of Rhode Island, the Judicial

21

Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by the system's

22

actuary on an aggregate basis, exceeds eighty percent (80%).

23

     (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

24

(g) shall become effective July 1, 2012, and shall apply to any benefit adjustment not granted on or

25

prior to June 30, 2012.

26

     (h) This subsection (h) shall become effective July 1, 2015.

27

     (1)(A) As soon as administratively reasonable following the enactment into law of this

28

subsection (h)(1)(A), a one-time benefit adjustment shall be provided to members and/or

29

beneficiaries of members who retired on or before June 30, 2012, in the amount of 2% of the lesser

30

of either the member's retirement allowance or the first twenty-five thousand dollars ($25,000) of

31

the member's retirement allowance. This one-time benefit adjustment shall be provided without

32

regard to the retiree's age or number of years since retirement.

33

     (B) Notwithstanding the prior subsections of this section, for all present and former

34

employees, active and retired members, and beneficiaries receiving any retirement, disability or

 

LC005605 - Page 22 of 37

1

death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year

2

under this section for adjustments on and after January 1, 2016, and subject to subsection (h)(2)

3

below, shall be equal to (I) multiplied by (II):

4

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

5

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

6

(the "subtrahend") from the five-year average investment return of the retirement system

7

determined as of the last day of the plan year preceding the calendar year in which the adjustment

8

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

9

(0%). The "five-year average investment return" shall mean the average of the investment returns

10

of the most recent five (5) plan years as determined by the retirement board. In the event the

11

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

12

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

13

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

14

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

15

Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of (i)

16

plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%).

17

     (II) Is equal to the lesser of either the member's retirement allowance or the first twenty-

18

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

19

to be indexed annually in the same percentage as determined under subsection (h)(1)(B)(I) above.

20

     The benefit adjustments provided by this subsection (h)(1)(B) shall be provided to all

21

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

22

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

23

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

24

whichever is later.

25

     (2) Except as provided in subsection (h)(3) of this section, the benefit adjustments under

26

subsection (h)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio

27

of the employees' retirement system of Rhode Island, the judicial retirement benefits trust and the

28

state police retirement benefits trust, calculated by the system's actuary on an aggregate basis,

29

exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

30

members for such plan year.

31

     In determining whether a funding level under this subsection (h)(2) has been achieved, the

32

actuary shall calculate the funding percentage after taking into account the reinstatement of any

33

current or future benefit adjustment provided under this section.

34

     (3) Notwithstanding subsection (h)(2), in each fourth plan year commencing after June 30,

 

LC005605 - Page 23 of 37

1

2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four

2

plan years:

3

     (i) A benefit adjustment shall be calculated and made in accordance with subsection

4

(h)(1)(B) above; and

5

     (ii) Effective for members and/or beneficiaries of members who retired on or before June

6

30, 2015, the dollar amount in subsection (h)(1)(B)(II) of twenty-five thousand eight hundred and

7

fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six dollars

8

($31,026) until the funded ratio of the employees' retirement system of Rhode Island, the judicial

9

retirement benefits trust and the state police retirement benefits trust, calculated by the system's

10

actuary on an aggregate basis, exceeds eighty percent (80%).

11

     (i) Effective for members and/or beneficiaries of members who have retired on or before

12

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

13

days following the enactment of the legislation implementing this provision, and a second one-time

14

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

15

shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable

16

payment date and shall not be considered cost of living adjustments under the prior provisions of

17

this section.

18

     (4) Notwithstanding subsection (h)(2) of this section, for all present and former employees,

19

active and retired members, and beneficiaries receiving any retirement, disability or death

20

allowance or benefit of any kind, a one-time benefit adjustment shall be provided under this section

21

for the calendar beginning January 1, 2022, the adjustment shall be equal to three percent (3%)

22

and is equal to the lesser of either the member's retirement allowance or the first twenty-five

23

thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, indexed by the

24

percentage as determined under subsection (h)(1)(B)(I) of this section. The three percent (3%)

25

benefit adjustment amount for calendar year January 1, 2022, shall not be included in the annual

26

indexed percentage as determined under subsection (h)(1)(B)(I) of this section.

27

     The benefit adjustment shall be subject to subsection (h)(3)(ii) of this section and is not in

28

addition to any other benefit adjustments provided under subsection (h)(2) of this section.

29

     The benefit adjustments provided by this subsection shall be provided to all retirees entitled

30

to receive a benefit adjustment as of June 30, 2012, under the law then in effect, and for all other

31

retirees, the benefit adjustments shall commence upon the third anniversary of the date of retirement

32

or the date on which the retiree reaches his or her Social Security retirement age, whichever is later.

