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art.012/2/012/1

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ARTICLE 12 AS AMENDED

RELATING TO PENSIONS

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

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

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

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

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

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

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

addition to his or herthe justice’s retirement allowance in an amount equal to three percent (3%)

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

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

allowance, not compounded, to be continued during the lifetime of the justice or his or herthe

justice’s surviving spouse or domestic partner. For the purpose of such computation, credit shall

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

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

this section to have retired on January 1, 1977.

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

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

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

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

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

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

allAll Urban ConsumerConsumers (CPI-U) as published by the United States Department of Labor

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

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

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

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

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

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

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

provisions of this subsection (c) shall not apply.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

downward in the same amount.

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

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

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

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

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

year.

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

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

current or future benefit adjustment provided under this section.

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

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

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

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

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

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

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

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

granted on or prior to June 30, 2012.

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

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

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

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

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

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

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

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

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

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

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

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

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

to (I) multiplied by (II):

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

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

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

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

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

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

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

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

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

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

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

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

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

(II) Isis equal to the lesser of either the justice’s retirement allowance or the first twenty-

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

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

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

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

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

date of retirement or the date on which the retiree reaches his or hertheir Social Security retirement

age, whichever is later.

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

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

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

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

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

such plan year. Effective July 1, 2024, the funded ratio of the employees’ retirement system of

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

calculated by the system’s actuary on an aggregate basis, of exceeding eighty percent (80%) for the

benefit adjustment to be reinstated for all members for such plan year shall be replaced with

seventy-five percent (75%).

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

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

current or future benefit adjustment provided under this section.

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

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

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

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

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

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

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

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

system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1, 2024, the

funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement benefits

trust, and the state police retirement benefits trust, calculated by the system’s actuary on an

aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent

(75%).

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

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

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

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

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

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

this § 8-3-15section.

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

Tribunal" is hereby amended to read as follows:

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

domestic partners.

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

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

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

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

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

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

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

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

compounded annually from the year the cost of living adjustment was first payable to be continued

during the lifetime of the judge or his or hertheir surviving spouse or domestic partner. For the

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

date of the retirement allowance.

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

this section to have retired on January 1, 1980.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

subsection (c) shall not apply.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

downward in the same amount.

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

any plan year shall be suspended in their entirety unless the Funded Ratiofunded ratio of the

Employees’ Retirement System of Rhode Islandemployees’ retirement system, the Judicial

Retirement Benefits Trustjudicial retirement benefits trust, and the State Police Retirements

Benefits Truststate police retirement benefits trust, calculated by the system’s actuary on an

aggregate basis, exceeds eighty percent (80%) in which evenevent the benefit adjustment will be

reinstated for all justices for such plan year.

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

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

current or future benefit adjustment provided under this section.

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

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

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

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

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

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

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

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

granted on or prior to June 30, 2012.

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

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

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

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

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

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

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

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

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

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

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

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

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

to (I) multiplied by (II):

(I) Shallshall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii)

where:

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

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

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

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

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

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

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

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

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

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

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

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

than zero percent (0%).

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

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

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

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

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

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

date of retirement or the date on which the retiree reaches his or hertheir Social Security retirement

age, whichever is later.

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

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

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

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

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

such plan year. Effective July 1, 2024, the funded ratio of the employees’ retirement system of

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

calculated by the system’s actuary on an aggregate basis, of exceeding eighty percent (80%) for the

benefit adjustment to be reinstated for all members for such plan year shall be replaced with

seventy-five percent (75%).

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

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

current or future benefit adjustment provided under this section.

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

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

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

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

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

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

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

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

by the system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1,

2024, the funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement

benefits trust and the state police retirement benefits trust, calculated by the system’s actuary on an

aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent

(75%).

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

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

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

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

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

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

this § 8-8.2-12section.

SECTION 3. Sections 16-16-1, 16-16-13, 16-16-24.2 and 16-16-40 of the General Laws

in Chapter 16-16 entitled "Teachers’ Retirement [See Title 16 Chapter 97 — The Rhode Island

Board of Education Act]" are hereby amended to read as follows:

16-16-1. Definitions.

(a) The following words and phrases used in this chapter, unless a different meaning is

plainly required by the context, have the following meanings:

(1) “Active member” means any teacher as defined in this section for whom the retirement

system is currently receiving regular contributions pursuant to §§ 16-16-22 and 16-16-22.1.

Except as otherwise provided in this section, the words and phrases used in this chapter, so

far as applicable, have the same meanings as they have in chapters 8 to 10 of title 36.

(2) “Beneficiary” means any person in receipt of annuity, benefit, or retirement allowance

from the retirement system as provided in this chapter.

(3) “Child” includes a stepchild of a deceased member who has been a stepchild for at least

one year immediately preceding the date on which the member died or an adopted child of a

deceased member without regard to the length of time the child has been adopted.

(4) “Former spouse divorced” means a person divorced from a deceased member, but only

if the person meets one of the following conditions:

(i) Is the mother or father of the deceased member’s child(ren);

(ii) Legally adopted the deceased member’s child(ren) while married to the deceased

member and while the child(ren) was under the age of eighteen (18) years;

(iii) Was married to the deceased member at the time both of them legally adopted a

child(ren) under the age of eighteen (18) years; or

(iv) Was married to the deceased member for ten (10) or more years and to whom the

deceased member was required by a court order to contribute post-divorce support.

(5) “Member” means any person included in the membership of the retirement system

under the provisions of this chapter.

(6) “Prior service” means service as a teacher rendered prior to the first day of July, 1949,

certified on the teacher’s prior service certificate and allowable as prior service under the provisions

of this chapter.

(7) “Retired teacher” means any teacher who retired prior to July 1, 1949, pursuant to the

provisions of G.L. 1938, ch. 195, as amended, and who on June 30, 1949, was in receipt of a pension

under the provisions of that chapter.

(8) “Retirement system” and “system” means the employees’ retirement system of the state

of Rhode Island created by chapter 8 of title 36, and “retirement board” means the board established

under that chapter.

(9) “Salary” or “compensation” includes any and all salary paid for teaching services

regardless of whether any part of the salary or compensation is derived from any state or federal

grant or appropriation for teachers’ salaries, as the term is defined in § 36-8-1(8). “Average

compensation” shall be defined in accordance with section § 36-8-1(5)(a)(b).

(10) “Service” means service as a teacher as described in subdivision (12) of this section.

Periods of employment as teacher, principal, assistant principal, supervisor, superintendent, or

assistant superintendent shall be combined in computing periods of service and employment.

(11) “Spouse” means the surviving person who was married to a deceased member, but

only if the surviving person meets one of the following conditions:

(i) Was married to the deceased member for not less than one year immediately prior to the

date on which the member died;

(ii) Is the mother or father of the deceased member’s child(ren);

(iii) Legally adopted the deceased member’s child(ren) while married to the deceased

member and while the child(ren) was under the age of eighteen (18) years; or

(iv) Was married to the deceased member at the time both of them legally adopted a

child(ren) under the age of eighteen (18) years.

(12) “Teacher” means a person required to hold a certificate of qualification issued by or

under the authority of the board of regents for elementary and secondary education and who is

engaged in teaching as their principal occupation and is regularly employed as a teacher in the

public schools of any city or town in the state, or any formalized, commissioner approved,

cooperative service arrangement. The term includes a person employed as a teacher, supervisor,

principal, assistant principal, superintendent, or assistant superintendent of schools, director,

assistant director, coordinator, consultant, dean, assistant dean, educational administrator, nurse

teacher, and attendance officer or any person who has worked in the field of education or is working

in the field of education who holds a teaching or administrative certificate. In determining the

number of days served by a teacher the total number of days served in any public school of any city

or town in the state may be combined for any one school year. The term also includes a school

business administrator whether or not the administrator holds a teaching or administrative

certificate, and also includes occupational therapists and physical therapists licensed by the

department of health and employed by a school committee in the state, or by any formalized,

commissioner approved, cooperative service arrangement.

(13) “Teaching” includes teaching, supervising, and superintending or assistant

superintending of schools.

