The bill amends the General Laws regarding the Teachers' Retirement system in Rhode Island, specifically altering the calculation of service retirement allowances for teachers. It introduces a two-tiered system where teachers eligible to retire before September 30, 2009, will have their retirement allowance determined by Schedule A, while those eligible after this date and before July 1, 2012, will use Schedule A for service before September 30, 2009, and Schedule B thereafter. The bill also changes the period for calculating the retirement allowance from the average highest five consecutive years of compensation to the average highest three consecutive years for members retiring on or after July 1, 2024. No deletions from current law are specified.

Furthermore, the bill amends Section 36-8-1 of the General Laws by inserting definitions for terms such as "Accumulated contributions," "Active member," and "Annuity reserve," which are essential for the administration of the Retirement System. It also modifies the definition of "average compensation" for retirement calculations, shifting from the highest five years to the highest three years for those retiring after July 1, 2024. For members with more than half of their service in part-time positions and an average compensation of $35,000 or less, the bill provides a calculation based on the highest ten consecutive years. The bill includes insertions that update definitions and provisions related to the retirement system, and it is set to take effect immediately upon passage.

Statutes affected:
2979: 16-16-13, 36-8-1, 45-21-2