The bill amends Sections 16-16-12, 36-10-9, and 45-21-16 of the General Laws to revise retirement procedures for teachers, municipal, and state employees, specifically focusing on early retirement penalties. It introduces a new section titled "Procedure for service retirement," which establishes a cumulative annual reduction for early retirement penalties at a flat rate of three percent (3%) per year and a monthly reduction of twenty-five hundredths percent (0.25%). This change applies uniformly across the specified sections for members with twenty or more years of service who retire within five years of reaching the eligible retirement age.

The bill clarifies that for members eligible to retire before October 1, 2009, existing provisions remain unchanged. For those eligible on or after that date, they must be at least sixty-two years old, with adjustments based on service credit accrued as of September 30, 2009. Additionally, it allows teachers with contributory service after July 1, 2012, to retire after five years of service upon reaching their Social Security retirement age.

The amendments aim to streamline retirement processes and enhance clarity regarding vesting requirements, allowing teachers with five years of contributory service to be vested and establishing conditions for purchasing service credits. The bill takes effect upon passage.

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