2023 -- H 5316

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LC000857

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

____________

A N   A C T

RELATING TO EDUCATION -- TEACHERS' RETIREMENT

     

     Introduced By: Representatives Serpa, Fellela, Casimiro, Azzinaro, Donovan, Phillips,
McNamara, O'Brien, Shanley, and Baginski

     Date Introduced: February 01, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

1

     SECTION 1. Section 16-16-40 of the General Laws in Chapter 16-16 entitled "Teachers’

2

Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby

3

amended to read as follows:

4

     16-16-40. Additional benefits payable to retired teachers.

5

     (a) All teachers and all beneficiaries of teachers receiving any service retirement or

6

ordinary or accidental disability retirement allowance pursuant to the provisions of this chapter and

7

chapter 17 of this title, on or before December 31, 1967, shall receive a cost of living retirement

8

adjustment equal to one and one-half percent (1.5%) per year of the original retirement allowance,

9

not compounded, for each year the retirement allowance has been in effect. For purposes of

10

computation credit shall be given for a full calendar year regardless of the effective date of the

11

retirement allowance. This cost of living retirement adjustment shall be added to the amount of the

12

service retirement allowance as of January 1, 1970, and payment shall begin as of July 1, 1970. An

13

additional cost of living retirement adjustment shall be added to the original retirement allowance

14

equal to three percent (3%) of the original retirement allowance on the first day of January, 1971,

15

and each year thereafter through December 31, 1980.

16

     (b) All teachers and beneficiaries of teachers receiving any service retirement or ordinary

17

disability retirement allowance pursuant to the provisions of this title who retired on or after January

18

1, 1968, shall, on the first day of January, next following the third (3rd) year on retirement, receive

19

a cost of living adjustment, in addition to his or her retirement allowance, an amount equal to three

 

1

percent (3%) of the original retirement allowance. In each succeeding year thereafter, on the first

2

day of January, the retirement allowance shall be increased an additional three percent (3%) of the

3

original retirement allowance, not compounded, to be continued through December 31, 1980.

4

     (c)(1) Beginning on January 1, 1981, for all teachers and beneficiaries of teachers receiving

5

any service retirement and all teachers and all beneficiaries of teachers who have completed at least

6

ten (10) years of contributory service on or before July 1, 2005, pursuant to the provisions of this

7

chapter, and for all teachers and beneficiaries of teachers who receive a disability retirement

8

allowance pursuant to §§ 16-16-14 — 16-16-17, the cost of living adjustment shall be computed

9

and paid at the rate of three percent (3%) of the original retirement allowance or the retirement

10

allowance as computed in accordance with § 16-16-40.1, compounded annually from the year for

11

which the cost of living adjustment was determined to be payable by the retirement board pursuant

12

to the provisions of subsection (a) or (b) of this section. Such cost of living adjustments are available

13

to teachers who retire before October 1, 2009, or are eligible to retire as of September 30, 2009.

14

     (2) The provisions of this subsection shall be deemed to apply prospectively only and no

15

retroactive payment shall be made.

16

     (3) The retirement allowance of all teachers and all beneficiaries of teachers who have not

17

completed at least ten (10) years of contributory service on or before July 1, 2005, or were not

18

eligible to retire as of September 30, 2009, shall, on the month following the third anniversary date

19

of the retirement, and on the month following the anniversary date of each succeeding year be

20

adjusted and computed by multiplying the retirement allowance by three percent (3%) or the

21

percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published

22

by the United States Department of Labor Statistics, determined as of September 30 of the prior

23

calendar year, whichever is less; the cost of living adjustment shall be compounded annually from

24

the year for which the cost of living adjustment was determined payable by the retirement board;

25

provided, that no adjustment shall cause any retirement allowance to be decreased from the

26

retirement allowance provided immediately before such adjustment.

