The bill amends Section 36-10-35 of the General Laws to adjust the cost of living retirement adjustments for state employees and their beneficiaries. It introduces a new provision that grants a 3% annual benefit adjustment to the first $30,000 of a member's retirement allowance, effective July 1, 2023, contingent upon the prior year's investment return achieving at least an 8% gain. This adjustment applies to all current and former employees, active and retired members, and beneficiaries. The bill also includes a clause that renders this new provision null and void if the funding ratio of the employees' retirement system of Rhode Island and related trusts exceeds eighty percent (80%), at which point the annual benefit adjustment will revert to the provisions of subsection (h).

The bill specifies different cost of living adjustments for those who retired before and after January 1, 1968, with varying rates and conditions. For those who retired before December 31, 1967, the adjustment is 1.5% per year with a minimum of $200 for those who retired before January 1, 1958. For those who retired after January 1, 1968, the adjustment is 3% starting on the first January after the third anniversary of retirement, with different conditions for those with at least ten years of contributory service by July 1, 2005, or eligible to retire by September 30, 2009. The bill also caps the cost of living adjustment to the first $35,000 of the retirement allowance, indexed annually, for employees not eligible to retire by September 30, 2009, and includes a new subsection (g) for calculating the annual benefit adjustment based on investment returns. The act will take effect upon passage.

Statutes affected:
5523: 36-10-35