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 be based on the highest three consecutive years of compensation, rather than the previous five years.

The bill also introduces new definitions related to retirement terms, including "final compensation," ensuring clarity in the language used within the retirement system. 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 their total service. Overall, the bill seeks to update and clarify the retirement system's regulations while implementing significant changes to the benefit calculation process for future retirees.

Statutes affected:
2835: 36-8-1, 45-21-2