The bill amends the General Laws regarding the Optional Retirement for Members of Police Force and Firefighters, specifically Section 45-21.2-5. It introduces a new provision that mandates a 2.5% compounded annual escalation of pension payments for both active and retired members, as well as beneficiaries receiving a retirement allowance or benefit. This increase is set to occur every January 1 following the year of retirement and will continue annually. Additionally, the bill removes the language that previously restricted benefit adjustments, indicating that the new escalation applies without the limitations that were once in place under § 45-21-52(c).

The bill also details various retirement eligibility conditions for police and firefighters, such as age and service requirements, and specifies how final compensation and pension escalations are calculated. It includes provisions for early retirement with reduced benefits and protects the accrued benefits of members as of June 30, 2012, allowing them to retire under the rules in effect on that date. The bill is designed to take effect upon passage, ensuring that the new benefits and escalations are implemented for eligible members. The summary does not mention any specific legal language insertions or deletions from the current law, aside from the general indication of an amendment and the removal of a previous restriction on benefit adjustments.

Statutes affected:
7240: 45-21.2-5