The bill amends Section 16-16-13 of the General Laws to revise the retirement allowance calculations for teachers, particularly focusing on those who began their membership after July 1, 2005, or who have not completed ten years of contributory service by that date. New legal language introduces Schedule B, which outlines a tiered calculation method for retirement allowances effective July 1, 2025, where benefits increase based on years of service. Additionally, Section 36-10-10 is amended to align the retirement calculations for employees with those for teachers, maintaining existing schedules for service prior to July 1, 2012, while introducing new provisions for employees retiring after specified dates.

The bill also proposes changes to the retirement allowance calculations for employees retiring on or after July 1, 2024, establishing that their benefits will be based on the average highest three consecutive years of compensation. A tiered calculation is introduced, offering varying percentages based on years of service, with specific provisions for members with thirty-eight years or more of service prior to December 31, 1985, who will not need to make additional contributions. Furthermore, Section 45-21-17 is amended to ensure that municipal employees' retirement allowances remain a life annuity based on a percentage of final compensation, with a cap of seventy-five percent. Overall, the bill aims to create a more structured and equitable retirement benefits system for teachers, state employees, and municipal employees.