This bill amends the retirement system administration laws in Rhode Island, specifically altering the definitions and calculations related to retirement benefits for state and municipal employees. It changes the cutoff date for retirement benefit calculations from July 1, 2024, to July 1, 2012. For members eligible to retire on or after this new date, the average compensation used to determine retirement benefits will now be based on the highest three consecutive years of compensation, rather than the previous five years.

The bill also introduces new definitions and clarifications regarding terms such as "final compensation." It specifies that for members eligible to retire on or after July 1, 2012, final compensation means the average of the highest three consecutive years of compensation within the total service when the average compensation was the highest.

These changes aim to provide clearer guidelines for the administration of the retirement system and ensure that the definitions align with the updated benefit calculation methods. The act will take effect upon passage.

Statutes affected:
2374: 36-8-1, 45-21-2