2024 -- S 2851 | |
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LC004766 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
____________ | |
A N A C T | |
RELATING TO EDUCATION -- TEACHERS' RETIREMENT | |
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Introduced By: Senators Gallo, DiPalma, Burke, Zurier, and Murray | |
Date Introduced: March 22, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 16-16-40 of the General Laws in Chapter 16-16 entitled "Teachers’ |
2 | Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby |
3 | amended to read as follows: |
4 | 16-16-40. Additional benefits payable to retired teachers. [Effective January 1, 2024.] |
5 | (a) All teachers and all beneficiaries of teachers receiving any service retirement or |
6 | ordinary or accidental disability retirement allowance pursuant to the provisions of this chapter and |
7 | chapter 17 of this title, on or before December 31, 1967, shall receive a cost of living retirement |
8 | adjustment equal to one and one-half percent (1.5%) per year of the original retirement allowance, |
9 | not compounded, for each year the retirement allowance has been in effect. For purposes of |
10 | computation credit shall be given for a full calendar year regardless of the effective date of the |
11 | retirement allowance. This cost of living retirement adjustment shall be added to the amount of the |
12 | service retirement allowance as of January 1, 1970, and payment shall begin as of July 1, 1970. An |
13 | additional cost of living retirement adjustment shall be added to the original retirement allowance |
14 | equal to three percent (3%) of the original retirement allowance on the first day of January, 1971, |
15 | and each year thereafter through December 31, 1980. |
16 | (b) All teachers and beneficiaries of teachers receiving any service retirement or ordinary |
17 | disability retirement allowance pursuant to the provisions of this title who retired on or after January |
18 | 1, 1968, shall, on the first day of January, next following the third (3rd) year on retirement, receive |
19 | a cost of living adjustment, in addition to his or her retirement allowance, an amount equal to three |
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1 | percent (3%) of the original retirement allowance. In each succeeding year thereafter, on the first |
2 | day of January, the retirement allowance shall be increased an additional three percent (3%) of the |
3 | original retirement allowance, not compounded, to be continued through December 31, 1980. |
4 | (c)(1) Beginning on January 1, 1981, for all teachers and beneficiaries of teachers receiving |
5 | any service retirement and all teachers and all beneficiaries of teachers who have completed at least |
6 | ten (10) years of contributory service on or before July 1, 2005, pursuant to the provisions of this |
7 | chapter, and for all teachers and beneficiaries of teachers who receive a disability retirement |
8 | allowance pursuant to §§ 16-16-14 — 16-16-17, the cost of living adjustment shall be computed |
9 | and paid at the rate of three percent (3%) of the original retirement allowance or the retirement |
10 | allowance as computed in accordance with § 16-16-40.1, compounded annually from the year for |
11 | which the cost of living adjustment was determined to be payable by the retirement board pursuant |
12 | to the provisions of subsection (a) or (b) of this section. Such cost of living adjustments are available |
13 | to teachers who retire before October 1, 2009, or are eligible to retire as of September 30, 2009. |
14 | (2) The provisions of this subsection shall be deemed to apply prospectively only and no |
15 | retroactive payment shall be made. |
16 | (3) The retirement allowance of all teachers and all beneficiaries of teachers who have not |
17 | completed at least ten (10) years of contributory service on or before July 1, 2005, or were not |
18 | eligible to retire as of September 30, 2009, shall, on the month following the third anniversary date |
19 | of the retirement, and on the month following the anniversary date of each succeeding year be |
20 | adjusted and computed by multiplying the retirement allowance by three percent (3%) or the |
21 | percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published |
22 | by the United States Department of Labor Statistics, determined as of September 30 of the prior |
23 | calendar year, whichever is less; the cost of living adjustment shall be compounded annually from |
24 | the year for which the cost of living adjustment was determined payable by the retirement board; |
25 | provided, that no adjustment shall cause any retirement allowance to be decreased from the |
26 | retirement allowance provided immediately before such adjustment. |
27 | (d) For teachers not eligible to retire in accordance with this chapter as of September 30, |
28 | 2009, and not eligible upon passage of this article, and for their beneficiaries, the cost of living |
29 | adjustment described in subsection (c)(3) of this section shall only apply to the first thirty-five |
30 | thousand dollars ($35,000) of retirement allowance, indexed annually, and shall commence upon |
31 | the third (3rd) anniversary of the date of retirement or when the retiree reaches age sixty-five (65), |
32 | whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase annually by the |
33 | percentage increase in the Consumer Price Index for all Urban Consumer (CPI-U) as published by |