27

     (d) For teachers not eligible to retire in accordance with this chapter as of September 30,

28

2009, and not eligible upon passage of this article, and for their beneficiaries, the cost of living

29

adjustment described in subsection (3) above shall only apply to the first thirty-five thousand

30

dollars ($35,000) of retirement allowance, indexed annually, and shall commence upon the third

31

(3rd) anniversary of the date of retirement or when the retiree reaches age sixty-five (65), whichever

32

is later. The thirty-five thousand dollar ($35,000) limit shall increase annually by the percentage

33

increase in the Consumer Price Index for all Urban Consumer (CPI-U) as published by the United

34

States Department of Labor Statistics determined as of September 30 of the prior calendar year or

 

LC000857 - Page 2 of 13

1

three percent (3%), whichever is less. The first thirty-five thousand dollars ($35,000), as indexed,

2

of retirement allowance shall be multiplied by the percentage of increase in the Consumer Price

3

Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor

4

Statistics determined as of September 30 of the prior calendar year or three percent (3%), whichever

5

is less, on the month following the anniversary date of each succeeding year. For teachers eligible

6

to retire as of September 30, 2009, or eligible upon passage of this article, and for their

7

beneficiaries, the provisions of this subsection (d) shall not apply.

8

     (e) The provisions of §§ 45-13-7 — 45-13-10 shall not apply to this section.

9

     (f) This subsection (f) shall be effective for the period July 1, 2012, through June 30, 2015.

10

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (f)(2)

11

below, for all present and former teachers, active and retired teachers, and beneficiaries receiving

12

any retirement, disability or death allowance or benefit of any kind, the annual benefit adjustment

13

provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A)

14

is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the

15

“subtrahend”) from the Five-Year Average Investment Return of the retirement system determined

16

as of the last day of the plan year preceding the calendar year in which the adjustment is granted,

17

said percentage not to exceed four percent (4%) and not to be less than zero percent (0%), and (B)

18

is equal to the lesser of the teacher’s retirement allowance or the first twenty-five thousand dollars

19

($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000) amount to be

20

indexed annually in the same percentage as determined under paragraph (f)(1)(A) above. The

21

“Five-Year Average Investment Return” shall mean the average of the investment returns of the

22

most recent five (5) plan years as determined by the retirement board. Subject to paragraph (f)(2)

23

below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

24

anniversary of the date of retirement or the date on which the retiree reaches his or her Social

25

Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially

26

assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted

27

either upward or downward in the same amount.

28

     (2) Except as provided in paragraph (f)(3), the benefit adjustments under this section for

29

any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees’

30

Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police

31

Retirement Benefits Trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty

32

percent (80%) in which event the benefit adjustment will be reinstated for all teachers for such plan

33

year.

34

     In determining whether a funding level under this paragraph (f)(2) has been achieved, the

 

LC000857 - Page 3 of 13

1

actuary shall calculate the funding percentage after taking into account the reinstatement of any

2

current or future benefit adjustment provided under this section.

3

     (3) Notwithstanding paragraph (f)(2), in each fifth plan year commencing after June 30,

4

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

5

plan years, a benefit adjustment shall be calculated and made in accordance with paragraph (f)(1)

6

above until the Funded Ratio of the Employees’ Retirement System of Rhode Island, the Judicial

7

Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by the

8

system’s actuary on an aggregate basis, exceeds eighty percent (80%).

9

     (4) Notwithstanding any other provisions of this chapter, the provisions of this paragraph

10

(f) of § 16-16-40 shall become effective July 1, 2012, and shall apply to any benefit adjustments

11

not granted on or prior to June 30, 2012.

12

     (g) This subsection (g) shall become effective July 1, 2015.

13

     (1)(A) As soon as administratively reasonable following the enactment into law of this

14

subsection (g)(1)(A), a one-time benefit adjustment shall be provided to teachers and/or

15

beneficiaries of teachers who retired on or before June 30, 2012, in the amount of two percent (2%)

16

of the lesser of either the teacher’s retirement allowance or the first twenty-five thousand dollars

17

($25,000) of the teacher’s retirement allowance. This one-time benefit adjustment shall be provided

18

without regard to the retiree’s age or number of years since retirement.

