The bill amends Section 16-16-12 of the General Laws, which governs the retirement process for teachers. It revises retirement eligibility criteria, setting the retirement age at 60 with at least 10 years of contributory service or 28 years of total service for members eligible before October 1, 2009, or as of September 30, 2009. For those becoming eligible between October 1, 2009, and July 1, 2012, the retirement age is 62 with at least 10 years of contributory service. The bill also introduces a provision for teachers with at least five years of contributory service to retire at their Social Security retirement age, effective July 1, 2012, and allows teachers with 20 or more years of total service to elect early retirement with a reduced allowance from July 1, 2015. It includes a table of reduction rates for early retirement and specifies new retirement eligibility criteria effective July 1, 2023, allowing retirement at age 60 with 30 years of service or upon reaching the previously established retirement eligibility date.

Furthermore, the bill details the conditions for purchasing service credits and vesting requirements, stating that teachers must have been contributing members for at least five years if in active service on or after July 1, 2012, to be eligible for pension benefits. It limits the purchase of service credit to five years, except for purchases made before January 1, 1995, and mandates disclosure of service credit in other retirement systems. Members who fail to cooperate with the retirement board or make false statements regarding service time may be denied retirement allowance or only receive a return of contributions without interest. The bill also amends Section 45-21-16 to include new legal language updating retirement eligibility and the process for early retirement with actuarial reductions. The act applies to school teachers, state, and municipal employees, and takes effect upon passage.

Statutes affected:
86: 16-16-12, 36-10-9, 45-21-16