The bill proposes significant amendments to the retirement benefits structure for teachers and municipal employees in Rhode Island, focusing on enhancing financial security for retirees and their beneficiaries. Key provisions include the introduction of new legal language that clarifies eligibility for benefits payable to spouses, former spouses, or domestic partners of deceased teachers, contingent upon cohabitation at the time of death. The bill also updates minimum monthly benefits based on the deceased member's highest annual salary and specifies that remarriage or new domestic partnerships will disqualify individuals from receiving benefits. Additionally, it establishes a new framework for calculating cost-of-living adjustments (COLAs) for retired teachers, including a three percent annual increase for certain retirees and indexing based on the Consumer Price Index to ensure adjustments reflect inflation.

Moreover, the bill outlines a one-time benefit adjustment of 2% for retirees who retired on or before June 30, 2012, and introduces a one-time stipend of $500 for all retired teachers or beneficiaries receiving benefits as of the applicable payment date. It also modifies the retirement allowances for municipal employees, lowering the required funded ratio for benefit adjustments from 80% to 75% effective July 1, 2024, and increasing the indexed dollar amount for retirement allowances. The legislation aims to provide structured adjustments to retirement benefits while ensuring that the financial support for retired teachers and municipal employees is enhanced and clarified.