(14) “Total service” means prior service as defined in subdivision (6) of this section, plus

service rendered as a member of the system on or after the first day of July, 1949.

(15) For purposes of this chapter, “domestic partner” shall be defined as a person who,

prior to the decedent’s death, was in an exclusive, intimate, and committed relationship with the

decedent, and who certifies by affidavit that their relationship met the following qualifications:

(i) Both partners were at least eighteen (18) years of age and were mentally competent to

contract;

(ii) Neither partner was married to anyone else;

(iii) Partners were not related by blood to a degree that would prohibit marriage in the state

of Rhode Island;

(iv) Partners resided together and had resided together for at least one year at the time of

death; and

(v) Partners were financially interdependent as evidenced by at least two (2) of the

following:

(A) Domestic partnership agreement or relationship contract;

(B) Joint mortgage or joint ownership of primary residence;

(C) Two (2) of: (I) Joint ownership of motor vehicle; (II) Joint checking account; (III) Joint

credit account; (IV) Joint lease; and/or

(D) The domestic partner had been designated as a beneficiary for the decedent’s will,

retirement contract, or life insurance.

(b) The masculine pronoun wherever used shall also include the feminine pronoun.

(c) Any term not specifically defined in this chapter and specifically defined in chapters 8

— 10 of title 36 shall have the same definition as set forth in chapters 8 — 10 of title 36.

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

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

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

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

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

prior to July 1, 2012.

SCHEDULE A

YEARS OF SERVICE PERCENTAGE ALLOWANCE

1st through 10th inclusive 1.7%

11th through 20th inclusive 1.9%

21st through 34th inclusive 3.0%

35th 2.0%

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

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

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

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

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

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

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

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

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

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

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

SCHEDULE B

YEARS OF SERVICE PERCENTAGE ALLOWANCE

1st through 10th inclusive 1.60%

11th through 20th inclusive 1.80%

21st through 25th inclusive 2.0%

26th through 30th inclusive 2.25%

31st through 37th inclusive 2.50%

38th 2.25%

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

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

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

or herthe member’s average highest three (3) consecutive years of compensation multiplied by the

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

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

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

shall be based on the average highest five (5) consecutive years of compensation; provided,

however for teachers retiring on or after July 1, 2024, the calculation shall be based on the average

highest three (3) consecutive years of compensation.

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

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

in an amount equal to the percentage allowance specified in Schedule B of his or herthe member’s

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

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

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

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

based on the average highest five (5) consecutive years of compensation; provided, however, for

teachers retiring on or after July 1, 2024, the calculation shall be based on the average highest three

(3) consecutive years of compensation.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

16-16-24.2. Substitute teaching and post-retirement employment related to statewide

staffing.

(a) Notwithstanding any public or general law, or rule or regulation to the contrary, any

teacher, administrator, or staff member who has retired under the provisions of title 16, 36, or 45

may exceed the ninety-day (90) cap on post-retirement employment upon:

(1) A determination by the local education authority that there exists a specialized need,

within their authority, to fill positions on a temporary basis, that may exceed the ninety-day (90)

cap on post-retirement employment;

(2) Retired teachers, administrators, and staff members being asked to exceed the ninety-

day (90) cap on post-retirement employment possess the skills, training, and knowledge necessary

to help address teacher and administrative staffing shortages; and

(3) The local education authority has notified the state retirement board that it has

determined that exceeding the ninety-day (90) cap on post-retirement employment is necessary to

help address teacher and administrative staffing shortages.

Provided, however, that no employment may be offered to a retiree subject to this section

unless the employer has made a good-faith effort each school year to fill the position with a

nonretired employee without success, and certifies, in writing, that it has done so to the employees’

retirement system and to the bargaining agents of all education unions with whom the employer

has collective bargaining agreements.

(b) Any teacher, administrator, or staff member who has retired under the provisions of

title 16, 36, or 45, and has been employed or re-employed under the provisions of this section, shall

not be entitled to additional service credits for such employment, and the teacher, administrator, or

staff member shall not be responsible for any contribution to the pension system as a result of the

employment; provided, however, the local educational authority shall make the employer

contribution for the teacher, administrator, or staff member as if the district had hired a new teacher,

administrator, or staff member.

(c) This section shall become effective on June 21, 2024, and unless Unless extended by

the general assembly, this section shall sunset on June 20, 2024 2025.

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

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

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

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

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

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

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

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

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

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

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

and each year thereafter through December 31, 1980.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

retroactive payment shall be made.

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

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

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

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

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

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

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

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

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

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

retirement allowance provided immediately before such adjustment.

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

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

adjustment described in subsection (c)(3) of this section shall only apply to the first thirty-five

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

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

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

percentage increase in the Consumer Price Index for allAll Urban ConsumerConsumers (CPI-U)

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

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

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

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

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

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

year. For teachers eligible to retire as of September 30, 2009, or eligible upon passage of this article,

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

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

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

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

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

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

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

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

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

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

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

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

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

indexed annually in the same percentage as determined under (f)(1)(A) above. The “Five-Year

Average Investment Return” shall mean the average of the investment returns of the most recent

five (5) plan years as determined by the retirement board. Subject to subsection (f)(2) below, the

benefit adjustment provided by this subsection (f)(1) shall commence upon the third (3rd)

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

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

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

either upward or downward in the same amount.

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

any plan year shall be suspended in their entirety unless the Funded Ratiofunded ratio of the

Employees’ Retirement Systememployees’ retirement system of Rhode Island, the Judicial

Retirement Benefits Trustjudicial retirement benefits trust, and the State Police Retirement

Benefits Truststate police retirement benefits trust, calculated by the system’s actuary on an

aggregate basis, exceeds eighty percent (80%) in which event the benefit adjustment will be

reinstated for all teachers for such plan year.

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

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

current or future benefit adjustment provided under this section.

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

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

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

above until the Funded Ratiofunded ratio of the Employees’ Retirement Systememployees’

retirement system of Rhode Island, the Judicial Retirement Benefits Trustjudicial retirement

benefits trust, and the State Police Retirement Benefits Truststate police retirement benefits

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

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

(f) shall become effective July 1, 2012, and shall apply to any benefit adjustments not granted on

or prior to June 30, 2012.

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

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

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

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

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

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

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

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

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

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

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

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

(I) Shallshall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii)

where:

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

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

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

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

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

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

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

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

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

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

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

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

than (0%) percent.

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

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

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

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

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

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

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

whichever is later.

(2) Except for teachers and/or beneficiaries of teachers who retired on or before June 30,

2012, the The benefit adjustments under subsection (g)(1)(B) for any plan year shall be reduced to

twenty-five percent (25%) of the benefit adjustment unless the funded ratio of the employees’

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

retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty

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

year. Effective July 1, 2024, the funded ratio of the employees’ retirement system of Rhode Island,

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

system’s actuary on an aggregate basis, of exceeding eighty percent (80%) for the benefit

adjustment to be reinstated for all teachers for such plan year shall be replaced with seventy-five

percent (75%).

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

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

current or future benefit adjustment provided under this section.

(3) Effective for teachers and/or beneficiaries of teachers who retired after June 30, 2012,

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

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

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

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

by the system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1,

2024, the funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement

benefits trust, and the state police retirement benefits trust, calculated by the system’s actuary on

an aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent

(75%).

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

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

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

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

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

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

this section.

SECTION 4. Section 36-8-1 of the General Laws in Chapter 36-8 entitled "Retirement

System — Administration" is hereby amended to read as follows:

36-8-1. Definition of terms.

The following words and phrases as used in chapters 8 to 10 of this title unless a different

meaning is plainly required by the context, shall have the following meanings:

(1) “Accumulated contributions” shall mean the sum of all the amounts deducted from the

compensation of a member and credited to his or hertheir individual pension account.

(2) “Active member” shall mean any employee of the state of Rhode Island as defined in

this section for whom the retirement system is currently receiving regular contributions pursuant to

§§ 36-10-1 and 36-10-1.1.

(3) “Actuarial equivalent” shall mean an allowance or benefit of equal value to any other

allowance or benefit when computed upon the basis of the actuarial tables in use by the system.

