The bill amends the retirement system for state employees in Rhode Island by introducing new definitions and modifying existing terms in Section 36-8-1. A significant change is the adjustment of the definition of "average compensation," which will now be based on the highest three consecutive years of compensation for members eligible to retire on or after July 1, 2012, instead of the previously stated cutoff of July 1, 2024. This amendment aims to clarify the calculation of retirement benefits and ensure that they accurately reflect the service and compensation history of retiring members.

Furthermore, the bill also amends Section 45-21-2, which governs the retirement of municipal employees, by adding a new definition section that aligns with the changes made for state employees. This ensures consistency in terminology across different retirement systems within Rhode Island. The bill includes various definitions relevant to the retirement system, such as "active member," "beneficiary," and "domestic partner," and clarifies the criteria for employee qualification and service credit purchase. The act is set to take effect immediately upon passage, indicating a prompt implementation of these updates to the retirement framework for public employees.

Statutes affected:
257: 36-8-1, 45-21-2