The bill amends sections of the General Laws related to the "Retirement System — Contributions and Benefits" for the State of Rhode Island. It introduces changes to the actuarial cost method used to determine employer contribution rates for the state and participating municipalities. Specifically, it mandates the use of the entry age normal cost method for calculations. The bill also stipulates that starting from fiscal year 2025, any benefit changes that increase actuarially calculated plan costs must be amortized over new five-year closed periods, allocated according to the state/municipal proportion set forth in § 16-16-22.

Additionally, the bill requires that proposed legislation impacting the retirement system must include a "pension impact note" that calculates the projected 20-year cost of the legislation based on approved retirement board assumptions. This requirement is to ensure that the financial consequences of any changes are understood before approval by the General Assembly. The cost of preparing these notes will be charged as an administrative expense to the retirement system's restricted receipts account. The bill also allows for the re-amortization of the current unfunded actuarial accrued liability (UAAL) over closed periods of twenty-five years, with future actuarial gains and losses amortized over new twenty-year closed periods. The act would take effect upon passage.