The bill amends Sections 16-16-40 and 36-10-35 of the General Laws to enhance retirement benefits for teachers and state employees. Effective for the retirement plan year 2026, the act reinstates the full annual cost of living adjustment (COLA) for all teachers and state employees who retired after July 1, 2012. Additionally, municipal employees will receive a one-time COLA of two and eighty-nine one hundredths percent (2.89%).

The bill also provides that benefits from the state retirement system will not be subject to the state personal income tax for tax years beginning on or after January 1, 2027. This act will take effect upon passage.

Statutes affected:
3100: 16-16-40, 36-10-35, 44-30-12, 45-21-52