The bill introduces amendments to the retirement system for teachers and state employees in Rhode Island, altering eligibility criteria and benefit calculations. For teachers, the bill adjusts the age and years of contributory service required for retirement, with different provisions for those eligible before and after specific dates. It lowers the annual and monthly reduction rates for early retirement from 9% to 3% annually and from 0.75% to 0.25% monthly. The bill also changes the calculation of retirement allowances, increasing the percentage of average compensation used for members with fewer than 20 years of service as of June 30, 2012, from 1% to 1.5%, and for those with 20 or more years of service, from 2% to 2.5% for service on and after July 1, 2015. Definitions for various terms related to the retirement system are clarified, and a new section, 16-16-13, details the service retirement allowance based on eligibility date and years of service.

Furthermore, the bill amends the definitions and provisions related to the municipal employees' retirement system, including the definition of "final compensation" and the introduction of a new section, 45-21-16, outlining the retirement process. It sets forth new eligibility criteria for retirement based on Social Security retirement age and contributory service, with provisions for adjusting the retirement age downward for certain members. The bill imposes duties on members to disclose other retirement system benefits and cooperate with the retirement board, with penalties for non-cooperation or false statements. Insertions in the bill include the increased percentages for retirement allowance calculations and the definition of "domestic partner," while deletions include the previous lower percentages and the five-year average compensation calculation for members retiring after July 1, 2012.

Statutes affected:
7274: 36-8-1