34 | the United States Department of Labor Statistics determined as of September 30 of the prior |
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1 | calendar year or three percent (3%), whichever is less. The first thirty-five thousand dollars |
2 | ($35,000), as indexed, of retirement allowance shall be multiplied by the percentage of increase in |
3 | the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States |
4 | Department of Labor Statistics determined as of September 30 of the prior calendar year or three |
5 | percent (3%), whichever is less, on the month following the anniversary date of each succeeding |
6 | year. For teachers eligible to retire as of September 30, 2009, or eligible upon passage of this article, |
7 | and for their beneficiaries, the provisions of this subsection (d) shall not apply. |
8 | (e) The provisions of §§ 45-13-7 — 45-13-10 shall not apply to this section. |
9 | (f) This subsection (f) shall be effective for the period July 1, 2012, through June 30, 2015. |
10 | (1) Notwithstanding the prior paragraphs of this section, and subject to subsection (f)(2) |
11 | below, for all present and former teachers, active and retired teachers, and beneficiaries receiving |
12 | any retirement, disability or death allowance or benefit of any kind, the annual benefit adjustment |
13 | provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A) |
14 | is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the |
15 | “subtrahend”) from the Five-Year Average Investment Return of the retirement system determined |
16 | as of the last day of the plan year preceding the calendar year in which the adjustment is granted, |
17 | said percentage not to exceed four percent (4%) and not to be less than zero percent (0%), and (B) |
18 | is equal to the lesser of the teacher’s retirement allowance or the first twenty-five thousand dollars |
19 | ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000) amount to be |
20 | indexed annually in the same percentage as determined under (f)(1)(A) above. The “Five-Year |
21 | Average Investment Return” shall mean the average of the investment returns of the most recent |
22 | five (5) plan years as determined by the retirement board. Subject to subsection (f)(2) below, the |
23 | benefit adjustment provided by this subsection (f)(1) shall commence upon the third (3rd) |
24 | anniversary of the date of retirement or the date on which the retiree reaches his or her Social |
25 | Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially |
26 | assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted |
27 | either upward or downward in the same amount. |
28 | (2) Except as provided in subsection (f)(3), the benefit adjustments under this section for |
29 | any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees’ |
30 | Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police |
31 | Retirement Benefits Trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty |
32 | percent (80%) in which event the benefit adjustment will be reinstated for all teachers for such plan |
33 | year. |
34 | In determining whether a funding level under this subsection (f)(2) has been achieved, the |
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1 | actuary shall calculate the funding percentage after taking into account the reinstatement of any |
2 | current or future benefit adjustment provided under this section. |
3 | (3) Notwithstanding subsection (f)(2), in each fifth plan year commencing after June 30, |
4 | 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 (f)(1) |
6 | above until the Funded Ratio of the Employees’ Retirement System of Rhode Island, the Judicial |
7 | Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by the |
8 | system’s actuary on an aggregate basis, exceeds eighty percent (80%). |
9 | (4) Notwithstanding any other provisions of this chapter, the provisions of this subsection |
10 | (f) shall become effective July 1, 2012, and shall apply to any benefit adjustments not granted on |
11 | or prior to June 30, 2012. |
12 | (g) This subsection (g) shall become effective July 1, 2015. |
13 | (1)(A) As soon as administratively reasonable following the enactment into law of this |
14 | subsection (g)(1)(A), a one-time benefit adjustment shall be provided to teachers and/or |
15 | beneficiaries of teachers who retired on or before June 30, 2012, in the amount of two percent (2%) |
16 | of the lesser of either the teacher’s retirement allowance or the first twenty-five thousand dollars |
17 | ($25,000) of the teacher’s retirement allowance. This one-time benefit adjustment shall be provided |
18 | without regard to the retiree’s age or number of years since retirement. |
19 | (B) Notwithstanding the prior subsections of this section, for all present and former |
20 | teachers, active and retired teachers, and beneficiaries receiving any retirement, disability or death |
21 | allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year under |
22 | this section for adjustments on and after January 1, 2016, and subject to subsection (g)(2) below, |
23 | shall be equal to (I) multiplied by (II): |
24 | (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where: |
25 | (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%) |
26 | (the “subtrahend”) from the five-year average investment return of the retirement system |
27 | determined as of the last day of the plan year preceding the calendar year in which the adjustment |
