This bill amends Section 16-16-40 of the General Laws in Chapter 16-16 Retirement to provide additional benefits to retired teachers. The bill adds a new provision that states all teachers and beneficiaries of teachers who retired on or before December 31, 1967, shall receive a cost of living retirement adjustment equal to 1.5% per year of the original retirement allowance. This adjustment will be added to the service retirement allowance as of January 1, 1970, and payment will begin as of July 1, 1970. Additionally, an additional cost of living retirement adjustment equal to 3% of the original retirement allowance will be added on the first day of January, 1971, and each year thereafter through December 31, 1980.

The bill also provides cost of living adjustments for teachers who retired on or after January 1, 1968. These teachers will receive a cost of living adjustment equal to 3% of the original retirement allowance on the first day of January, next following the third year of retirement. In each succeeding year, the retirement allowance will be increased an additional 3% of the original retirement allowance, not compounded, through December 31, 1980. The bill also includes provisions for cost of living adjustments for teachers who retired after October 1, 2009, and their beneficiaries. These adjustments will be computed and paid at the rate of 3% of the original retirement allowance or the retirement allowance as computed in accordance with Section 16-16-40.1, compounded annually from the year for which the cost of living adjustment was determined to be payable by the retirement board.

This bill amends current law regarding benefit adjustments for retired teachers and state employees in Rhode Island. It establishes provisions for one-time benefit adjustments and annual benefit adjustments based on the retirement system's funded ratio and other factors. The bill also provides for one-time stipends for retired teachers and state employees. Additionally, the bill adds new provisions for benefit adjustments for retired members and beneficiaries of members who retired before June 30, 2012. These adjustments are subject to appropriation by the general assembly. The bill also amends current law regarding cost of living retirement adjustments for state employees and beneficiaries receiving retirement allowances before December 31, 1967.

Statutes affected:
5316: 16-16-40, 36-10-35