19

     (B) Notwithstanding the prior subsections of this section, for all present and former

20

teachers, active and retired teachers, and beneficiaries receiving any retirement, disability or death

21

allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year under

22

this section for adjustments on and after January 1, 2016, and subject to subsection (g)(2) below,

23

shall be equal to (I) multiplied by (II):

24

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

25

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

26

(the “subtrahend”) from the five-year average investment return of the retirement system

27

determined as of the last day of the plan year preceding the calendar year in which the adjustment

28

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

29

(0%). The “five-year average investment return” shall mean the average of the investment returns

30

of the most recent five (5) plan years as determined by the retirement board. In the event the

31

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

32

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

33

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

34

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

 

LC000857 - Page 4 of 13

1

Statistics determined as of September 30 of the prior calendar year.

2

     In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be less

3

than (0%) percent.

4

     (II) is equal to the lesser of either the teacher’s retirement allowance or the first twenty-

5

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

6

to be indexed annually in the same percentage as determined under subsection (g)(1)(B)(I) above.

7

     The benefit adjustments provided by this subsection (g)(1)(B) shall be provided to all

8

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

9

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

10

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

11

whichever is later.

12

     (2) Except as provided in subsection (g)(3), the benefit adjustments under subsection

13

(g)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

14

employees’ retirement system of Rhode Island, the judicial retirement benefits trust and the state

15

police retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds

16

eighty percent (80%) in which event the benefit adjustment will be reinstated for all teachers for

17

such plan year.

18

     In determining whether a funding level under this subsection (g)(2) has been achieved, the

19

actuary shall calculate the funding percentage after taking into account the reinstatement of any

20

current or future benefit adjustment provided under this section.

21

     (3) Notwithstanding subsection (g)(2), in each fourth plan year commencing after June 30,

22

2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four

23

plan years: (i) A benefit adjustment shall be calculated and made in accordance with subsection

24

(g)(1)(B) above; and (ii) Effective for teachers and/or beneficiaries of teachers who retired on or

25

before June 30, 2015, the dollar amount in subsection (g)(1)(B)(II) of twenty-five thousand eight

26

hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six

27

dollars ($31,026)until the funded ratio of the employees’ retirement system of Rhode Island, the

28

judicial retirement benefits trust and the state police retirement benefits trust, calculated by the

29

system’s actuary on an aggregate basis, exceeds eighty percent (80%).

30

     (4) Effective for teachers and or beneficiaries of teachers who have retired on or before

31

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

32

days following the enactment of the legislation implementing this provision, and a second one-time

33

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

34

shall be payable to all retired teachers or beneficiaries receiving a benefit as of the applicable

 

LC000857 - Page 5 of 13

1

payment date and shall not be considered cost of living adjustments under the prior provisions of

2

this § 16-16-40.

3

     (h) This subsection (h) shall become effective July 1, 2023.

4

     (1) As soon as administratively reasonable following the effective date of this subsection,

5

a one-time stipend shall be provided to members and/or beneficiaries of members who retired on

6

or before June 30, 2012, in the amount of three percent (3%) of the lesser of either the member's

7

retirement allowance or thirty thousand dollars ($30,000) of the member's retirement allowance.

8

This one-time stipend shall be provided without regard to the retiree's age or number of years since

9

retirement. These stipends shall be payable to all retired members or beneficiaries receiving a

10

benefit as of the applicable payment date and shall not be considered cost of living adjustments

11

under prior provisions of this section.

12

     (2) The provisions of this subsection regarding payment of a stipend shall be paid from the

13

state's general fund, subject to appropriation by the general assembly.

14

     (3) The stipend as provided in this subsection may be provided to members and/or

15

beneficiaries in each subsequent fiscal year commencing with the fiscal year beginning July 1,

16

2024, subject each year to appropriation from the state's general fund by the general assembly.

17

     SECTION 2. Section 36-10-35 of the General Laws in Chapter 36-10 entitled "Retirement

18

System — Contributions and Benefits" is hereby amended to read as follows:

19

     36-10-35. Additional benefits payable to retired employees.

