The bill amends Section 45-21.2-5 of the General Laws concerning optional retirement for members of the police force and firefighters. It introduces a new provision that mandates a two and one-half percent (2.5%) annual escalation of pension payments for both active and retired members, which will be compounded each year on January 1 following the year of retirement and will continue annually thereafter. This change aims to enhance the retirement benefits for these members.

Additionally, the bill clarifies that final compensation for members retiring after July 1, 2012, shall be defined in accordance with Section 45-21.2-2. It specifies that active and retired members, as well as beneficiaries receiving any retirement allowance or benefit, will receive the aforementioned escalation in their pension payments. The act is set to take effect upon passage.

Statutes affected:
2249: 45-21.2-5