The bill amends Section 45-21.2-5 of the General Laws concerning optional retirement for members of police forces 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 continuing on an annual basis thereafter. This change aims to enhance the retirement benefits for these members.

The bill also clarifies that, after July 1, 2012, final compensation shall be defined in accordance with existing laws, and it specifies that active and retired members, as well as beneficiaries receiving any retirement allowance or benefit, will receive the aforementioned escalation. The act is set to take effect upon passage.

Statutes affected:
7443: 45-21.2-5