The bill amends the General Laws in Chapter 45-21.2, which governs optional retirement for police and firefighter members in Rhode Island. A significant change is the redefinition of "final compensation," which will now be calculated based on the average annual compensation over the highest three consecutive years of service, effective July 1, 2025, replacing the previous five-year calculation. For members retiring on or after July 1, 2024, this new three-year average will apply, ensuring that it does not fall below the final compensation calculated before June 30, 2012. Additionally, the bill introduces a new retirement eligibility criterion allowing members to retire at age fifty-seven (57) with at least twenty (20) years of service.

The bill also revises retirement eligibility criteria for various police and fire departments, detailing specific provisions for departments such as Woonsocket, South Kingstown, Johnston, and Cranston. It establishes that the retirement allowance for members of the Cranston police and fire departments will include a three percent annual escalation of pension payments post-retirement. Furthermore, it specifies that only police officers hired on or after July 1, 2010, will be eligible for the Municipal Employees’ Retirement System. The act is set to take effect upon passage, with the new provisions becoming applicable starting July 1, 2025.