33

     SECTION 6. Section 42-28-22 of the General Laws in Chapter 42-28 entitled "State

34

Police" is hereby amended to read as follows:

 

LC005605 - Page 24 of 37

1

     42-28-22. Retirement of members.

2

     (a) Whenever any member of the state police hired prior to July 1, 2007, has served for

3

twenty (20) years, he or she may retire therefrom or he or she may be retired by the superintendent

4

with the approval of the governor, and in either event a sum equal to one-half (½) of the whole

5

salary for the position from which he or she retired determined on the date he or she receives his or

6

her first retirement payment shall be paid him or her during life.

7

     (b) For purposes of this section, the term "whole salary" means:

8

     (1) For each member who retired prior to July 1, 1966, "whole salary" means the base

9

salary for the position from which he or she retired as the base salary for that position was

10

determined on July 31, 1972;

11

     (2) For each member who retired between July 1, 1966, and June 30, 1973, "whole salary"

12

means the base salary for the position from which he or she retired as the base salary, implemented

13

by the longevity increment, for that position was determined on July 31, 1972, or on the date of his

14

or her retirement, whichever is greater;

15

     (3) For each member who retired or who retires after July 1, 1973, "whole salary" means

16

the base salary, implemented by the longevity increment, holiday pay, and clothing allowance, for

17

the position from which he or she retired or retires.

18

     (c)(1) Any member who retired prior to July 1, 1977, shall receive a benefits payment

19

adjustment equal to three percent (3%) of his or her original retirement, as determined in subsection

20

(b) of this section, in addition to his or her original retirement allowance. In each succeeding year

21

thereafter during the month of January, the retirement allowance shall be increased an additional

22

three percent (3%) of the original retirement allowance, not compounded, to be continued until

23

January 1, 1991. For the purposes of the computation, credit shall be given for a full calendar year

24

regardless of the effective date of the service retirement allowance. For purposes of this subsection,

25

the benefits payment adjustment shall be computed from January 1, 1971, or the date of retirement,

26

whichever is later in time.

27

     (2) Any member of the state police who retires pursuant to the provisions of this chapter

28

on or after January 1, 1977, shall on the first day of January, next following the third anniversary

29

date of the retirement receive a benefits payment adjustment, in addition to his or her retirement

30

allowance, in an amount equal to three percent (3%) of the original retirement allowance. In each

31

succeeding year thereafter during the month of January, the retirement allowance shall be increased

32

an additional three percent (3%) of the original retirement allowance, not compounded, to be

33

continued until January 1, 1991. For the purposes of the computation, credit shall be given for a

34

full calendar year regardless of the effective date of the service retirement allowance.

 

LC005605 - Page 25 of 37

1

     (3) Any retired member of the state police who is receiving a benefit payment adjustment

2

pursuant to subdivisions (1) and (2) of this section shall beginning January 1, 1991, and ending

3

June 30, 2012, receive a benefits payment adjustment equal to fifteen hundred dollars ($1,500).

4

     (d) The benefits payment adjustment as provided in this section shall apply to and be in

5

addition to the retirement benefits under the provisions of § 42-28-5, and to the injury and death

6

benefits under the provisions of § 42-28-21.

7

     (e)(1) Any member who retires after July 1, 1972, and is eligible to retire prior to July 1,

8

2012, and who has served beyond twenty (20) years shall be allowed an additional amount equal

9

to three percent (3%) for each completed year served after twenty (20) years, but in no event shall

10

the original retirement allowance exceed sixty-five percent (65%) of his or her whole salary as

11

defined in subsection (b) hereof or sixty-five percent (65%) of his or her salary as defined in

12

subsection (b) hereof in his or her twenty-fifth (25th) year whichever is less.

13

     (2) Each member who retired prior to July 1, 1975, shall be entitled to all retirement

14

benefits as set forth above or shall be paid benefits as set forth in subdivision (b)(1) with "whole

15

salary" meaning the base salary for the position from which he or she retired as the base salary for

16

the position was determined on July 1, 1975, whichever is greater.

17

     (f)(1) Any member who retires, has served as a member for twenty (20) years or more, and

18

who served for a period of six (6) months or more of active duty in the armed service of the United

19

States or in the merchant marine service of the United States as defined in § 2 of chapter 1721 of

20

the Public Laws, 1946, may purchase credit for such service up to a maximum of two (2) years;

21

provided that any member who has served at least six (6) months or more in any one year shall be

22

allowed to purchase one year for such service and any member who has served a fraction of less

23

than six (6) months in his or her total service shall be allowed to purchase six (6) months' credit for

24

such service.