28 | is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent |
29 | (0%). The “five-year average investment return” shall mean the average of the investment returns |
30 | of the most recent five (5) plan years as determined by the retirement board. In the event the |
31 | retirement board adjusts the actuarially assumed rate of return for the system, either upward or |
32 | downward, the subtrahend shall be adjusted either upward or downward in the same amount. |
33 | (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer |
34 | Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor |
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1 | Statistics determined as of September 30 of the prior calendar year. |
2 | In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be less |
3 | than (0%) percent. |
4 | (II) is equal to the lesser of either the teacher’s retirement allowance or the first twenty- |
5 | five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount |
6 | to be indexed annually in the same percentage as determined under subsection (g)(1)(B)(I) above. |
7 | The benefit adjustments provided by this subsection (g)(1)(B) shall be provided to all |
8 | retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect, |
9 | and for all other retirees the benefit adjustments shall commence upon the third anniversary of the |
10 | date of retirement or the date on which the retiree reaches his or her Social Security retirement age, |
11 | whichever is later. |
12 | (2) The benefit adjustments under subsection (g)(1)(B) for any plan year shall be reduced |
13 | to twenty-five percent (25%) of the benefit adjustment unless the funded ratio of the employees’ |
14 | retirement system of Rhode Island, the judicial retirement benefits trust and the state police |
15 | retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty |
16 | percent (80%) in which event the benefit adjustment will be reinstated for all teachers for such plan |
17 | year. |
18 | In determining whether a funding level under this subsection (g)(2) has been achieved, the |
19 | actuary shall calculate the funding percentage after taking into account the reinstatement of any |
20 | current or future benefit adjustment provided under this section. |
21 | (3) Effective for teachers and/or beneficiaries of teachers who retired on or before June 30, |
22 | 2015, the dollar amount in subsection (g)(1)(B)(II) of twenty-five thousand eight hundred and fifty- |
23 | five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six dollars ($31,026) |
24 | until the funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement |
25 | benefits trust and the state police retirement benefits trust, calculated by the system’s actuary on an |
26 | aggregate basis, exceeds eighty percent (80%). |
27 | (4) Effective for teachers and or beneficiaries of teachers who have retired on or before |
28 | July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60) |
29 | days following the enactment of the legislation implementing this provision, and a second one-time |
30 | stipend of five hundred dollars ($500) in the same month of the following year. These stipends |
31 | shall be payable to all retired teachers or beneficiaries receiving a benefit as of the applicable |
32 | payment date and shall not be considered cost of living adjustments under the prior provisions of |
33 | this section. |
34 | (h) As soon as administratively reasonable following the enactment into law of this |
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1 | subsection, a one-time stipend shall be provided to members or beneficiaries of members in the |
2 | amount of three percent (3%) of the lesser of either the member’s retirement allowance or forty |
3 | thousand dollars ($40,000) of the member’s retirement allowance. This one-time stipend shall be |
4 | provided without regard to the retiree’s age or number of years since retirement. These stipends |
5 | shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable |
6 | payment date and shall not be considered cost of living adjustments under the prior provisions of |
7 | this section. |
8 | (1) The one-time stipend shall be paid from the state’s general fund, subject to |
9 | appropriation by the general assembly. |
10 | (2) The stipend may be provided to members or beneficiaries in each subsequent fiscal year |
11 | commencing with the fiscal year beginning July 1, 2025, subject each year to appropriation from |
12 | the state’s general fund by the general assembly. |
13 | SECTION 2. Section 36-10-35 of the General Laws in Chapter 36-10 entitled "Retirement |
14 | System — Contributions and Benefits" is hereby amended to read as follows: |
15 | 36-10-35. Additional benefits payable to retired employees. [Effective January 1, |
16 | 2024.] |
17 | (a) All state employees and all beneficiaries of state employees receiving any service |
18 | retirement or ordinary or accidental disability retirement allowance pursuant to the provisions of |
19 | this title on or before December 31, 1967, shall receive a cost of living retirement adjustment equal |
20 | to one and one-half percent (1.5%) per year of the original retirement allowance, not compounded, |
21 | for each calendar year the retirement allowance has been in effect. For the purposes of computation, |
22 | credit shall be given for a full calendar year regardless of the effective date of the retirement |
