The bill amends Section 36-10-2.1 of the General Laws in Chapter 36-10, which pertains to the retirement system's contributions and benefits. It introduces new legal language that establishes an actuarial cost method for determining the employer contribution rate for the State of Rhode Island. Specifically, it mandates that the employer contribution rate for fiscal year 2026 will include a re-amortization of the state pension fund. Additionally, the bill outlines the processes for calculating the employer contribution rates for fiscal years 2002, 2013, and 2017, including the handling of the Unfunded Actuarial Accrued Liability (UAAL) and future actuarial gains and losses.

The bill also specifies that the determination of the employer contribution rate for fiscal year 2013 will involve a reamortization of the current UAAL over a closed twenty-five-year period, with future gains and losses amortized over new twenty-year periods. For fiscal year 2017, it details a similar re-amortization process for the portion of UAAL not allocated to the state. The new provisions aim to ensure a structured approach to managing the state's pension liabilities while maintaining fiscal responsibility. The act will take effect upon passage.