The bill amends Section 36-10-35 of the General Laws concerning retirement system contributions and benefits for state employees and their beneficiaries. It introduces a new provision that mandates an annual cost-of-living adjustment to retirement allowances based on the Consumer Price Index for All Urban Consumers (CPI-U), effective January 1, 2025. This adjustment will be compounded annually and will apply to all state employees and beneficiaries, excluding judges and members of the state police.

Additionally, the retirement benefit for individuals not yet receiving benefits at the time of the act's passage will be calculated based on the average annual base pay of their last three years of service. The bill specifies that the adjustments will be prospective only, meaning no retroactive payments will be made.

Furthermore, the bill deletes a previous provision that allowed for one-time stipends for retirees who retired on or before July 1, 2015. Overall, the bill aims to ensure that retirement benefits for state employees keep pace with inflation through regular adjustments.

Statutes affected:
6238: 36-10-35