23 | allowance. This cost of living adjustment shall be added to the amount of the retirement allowance |
24 | as of January 1, 1968, and an additional one and one-half percent (1.5%) shall be added to the |
25 | original retirement allowance in each succeeding year during the month of January, and provided |
26 | further, that this additional cost of living increase shall be three percent (3%) for the year beginning |
27 | January 1, 1971, and each year thereafter, through December 31, 1980. Notwithstanding any of the |
28 | above provisions, no employee receiving any service retirement allowance pursuant to the |
29 | provisions of this title on or before December 31, 1967, or the employee’s beneficiary, shall receive |
30 | any additional benefit hereunder in an amount less than two hundred dollars ($200) per year over |
31 | the service retirement allowance where the employee retired prior to January 1, 1958. |
32 | (b) All state employees and all beneficiaries of state employees retired on or after January |
33 | 1, 1968, who are receiving any service retirement or ordinary or accidental disability retirement |
34 | allowance pursuant to the provisions of this title shall, on the first day of January next following |
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1 | the third anniversary date of the retirement, receive a cost of living retirement adjustment, in |
2 | addition to his or her retirement allowance, in an amount equal to three percent (3%) of the original |
3 | retirement allowance. In each succeeding year thereafter through December 31, 1980, during the |
4 | month of January, the retirement allowance shall be increased an additional three percent (3%) of |
5 | the original retirement allowance, not compounded, to be continued during the lifetime of the |
6 | employee or beneficiary. For the purposes of computation, credit shall be given for a full calendar |
7 | year regardless of the effective date of the service retirement allowance. |
8 | (c)(1) Beginning on January 1, 1981, for all state employees and beneficiaries of the state |
9 | employees receiving any service retirement and all state employees, and all beneficiaries of state |
10 | employees, who have completed at least ten (10) years of contributory service on or before July 1, |
11 | 2005, pursuant to the provisions of this chapter, and for all state employees, and all beneficiaries |
12 | of state employees who receive a disability retirement allowance pursuant to §§ 36-10-12 — 36- |
13 | 10-15, the cost of living adjustment shall be computed and paid at the rate of three percent (3%) of |
14 | the original retirement allowance or the retirement allowance as computed in accordance with § |
15 | 36-10-35.1, compounded annually from the year for which the cost of living adjustment was |
16 | determined to be payable by the retirement board pursuant to the provisions of subsection (a) or (b) |
17 | of this section. Such cost of living adjustments are available to members who retire before October |
18 | 1, 2009, or are eligible to retire as of September 30, 2009. |
19 | (2) The provisions of this subsection shall be deemed to apply prospectively only and no |
20 | retroactive payment shall be made. |
21 | (3) The retirement allowance of all state employees and all beneficiaries of state employees |
22 | who have not completed at least ten (10) years of contributory service on or before July 1, 2005, or |
23 | were not eligible to retire as of September 30, 2009, shall, on the month following the third |
24 | anniversary date of retirement, and on the month following the anniversary date of each succeeding |
25 | year be adjusted and computed by multiplying the retirement allowance by three percent (3%) or |
26 | the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as |
27 | published by the United States Department of Labor Statistics determined as of September 30 of |
28 | the prior calendar year, whichever is less; the cost of living adjustment shall be compounded |
29 | annually from the year for which the cost of living adjustment was determined payable by the |
30 | retirement board; provided, that no adjustment shall cause any retirement allowance to be decreased |
31 | from the retirement allowance provided immediately before such adjustment. |
32 | (d) For state employees not eligible to retire in accordance with this chapter as of |
33 | September 30, 2009, and not eligible upon passage of this article, and for their beneficiaries, the |
34 | cost of living adjustment described in subsection (c)(3) of this section shall only apply to the first |
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1 | thirty-five thousand dollars ($35,000) of retirement allowance, indexed annually, and shall |
2 | commence upon the third (3rd) anniversary of the date of retirement or when the retiree reaches |
3 | age sixty-five (65), whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase |
4 | annually by the percentage increase in the Consumer Price Index for all Urban Consumers (CPI- |
5 | U) as published by the United States Department of Labor Statistics determined as of September |
6 | 30 of the prior calendar year or three percent (3%), whichever is less. The first thirty-five thousand |
7 | dollars ($35,000) of retirement allowance, as indexed, shall be multiplied by the percentage of |
8 | increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United |
9 | States Department of Labor Statistics determined as of September 30 of the prior calendar year or |
