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 receiving any retirement allowance 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. 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, and each year thereafter through December 31, 1980. Beginning on January 1, 1981, the cost of living adjustment will be computed and paid at the rate of 3% of the original retirement allowance or the retirement allowance as computed in accordance with another section of the law. The bill also includes provisions for teachers who have not completed at least ten years of contributory service and teachers not eligible to retire as of September 30, 2009. The bill further provides for a benefit adjustment for all present and former teachers, active and retired teachers, and beneficiaries receiving any retirement, disability, or death allowance or benefit. The annual benefit adjustment will be determined based on the Five-Year Average Investment Return of the retirement system and the teacher's retirement allowance. The bill also includes provisions for the suspension of benefit adjustments if the funding level of the retirement system falls below a certain threshold.

This bill amends current law regarding benefit adjustments for retired teachers and state employees. It establishes a one-time benefit adjustment for teachers and beneficiaries who retired on or before June 30, 2012, and provides an annual benefit adjustment for all present and former teachers, active and retired teachers, and beneficiaries receiving any retirement, disability, or death allowance or benefit. The annual benefit adjustment is calculated based on the five-year average investment return of the retirement system and the percentage increase in the Consumer Price Index. The bill also suspends the benefit adjustments unless the funded ratio of the retirement system exceeds 80%. Additionally, the bill adds a new subsection that provides a one-time stipend for members and beneficiaries of members who retired on or before June 30, 2012. The stipend is equal to 3% of the member's retirement allowance or $30,000, whichever is lesser. The stipend is payable to all retired members or beneficiaries receiving a benefit and is not considered a cost of living adjustment. The stipend may be provided in subsequent fiscal years subject to appropriation by the general assembly.

Statutes affected:
215: 16-16-40, 36-10-35