25

     (2) The cost to purchase these credits shall be ten percent (10%) of the member's first year

26

salary as a state policeman multiplied by the number of years and/or fraction thereof of such armed

27

service up to a maximum of two (2) years. The purchase price shall be paid into the general fund.

28

For members hired on or after July 1, 1989, the purchase price shall be paid into a restricted revenue

29

account entitled "state police retirement benefits" and shall be held in trust.

30

     (3) There will be no interest charge provided the member makes such purchase during his

31

or her twentieth (20th) year or within five (5) years from May 18, 1981, whichever is later, but will

32

be charged regular rate of interest as defined in § 36-8-1 as amended to date of purchase from the

33

date of his or her twentieth (20th) year of state service or five (5) years from May 18, 1981,

34

whichever is later.

 

LC005605 - Page 26 of 37

1

     (4) Any member who is granted a leave of absence without pay for illness, injury or any

2

other reason may receive credit therefor by making the full actuarial cost as defined in subdivision

3

36-8-1(10); provided the employee returns to state service for at least one year upon completion of

4

the leave.

5

     (5) In no event shall the original retirement allowance exceed sixty-five percent (65%) of

6

his or her whole salary as defined in subsection (b) hereof or sixty-five percent (65%) of his or her

7

salary as defined in subsection (b) hereof in his or her twenty-fifth (25th) year, whichever is less.

8

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

9

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

10

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

11

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

12

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

13

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

14

system shall not be deemed a purchase of service credit.

15

     (g) The provisions of this section shall not apply to civilian employees in the Rhode Island

16

state police; and, further, from and after April 28, 1937, chapters 8 -- 10, inclusive, of title 36 shall

17

not be construed to apply to the members of the Rhode Island state police, except as provided by

18

§§ 36-8-3, 36-10-1.1, 42-28-22.1, and 42-28-22.2, and § 36-8-1(5) and (8)(a) effective July 1, 2012.

19

     (h) Any member of the state police other than the superintendent of state police, who is

20

hired prior to July 1, 2007, and who has served for twenty-five (25) years or who has attained the

21

age of sixty-two (62) years, whichever shall first occur, shall retire therefrom.

22

     (i)(1) Any member of the state police, other than the superintendent, who is hired on or

23

after July 1, 2007, and who has served for twenty-five (25) years, may retire therefrom or he or she

24

may be retired by the superintendent with the approval of the governor, and shall be entitled to a

25

retirement allowance of fifty percent (50%) of his or her "whole salary" as defined in subsection

26

(b) hereof.

27

     (2) Any member of the state police who is hired on or after July 1, 2007, may serve up to

28

a maximum of thirty (30) years, and shall be allowed an additional amount equal to three percent

29

(3.0%) for each completed year served after twenty-five (25) years, but in no event shall the original

30

retirement allowance exceed sixty-five percent (65%) of his or her "whole salary" as defined in

31

subsection (b) hereof.

32

     (j) Effective July 1, 2012, any other provision of this section notwithstanding:

33

     (j)(1) Any member of the state police, other than the superintendent of state police, who is

34

not eligible to retire on or prior to June 30, 2012, may retire at any time subsequent to the date the

 

LC005605 - Page 27 of 37

1

member's retirement allowance equals or exceeds fifty percent (50%) of average compensation as

2

defined in § 36-8-1(5)(a), provided that a member shall retire upon the first to occur of:

3

     (i) The date the member's retirement allowance equals sixty-five percent (65%); or

4

     (ii) The later of the attainment of age sixty-two (62) or completion of five (5) years of

5

service; provided however, any current member as of June 30, 2012, who has not accrued fifty

6

percent (50%) upon attaining the age of sixty-two (62) shall retire upon accruing fifty percent

7

(50%); and upon retirement a member shall receive a retirement allowance which shall equal:

8

     (A) For members hired prior to July 1, 2007, the sum of (i), (ii) and (iii) where

9

     (i) Is calculated as the member's years of total service before July 1, 2012, multiplied by

10

two and one-half percent (2.5%) of average compensation for a member's first twenty (20) total

11

years,

12

     (ii) Is calculated as the member's years of total service before July 1, 2012, in excess of

13

twenty (20) years not to exceed twenty-five (25) years multiplied by three percent (3%) of average

14

compensation, and

15

     (iii) Is the member's years of total service on or after July 1, 2012, multiplied by two percent

16

(2%) of average compensation as defined in § 36-8-1(5)(a).

17

     (B) For members hired on or after July 1, 2007, the member's retirement allowance shall

18

be calculated as the member's years of total contributory service multiplied by two percent (2%) of

19

average compensation.

