The bill amends the retirement system contributions and benefits for state employees, retirees, and beneficiaries in Rhode Island, with changes effective from January 1, 2024. It revises the cost of living retirement adjustments, providing a 1.5% increase per year for employees retired before December 31, 1967, and a 3% increase for those retired on or after January 1, 1968, through December 31, 1980. From January 1, 1981, the adjustment is 3% compounded annually for those with at least ten years of service before July 1, 2005, or eligible to retire by September 30, 2009. Others receive the lesser of 3% or CPI-U increase, with the adjustment applying only to the first $35,000 of the retirement allowance, indexed annually. Legislators and their beneficiaries will receive a 3% compounded adjustment if they have been receiving a retirement allowance for three or more years starting January 1, 1982. The bill also includes a special provision for the period July 1, 2012, through June 30, 2015, and excludes the application of §§ 45-13-7 — 45-13-10 to this section.

Furthermore, the bill introduces a new subsection (j) that provides a $2,000 annual benefit adjustment for all current and former employees, active and retired members, and beneficiaries receiving any retirement, disability, or death allowance or benefit, effective July 1, 2025. This represents a significant addition to the existing law. The bill also stipulates that full adjustments to benefits are contingent upon the retirement systems having a Funded Ratio exceeding eighty percent (80%) and includes a one-time 2% benefit adjustment for members who retired on or before June 30, 2012. The formula for calculating annual benefit adjustments is detailed, with a cap on the maximum adjustment percentage. The act is set to take effect upon passage, ensuring immediate implementation of the provisions.

Statutes affected:
8194: 36-10-35