The bill amends the General Laws concerning retirement allowances for teachers and state employees in Rhode Island, specifically altering the calculation methods for retirement benefits. It changes the cutoff date for retirement benefit calculations from July 1, 2024, to July 1, 2009, for all retirement members eligible to retire on or after this new cutoff date. For teachers retiring on or after July 1, 2009, the calculation of retirement allowances will be based on the average of the highest three consecutive years of compensation, rather than the previous method which used the average of the highest five consecutive years of compensation.

Additionally, the bill clarifies definitions related to the retirement system. It introduces provisions for members with significant periods of part-time work, stating that if more than half of a member's service consists of years worked less than thirty hours per week, but they have three or more years of full-time work, their average compensation will be calculated based on the highest ten consecutive years of compensation. The bill also ensures that a member's average compensation will not be less than the amount determined as of June 30, 2012, thereby safeguarding accrued benefits. The act is set to take effect upon passage.

Statutes affected:
7500: 16-16-13, 36-8-1, 45-21-2