This bill makes several amendments to current law regarding retirement benefits for teachers and state employees in Rhode Island. It establishes a cost of living adjustment for teachers and beneficiaries of teachers receiving retirement allowances, providing a 3% adjustment compounded annually. It also establishes a formula for calculating annual benefit adjustments for all present and former teachers, active and retired teachers, and beneficiaries receiving any retirement, disability, or death allowance or benefit, based on the investment return of the retirement system and the Consumer Price Index. The bill also provides for one-time stipends and allowances for eligible members and beneficiaries.

Additionally, the bill amends current law to provide for cost of living retirement adjustments for state employees and their beneficiaries who retired on or before December 31, 1967. The adjustments will be equal to 1.5% per year of the original retirement allowance, with an additional 1.5% added each year during the month of January. The bill also includes provisions for a benefit adjustment based on the investment returns of the retirement system, with the adjustment being suspended unless the Funded Ratio of the retirement system exceeds 80%. A one-time benefit adjustment of 2% will also be provided to members and beneficiaries who retired on or before June 30, 2012.

Overall, this bill aims to provide cost of living adjustments and annual benefit adjustments for retired teachers and state employees, as well as one-time stipends and allowances for eligible members and beneficiaries. It also establishes formulas and conditions for calculating these adjustments based on investment returns and the Consumer Price Index.

Statutes affected:
6006: 16-16-40, 36-10-35, 45-21-52