20

     (C) Any member of the state police who is eligible to retire on or prior to June 30, 2012,

21

shall retire with a retirement allowance calculated in accordance with paragraph (a) and (e) above

22

except that whole salary shall be defined as final compensation where compensation for purposes

23

of this section and § 42-28-22.1 includes base salary, longevity and holiday pay.

24

     (D) Notwithstanding the preceding provisions, in no event shall a member's final

25

compensation be lower than his or her final compensation determined as of June 30, 2012.

26

     (2) In no event shall a member's original retirement allowance under any provisions of this

27

section exceed sixty-five percent (65%) of his or her average compensation.

28

     (3) For each member who retires on or after July 1, 2012, except as provided in paragraph

29

(j)(1)(C) above, compensation and average compensation shall be defined in accordance with § 36-

30

8-1(5)(a) and (8), provided that for a member whose regular work period exceeds one hundred

31

forty-seven (147) hours over a twenty-four (24) day period at any time during the four (4) year

32

period immediately prior to his/her retirement that member shall have up to four hundred (400)

33

hours of his/her pay for regularly scheduled work earned during this period shall be included as

34

"compensation" and/or "average compensation" for purposes of this section and § 42-28-22.1.

 

LC005605 - Page 28 of 37

1

     (4) This subsection (4) shall be effective for the period July 1, 2012, through June 30, 2015.

2

     (i) Notwithstanding the prior paragraphs of this section, and subject to paragraph (4)(ii)

3

below, for all present and former members, active and retired members, and beneficiaries receiving

4

any retirement, disability or death allowance or benefit of any kind, whether for or on behalf of a

5

non-contributory member or contributory member, the annual benefit adjustment provided in any

6

calendar year under this section shall be equal to (A) multiplied by (B) where (A) is equal to the

7

percentage determined by subtracting five and one-half percent (5.5%) (the "subtrahend") from the

8

Five-Year Average Investment Return of the retirement system determined as of the last day of the

9

plan year preceding the calendar year in which the adjustment is granted, said percentage not to

10

exceed four percent (4%) and not to be less than zero percent (0%), and (B) is equal to the lesser

11

of the member's retirement allowance or the first twenty-five thousand dollars ($25,000) of

12

retirement allowance, such twenty-five thousand dollars ($25,000) amount to be indexed annually

13

in the same percentage as determined under (4)(i)(A) above. The "Five-Year Average Investment

14

Return" shall mean the average of the investment returns for the most recent five (5) plan years as

15

determined by the retirement board. Subject to paragraph (4)(ii) below, the benefit adjustment

16

provided by this paragraph shall commence upon the third (3rd) anniversary of the date of

17

retirement or the date on which the retiree reaches age fifty-five (55), whichever is later. In the

18

event the retirement board adjusts the actuarially assumed rate of return for the system, either

19

upward or downward, the subtrahend shall be adjusted either upward or downward in the same

20

amount.

21

     (ii) Except as provided in paragraph (4)(iii), the benefit adjustments under this section for

22

any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees'

23

Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police

24

Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis, exceeds eighty

25

percent (80%) in which event the benefit adjustment will be reinstated for all members for such

26

plan year.

27

     In determining whether a funding level under this paragraph (4)(ii) has been achieved, the

28

actuary shall calculate the funding percentage after taking into account the reinstatement of any

29

current or future benefit adjustment provided under this section.

30

     (iii) Notwithstanding paragraph (4)(ii), in each fifth plan year commencing after June 30,

31

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

32

(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

33

(4)(i) above until the Funded Ratio of the Employees' Retirement System of Rhode Island, the

34

Judicial Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by

 

LC005605 - Page 29 of 37

1

the system's actuary on an aggregate basis, exceeds eighty percent (80%).

2

     (iv) The provisions of this paragraph (j)(4) shall become effective July 1, 2012, and shall

3

apply to any benefit adjustment not granted on or prior to June 30, 2012.

4

     (v) The cost-of-living adjustment as provided in this paragraph (j)(4) shall apply to and be

5

in addition to the retirement benefits under the provisions of § 42-28-5 and to the injury and death

6

benefits under the provisions of § 42-28-21.

7

     (5) This subsection (5) shall become effective July 1, 2015.

8

     (i)(A) As soon as administratively reasonable following the enactment into law of this

9

paragraph (5)(i)(A), a one-time benefit adjustment shall be provided to members and/or

10

beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent

11

(2%) of the lesser of either the member's retirement allowance or the first twenty-five thousand

12

dollars ($25,000) of the member's retirement allowance. This one-time benefit adjustment shall be

13

provided without regard to the retiree's age or number of years since retirement.

