The bill proposes amendments to Chapter 45-21.2 of the General Laws, which pertains to the retirement system for police officers and firefighters. One significant change is the alteration of the definition of "final compensation" for members retiring on or after July 1, 2024. The new definition will consider the highest annual compensation for services rendered during the member's total service, rather than the average annual compensation over the highest five consecutive years. Additionally, the bill removes the safeguard that ensured a member's final compensation would not be less than it was on or before June 30, 2012.

Furthermore, the bill revises the conditions under which police officials or firefighters may retire, including age and years of service requirements, and specifies how retirement allowances are calculated. It introduces a new eligibility clause for members of the Municipal Employees’ Retirement System in Johnston, Rhode Island, allowing retirement at age fifty-seven with at least twenty years of service. A new section, 45-21.2-6, is added, detailing the calculation of retirement allowances, including a life annuity and an additional 2.5% of final compensation for each year of service after June 30, 2024. The bill also modifies the reduction schedule for retirement allowances for those retiring before the eligible age, aiming to reduce the penalties for early retirement. The act is intended to take effect upon passage.