20

     (a) All state employees and all beneficiaries of state employees receiving any service

21

retirement or ordinary or accidental disability retirement allowance pursuant to the provisions of

22

this title on or before December 31, 1967, shall receive a cost of living retirement adjustment equal

23

to one and one-half percent (1.5%) per year of the original retirement allowance, not compounded,

24

for each calendar year the retirement allowance has been in effect. For the purposes of computation,

25

credit shall be given for a full calendar year regardless of the effective date of the retirement

26

allowance. This cost of living adjustment shall be added to the amount of the retirement allowance

27

as of January 1, 1968, and an additional one and one-half percent (1.5%) shall be added to the

28

original retirement allowance in each succeeding year during the month of January, and provided

29

further, that this additional cost of living increase shall be three percent (3%) for the year beginning

30

January 1, 1971, and each year thereafter, through December 31, 1980. Notwithstanding any of the

31

above provisions, no employee receiving any service retirement allowance pursuant to the

32

provisions of this title on or before December 31, 1967, or the employee’s beneficiary, shall receive

33

any additional benefit hereunder in an amount less than two hundred dollars ($200) per year over

34

the service retirement allowance where the employee retired prior to January 1, 1958.

 

LC000857 - Page 6 of 13

1

     (b) All state employees and all beneficiaries of state employees retired on or after January

2

1, 1968, who are receiving any service retirement or ordinary or accidental disability retirement

3

allowance pursuant to the provisions of this title shall, on the first day of January next following

4

the third anniversary date of the retirement, receive a cost of living retirement adjustment, in

5

addition to his or her retirement allowance, in an amount equal to three percent (3%) of the original

6

retirement allowance. In each succeeding year thereafter through December 31, 1980, during the

7

month of January, the retirement allowance shall be increased an additional three percent (3%) of

8

the original retirement allowance, not compounded, to be continued during the lifetime of the

9

employee or beneficiary. For the purposes of computation, credit shall be given for a full calendar

10

year regardless of the effective date of the service retirement allowance.

11

     (c)(1) Beginning on January 1, 1981, for all state employees and beneficiaries of the state

12

employees receiving any service retirement and all state employees, and all beneficiaries of state

13

employees, who have completed at least ten (10) years of contributory service on or before July 1,

14

2005, pursuant to the provisions of this chapter, and for all state employees, and all beneficiaries

15

of state employees who receive a disability retirement allowance pursuant to §§ 36-10-12 — 36-

16

10-15, the cost of living adjustment shall be computed and paid at the rate of three percent (3%) of

17

the original retirement allowance or the retirement allowance as computed in accordance with § 

18

36-10-35.1, compounded annually from the year for which the cost of living adjustment was

19

determined to be payable by the retirement board pursuant to the provisions of subsection (a) or (b)

20

of this section. Such cost of living adjustments are available to members who retire before October

21

1, 2009, or are eligible to retire as of September 30, 2009.

22

     (2) The provisions of this subsection shall be deemed to apply prospectively only and no

23

retroactive payment shall be made.

24

     (3) The retirement allowance of all state employees and all beneficiaries of state employees

25

who have not completed at least ten (10) years of contributory service on or before July 1, 2005, or

26

were not eligible to retire as of September 30, 2009, shall, on the month following the third

27

anniversary date of retirement, and on the month following the anniversary date of each succeeding

28

year be adjusted and computed by multiplying the retirement allowance by three percent (3%) or

29

the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as

30

published by the United States Department of Labor Statistics determined as of September 30 of

31

the prior calendar year, whichever is less; the cost of living adjustment shall be compounded

32

annually from the year for which the cost of living adjustment was determined payable by the

33

retirement board; provided, that no adjustment shall cause any retirement allowance to be decreased

34

from the retirement allowance provided immediately before such adjustment.

 

LC000857 - Page 7 of 13

1

     (d) For state employees not eligible to retire in accordance with this chapter as of

2

September 30, 2009, and not eligible upon passage of this article, and for their beneficiaries, the

3

cost of living adjustment described in subsection (c)(3) of this section shall only apply to the first

4

thirty-five thousand dollars ($35,000) of retirement allowance, indexed annually, and shall

5

commence upon the third (3rd) anniversary of the date of retirement or when the retiree reaches

6

age sixty-five (65), whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase

7

annually by the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-

8

U) as published by the United States Department of Labor Statistics determined as of September

9

30 of the prior calendar year or three percent (3%), whichever is less. The first thirty-five thousand

10

dollars ($35,000) of retirement allowance, as indexed, shall be multiplied by the percentage of

11

increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United

12

States Department of Labor Statistics determined as of September 30 of the prior calendar year or

13

three percent (3%), whichever is less, on the month following the anniversary date of each

14

succeeding year. For state employees eligible to retire as of September 30, 2009, or eligible upon

15

passage of this article, and for their beneficiaries, the provisions of this subsection (d) shall not

16

apply.