10 | three percent (3%), whichever is less, on the month following the anniversary date of each |
11 | succeeding year. For state employees eligible to retire as of September 30, 2009, or eligible upon |
12 | passage of this article, and for their beneficiaries, the provisions of this subsection (d) shall not |
13 | apply. |
14 | (e) All legislators and all beneficiaries of legislators who are receiving a retirement |
15 | allowance pursuant to the provisions of § 36-10-9.1 for a period of three (3) or more years, shall, |
16 | commencing January 1, 1982, receive a cost of living retirement adjustment, in addition to a |
17 | retirement allowance, in an amount equal to three percent (3%) of the original retirement allowance. |
18 | In each succeeding year thereafter during the month of January, the retirement allowance shall be |
19 | increased an additional three percent (3%) of the original retirement allowance, compounded |
20 | annually, to be continued during the lifetime of the legislator or beneficiary. For the purposes of |
21 | computation, credit shall be given for a full calendar year regardless of the effective date of the |
22 | service retirement allowance. |
23 | (f) The provisions of §§ 45-13-7 — 45-13-10 shall not apply to this section. |
24 | (g) This subsection (g) shall be effective for the period July 1, 2012, through June 30, 2015. |
25 | (1) Notwithstanding the prior paragraphs of this section, and subject to subsection (g)(2) |
26 | below, for all present and former employees, active and retired members, and beneficiaries |
27 | receiving any retirement, disability or death allowance or benefit of any kind, the annual benefit |
28 | adjustment provided in any calendar year under this section shall be equal to (A) multiplied by (B) |
29 | where (A) is equal to the percentage determined by subtracting five and one-half percent (5.5%) |
30 | (the “subtrahend”) from the Five-Year Average Investment Return of the retirement system |
31 | determined as of the last day of the plan year preceding the calendar year in which the adjustment |
32 | is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent |
33 | (0%), and (B) is equal to the lesser of the member’s retirement allowance or the first twenty-five |
34 | thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000) |
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1 | amount to be indexed annually in the same percentage as determined under (g)(1)(A) above. The |
2 | “Five-Year Average Investment Return” shall mean the average of the investment returns of the |
3 | most recent five (5) plan years as determined by the retirement board. Subject to subsection (g)(2) |
4 | below, the benefit adjustment provided by this subsection (g)(1) shall commence upon the third |
5 | (3rd) anniversary of the date of retirement or the date on which the retiree reaches his or her Social |
6 | Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially |
7 | assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted |
8 | either upward or downward in the same amount. |
9 | (2) Except as provided in subsection (g)(3), the benefit adjustments under this section for |
10 | any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees’ |
11 | Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police |
12 | Retirement Benefits Trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty |
13 | percent (80%) in which event the benefit adjustment will be reinstated for all members for such |
14 | plan year. |
15 | In determining whether a funding level under this subsection (g)(2) has been achieved, the |
16 | actuary shall calculate the funding percentage after taking into account the reinstatement of any |
17 | current or future benefit adjustment provided under this section. |
18 | (3) Notwithstanding subsection (g)(2), in each fifth plan year commencing after June 30, |
19 | 2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five |
20 | plan years, a benefit adjustment shall be calculated and made in accordance with subsection (g)(1) |
21 | above until the Funded Ratio of the Employees’ Retirement System of Rhode Island, the Judicial |
22 | Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by the |
23 | system’s actuary on an aggregate basis, exceeds eighty percent (80%). |
24 | (4) Notwithstanding any other provision of this chapter, the provisions of this subsection |
25 | (g) shall become effective July 1, 2012, and shall apply to any benefit adjustment not granted on or |
26 | prior to June 30, 2012. |
27 | (h) This subsection (h) shall become effective July 1, 2015. |
28 | (1)(A) As soon as administratively reasonable following the enactment into law of this |
29 | subsection (h)(1)(A), a one-time benefit adjustment shall be provided to members and/or |
30 | beneficiaries of members who retired on or before June 30, 2012, in the amount of 2% of the lesser |
31 | of either the member’s retirement allowance or the first twenty-five thousand dollars ($25,000) of |
32 | the member’s retirement allowance. This one-time benefit adjustment shall be provided without |
33 | regard to the retiree’s age or number of years since retirement. |
34 | (B) Notwithstanding the prior subsections of this section, for all present and former |
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1 | employees, active and retired members, and beneficiaries receiving any retirement, disability or |
2 | death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year |
