The bill amends various sections of the General Laws related to retirement benefits for teachers, state employees, and municipal employees. It introduces new provisions for cost of living adjustments (COLAs) based on retirement dates and service time, with specific increases for those who retired before certain dates and conditions for future adjustments based on the Consumer Price Index for Urban Consumers (CPI-U) and the Five-Year Average Investment Return of the retirement system. The bill specifies different COLA calculations and caps for those who retired before and after specific dates, with additional provisions for a one-time benefit adjustment for certain retirees. Notably, the bill includes a new insertion that grants a one-time allowance of $500 to eligible members of the retirement system or their beneficiaries who retired on or before July 1, 2022, to be paid from the state's general fund, subject to appropriation by the general assembly.

The bill also amends the section of the General Laws that pertains to automatic increases in service retirement allowances for municipal employees, allowing local legislative bodies to provide COLAs to their employees' retirement allowances. It sets forth a formula for benefit adjustments based on investment returns and the CPI-U, with a cap on the maximum increase and a minimum funded ratio threshold for the adjustments to take place. Benefit adjustments are suspended unless the funded ratio of the retirement system exceeds 80%, except every fourth or fifth plan year when adjustments are calculated regardless of the funded ratio. The bill further provides a one-time benefit adjustment of 2% for members who retired on or before June 30, 2012, and outlines the terms for contributions from employees and the city or town. The bill will take effect upon passage and includes provisions for a one-time allowance of $500 to be paid within 60 days of the enactment and again in the same month of the following year, not considered a COLA.

Statutes affected:
854: 16-16-40, 36-10-35, 45-21-52