The bill amends the early retirement penalties for teachers, municipal, and state employees by establishing a uniform reduction rate. It introduces a new section titled "Procedure for service retirement," which specifies that the early retirement penalty will be a cumulative annual reduction of three percent (3%) and a monthly reduction of twenty-five hundredths percent (.25%) for each year of early retirement. This change applies uniformly across all years of service, replacing the previous varying percentages.

The bill also modifies existing retirement provisions for municipal and state employees, reducing the cumulative annual reduction for early retirement from varying percentages to the flat rate of three percent (3%) per year. This applies to members with twenty or more years of service who are within five years of the eligible retirement age. The bill takes effect upon passage.

Statutes affected:
5407: 16-16-12, 36-10-9, 45-21-16