This bill amends Section 36-10-35 of the General Laws to provide additional benefits to retired state employees and beneficiaries. The bill includes provisions for cost of living retirement adjustments for state employees and beneficiaries who retired before December 31, 1967, and for those who retired on or after January 1, 1968. The bill also includes provisions for cost of living adjustments for state employees and beneficiaries who have completed at least ten years of contributory service on or before July 1, 2005, and for those who receive a disability retirement allowance. The bill also includes provisions for cost of living adjustments for state employees and beneficiaries who have not completed at least ten years of contributory service on or before July 1, 2005, or were not eligible to retire as of September 30, 2009. The bill also includes provisions for cost of living adjustments for state employees not eligible to retire as of September 30, 2009, and their beneficiaries. The bill also includes provisions for cost of living adjustments for legislators and their beneficiaries who are receiving a retirement allowance for three or more years. The bill also includes provisions for the annual benefit adjustment for all present and former employees, active and retired members, and beneficiaries receiving any retirement, disability, or death allowance or benefit. The adjustment will be determined based on the Five-Year Average Investment Return of the retirement system and will be effective for the period July 1, 2012, through June 30, 2015.

This bill would provide a three percent (3%) annual benefit adjustment (COLA) to all members of the pension system on and after January 1, 2024. The adjustment would be applied to the first fifty thousand dollars ($50,000) of a member's retirement allowance, but only if the prior year's investment return yields a gain of ten percent (10%) or more. This adjustment would continue until the pension system funding ratio exceeds eighty percent (80%). The bill would take effect upon passage.

Statutes affected:
6207: 36-10-35