The bill amends the General Laws concerning retirement benefits for teachers and state employees, introducing new provisions that enhance benefits for spouses, former spouses, and domestic partners of deceased members. Key changes include an increase in monthly benefits, with the minimum rising from $825 to $1,025 for those earning $17,000 or less, and the maximum increasing from $1,375 to $1,725 for those earning over $40,000. Additionally, the bill establishes a yearly adjustment of the base benefit and a yearly cost-of-living adjustment (COLA) for eligible retirees. Specifically, it provides a one-time full COLA of two and eighty-nine one hundredths percent (2.89%) for retirees who retired after July 1, 2012.

The bill also modifies the tax code by allowing a subtraction from federal adjusted gross income for the amount received from public pension benefits administered by the Employees Retirement System of Rhode Island. This aims to provide tax relief for retirees. The bill takes effect upon passage.

Statutes affected:
5472: 36-10-35, 44-30-12, 45-21-52