17

     (e) All legislators and all beneficiaries of legislators who are receiving a retirement

18

allowance pursuant to the provisions of § 36-10-9.1 for a period of three (3) or more years, shall,

19

commencing January 1, 1982, receive a cost of living retirement adjustment, in addition to a

20

retirement allowance, in an amount equal to three percent (3%) of the original retirement allowance.

21

In each succeeding year thereafter during the month of January, the retirement allowance shall be

22

increased an additional three percent (3%) of the original retirement allowance, compounded

23

annually, to be continued during the lifetime of the legislator or beneficiary. For the purposes of

24

computation, credit shall be given for a full calendar year regardless of the effective date of the

25

service retirement allowance.

26

     (f) The provisions of §§ 45-13-7 — 45-13-10 shall not apply to this section.

27

     (g) This subsection (g) shall be effective for the period July 1, 2012, through June 30, 2015.

28

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (g)(2)

29

below, for all present and former employees, active and retired members, and beneficiaries

30

receiving any retirement, disability or death allowance or benefit of any kind, the annual benefit

31

adjustment provided in any calendar year under this section shall be equal to (A) multiplied by (B)

32

where (A) is equal to the percentage determined by subtracting five and one-half percent (5.5%)

33

(the “subtrahend”) from the Five-Year Average Investment Return of the retirement system

34

determined as of the last day of the plan year preceding the calendar year in which the adjustment

 

LC000857 - Page 8 of 13

1

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

2

(0%), and (B) is equal to the lesser of the member’s retirement allowance or the first twenty-five

3

thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000)

4

amount to be indexed annually in the same percentage as determined under (g)(1)(A) above. The

5

“Five-Year Average Investment Return” shall mean the average of the investment returns of the

6

most recent five (5) plan years as determined by the retirement board. Subject to paragraph (g)(2)

7

below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

8

anniversary of the date of retirement or the date on which the retiree reaches his or her Social

9

Security retirement age, whichever is later. In the event the retirement board adjusts the actuarially

10

assumed rate of return for the system, either upward or downward, the subtrahend shall be adjusted

11

either upward or downward in the same amount.

12

     (2) Except as provided in paragraph (g)(3), the benefit adjustments under this section for

13

any plan year shall be suspended in their entirety unless the Funded Ratio of the Employees’

14

Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the State Police

15

Retirement Benefits Trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty

16

percent (80%) in which event the benefit adjustment will be reinstated for all members for such

17

plan year.

18

     In determining whether a funding level under this paragraph (g)(2) has been achieved, the

19

actuary shall calculate the funding percentage after taking into account the reinstatement of any

20

current or future benefit adjustment provided under this section.

21

     (3) Notwithstanding paragraph (g)(2), in each fifth plan year commencing after June 30,

22

2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

23

plan years, a benefit adjustment shall be calculated and made in accordance with paragraph (g)(1)

24

above until the Funded Ratio of the Employees’ Retirement System of Rhode Island, the Judicial

25

Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by the

26

system’s actuary on an aggregate basis, exceeds eighty percent (80%).

27

     (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

28

(g) shall become effective July 1, 2012, and shall apply to any benefit adjustment not granted on or

29

prior to June 30, 2012.

30

     (h) This subsection (h) shall become effective July 1, 2015.

31

     (1)(A) As soon as administratively reasonable following the enactment into law of this

32

subsection (h)(1)(A), a one-time benefit adjustment shall be provided to members and/or

33

beneficiaries of members who retired on or before June 30, 2012, in the amount of 2% of the lesser

34

of either the member’s retirement allowance or the first twenty-five thousand dollars ($25,000) of

 

LC000857 - Page 9 of 13

1

the member’s retirement allowance. This one-time benefit adjustment shall be provided without

2

regard to the retiree’s age or number of years since retirement.

