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 - 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. |
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LC005605 | |
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| LC005605 - Page 38 of 37 |