The bill amends the General Laws regarding the retirement system for state and municipal employees, specifically changing the definition of "average compensation" used for calculating retirement benefits. For members eligible to retire on or after October 1, 2009, and who do retire before July 1, 2024, "average compensation" remains defined as the average of the highest five consecutive years of compensation. However, the bill inserts new language that changes this definition for members retiring on or after July 1, 2024, to the average of the highest three consecutive years of compensation. There are no deletions mentioned in the provided text, only insertions of new legal language.

Additionally, the bill introduces a new definition section in Chapter 45-21 of the General Laws, which pertains to the retirement of municipal employees. This section aims to provide clear and consistent definitions for terms used within the chapter. The bill's changes to the calculation of "final compensation" could potentially increase retirement benefits for employees by using a shorter time span to determine the average salary. The bill would take effect immediately upon passage, indicating that these changes to the retirement system administration would be implemented without delay once the bill is enacted.

Statutes affected:
8149: 36-8-1, 45-21-2