This bill amends Section 36-10-35 of the General Laws concerning retirement system contributions and benefits for state employees and their beneficiaries. Effective January 1, 2025, it reinstates an annual cost-of-living adjustment (COLA) based on the Consumer Price Index for all Urban Consumers (CPI-U). This adjustment will be compounded annually and will apply to all state employees and beneficiaries, excluding judges and members of the state police.

The retirement allowance for individuals not receiving benefits at the time of the bill's passage will be calculated based on the average annual base pay of their last three years of service. The adjustment will be based on the retirement benefit received by a retiree on January 1, 2025, or for those not yet receiving benefits, on the average of their last three years of service.

The bill also deletes a previous provision regarding one-time stipends for retirees and beneficiaries who retired on or before July 1, 2015. Importantly, the provisions of this act will apply prospectively only, meaning no retroactive payments will be made. The act is set to take effect upon passage.

Statutes affected:
6238: 36-10-35