14

     (B) Notwithstanding the prior subsections of this section, for all present and former

15

members, active and retired members, and beneficiaries receiving any retirement, disability or

16

death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year

17

under this section for adjustments on and after January 1, 2016, and subject to subsection (5)(ii)

18

below, shall be equal to (I) multiplied by (II):

19

     (I) Shall equal the sum of fifty percent (50%) of (1) plus fifty percent (50%) of (2) where:

20

     (1) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

21

(the "subtrahend") from the five-year average investment return of the retirement system

22

determined as of the last day of the plan year preceding the calendar year in which the adjustment

23

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

24

(0%). The "five-year average investment return" shall mean the average of the investment returns

25

of the most recent five (5) plan years as determined by the retirement board. In the event the

26

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

27

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

28

     (2) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

29

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

30

Statistics determined as of September 30 of the prior calendar year.

31

     In no event shall the sum of (1) plus (2) exceed three and one-half percent (3.5%) or be

32

less than zero percent (0%).

33

     (II) Is equal to the lesser of either the member's retirement allowance or the first twenty-

34

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

 

LC005605 - Page 30 of 37

1

to be indexed annually in the same percentage as determined under subsection (5)(i)(B)(I) above.

2

The benefit adjustments provided by this subsection (5)(i)(B) shall be provided to all retirees

3

entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect, and for all

4

other retirees the benefit adjustments shall commence upon the third anniversary of the date of

5

retirement or the date on which the retiree reaches his or her Social Security retirement age,

6

whichever is later.

7

     (ii) Except as provided in subsection (5)(iii), the benefit adjustments under subsection

8

(5)(i)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

9

employees' retirement system of Rhode Island, the Judicial retirement benefits trust and the state

10

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

11

eighty percent (80%) in which event the benefit adjustment will be reinstated for all members for

12

such plan year.

13

     In determining whether a funding level under this subsection (5)(ii) has been achieved, the

14

actuary shall calculate the funding percentage after taking into account the reinstatement of any

15

current or future benefit adjustment provided under this section.

16

     (iii) Notwithstanding subsection (5)(ii), in each fourth plan year commencing after June

17

30, 2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of

18

four plan years: (i) A benefit adjustment shall be calculated and made in accordance with paragraph

19

(5)(i)(B) above; and (ii) Effective for members and/or beneficiaries of members who retired on or

20

before June 30, 2015, the dollar amount in subsection (5)(i)(B)(II) of twenty-five thousand eight

21

hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six

22

dollars ($31,026) until the funded ratio of the employees' retirement system of Rhode Island, the

23

judicial retirement benefits trust and the state police retirement benefits trust, calculated by the

24

system's actuary on an aggregate basis, exceeds eighty percent (80%).

25

     (iv) Effective for members and or beneficiaries of members who have retired on or before

26

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

27

days following the enactment of the legislation implementing this provision, and a second one-time

28

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

29

shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable

30

payment date and shall not be considered cost of living adjustments under the prior provisions of

31

this section.

32

     (v) Notwithstanding subsection (j)(5)(ii) of this section, for all present and former

33

employees, active and retired members, and beneficiaries receiving any retirement, disability or

34

death allowance or benefit of any kind, a one-time benefit adjustment shall be provided under

 

LC005605 - Page 31 of 37

1

this section for the calendar year beginning January 1. 2022. The adjustment shall be equal to

2

three percent (3%) and is equal to the lesser of either the member's retirement allowance or the first

3

twenty-five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance,

4

indexed by the percentage as determined under subsection (j)(5)(i)(B)(I) of this section. The three

5

percent (3.0%) benefit adjustment amount for calendar year January 1. 2022, shall not be included

6

in the annual indexed percentage as determined under subsection (j)(5)(i)(B)(I) of this section.

7

     The benefit adjustment shall be subject to (j)(5)(iii)(ii) of this section and is not in addition

8

to any other benefit adjustments provided under subsection (j)(5)(ii) of this section.

9

     The benefit adjustments provided by this subsection shall be provided to all retirees entitled

10

to receive a benefit adjustment as of June 30, 2012, under the law then effect, and for all other

11

retirees, the benefit adjustments shall commence upon the third anniversary of the date of retirement

12

or the date on which the retiree reaches his or her Social Security retirement age, whichever is later.

13

     (6) Any member with contributory service on or after July 1, 2012, who has completed at

14

least five (5) years of contributory service but who has not retired in accordance with (j)(1) above,

15

shall be eligible to retire upon the attainment of member's Social Security retirement age as defined

16

in § 36-8-1(20).

17

     (7) In no event shall a member's retirement allowance be less than the member's retirement

18

allowance calculated as of June 30, 2012, based on the member's years of total service and whole

19

salary as of June 30, 2012.

