The bill amends the General Laws concerning retirement allowances for teachers and state employees in Rhode Island, specifically updating 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 their retirement allowance will be based on the average of the highest three consecutive years of compensation, replacing the previous requirement of using the average of the highest five consecutive years of compensation. Additionally, for teachers retiring on or after July 1, 2012, the calculation will be based on the completion of thirty-eight years of service.

The bill also revises definitions related to the retirement system, ensuring clarity and consistency in terms such as "average compensation" and "final compensation." It specifies that for members eligible to retire on or after July 1, 2009, final compensation means the average of the highest three consecutive years of compensation.

The act will take effect upon passage.

Statutes affected:
2538: 16-16-13, 36-8-1, 45-21-2