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 relates to benefit adjustments for retired teachers and state employees in Rhode Island. The bill specifies that a benefit adjustment shall be calculated and made in accordance with certain provisions for teachers and beneficiaries who retired on or before June 30, 2012. It also establishes criteria for annual benefit adjustments for all present and former teachers, active and retired teachers, and beneficiaries receiving any retirement, disability, or death allowance or benefit. The bill further outlines conditions for the suspension or reinstatement of benefit adjustments based on the funded ratio of the retirement system. Additionally, the bill provides for one-time stipends for retired teachers or beneficiaries and amends provisions related to cost of living retirement adjustments for state employees.

Statutes affected:
222: 16-16-40, 36-10-35, 45-21-52