The bill amends Section 36-10-35 of the General Laws regarding retirement system contributions and benefits, specifically focusing on cost of living adjustments (COLAs) for retirees and their beneficiaries. It introduces a new provision that reinstates a yearly COLA of three percent (3%) of the original retirement allowance for retirees and beneficiaries if the annual investment return of the retirement system exceeds ten percent (10%). This adjustment is applicable for the investment year in which the return exceeds the specified threshold.

The bill does not include any provisions for one-time stipends or adjustments based on the length of service or specific retirement dates, nor does it establish a framework for calculating future COLAs based on the Consumer Price Index. The primary focus of the legislation is to enhance the financial security of retirees by ensuring that their benefits are adjusted in accordance with the performance of the retirement system's investments. The act would take effect upon passage.

Statutes affected:
5766: 36-10-35