20

     (k) In calculating the retirement benefit for any member, the term base salary as used in

21

subdivision (b)(3) or average compensation as used in paragraph (j) shall not be affected by a

22

deferral of salary plan or a reduced salary plan implemented to avoid shutdowns or layoffs or to

23

effect cost savings. Basic salary shall remain for retirement calculation that which it would have

24

been but for the salary deferral or salary reduction due to a plan implemented to avoid shutdowns

25

or layoffs or to effect cost savings.

26

     SECTION 7. Section 45-21-52 of the General Laws in Chapter 45-21 entitled "Retirement

27

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

28

     45-21-52. Automatic increase in service retirement allowance.

29

     (a) The local legislative bodies of the cities and towns may extend to their respective

30

employees automatic adjustment increases in their service retirement allowances, by a resolution

31

accepting any of the plans described in this section:

32

     (1) Plan A. All employees and beneficiaries of those employees receiving a service

33

retirement or disability retirement allowance under the provisions of this chapter on December 31

34

of the year their city or town accepts this section, receive a cost of living adjustment equal to one

 

LC005605 - Page 32 of 37

1

and one-half percent (1 1/2%) per year of the original retirement allowance, not compounded, for

2

each calendar year the retirement allowance has been in effect. This cost of living adjustment is

3

added to the amount of the retirement allowance as of January 1 following acceptance of this

4

provision, and an additional one and one-half percent (1 1/2%) is added to the original retirement

5

allowance in each succeeding year during the month of January, and provided, further, that this

6

additional cost of living increase is three percent (3%) for the year beginning January 1 of the year

7

the plan is accepted and each succeeding year.

8

     (2) Plan B. All employees and beneficiaries of those employees receiving a retirement

9

allowance under the provisions of this chapter on December 31 of the year their municipality

10

accepts this section, receive a cost of living adjustment equal to three percent (3%) of their original

11

retirement allowance. This adjustment is added to the amount of the retirement allowance as of

12

January 1 following acceptance of this provision, and an additional three percent (3%) of the

13

original retirement allowance, not compounded, is payable in each succeeding year in the month

14

of January.

15

     (3) Plan C. All employees and beneficiaries of those employees who retire on or after

16

January 1 of the year following acceptance of this section, on the first day of January next following

17

the date of the retirement, receive a cost of living adjustment in an amount equal to three percent

18

(3%) of the original retirement allowance.

19

     (b) In each succeeding year in the month of January, the retirement allowance is increased

20

an additional three percent (3%) of the original retirement allowance, not compounded.

21

     (c) This subsection (c) shall be effective for the period July 1, 2012, through June 30, 2015.

22

     (1) Notwithstanding any other paragraphs of this section, and subject to paragraph (c)(2)

23

below, for all present and former employees, active and retired members, and beneficiaries

24

receiving any retirement, disability or death allowance or benefit of any kind by reason of adoption

25

of this section by their employer, the annual benefit adjustment provided in any calendar year under

26

this section shall be equal to (A) multiplied by (B) where (A) is equal to the percentage determined

27

by subtracting five and one-half percent (5.5%) (the "subtrahend") from the Five-Year Average

28

Investment Return of the retirement system determined as of the last day of the plan year preceding

29

the calendar year in which the adjustment is granted, said percentage not to exceed four percent

30

(4%) and not to be less than zero percent (0%), and (B) is equal to the lesser of the member's

31

retirement allowance or the first twenty-five thousand dollars ($25,000) of retirement allowance,

32

such twenty-five thousand dollars ($25,000) amount to be indexed annually in the same percentage

33

as determined under (c)(1)(A) above. The "Five-Year Average Investment Return" shall mean the

34

average of the investment returns of the most recent five (5) plan years as determined by the

 

LC005605 - Page 33 of 37

1

retirement board. Subject to paragraph (c)(2) below, the benefit adjustment provided by this

2

paragraph shall commence upon the third (3rd) anniversary of the date of retirement or the date on

3

which the retiree reaches his or her Social Security retirement age, whichever is later; or for

4

municipal police and fire retiring under the provisions of chapter 45-21.2, the benefit adjustment

5

provided by this paragraph shall commence on the later of the third (3rd) anniversary of the date of

6

retirement or the date on which the retiree reaches age fifty-five (55). In the event the retirement

7

board adjusts the actuarially assumed rate of return for the system, either upward or downward, the

8

subtrahend shall be adjusted either upward or downward in the same amount.

