The bill amends Sections 16-16-12, 36-10-9, and 45-21-16 of the General Laws to revise the early retirement penalty for teachers, municipal, and state employees. It establishes a standardized cumulative annual reduction of three percent (3%) for each year prior to retirement, with a corresponding monthly reduction of twenty-five hundredths percent (.25%). This change simplifies the previous varying percentages for early retirement penalties.

The bill does not introduce new eligibility criteria or adjustments to retirement ages based on years of service, nor does it stipulate specific retirement ages related to Social Security. Instead, it focuses solely on modifying the actuarial reductions for early retirement. The new provisions will take effect upon passage.

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