(4) “Annuity reserve” shall mean the present value of all payments to be made on account

of any annuity, benefit, or retirement allowance granted under the provisions of chapter 10 of this

title computed upon the basis of such mortality tables as shall be adopted from time to time by the

retirement board with regular interest.

(5)(a) “Average compensation” for members eligible to retire as of September 30, 2009,

shall mean the average of the highest three (3) consecutive years of compensation, within the total

service when the average compensation was the highest. For members eligible to retire on or after

October 1, 2009, “Average compensation” shall mean the average of the highest five (5)

consecutive years of compensation within the total service when the average compensation was the

highest.

(b) For members eligible to and who retire on or after July 1, 2024, "average compensation"

means the average of the highest three (3) consecutive years of compensation within the total

service when the average compensation was the highest.

(b)(c) For members who become eligible to retire on or after July 1, 2012, if more than

one-half (½) of the member’s total years of service consist of years of service during which the

member devoted less than thirty (30) business hours per week to the service of the state, but the

member’s average compensation consists of three (3) or more years during which the member

devoted more than thirty (30) business hours per week to the service of the state, such member’s

average compensation shall mean the average of the highest ten (10) consecutive years of

compensation within the total service when the average compensation was the highest; provided

however, effective July 1, 2015, if such member’s average compensation as defined in subsection

(a) Aboveabove is equal to or less than thirty-five thousand dollars ($35,000), such amount to be

indexed annually in accordance with § 36-10-35(h)(1)(B), such member’s average compensation

shall mean the greater of: (i) The average of the highest ten (10) consecutive years of compensation

within the total service when the average compensation was the highest; or (ii) The member’s

average compensation as defined in subsection (a) above. To protect a member’s accrued benefit

on June 30, 2012 under this § 36-8-1(5)(b)(c), in no event shall a member’s average compensation

be lower than his or herthe member’s average compensation determined as of June 30, 2012.

(6) “Beneficiary” shall mean any person in receipt of a pension, an annuity, a retirement

allowance, or other benefit as provided by chapter 10 of this title.

(7) “Casual employee” shall mean those persons hired for a temporary period, a period of

emergency, or an occasional period.

(8) “Compensation” as used in chapters 8 — 10 of this title, chapters 16 and 17 of title 16,

and chapter 21 of title 45 shall mean salary or wages earned and paid for the performance of duties

for covered employment, including regular longevity or incentive plans approved by the board, but

shall not include payments made for overtime or any other reason other than performance of duties,

including but not limited to the types of payments listed below:

(i) Payments contingent on the employee having terminated or died;

(ii) Payments made at termination for unused sick leave, vacation leave, or compensatory

time;

(iii) Payments contingent on the employee terminating employment at a specified time in

the future to secure voluntary retirement or to secure release of an unexpired contract of

employment;

(iv) Individual salary adjustments which are granted primarily in anticipation of the

employee’s retirement;

(v) Additional payments for performing temporary or extra duties beyond the normal or

regular work day or work year.

(9) “Employee” shall mean any officer or employee of the state of Rhode Island whose

business time is devoted exclusively to the services of the state, but shall not include one whose

duties are of a casual or seasonal nature. The retirement board shall determine who are employees

within the meaning of this chapter. The governor of the state, the lieutenant governor, the secretary

of state, the attorney general, the general treasurer, and the members of the general assembly, ex

officio, shall not be deemed to be employees within the meaning of that term unless and until they

elect to become members of the system as provided in § 36-9-6, but in no case shall it deem as an

employee, for the purposes of this chapter, any individual who devotes less than twenty (20)

business hours per week to the service of the state, and who receives less than the equivalent of

minimum wage compensation on an hourly basis for his or hertheir services, except as provided in

§ 36-9-24. Any commissioner of a municipal housing authority or any member of a part-time state,

municipal, or local board, commission, committee, or other public authority shall not be deemed to

be an employee within the meaning of this chapter.

(10) “Full actuarial costs” or “full actuarial value” shall mean the lump sum payable by a

member claiming service credit for certain employment for which that payment is required which

is determined according to the age of the member and the employee’s annual rate of compensation

at the time he or shethe member applies for service credit and which is expressed as a rate percent

of the employee’s annual rate of compensation to be multiplied by the number of years for which

he or shethe member claims service credit as prescribed in a schedule adopted by the retirement

board from time to time on the basis of computation by the actuary. Except as provided in §§ 16-

16-7.1, 36-5-3, 36-9-31, 36-10-10.4, 45-21-53, 36-10-8, 45-21-29, 8-3-16(c), 8-8-10.1(c), 42-28-

22.1(d), and 28-30-18.1(c):

(i) allAll service credit purchases requested after June 16, 2009, and prior to July 1, 2012,

shall be at full actuarial value; and

(ii) allAll service credit purchases requested after June 30, 2012, shall be at full actuarial

value which shall be determined using the system’s assumed investment rate of return minus one

percent (1%).

The rules applicable to a service credit purchase shall be the rules of the retirement system

in effect at the time the purchase application is submitted to the retirement system.

(11) “Funded ratio” shall mean the ratio of the actuarial value of assets to the actuarial

accrued liability consistent with the funding policy of the retirement board as defined in § 36-8-4.

(12) “Inactive member” shall mean a member who has withdrawn from service as an

employee but who has not received a refund of contributions.

(13) “Members” shall mean any person included in the membership of the retirement

system as provided in §§ 36-9-1 — 36-9-7.

(14) “Prior service” shall mean service as a member rendered before July 1, 1936, certified

on his or herthe member’s prior service certificate and allowable as provided in § 36-9-28.

(15) “Regular interest” shall mean interest at the assumed investment rate of return,

compounded annually, as may be prescribed from time to time by the retirement board.

(16) “Retirement allowance” shall mean annual payments for life made after retirement

under and in accordance with chapters 8 to 10 of this title. All allowances shall be paid in equal

monthly installments beginning as of the effective date thereof; provided, that a smaller pro rata

amount may be paid for part of a month where separation from service occurs during the month in

which the application was filed, and when the allowance ceases before the last day of the month.

(17) “Retirement board” or “board” shall mean the board provided in § 36-8-3 to administer

the retirement system.

(18) “Retirement system” shall mean the employees’ retirement system of the state of

Rhode Island as defined in § 36-8-2.

(19) “Service” shall mean service as an employee of the state of Rhode Island as described

in subdivision (9) of this section.

(20) “Social Security retirement age” shall mean a member’s full retirement age as

determined in accordance with the federal Old Age, Survivors and Disability Insurance Act, not to

exceed age sixty-seven (67).

(21) “Total service” shall mean prior service as defined above, plus service rendered as a

member on or after July 1, 1936.

SECTION 5. Sections 36-10-1, 36-10-10, 36-10-35 and 36-10-36 of the General Laws in

Chapter 36-10 entitled "Retirement System — Contributions and Benefits" are hereby amended to

read as follows:

36-10-1. Member contributions — Deduction from compensation.

(a)(1) Prior to July 1, 2012, each member of the retirement system shall contribute an

amount equal to eight and three-quarters percent (8.75%) of his or her compensation as his or her

share of the cost of annuities, benefits, and allowances. Effective July 1, 2012, each member of the

retirement system shall contribute an amount equal to three and three quarters percent (3.75%) of

his or herthe member’s compensation, except for correctional officers as defined in § 36-10-9.2

who shall contribute an amount equal to eight and three quarters percent (8.75%) of his or hertheir

compensation. Effective July 1, 2015, each member of the retirement system, except for

correctional officers as defined in § 36-10-9.2, with twenty (20) or more years of total service as of

June 30, 2012, shall contribute an amount equal to eleven percent (11%) of compensation. The

contributions shall be made in the form of deductions from compensation.

(2) Effective January 1, 2025, those members of the retirement system who are state

employees employed as deputy sheriffs, capitol police officers, environmental police officers,

juvenile program workers, shift coordinators, firefighters, crew chiefs, assistant chiefs, fire

investigators, fire safety inspectors, fire safety training officers, explosives and flammable liquids

technicians, and campus police officers employed by the Statestate of Rhode Island shall contribute

an amount equal to ten percent (10%) of compensation.