3 | under this section for adjustments on and after January 1, 2016, and subject to subsection (h)(2) |
4 | below, shall be equal to (I) multiplied by (II): |
5 | (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where: |
6 | (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%) |
7 | (the “subtrahend”) from the five-year average investment return of the retirement system |
8 | determined as of the last day of the plan year preceding the calendar year in which the adjustment |
9 | is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent |
10 | (0%). The “five-year average investment return” shall mean the average of the investment returns |
11 | of the most recent five (5) plan years as determined by the retirement board. In the event the |
12 | retirement board adjusts the actuarially assumed rate of return for the system, either upward or |
13 | downward, the subtrahend shall be adjusted either upward or downward in the same amount. |
14 | (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer |
15 | Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor |
16 | Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of (i) |
17 | plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%). |
18 | (II) Is equal to the lesser of either the member’s retirement allowance or the first twenty- |
19 | five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount |
20 | to be indexed annually in the same percentage as determined under subsection (h)(1)(B)(I) above. |
21 | The benefit adjustments provided by this subsection (h)(1)(B) shall be provided to all |
22 | retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect, |
23 | and for all other retirees the benefit adjustments shall commence upon the third anniversary of the |
24 | date of retirement or the date on which the retiree reaches his or her Social Security retirement age, |
25 | whichever is later. |
26 | (2) The benefit adjustments under subsection (h)(1)(B) for any plan year shall be reduced |
27 | to twenty-five percent (25%) of the benefit adjustment unless the funded ratio of the employees’ |
28 | retirement system of Rhode Island, the judicial retirement benefits trust and the state police |
29 | retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty |
30 | percent (80%) in which event the benefit adjustment will be reinstated for all members for such |
31 | plan year. |
32 | In determining whether a funding level under this subsection (h)(2) has been achieved, the |
33 | actuary shall calculate the funding percentage after taking into account the reinstatement of any |
34 | current or future benefit adjustment provided under this section. |
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1 | (3) Effective for members and/or beneficiaries of members who retired on or before June |
2 | 30, 2015, the dollar amount in subsection (h)(1)(B)(II) of twenty-five thousand eight hundred and |
3 | fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six dollars |
4 | ($31,026) until the funded ratio of the employees’ retirement system of Rhode Island, the judicial |
5 | retirement benefits trust and the state police retirement benefits trust, calculated by the system’s |
6 | actuary on an aggregate basis, exceeds eighty percent (80%). |
7 | (i) Effective for members and/or beneficiaries of members who have retired on or before |
8 | July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60) |
9 | days following the enactment of the legislation implementing this provision, and a second one-time |
10 | stipend of five hundred dollars ($500) in the same month of the following year. These stipends |
11 | shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable |
12 | payment date and shall not be considered cost of living adjustments under the prior provisions of |
13 | this section. |
14 | (j) As soon as administratively reasonable following the enactment into law of this |
15 | subsection, a one-time stipend shall be provided to members or beneficiaries of members in the |
16 | amount of three percent (3%) of the lesser of either the member’s retirement allowance or forty |
17 | thousand dollars ($40,000) of the member’s retirement allowance. This one-time stipend shall be |
18 | provided without regard to the retiree’s age or number of years since retirement. These stipends |
19 | shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable |
20 | payment date and shall not be considered cost of living adjustments under the prior provisions of |
21 | this section. |
22 | (1) The stipend shall be paid from the state’s general fund, subject to appropriation by the |
23 | general assembly. |
24 | (2) The stipend may be provided to members or beneficiaries in each subsequent fiscal year |
25 | commencing with the fiscal year beginning July 1, 2025, subject each year to appropriation from |
26 | the state’s general fund by the general assembly. |
27 | SECTION 3. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO EDUCATION -- TEACHERS' RETIREMENT | |
*** | |
1 | This act would provide all retired teachers and all retired state employees a one-time |
2 | stipend in the amount of three percent (3%) of the lesser of either the member’s retirement |
3 | allowance or forty thousand dollars ($40,000) of the member’s retirement allowance. |
4 | This act would take effect upon passage. |
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LC004766 | |
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