The bill amends retirement benefits for teachers and state employees, specifically addressing cost of living adjustments (COLAs) and benefit adjustments based on the funded status of retirement systems. It establishes that teachers who have been retired for more than three full calendar years will not have their retirement benefit adjustment reduced based on the funded ratio of the employees' retirement system of Rhode Island.

For teachers who retired on or before June 30, 2012, the bill includes provisions for benefit adjustments under the new section 16-16-40, which outlines additional benefits payable to retired teachers. Similarly, for state employees, the bill introduces adjustments under section 36-10-35, which also applies to those who have been retired for more than three full calendar years.

The bill mandates a one-time benefit adjustment of 2% for members who retired on or before June 30, 2012, and provides a one-time stipend of $500 for retirees who retired on or before July 1, 2015, with a second stipend to follow the next year. It specifies that for state employees not eligible to retire as of September 30, 2009, the COLA will only apply to the first $35,000 of their retirement allowance, indexed annually.

This act would take effect upon passage.

Statutes affected:
5525: 16-16-40, 36-10-35