(3) The contributions shall be made in the form of deductions from compensation.

(b) The deductions provided for herein shall be made notwithstanding that the minimum

compensation provided by law for any member shall be reduced thereby. Every member shall be

deemed to consent and agree to the deductions made and provided for herein and receipt of his or

herthe member’s full compensation and payment of compensation, less the deductions, shall be a

full and complete discharge and acquittance of all claims and demands whatsoever for the services

rendered by the person during the period covered by the payment except as to the benefit provided

under this chapter.

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

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

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

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

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

below for service prior to July 1, 2012:

Schedule A

Years of Service Percentage Allowance

1st through 10th inclusive 1.7%

11th through 20th inclusive 1.9%

21st through 34th inclusive 3.0%

35th 2.0%

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

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

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

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

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

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

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

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

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

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

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

Schedule B

Years of Service Percentage Allowance

1st through 10th inclusive 1.60%

11th through 20th inclusive 1.80%

21st through 25th inclusive 2.0%

26th through 30th inclusive 2.25%

31st through 37th inclusive 2.50%

38th 2.25%

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

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

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

or herthe member’s average highest three (3) consecutive years of compensation multiplied by the

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

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

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

shall be based on the average highest five (5) consecutive years of compensation; provided,

however, for employees retiring on or after July 1, 2024, the calculation shall be based on the

average highest three (3) consecutive years of compensation. Any member who has in excess of

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

with thirty-five (35) years or more on or after June 2, 1985, shall contribute from July 1, 1985, until

his or herthe member’s retirement.

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

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

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

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

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

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

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

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

provided, however, for employees retiring on or after July 1, 2024, the calculation shall be based

on the average highest three (3) consecutive years of compensation.

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

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

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

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

administrators, or legal representatives.

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

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

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

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

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

service on and after July 1 2012; and

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

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

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

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

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

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

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

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

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

forth in paragraph (b) above.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(3%) of the original retirement allowance, not compounded, to be continued during the lifetime of

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

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

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

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

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

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

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

10-15, the cost of living adjustment shall be computed and paid at the rate of three percent (3%) of

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

36-10-35.1, compounded annually from the year for which the cost of living adjustment was

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

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

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

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

retroactive payment shall be made.

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

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

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

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

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

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

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

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

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

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

from the retirement allowance provided immediately before such adjustment.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

apply.

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

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

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

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

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

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

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

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

service retirement allowance.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

below, the benefit adjustment provided by this subsection (g)(1) shall commence upon the third

(3rd) anniversary of the date of retirement or the date on which the retiree reaches his or hertheir

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

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

be adjusted either upward or downward in the same amount.

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

any plan year shall be suspended in their entirety unless the Funded Ratiofunded ratio of the

Employees’ Retirement Systememployees’ retirement system of Rhode Island, the Judicial

Retirement Benefits Trustjudicial retirement benefits trust, and the State Police Retirement

Benefits Truststate police retirement benefits trust, calculated by the system’s actuary on an

aggregate basis, exceeds eighty percent (80%) in which event the benefit adjustment will be

reinstated for all members for such plan year.

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

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

current or future benefit adjustment provided under this section.

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

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

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

above until the Funded Ratiofunded ratio of the Employees’ Retirement Systememployees’

retirement system of Rhode Island, the Judicial Retirement Benefits Trustjudicial retirement

benefits trust, and the State Police Retirement Benefits Truststate police retirement benefits

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

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

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

prior to June 30, 2012.

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

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

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

beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent

(2%) of the lesser of either the member’s retirement allowance or the first twenty-five thousand

dollars ($25,000) of the member’s retirement allowance. This one-time benefit adjustment shall be

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

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

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

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

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

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

(I) Shallshall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii)

where:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

date of retirement or the date on which the retiree reaches his or hertheir Social Security retirement

age, whichever is later.

(2) Except for members and/or beneficiaries of members who retired on or before June 30,

2012, the The benefit adjustments under subsection (h)(1)(B) for any plan year shall be reduced to

twenty-five percent (25%) of the benefit adjustment unless the funded ratio of the employees’

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

retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty

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

plan year. Effective July 1, 2024, the funded ratio of the employees’ retirement system of Rhode

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

by the system’s actuary on an aggregate basis, of exceeding eighty percent (80%) for the benefit

adjustment to be reinstated for all members for such plan year shall be replaced with seventy-five

percent (75%).

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

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

current or future benefit adjustment provided under this section.

(3) Effective for members and/or beneficiaries of members who retired after June 30, 2012,

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

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

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

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

by the system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1,

2024, the funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement

benefits trust, and the state police retirement benefits trust, calculated by the system’s actuary on

an aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent

(75%).

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

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

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

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

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

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

this section.

36-10-36. Post-retirement employment.

(a) On and after July 7, 1994, no member who has retired under the provisions of title 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 shethe member may be entitled by virtue of the provisions of

title 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 title 16, 36, or 45 may be

employed or reemployed by any municipality within the state that has accepted the provisions of

chapter 21 of title 45 and participates in the municipal employees’ retirement system 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 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 this employment or

reemployment shall be sent monthly to the retirement board by the employer and by the retired

member.

(c) Any member who has retired under the provisions of title 16, 36, or 45 may be employed

or reemployed by any municipality within the state that has not accepted the provisions of chapter

21 of title 45 and that does not participate in the municipal employees’ retirement system.

(d) Notwithstanding the provisions of this section:

(1) Any retired member of the system shall be permitted to serve as an elected mayor, the

town administrator, the city administrator, the town manager, the city manager, the chief

administrative officer, or the chief executive officer of any city or town, city or town council

member, school committee member, or unpaid member of any part-time state board or commission

or member of any part-time municipal board or commission, and shall continue to be eligible for,

and receive, the retirement allowance for service other than that as a mayor, administrator, council

member, school committee member, or member of any state board or commission or member of

any part-time municipal 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 eighteen thousand dollars

($18,000) twenty-five thousand dollars ($25,000) 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; provided, however, that no additional service credits shall be

granted for any service under this subsection;

(3) Any retired member who retired from service as a teacher under the provisions of title

16, or as a state employee who, while an active state employee, was certified to teach driver

education by the department of elementary and secondary education or by the board of governors

for higher education, may be employed or reemployed, on a part-time basis, by the department of

elementary and secondary education or by the board of governors of higher education for the

purpose of providing classroom instruction in driver education courses in accordance with § 31-

10-19 and/or motorcycle driver education courses in accordance with § 31-10.1-1.1. In no event

shall “part-time” mean gross pay of more than fifteen thousand dollars ($15,000) in any one

calendar year. Any retired teacher who provides that 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;

(4) Any retired member who retired from service as a registered nurse may be employed

or reemployed, on a per-diem basis, for the purpose of providing professional nursing care and/or

services at a state-operated facility in Rhode Island, including employment as a faculty member of

a nursing program at a state-operated college or university. In no event shall “part-time” mean gross

pay of more than a period of seventy-five (75) working days or one hundred fifty (150) half days

with half pay in any one calendar year. Any retired nurse who provides such care and/or services

shall do so without forfeiture or reduction of any retirement benefit or allowance the retired nurse

is receiving as a retired nurse; provided, however, that no additional service credits shall be granted

for any service under this subsection. 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 this employment or reemployment shall be sent monthly to the

retirement board by the employer and by the retired member;

(5) Any retired member who, at the time of passage of this section, serves as a general

magistrate within the family court and thereafter retires from judicial service, may be employed or

reemployed by the family court to perform such services as a general magistrate of the family court

as the chief judge of the family court shall prescribe without any forfeiture or reduction of any

retirement benefits and allowances that he or shethe member is receiving or may receive. For any

such services or assignments performed after retirement, the general magistrate shall receive no

compensation whatsoever, either monetary or in kind. No additional contributions shall be taken

and no additional service credits shall be granted for this service;

(6) Any retired district court clerk/magistrate or magistrate of the district court who shall

subsequently be assigned to perform service in accordance with § 8-8-8.1 or § 8-8-16.2(e), may be

employed or reemployed by the district court to perform such services as a magistrate as the chief

judge of the district court shall prescribe without any forfeiture or reduction of any retirement

benefits and allowance that he or she isthey are receiving or may receive. For any such services or

assignment performed after retirement, the district court clerk/magistrate or magistrate shall

receive, in addition to his or hertheir retirement pension, the difference in pay and fringe benefits

between his or hertheir retirement pension, and that of a sitting magistrate of the district court with

comparable state service time. No additional contributions shall be taken and no additional service

credits shall be granted for this service; and

(7) Any retired member of the system shall be permitted to serve as a municipal employee

without any forfeiture or reduction of any retirement benefits and allowances that he or shethe

member is receiving or may receive; provided, that said member shall be appointed by and serves

at the pleasure of the highest elected chief executive officer, as defined in § 45-9-2, in any city or

town subject to the provisions of chapter 9 of title 45 entitled “Budget Commissions” relating to

the appointment of a fiscal overseer, budget commission, receiver, and/or financial advisor.

