It is enacted by the General Assembly as follows:

SECTION 1. Section 36-10-36 of the General Laws in Chapter 36-10 entitled "Retirement System-Contributions and Benefits" is hereby amended to read as follows:

36-10-36. Post retirement employment -- (a) On and after July 7, 1994, no member who has retired under the provisions of titles 16, 36, or 45 may be employed or reemployed by any state agency or department unless any and all retirement benefits to which he or she may be entitled by virtue of the provisions of titles 16, 36 or 45 are suspended for the duration of any employment or reemployment. No additional service credits shall be granted for any post-retirement employment or reemployment and no deductions shall be taken from an individual's salary for retirement contribution. Notice of any such post-retirement employment or reemployment shall be sent monthly to the retirement board by the employing agency or department and by the retired member.

(b) Any member who has retired under the provisions of titles 16, 36, or 45 may be employed or reemployed by any municipality within the state for a period of not more than seventy-five (75) working days or one hundred fifty (150) half days with half day pay in any one calendar year without any forfeiture of or reduction of any retirement benefits and allowances the member is receiving or may receive as a retired member. Pension payments shall be suspended whenever this period is exceeded. No additional contributions shall be taken and no additional service credits shall be granted for this service. Notice of employment shall be sent monthly to the retirement board by the employer and by the retired member.

(c) Notwithstanding the provisions of this section:

(1) Any retired member of the system shall be permitted to serve as an elected city or town council member, school committee member, or unpaid member of any part-time state board or commission, and shall continue to be eligible for and receive the retirement allowance for service other than that as a council member, school committee member, or member of any state board or commission; provided, however, that no additional service credits shall be granted for any service under this subsection;

(2) Any retired member who retired from service at any state college, university, state school, or who retired from service as a teacher under the provisions of title 16, or who retired from service under title 36 or title 45, may be employed or reemployed, on a part-time basis, by any state college, university or state school for the purpose of providing classroom instruction, academic advising of students and/or coaching. Compensation shall be provided at a level not to exceed the salary provided to other faculty members employed under a collective bargaining agreement at the institution. In no event shall part-time mean gross pay of more than ten thousand dollars ($10,000) twelve thousand dollars ($12,000) in any one calendar year. Any retired member who provides such instruction or service shall do so without forfeiture or reduction of any retirement benefit or allowance; and provided, however, that no additional service credits shall be granted for any service under this subsection; and

(3) Any retired member who retired from service as a teacher under the provisions of title 16, may be employed or reemployed, on a part-time basis, by the department of elementary and secondary education for the purpose of providing classroom instruction in driver education courses in accordance with section 31-10-19 and/or motorcycle driver education courses in accordance with section 31-10.1-1.1. In no event shall "part-time" mean gross pay of more than ten thousand dollars ($10,000) twelve thousand dollars ($12,000) in any one calendar year. Any retired teacher who provides such instruction shall do so without forfeiture or reduction of any retirement benefit or allowance the retired teacher is receiving as a retired teacher; provided, however, that no additional service credits shall be granted for any service under this subsection.

SECTION 2. This act shall take effect upon passage.