9

     (2) Except as provided in paragraph (c)(3) the benefit adjustments provided under this

10

section for any plan year shall be suspended in their entirety for each municipal plan within the

11

municipal employees retirement system unless the municipal plan is determined to be funded at a

12

Funded Ratio equal to or greater than eighty percent (80%) as of the end of the immediately

13

preceding plan year in accordance with the retirement system's actuarial valuation report as

14

prepared by the system's actuary, in which event the benefit adjustment will be reinstated for all

15

members for such plan year.

16

     In determining whether a funding level under this paragraph (c)(2) has been achieved, the

17

actuary shall calculate the funding percentage after taking into account the reinstatement of any

18

current or future benefit adjustment provided under this section.

19

     (3) Notwithstanding paragraph (c)(2), for each municipal plan that has a Funded Ratio of

20

less than eighty percent (80%) as of June 30, 2012, in each fifth plan year commencing after June

21

30, 2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of

22

five (5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

23

(c)(1) above until the municipal plan's Funded Ratio exceeds eighty percent (80%).

24

     (d) This subsection (d) shall become effective July 1, 2015.

25

     (1)(A) As soon as administratively reasonable following the enactment into law of this

26

subsection (d)(1)(A), a one-time benefit adjustment shall be provided to members and/or

27

beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent

28

(2%) of the lesser of either the employee's retirement allowance or the first twenty-five thousand

29

dollars ($25,000) of the member's retirement allowance. This one-time benefit adjustment shall be

30

provided without regard to the retiree's age or number of years since retirement.

31

     (B) Notwithstanding the prior subsections of this section, for all present and former

32

employees, active and retired employees, and beneficiaries receiving any retirement, disability or

33

death allowance or benefit of any kind by reason of adoption of this section by their employer, the

34

annual benefit adjustment provided in any calendar year under this section for adjustments on and

 

LC005605 - Page 34 of 37

1

after January 1, 2016, and subject to paragraph (d)(2) below, shall be equal to (I) multiplied by (II):

2

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

3

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

4

(the "subtrahend") from the five-year average investment return of the retirement system

5

determined as of the last day of the plan year preceding the calendar year in which the adjustment

6

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

7

(0%). The "five-year average investment return" shall mean the average of the investment returns

8

of the most recent five (5) plan years as determined by the retirement board. In the event the

9

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

10

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

11

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

12

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

13

Statistics determined as of September 30 of the prior calendar year.

14

     In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be less

15

than zero percent (0%).

16

     (II) Is equal to the lesser of either the member's retirement allowance or the first twenty-

17

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

18

to be indexed annually in the same percentage as determined under subsection (d)(1)(B)(I) above.

19

     The benefit adjustments provided by this subsection (d)(1)(B) shall be provided to all

20

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

21

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

22

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

23

whichever is later; or for municipal police and fire retiring under the provisions of § 45-21.2-

24

5(b)(1)(A), the benefit adjustment provided by this paragraph shall commence on the later of the

25

third anniversary of the date of retirement or the date on which the retiree reaches age fifty-five

26

(55); or for municipal police and fire retiring under the provisions of § 45-21.2-5(b)(1)(B), the

27

benefit adjustment provided by this paragraph shall commence on the later of the third anniversary

28

of the date of retirement or the date on which the retiree reaches age fifty (50).

29

     (2) Except as provided in subsection (d)(3), the benefit adjustments under subsection

30

(d)(1)(B) for any plan year shall be suspended in their entirety for each municipal plan within the

31

municipal employees retirement system unless the municipal plan is determined to be funded at a

32

funded ratio equal to or greater than eighty percent (80%) as of the end of the immediately

33

preceding plan year in accordance with the retirement system's actuarial valuation report as

34

prepared by the system's actuary, in which event the benefit adjustment will be reinstated for all

 

LC005605 - Page 35 of 37

1

members for such plan year.

2

     In determining whether a funding level under this subsection (d)(2) has been achieved, the

3

actuary shall calculate the funding percentage after taking into account the reinstatement of any

4

current or future benefit adjustment provided under this section.

5

     (3) Notwithstanding subsection (d)(2), in each fourth plan year commencing after June 30,

6

2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four

7

plan years: (i) A benefit adjustment shall be calculated and made in accordance with subsection

8

(d)(1)(B) above; and (ii) Effective for members and/or beneficiaries of members who retired on or

9

before June 30, 2015, the dollar amount in subsection (d)(1)(B)(II) of twenty-five thousand eight

10

hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six

11

dollars ($31,026) until the municipal plan's funded ratio exceeds eighty percent (80%).