Provided further, that no additional service credits shall be granted for any service under this

subsection.

SECTION 6. Chapter 36-10 of the General Laws entitled "Retirement System —

Contributions and Benefits" is hereby amended by adding thereto the following section:

36-10-9.8. Retirement on service allowance -- State law enforcement professionals.

(a) Effective January 1, 2025, notwithstanding any special law or general law, rule, or

regulation to the contrary, state employees employed as deputy sheriffs, capitol police officers,

environmental police officers, juvenile program workers, shift coordinators, firefighters, crew

chiefs, assistant chiefs, fire investigators, fire safety inspectors, fire safety training officers,

explosives and flammable liquids technicians, and campus police officers employed by the

Statestate of Rhode Island shall be entitled to the benefits provided by §§ 45-21.2-5, 45-21.2-6,

45-21.2-10, 3245-21.2-11, 45-21.2-12, and 45-21.2-13.

(b) For members identified in subsection (a) of this section, service credits earned prior to

January 1, 2025, shall be determined by the laws in effect on December 31, 2024.

SECTION 7. Section 36-10.3-1 of the General Laws in Chapter 36-10.3 entitled "Defined

Contribution Retirement Plan" is hereby amended to read as follows:

36-10.3-1. Definitions.

As used in this chapter, the following terms, unless the context requires a different

interpretation, shall have the following meanings:

(1) “Compensation” means compensation as defined in § 36-8-1(8).

(2) “Employee” means an employee as defined in §§ 36-8-1(9) and 45-21-2(7) and a

teacher as defined in § 16-16-1(12), effective July 1, 2012; provided however, effective July 1,

2015, “employee” shall not include any employee with twenty (20) or more years of total service

as of June 30, 2012, in the employees’ retirement system under chapters 8 through 10 of title 36 or

chapter 16 of title 16 (ERS), or the municipal employees’ retirement system under chapter 21 of

title 45 (MERS); provided, however, effective January 1, 2025, "employee" shall not include

deputy sheriffs, capitol police officers, environmental police officers, juvenile program workers,

shift coordinators, firefighters, crew chiefs, assistant chiefs, fire investigators, fire safety inspectors,

fire safety training officers, explosives and flammable liquids technicians, and campus police

officers employed by the Statestate of Rhode Island.

(3) “Employer” means the Statestate of Rhode Island or the local municipality which

employs a member of the Employees Retirement Systememployees’ retirement system under

chapters 8 through 10 of title 36 or chapter 16 of title 16 (ERS) or the Municipal Employees

Retirement Systemmunicipal employees’ retirement system under chapters 21 and 21.2 of title

45 (MERS).

(4) “Plan” means the retirement plan established by this chapter.

(5) A “public safety member” shall mean a member of MERS who is a municipal fire

fighter or a municipal policeman or policewoman as defined in § 45-21.2-2 who does not participate

in Social Security under the Federalfederal Old Age, Survivors, and Disability income program.

(6) “Regular member” means:

(i) An employee who is a member of ERS other than correctional officers as defined in §

36-10-9.2; or

(ii) An employee who is a member of MERS other than a public safety member.

(7) The “retirement board” or “board” shall mean the retirement board of the Employees

Retirement Systememployees’ retirement system of Rhode Island as defined in chapter 8 of this

title. The retirement board shall be the plan administrator and plan trustee and shall administer the

plan in accordance with § 36-8-4.1.

(8) “State investment commission” or “commission” means the state investment

commission as defined in § 35-10-1.

(9) “Supplemental employer” includes any employer that provides supplemental

contributions to the defined contribution retirement plan as provided in § 36-10.3-3.

(10) “Supplemental member” is defined in § 36-10.3-3.

SECTION 8. Section 42-28-22 of the General Laws in Chapter 42-28 entitled "State

Police" is hereby amended to read as follows:

42-28-22. Retirement of members.

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

twenty (20) years, he or shethe member may retire therefrom or he or shethey may be retired by

the superintendent with the approval of the governor, and in either event a sum equal to one-half

(½) of the whole salary for the position from which he or shethe member retired determined on

the date he or shethe member receives his or hertheir first retirement payment shall be paid him

or herthe member during life.

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

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

salary for the position from which he or shethe member retired as the base salary for that position

was determined on July 31, 1972;

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

means the base salary for the position from which he or shethe member retired as the base salary,

implemented by the longevity increment, for that position was determined on July 31, 1972, or on

the date of his or herthe member’s retirement, whichever is greater;

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

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

the position from which he or shethe member retired or retires.

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

adjustment equal to three percent (3%) of his or herthe member’s original retirement, as

determined in subsection (b) of this section, in addition to his or herthe member’s original

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

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

allowance, not compounded, to be continued until January 1, 1991. For the purposes of the

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

service retirement allowance. For purposes of this subsection, the benefits payment adjustment

shall be computed from January 1, 1971, or the date of retirement, whichever is later in time.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the original retirement allowance exceed sixty-five percent (65%) of his or herthe member’s whole

salary as defined in subsection (b) hereof or sixty-five percent (65%) of his or herthe member’s

salary as defined in subsection (b) hereof in his or herthe member’s twenty-fifth (25th) year

whichever is less.

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

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

salary” meaning the base salary for the position from which he or shethe member retired as the

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

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

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

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

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

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

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

than six (6) months in his or herthe member’s total service shall be allowed to purchase six (6)

months’ credit for such service.

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

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

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

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

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

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

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

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

from the date of his or herthe member’s twentieth (20th) year of state service or five (5) years

from May 18, 1981, whichever is later.

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

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

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

of the leave.

(5) In no event shall the original retirement allowance exceed sixty-five percent (65%) of

his or herthe member’s whole salary as defined in subsection (b) hereof or sixty-five percent (65%)

of his or herthe member’s salary as defined in subsection (b) hereof in his or herthe member’s

twenty-fifth (25th) year, whichever is less.

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

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

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

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

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

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

system shall not be deemed a purchase of service credit.

(g) The provisions of this section shall not apply to civilian employees in the Rhode Island

state police; and, further, from and after April 28, 1937, chapters 8 — 10, inclusive, of title 36 shall

not be construed to apply to the members of the Rhode Island state police, except as provided by

§§ 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.

(h) Any member of the state police other than the superintendent of state police, who is

hired prior to July 1, 2007, and who has served for twenty-five (25) years or who has attained the

age of sixty-two (62) years, whichever shall first occur, shall retire therefrom.

(i)(1) Any member of the state police, other than the superintendent, who is hired on or

after July 1, 2007, and who has served for twenty-five (25) years, may retire therefrom or he or

shethe member may be retired by the superintendent with the approval of the governor, and shall

be entitled to a retirement allowance of fifty percent (50%) of his or herthe member’s “whole

salary” as defined in subsection (b) hereof.

(2) Any member of the state police who is hired on or after July 1, 2007, may serve up to

a maximum of thirty (30) years, and shall be allowed an additional amount equal to three percent

(3.0%) for each completed year served after twenty-five (25) years, but in no event shall the original

retirement allowance exceed sixty-five percent (65%) of his or her “whole salary” as defined in

subsection (b) hereof.