3

     (B) Notwithstanding the prior subsections of this section, for all present and former

4

employees, active and retired members, and beneficiaries receiving any retirement, disability or

5

death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year

6

under this section for adjustments on and after January 1, 2016, and subject to subsection (h)(2)

7

below, shall be equal to (I) multiplied by (II):

8

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

9

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

10

(the “subtrahend”) from the five-year average investment return of the retirement system

11

determined as of the last day of the plan year preceding the calendar year in which the adjustment

12

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

13

(0%). The “five-year average investment return” shall mean the average of the investment returns

14

of the most recent five (5) plan years as determined by the retirement board. In the event the

15

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

16

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

17

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

18

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

19

Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of (i)

20

plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%).

21

     (II) Is equal to the lesser of either the member’s retirement allowance or the first twenty-

22

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

23

to be indexed annually in the same percentage as determined under subsection (h)(1)(B)(I) above.

24

     The benefit adjustments provided by this subsection (h)(1)(B) shall be provided to all

25

retirees entitled to receive a benefit adjustment as of June 30, 2012, under the law then in effect,

26

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

27

date of retirement or the date on which the retiree reaches his or her Social Security retirement age,

28

whichever is later.

29

     (2) Except as provided in subsection (h)(3) of this section, the benefit adjustments under

30

subsection (h)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio

31

of the employees’ retirement system of Rhode Island, the judicial retirement benefits trust and the

32

state police retirement benefits trust, calculated by the system’s actuary on an aggregate basis,

33

exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

34

members for such plan year.

 

LC000857 - Page 10 of 13

1

     In determining whether a funding level under this subsection (h)(2) has been achieved, the

2

actuary shall calculate the funding percentage after taking into account the reinstatement of any

3

current or future benefit adjustment provided under this section.

4

     (3) Notwithstanding subsection (h)(2), in each fourth plan year commencing after June 30,

5

2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of four

6

plan years:

7

     (i) A benefit adjustment shall be calculated and made in accordance with subsection

8

(h)(1)(B) above; and

9

     (ii) Effective for members and/or beneficiaries of members who retired on or before June

10

30, 2015, the dollar amount in subsection (h)(1)(B)(II) of twenty-five thousand eight hundred and

11

fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six dollars

12

($31,026) until the funded ratio of the employees’ retirement system of Rhode Island, the judicial

13

retirement benefits trust and the state police retirement benefits trust, calculated by the system’s

14

actuary on an aggregate basis, exceeds eighty percent (80%).

15

     (i) Effective for members and/or beneficiaries of members who have retired on or before

16

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

17

days following the enactment of the legislation implementing this provision, and a second one-time

18

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

19

shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable

20

payment date and shall not be considered cost of living adjustments under the prior provisions of

21

this section.

22

     (j) This subsection (j) shall become effective July 1, 2023.

23

     (1) As soon as administratively reasonable following the effective date of this subsection,

24

a one-time stipend shall be provided to members and/or beneficiaries of members who retired on

25

or before June 30, 2012, in the amount of three percent (3%) of the lesser of either the member's

26

retirement allowance or thirty thousand dollars ($30,000) of the member's retirement allowance.

27

This one-time stipend shall be provided without regard to the retiree's age or number of years since

28

retirement. These stipends shall be payable to all retired members or beneficiaries receiving a

29

benefit as of the applicable payment date and shall not be considered cost of living adjustments

30

under prior provisions of this section.

31

     (2) The provisions of this subsection regarding payment of a stipend shall be paid from the

32

state's general fund, subject to the appropriation by the general assembly.

33

     (3) The stipend as provided in this subsection may be provided to members and/or

34

beneficiaries in each subsequent fiscal year commencing with the fiscal year beginning July 1,

 

LC000857 - Page 11 of 13

1

2024, subject each year to appropriation from the state's general fund by the general assembly.

2

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- TEACHERS' RETIREMENT

***

1

     This act would provide all teachers and all state employees who retired prior to June 30,

2

2012 a one-time stipend in the amount of three percent (3%) of the lesser of either the member's

3

retirement allowance or thirty thousand dollars ($30,000) of the member's retirement allowance.

4

Any stipend after fiscal year 2024 would be subject to appropriation by the general assembly.

5

     This act would take effect upon passage.

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LC000857 - Page 13 of 13