The bill amends the Teachers’ Retirement system in Rhode Island, expanding benefits to include a spouse, former spouse, or domestic partner of a deceased member, with conditions such as reaching age 60, cohabitation at the time of death, or financial support from the deceased member. It also increases the minimum monthly benefit amounts, with new minimums ranging from $955 to $1,600. The bill introduces a new section effective January 1, 2024, providing cost of living retirement adjustments of 1.5% per year for teachers who retired on or before December 31, 1967, and a 3% increase for those who retired after January 1, 1968. Additionally, it specifies compounded annual adjustments for teachers who meet certain service criteria and sets the commencement for others based on retirement anniversary or age.

The bill also revises the calculation of annual benefit adjustments for retirees, linking them to investment returns and the Consumer Price Index, with a cap of 4% and a minimum of 0%. It suspends adjustments unless the Funded Ratio exceeds 80%, with exceptions for reinstatement. A one-time benefit adjustment of 2% is provided for teachers who retired on or before June 30, 2012, and a one-time stipend of $500 is granted to retired teachers or their beneficiaries, with a second stipend the following year. The effective date for additional benefits payable to retired employees is set as January 1, 2024. The bill also includes modifications to the Rhode Island personal income tax law, such as adding back certain forgiven PPP loan amounts and allowing subtractions for various income types, including military service pensions and public pension benefits, effective from January 1, 2025.

Statutes affected:
2580: 36-10-35, 44-30-12, 45-21-52