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. It specifies that a one-time benefit adjustment of 2% of the retirement allowance will be provided to teachers who retired on or before June 30, 2012. 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. The formula takes into account the investment return of the retirement system and the Consumer Price Index. The bill also provides for one-time stipends of $500 to be paid to retired teachers or beneficiaries. Additionally, the bill adds a new section that provides for a one-time allowance of $500 to eligible members of the retirement system or their beneficiaries who retired on or before July 1, 2022. The allowances will be paid from the state's general fund. The bill also amends current law to provide for cost of living retirement adjustments for state employees and their beneficiaries.

Statutes affected:
854: 16-16-40, 36-10-35, 45-21-52