The bill proposes amendments to the Teachers' Retirement System and the Employees' Retirement System of Rhode Island, affecting benefits for spouses, former spouses, and domestic partners of deceased members, as well as cost of living retirement adjustments (COLAs) for retirees. It revises eligibility for benefits, including a requirement for cohabitation or financial support at the time of the member's death and disqualification upon remarriage or new domestic partnership. The bill increases minimum monthly benefit amounts and provides for a 1.5% COLA for those who retired before December 31, 1967, and a 3% COLA for those who retired on or after January 1, 1968, with specific conditions based on retirement date and service years. It also includes a new insertion for a one-time 2% benefit adjustment for the plan year 2025 and sets conditions for the suspension and reinstatement of benefit adjustments based on the funded ratio of the retirement system.

Additionally, the bill modifies the Rhode Island personal income tax law, detailing additions and subtractions to federal adjusted gross income for tax purposes, including provisions for taxable Social Security income and pension/annuity income. It introduces a new modification for public pension benefits administered by ERSRI, effective from January 1, 2025, allowing taxpayers to subtract their public pension benefits from federal adjusted gross income. The bill also provides for a one-time stipend for certain retirees and adjusts the dollar amount used in the benefit adjustment calculation for those who retired on or before June 30, 2015. It includes a deletion and an insertion in the tax code and mentions an amendment to allow local legislative bodies to provide automatic adjustment increases in service retirement allowances for municipal employees. The act will take effect upon passage and allows for the supplemental cost of living adjustment to be deducted from the taxpayer’s adjusted gross income.

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