(j) Effective July 1, 2012, any other provision of this section notwithstanding:

(j)(1) Any member of the state police, other than the superintendent of state police, who is

not eligible to retire on or prior to June 30, 2012, may retire at any time subsequent to the date the

member’s retirement allowance equals or exceeds fifty percent (50%) of average compensation as

defined in § 36-8-1(5)(a), provided that a member shall retire upon the first to occur of:

(i) The date the member’s retirement allowance equals sixty-five percent (65%); or

(ii) The later of the attainment of age sixty-two (62) or completion of five (5) years of

service; provided however, any current member as of June 30, 2012, who has not accrued fifty

percent (50%) upon attaining the age of sixty-two (62) shall retire upon accruing fifty percent

(50%); and upon retirement a member shall receive a retirement allowance which shall equal:

(A) For members hired prior to July 1, 2007, the sum of (i), (ii), and (iii) where:

(i) Isis calculated as the member’s years of total service before July 1, 2012, multiplied by

two and one-half percent (2.5%) of average compensation for a member’s first twenty (20) total

years,

(ii) Isis calculated as the member’s years of total service before July 1, 2012, in excess of

twenty (20) years not to exceed twenty-five (25) years multiplied by three percent (3%) of average

compensation, and

(iii) Isis the member’s years of total service on or after July 1, 2012, multiplied by two

percent (2%) of average compensation as defined in § 36-8-1(5)(a).

(B) For members hired on or after July 1, 2007, the member’s retirement allowance shall

be calculated as the member’s years of total contributory service multiplied by two percent (2%)

of average compensation.

(C) Any member of the state police who is eligible to retire on or prior to June 30, 2012,

shall retire with a retirement allowance calculated in accordance with paragraph (a) and (e) above

except that whole salary shall be defined as final compensation where compensation for purposes

of this section and § 42-28-22.1 includes base salary, longevity, and holiday pay.

(D) Notwithstanding the preceding provisions, in no event shall a member’s final

compensation be lower than his or hertheir final compensation determined as of June 30, 2012.

(2) In no event shall a member’s original retirement allowance under any provisions of this

section exceed sixty-five percent (65%) of his or hertheir average compensation.

(3) For each member who retires on or after July 1, 2012, except as provided in paragraph

(j)(1)(C) above, compensation and average compensation shall be defined in accordance with §

36-8-1(5)(a) and (8), provided that for a member whose regular work period exceeds one hundred

forty-seven (147) hours over a twenty-four-(24)day (24) period at any time during the four-(4)year

(4) period immediately prior to his/herthe member’s retirement, that member shall have up to four

hundred (400) hours of his/hertheir pay for regularly scheduled work earned during this period

shall be included as “compensation” and/or “average compensation” for purposes of this section

and § 42-28-22.1.

(4) This subsection (4) shall be effective for the period July 1, 2012, through June 30, 2015.

(i) Notwithstanding the prior paragraphs of this section, and subject to paragraph (4)(ii)

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

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

non-contributory member or contributory member, the annual benefit adjustment provided in any

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

percentage determined by subtracting five and one-half percent (5.5%) (the “subtrahend”) from the

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

plan year preceding the calendar year in which the adjustment is granted, said percentage not to

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

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

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

in the same percentage as determined under (4)(i)(A) above. The “Five-Year Average Investment

Return” shall mean the average of the investment returns for the most recent five (5) plan years as

determined by the retirement board. Subject to paragraph (4)(ii) below, the benefit adjustment

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

retirement or the date on which the retiree reaches age fifty-five (55), whichever is later. In the

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

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

amount.

(ii) Except as provided in paragraph (4)(iii), the benefit adjustments under this section for

any plan year shall be suspended in their entirety unless the Funded Ratiofunded ratio of the

Employees’ Retirement Systememployees’ retirement system of Rhode Island, the Judicial

Retirement Benefits Trustjudicial retirement benefits trust, and the State Police Retirement

Benefits Truststate police retirement benefits trust, calculated by the system’s actuary on an

aggregate basis, exceeds eighty percent (80%) in which event the benefit adjustment will be

reinstated for all members for such plan year.

In determining whether a funding level under this paragraph (4)(ii) has been achieved, the

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

current or future benefit adjustment provided under this section.

(iii) Notwithstanding paragraph (4)(ii), in each fifth plan year commencing after June 30,

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

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

(4)(i) above until the Funded Ratiofunded ratio of the Employees’ Retirement Systememployees’

retirement system of Rhode Island, the Judicial Retirement Benefits Trustjudicial retirement

benefits trust, and the State Police Retirement Benefits Truststate police retirement benefits

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

(iv) The provisions of this paragraph (j)(4) shall become effective July 1, 2012, and shall

apply to any benefit adjustment not granted on or prior to June 30, 2012.

(v) The cost-of-living adjustment as provided in this paragraph (j)(4) shall apply to and be

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

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

(5) This subsection (5) shall become effective July 1, 2015.

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

paragraph (5)(i)(A), a one-time benefit adjustment shall be provided to members and/or

beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent

(2%) of the lesser of either the member’s retirement allowance or the first twenty-five thousand

dollars ($25,000) of the member’s retirement allowance. This one-time benefit adjustment shall be

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

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

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

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

under this section for adjustments on and after January 1, 2016, and subject to subsection (5)(ii)

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

(I) Shall equal the sum of fifty percent (50%) of (1) plus fifty percent (50%) of (2) where:

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

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

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

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

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

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

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

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

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

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

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

In no event shall the sum of (1) plus (2) exceed three and one-half percent (3.5%) or be

less than zero percent (0%).

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

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

to be indexed annually in the same percentage as determined under subsection (5)(i)(B)(I) above.

The benefit adjustments provided by this subsection (5)(i)(B) shall be provided to all retirees

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

other retirees the benefit adjustments shall commence upon the third anniversary of the date of

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

whichever is later.

(ii) Except as provided in subsection (5)(iii), the benefit adjustments under subsection

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

employees’ retirement system of Rhode Island, the Judicialjudicial retirement benefits trust, and

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

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

members for such plan year. Effective July 1, 2024, the funded ratio of the employees’ retirement

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

benefits trust, calculated by the system’s actuary on an aggregate basis, of exceeding eighty percent

(80%) for the benefit adjustment to be reinstated for all members for such plan year shall be

replaced with seventy-five percent (75%).

In determining whether a funding level under this subsection (5)(ii) has been achieved, the

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

current or future benefit adjustment provided under this section.

(iii) Notwithstanding subsection (5)(ii), in each fourth plan year commencing after June

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

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

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

before June 30, 2015, the dollar amount in subsection (5)(i)(B)(II) of twenty-five thousand eight

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

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

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

system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1, 2024, the

funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement benefits

trust, and the state police retirement benefits trust, calculated by the system’s actuary on an

aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent

(75%).

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

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

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

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

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

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

this section.

(6) Any member with contributory service on or after July 1, 2012, who has completed at

least five (5) years of contributory service but who has not retired in accordance with (j)(1) above,

shall be eligible to retire upon the attainment of member’s Social Security retirement age as defined

in § 36-8-1(20).

(7) In no event shall a member’s retirement allowance be less than the member’s retirement

allowance calculated as of June 30, 2012, based on the member’s years of total service and whole

salary as of June 30, 2012.

(k) In calculating the retirement benefit for any member, the term base salary as used in

subdivision (b)(3) or average compensation as used in paragraph (j) shall not be affected by a

deferral of salary plan or a reduced salary plan implemented to avoid shutdowns or layoffs or to

effect cost savings. Basic salary shall remain for retirement calculation that which it would have

been but for the salary deferral or salary reduction due to a plan implemented to avoid shutdowns

or layoffs or to effect cost savings.

SECTION 9. Sections 45-21-2 and 45-21-52 of the General Laws in Chapter 45-21 entitled

"Retirement of Municipal Employees" are hereby amended to read as follows:

45-21-2. Definitions.