12

     (4) Notwithstanding subsection (d)(2) of this section, for all present and former employees,

13

active and retired members, and beneficiaries receiving any retirement, disability or death

14

allowance or benefit of any kind, a one-time benefit adjustment shall be provided under this section

15

for the calendar beginning January 1, 2022, the adjustment shall be equal to three percent (3%) and

16

is equal to the lesser of either the member's retirement allowance or the first twenty-five thousand

17

eight hundred and fifty-five dollars ($25,855) of retirement allowance, indexed by the percentage

18

as determined under subsection (d)(l)(B)(I) of this section. The three percent (3%) benefit

19

adjustment amount for calendar year January 1, 2022, shall not be included in the annual indexed

20

percentage as determined under subsection (d)(l)(B)(l) of this section.

21

     The benefit adjustment shall be subject to subsection (d)(3)(ii) of this section and is not in

22

addition to any other benefit adjustments provided under subsection (d)(2) of this section. If a plan

23

is receiving benefit adjustments as a result of the funded ratio exceeding the amount in section

24

(d)(3)(ii), and the calculated benefit adjustment as determined by subsection (d)(l)(B) of this section

25

is less than three percent (3%), then the annual benefit adjustment will be replaced with three

26

percent (3%) for calendar year January l, 2022 only. If a plan is receiving a benefit adjustments as

27

a result of the funded ratio exceeding the amount in subsection (d)(3)(ii) of this section, and the

28

calculated benefit adjustment as determined by subsection (d)(l)(B) of this section is greater than

29

three percent (3%), then the annual benefit adjustment shall be the greater amount.

30

     The benefit adjustments provided by this subsection shall be provided to all retirees entitled

31

to receive a benefit adjustment as of June 30, 2012. under the law then in effect, and for all other

32

retirees, the benefit adjustments shall commence upon the third anniversary of the date of retirement

33

or the date on which the retiree reaches his or her Social Security retirement age, whichever is later;

34

or for municipal police and fire retiring under the provisions of § 45-21.2-S(b)(l)(A), the benefit

 

LC005605 - Page 36 of 37

1

adjustment provided by this subsection shall commence on the later of the third anniversary of the

2

date of retirement or the date on which the retiree reaches age fifty-five (55); or for municipal police

3

and fire retiring under the provisions of § 45-21.2-5(b)(1)(B), the benefit adjustment provided by

4

this subsection shall commence on the later of the third anniversary of the date of retirement or the

5

date on which the retiree reaches age fifty (50).

6

     The benefit adjustments provided by this subsection shall not be applicable to those plans

7

that have accepted the provisions of chapters 21.4 and 21.5 of this title.

8

     (e) Upon acceptance of any of the plans in this section, each employee shall on January 1

9

next succeeding the acceptance, contribute by means of salary deductions, pursuant to § 45-21-41,

10

one percent (1%) of the employee's compensation concurrently with and in addition to

11

contributions otherwise being made to the retirement system.

12

     (f) The city or town shall make any additional contributions to the system, pursuant to the

13

terms of § 45-21-42, for the payment of any benefits provided by this section.

14

     (g) The East Greenwich town council shall be allowed to accept Plan C of subsection (a)(3)

15

of this section for all employees of the town of East Greenwich who either, pursuant to contract

16

negotiations, bargain for Plan C, or who are non-union employees who are provided with Plan C

17

and who shall all collectively be referred to as the "Municipal-COLA Group" and shall be separate

18

from all other employees of the town and school department, union or non-union, who are in the

19

same pension group but have not been granted Plan C benefits. Upon acceptance by the town

20

council, benefits in accordance with this section shall be available to all such employees who retire

21

on or after January 1, 2003.

22

     (h) Effective for members and/or beneficiaries of members who have retired on or before

23

July 1, 2015, and without regard to whether the retired member or beneficiary is receiving a benefit

24

adjustment under this section, a one-time stipend of five hundred dollars ($500) shall be payable

25

within sixty (60) days following the enactment of the legislation implementing this provision, and

26

a second one-time stipend of five hundred dollars ($500) in the same month of the following year.

27

These stipends shall not be considered cost of living adjustments under the prior provisions of this

28

section.

29

     SECTION 8. This act shall take effect upon passage.

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LC005605

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LC005605 - Page 37 of 37

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COURTS AND CIVIL PROCEDURE -- COURTS -- JUSTICES OF

SUPREME, SUPERIOR, AND FAMILY COURTS

***

1

     This act would provide, for all present and former employees, active and retired members,

2

and beneficiaries receiving any retirement, disability or death allowance or benefit of any kind,

3

including judicial employees and judges, teachers, state police, and state and municipal employees,

4

a one-time benefit adjustment for the calendar year beginning January 1. 2022.

5

     This act would take effect upon passage.

========

LC005605

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LC005605 - Page 38 of 37