2025 -- H 5762

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LC001911

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO EDUCATION -- TEACHER'S RETIREMENT

     Introduced By: Representatives Slater, Diaz, Morales, and DeSimone

     Date Introduced: February 26, 2025

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-16-13 of the General Laws in Chapter 16-16 entitled "Teachers’

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

amended to read as follows:

     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 the

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; 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 the 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

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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; 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 their 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.

     (iii) Effective July 1, 2025, a teacher’s retirement allowance shall be calculated as follows:

     1-20 years of service 1% per year

     21-30 years of service 1.5% per year

     31-35 years of service 2% per year

     36-40 years of service 3% per year

     SECTION 2. Section 36-10-10 of the General Laws in Chapter 36-10 entitled "Retirement

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

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

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

for 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

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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 for 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 the

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,

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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

the 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 the 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.

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     (iii) Effective July 1, 2025, an employee’s retirement allowance shall be calculated as

follows:

     1-20 years of service 1% per year

     21-30 years of service 1.5% per year

     31-35 years of service 2% per year

     36-40 years of service 3% per year

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

forth in paragraph (b) above.

     SECTION 3. Section 45-21-17 of the General Laws in Chapter 45-21 entitled "Retirement

of Municipal Employees" is hereby amended to read as follows:

     45-21-17. Service retirement allowance.

     (a) Upon retirement from service after January 1, 1969, a member shall receive a retirement

allowance which is a life annuity terminable upon death of the annuitant and is an amount equal to

two percent (2%) of final compensation multiplied by the number of years of total service, not to

exceed thirty-seven and one-half (37½) years for services on and prior to June 30, 2012. For service

on and after July 1, 2012: (i) For members with fewer than twenty (20) 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

final 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 seventy-five percent (75%) of the member’s final compensation.

Provided, however, that every person elected prior to July 1, 2012, who has served as a part time

elected official of the city of Cranston for a period of ten (10) years, is entitled to receive, upon

retirement from that part time service, and not being otherwise regularly employed by the city of

Cranston in which that person has served, a service retirement allowance equivalent to fifty percent

(50%) of the salary received at the time of retirement by that part time elected official; and,

provided, further, that if that person retires after a period of service greater than ten (10) years, the

person is entitled to receive an additional service retirement allowance equivalent to five percent

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(5%) of the salary received at the time of retirement for each whole year of service, in excess of ten

(10) years up to a maximum additional allowance equivalent to fifty percent (50%) of the salary

received.

     (b) This section also applies to any former part time elected official of the city of Cranston

who is presently receiving retirement benefits from the municipal retirement system.

     (c) Every person elected prior to July 1, 2012, who serves or has served at least four (4)

years as a part time elected official of the city of Cranston may include that person’s years of service

as a member of the general assembly, and any other credits acquired while serving as a legislator,

when computing the person’s period of service to the city of Cranston pursuant to the provisions

of this section.

     (d) Effective July 1, 2025, an employee’s retirement allowance shall be calculated as

follows:

     1-20 years of service 1% per year

     21-30 years of service 1.5% per year

     31-35 years of service 2% per year

     36-40 years of service 3% per year

     SECTION 4. This act shall take effect upon passage.

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LC001911

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- TEACHER'S RETIREMENT

***

     This act would recalculate the retirement allowance related to early retirement and pension

benefits for teachers, state employees and municipal employees.

     This act would take effect upon passage.

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LC001911

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