The following words and phrases as used in this chapter have the following meanings

unless a different meaning is plainly required by the context:

(1) “Accumulated contributions” means the sum of all amounts deducted from the

compensation of a member and credited to his or herthe member’s individual account in the

members’ contribution reserve account.

(2) “Active member” means any employee of a participating municipality as defined in this

section for whom the retirement system is currently receiving regular contributions pursuant to §§

45-21-41, § 45-21-41.1, or § 45-21.2-14.

(3) “Actuarial reserve” means the present value of all payments to be made on account of

any annuity, retirement allowance, or benefit, computed upon the basis of mortality tables adopted

by the retirement board with regular interest.

(4) “Beneficiary” means any person in receipt of a retirement allowance, annuity, or other

benefit as provided by this chapter.

(5) For purposes of this chapter, “domestic partner” shall be defined as a person who, prior

to the decedent’s death, was in an exclusive, intimate, and committed relationship with the

decedent, and who certifies by affidavit that their relationship met the following qualifications:

(i) Both partners were at least eighteen (18) years of age and were mentally competent to

contract;

(ii) Neither partner was married to anyone else;

(iii) Partners were not related by blood to a degree which would prohibit marriage in the

state of Rhode Island;

(iv) Partners resided together and had resided together for at least one year at the time of

death; and

(v) Partners were financially interdependent as evidenced by at least two (2) of the

following:

(A) Domestic partnership agreement or relationship contract;

(B) Joint mortgage or joint ownership of primary residence;

(C) Two (2) of: (I) Joint ownership of motor vehicle; (II) Joint checking account; (III) Joint

credit account; (IV) Joint lease; and/or

(D) The domestic partner had been designated as a beneficiary for the decedent’s will,

retirement contract or life insurance.

(6) “Effective date of participation” means the date on which the provisions of this chapter

have become applicable to a municipality accepting the provisions of the chapter in the manner

stated in § 45-21-4.

(7) “Employee” means any regular and permanent employee or officer of any municipality,

whose business time at a minimum of twenty (20) hours a week is devoted to the service of the

municipality, including elective officials and officials and employees of city and town housing

authorities. Notwithstanding the previous sentence, the term “employee,” for the purposes of this

chapter, does not include any person whose duties are of a casual or seasonal nature. The retirement

board shall decide who are employees within the meaning of this chapter, but in no case shall it

deem as an employee any individual who annually devotes less than twenty (20) business hours per

week to the service of the municipality and who receives less than the equivalent of minimum wage

compensation on an hourly basis for his or hertheir services, except as provided in § 45-21-14.1.

Casual employees mean those persons hired for an occasional period or a period of emergency to

perform special jobs or functions not necessarily related to the work of regular employees. Any

commissioner of a municipal housing authority, or any member of a part-time state board

commission, committee or other authority is not deemed to be an employee within the meaning of

this chapter.

(8)(a) “Final compensation” for members who are eligible to retire on or prior to June 30,

2012, means the average annual compensation, pay, or salary of a member for services rendered

during the period of three (3) consecutive years within the total service of the member when the

average was highest, and as the term average annual compensation is further defined in §  36-8-

1(5)(a). For members eligible to retire on or after July 1, 2012, “final compensation” means the

average of the highest five (5) consecutive years of compensation within the total service when the

final compensation was the highest. For members eligible to and who retire on or after July 1, 2024,

"final compensation" means the average of the highest three (3) consecutive years of compensation

within the total service when the final compensation was the highest.

(b) For members who become eligible to retire on or after July 1, 2012, if more than one

half (½) of the member’s total years of service consist of years of service during which the member

devoted less than thirty (30) business hours per week to the service of the municipality, but the

member’s average compensation consists of three (3) or more years during which the member

devoted more than thirty (30) business hours per week to the service of a municipality, such

member’s average compensation shall mean the average of the highest ten (10) consecutive years

of compensation within the total service when the average compensation was the highest; provided

however, effective July 1, 2015, if such member’s average compensation as defined in subsection

(a) above is equal to or less than thirty-five thousand dollars ($35,000), such amount to be indexed

annually in accordance with § 45-21-52(d)(1)(B), such member’s average compensation shall mean

the greater of: (i) The average of the highest ten (10) consecutive years of compensation within the

total service when the average compensation was the highest; or (ii) The member’s average

compensation as defined in subsection (a) above. To protect a member’s accrued benefit on June

30, 2012, under this subsection (8)(b), in no event shall a member’s average compensation be lower

than his or her average compensation determined as of June 30, 2012.

Notwithstanding the preceding provisions, in no event shall a member’s final compensation

be lower than his or herthe member’s final compensation determined as of June 30, 2012.

(9) “Fiscal year” means the period beginning on July 1 in any year and ending on June 30

of the next succeeding year.

(10) “Full actuarial costs” or “full actuarial value” mean the lump sum payable by a

member claiming service credit for certain employment for which payment is required, which is

determined according to the age of the member and his or hertheir annual rate of compensation at

the time he or she applies for service credit, and which is expressed as a rate percent of the annual

rate of compensation to be multiplied by the number of years for which he or shethe member

claims the service credit, as prescribed in a schedule adopted by the retirement board, from time to

time, on the basis of computation by the actuary. Except as provided in §§ 16-16-7.1, 36-5-3, 36-

9-31, 36-10-10.4, and 45-21-53: (i) All service credit purchases requested after June 16, 2009, and

prior to July 1, 2012, shall be at full actuarial value; and (ii) All service credit purchases requested

after June 30, 2012, shall be at full actuarial value which shall be determined using the system’s

assumed investment rate of return minus one percent (1%).

(11) “Governing body” means any and all bodies empowered to appropriate monies for,

and administer the operation of, the units as defined in subdivision (13) of this section.

(12) “Member” means any person included in the membership of the retirement system as

provided in § 45-21-8.

(13) “Municipality” means any town or city in the state of Rhode Island, any city or town

housing authority, fire, water, sewer district, regional school district, public building authority as

established by chapter 14 of title 37, or any other municipal financed agency to which the retirement

board has approved admission in the retirement system.

(14) “Participating municipality” means any municipality which has accepted this chapter,

as provided in § 45-21-4.

(15) “Prior service” means service as a member rendered before the effective date of

participation as defined in this section, certified on his or herthe member’s prior service certificate,

and allowable as provided in § 45-21-15.

(16) “Regular interest” means interest at the assumed investment rate of return,

compounded annually, as may be prescribed from time to time by the retirement board.

(17) “Retirement allowance” or “annuity” means the amounts paid to any member of the

municipal employees’ retirement system of the state of Rhode Island, or a survivor of the member,

as provided in this chapter. All retirement allowances or annuities shall be paid in equal monthly

installments for life, unless otherwise specifically provided.

(18) “Retirement board” or “board” means the state retirement board created by chapter 8

of title 36.

(19) “Retirement system” means the “municipal employees’ retirement system of the state

of Rhode Island” as defined in § 45-21-32.

(20) “Service” means service as an employee of a municipality of the state of Rhode Island

as defined in subdivision (7).

(21) “Total service” means prior service as defined in subdivision (15) plus service

rendered as a member on or after the effective date of participation.

(22) Any term not specifically defined in this chapter and specifically defined in chapters

8 through 10 of title 36 shall have the same definition as set forth in chapters 8 through 10 of title

36.

45-21-52. Automatic increase in service retirement allowance.

(a) The local legislative bodies of the cities and towns may extend to their respective

employees automatic adjustment increases in their service retirement allowances, by a resolution

accepting any of the plans described in this section:

(1) Plan A. All employees and beneficiaries of those employees receiving a service

retirement or disability retirement allowance under the provisions of this chapter on December 31

of the year their city or town accepts this section, receive a cost of living adjustment equal to one

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

each calendar year the retirement allowance has been in effect. This cost of living adjustment is

added to the amount of the retirement allowance as of January 1 following acceptance of this

provision, and an additional one and one-half percent (1.5%) is added to the original retirement

allowance in each succeeding year during the month of January, and provided, further, that this

additional cost of living increase is three percent (3%) for the year beginning January 1 of the year

the plan is accepted and each succeeding year.

