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). The adjustment will be compounded annually and will apply to the retirement allowance of all state employees and beneficiaries, excluding judges and members of the state police. For individuals not receiving benefits at the time of the bill's passage, the adjustment will be based on the average annual base pay of the last three years of service.

The bill also removes a previous provision that mandated a one-time stipend for retirees who retired on or before July 1, 2015. Additionally, the new language specifies that the adjustments will apply prospectively only, meaning no retroactive payments will be made. Overall, the bill aims to ensure that the retirement benefits of state employees keep pace with inflation through regular adjustments.

Statutes affected:
6238: 36-10-35