(2) Plan B. All employees and beneficiaries of those employees receiving a retirement

allowance under the provisions of this chapter on December 31 of the year their municipality

accepts this section, receive a cost of living adjustment equal to three percent (3%) of their original

retirement allowance. This adjustment is added to the amount of the retirement allowance as of

January 1 following acceptance of this provision, and an additional three percent (3%) of the

original retirement allowance, not compounded, is payable in each succeeding year in the month

of January.

(3) Plan C. All employees and beneficiaries of those employees who retire on or after

January 1 of the year following acceptance of this section, on the first day of January next following

the date of the retirement, receive a cost of living adjustment in an amount equal to three percent

(3%) of the original retirement allowance.

(b) In each succeeding year in the month of January, the retirement allowance is increased

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

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

(1) Notwithstanding any other subsections of this section, and subject to subsection (c)(2)

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

receiving any retirement, disability or death allowance or benefit of any kind by reason of adoption

of this section by their employer, the annual benefit adjustment provided in any calendar year under

this section shall be equal to (A) multiplied by (B) where (A) is equal to the percentage determined

by subtracting five and one-half percent (5.5%) (the “subtrahend”) from the Five-Year Average

Investment Return of the retirement system determined as of the last day of the plan year preceding

the calendar year in which the adjustment is granted, said percentage not to exceed four percent

(4%) and not to be less than zero percent (0%), and (B) is equal to the lesser of the member’s

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

such twenty-five thousand dollars ($25,000) amount to be indexed annually in the same percentage

as determined under (c)(1)(A) above. The “Five-Year Average Investment Return” shall mean the

average of the investment returns of the most recent five (5) plan years as determined by the

retirement board. Subject to subsection (c)(2) below, the benefit adjustment provided by this

subsection (c)(1) shall commence upon the third (3rd) anniversary of the date of retirement or the

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

or for municipal police and fire retiring under the provisions of chapter 21.2 of this title, the benefit

adjustment provided by this subsection (c)(1) shall commence on the later of the third (3rd)

anniversary of the date of retirement or the date on which the retiree reaches age fifty-five (55). In

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

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

amount.

(2) Except as provided in subsection (c)(3) the benefit adjustments provided under this

section for any plan year shall be reduced to twenty-five percent (25%) of the benefit adjustment

for each municipal plan within the municipal employees’ retirement system unless the municipal

plan is determined to be funded at a Funded Ratio equal to or greater than eighty percent (80%) as

of the end of the immediately preceding plan year in accordance with the retirement system’s

actuarial valuation report as prepared by the system’s actuary, in which event the benefit adjustment

will be reinstated for all members for such plan year.

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

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

current or future benefit adjustment provided under this section.

(3) Notwithstanding subsection (c)(2), for each municipal plan that has a Funded Ratio of

less than eighty percent (80%) as of June 30, 2012, in each fifth plan year commencing after June

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

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

(c)(1) above until the municipal plan’s Funded Ratio exceeds eighty percent (80%).

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

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

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

beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent

(2%) of the lesser of either the employee’s retirement allowance or the first twenty-five thousand

dollars ($25,000) of the member’s retirement allowance. This one-time benefit adjustment shall be

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

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

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

death allowance or benefit of any kind by reason of adoption of this section by their employer, the

annual benefit adjustment provided in any calendar year under this section for adjustments on and

after January 1, 2016, and subject to subsection (d)(2) below, shall be equal to (I) multiplied by

(II):

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

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

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

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

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

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

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

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

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

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

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

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

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

than zero percent (0%).

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

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

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

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

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

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

date of retirement or the date on which the retiree reaches his or hertheir Social Security retirement

age, whichever is later; or for municipal police and fire retiring under the provisions of § 45-21.2-

5(b)(1)(A), the benefit adjustment provided by this subsection (d)(1)(B) shall commence on the

later of the third anniversary of the date of retirement or the date on which the retiree reaches age

fifty-five (55); or for municipal police and fire retiring under the provisions of § 45-21.2-5(b)(1)(B),

the benefit adjustment provided by this subsection (d)(1)(B) shall commence on the later of the

third anniversary of the date of retirement or the date on which the retiree reaches age fifty (50).

(2) Except for municipal employees and /or beneficiaries of municipal employees who

retired on or before June 30, 2012, the The benefit adjustments under subsection (d)(1)(B) for any

plan year shall be reduced to twenty-five percent (25%) of the benefit adjustment for each

municipal plan within the municipal employees’ retirement system unless the municipal plan is

determined to be funded at a funded ratio equal to or greater than eighty percent (80%) as of the

end of the immediately preceding plan year in accordance with the retirement system’s actuarial

valuation report as prepared by the system’s actuary, in which event the benefit adjustment will be

reinstated for all members for such plan year. Effective July 1, 2024, the funded ratio for each

municipal plan within the municipal employees’ retirement system, calculated by the system’s

actuary, of equal to or greater than eighty percent (80%) for the benefit adjustment to be reinstated

for all members for such plan year shall be replaced with seventy-five percent (75%).

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

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

current or future benefit adjustment provided under this section.

(3) Effective for members and/or beneficiaries of members who retired after June 30, 2012,

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

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

dollars ($31,026) until the municipal plan’s funded ratio exceeds eighty percent (80%). Effective

July 1, 2024, the funded ratio for each municipal plan within the municipal employees’ retirement

system, calculated by the system’s actuary, of exceeding eighty percent (80%) for the benefit

adjustment to be reinstated for all members for such plan year shall be replaced with seventy-five

percent (75%).

(e) Upon acceptance of any of the plans in this section, each employee shall on January 1

next succeeding the acceptance, contribute by means of salary deductions, pursuant to § 45-21-41,

one percent (1%) of the employee’s compensation concurrently with and in addition to

contributions otherwise being made to the retirement system.

(f) The city or town shall make any additional contributions to the system, pursuant to the

terms of § 45-21-42, for the payment of any benefits provided by this section.

(g) The East Greenwich town council shall be allowed to accept Plan C of subsection (a)(3)

of this section for all employees of the town of East Greenwich who either, pursuant to contract

negotiations, bargain for Plan C, or who are non-union employees who are provided with Plan C

and who shall all collectively be referred to as the “Municipal-COLA Group” and shall be separate

from all other employees of the town and school department, union or non-union, who are in the

same pension group but have not been granted Plan C benefits. Upon acceptance by the town

council, benefits in accordance with this section shall be available to all such employees who retire

on or after January 1, 2003.

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

July 1, 2015, and without regard to whether the retired member or beneficiary is receiving a benefit

adjustment under this section, a one-time stipend of five hundred dollars ($500) shall be payable

within sixty (60) days following the enactment of the legislation implementing this provision, and

a second one-time stipend of five hundred dollars ($500) in the same month of the following year.

These stipends shall not be considered cost of living adjustments under the prior provisions of this

section.

SECTION 10. Section 45-21.2-2 of the General Laws in Chapter 45-21.2 entitled "Optional

Retirement for Members of Police Force and Firefighters" is hereby amended to read as follows:

45-21.2-2. Definitions.

As used in this chapter, the words defined in § 45-21-2 have the same meanings stated in

that section except that “employee” means any regular and permanent police official or officer and

any regular and permanent fire fighter. The retirement board shall determine who are employees

within the meaning of this chapter; and “final compensation” means for members who retire on or

prior to June 30, 2012, the average annual compensation, pay, or salary of a member for services

rendered during the period of three (3) consecutive years within the total service of the member

when that average was highest. Effective on and after July 1, 2012, “final compensation” means

the average annual compensation of a member for services rendered during the period of the highest

five (5) consecutive years within the total service of the member, and compensation shall be defined

in accordance with § 36-8-1(8). For members eligible to and who retire on or after July 1, 2024,

"final compensation" means the average of the highest three (3) consecutive years of compensation

within the total service when the final compensation was the highest. Notwithstanding the prior

sentence, in no event shall a member’s final compensation be less than the member’s final

compensation on or before June 30, 2012.

SECTION 11. This article shall take effect upon passage.