2023 -- H 6413

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LC002943

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO EDUCATION -- TEACHERS' RETIREMENT

     Introduced By: Representatives Edwards, Fellela, Serpa, Potter, Casimiro, Abney,
Kazarian, Bennett, and Diaz

     Date Introduced: May 17, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 16-16-12 and 16-16-13 of the General Laws in Chapter 16-16

entitled "Teachers’ Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education

Act]" are hereby amended to read as follows:

     16-16-12. Procedure for service retirement.

     Retirement of a member on a service retirement allowance shall be made by the retirement

board as follows:

     (a)(i) Any member may retire upon his or her written application to the retirement board

as of the first day of the calendar month in which the application was filed, provided the member

was separated from service prior to filing the application, and further provided however, that if

separation from service occurs during the month in which the application is filed, the effective date

shall be the first day following the separation from service, and provided further that the member

on retirement date has attained the age of sixty (60) years and has completed at least ten (10) years

of contributory service on or before July 1, 2005, or regardless of age has completed twenty-eight

(28) years of total service and has completed at least ten (10) years of contributory service on or

before July 1, 2005, and who retire before October 1, 2009, or are eligible to retire as of September

30, 2009.

     (ii) For teachers who become eligible to retire on or after October 1, 2009, and prior to July

1, 2012, benefits are available to teachers who have attained the age of sixty-two (62) and

completed at least ten (10) years of contributory service. For teachers in service as of October 1,

2009, who were not eligible to retire as of September 30, 2009, but became eligible to retire prior

to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in

proportion to the amount of service the member has earned as of September 30, 2009. The

proportional formula shall work as follows:

     (A) The formula shall determine the first age of retirement eligibility under the laws in

effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of

sixty-two (62).

     (B) The formula shall then take the teacher’s total service credit as of September 30, 2009,

as the numerator and the years of service credit determined under (A) as the denominator.

     (C) The fraction determined in (B) shall then be multiplied by the age difference in (1) to

apply a reduction in years from age sixty-two (62).

     (b)(i) Any member, who has not completed at least ten (10) years of contributory service

on or before July 1, 2005, may retire upon his or her written application to the retirement board as

of the first day of the calendar month in which the application was filed; provided, the member was

separated from service prior thereto; and further provided, however, that if separation from service

occurs during the month in which application is filed, the effective date shall be the first day

following that separation from service; provided, the member on his or her retirement date had

attained the age of fifty-nine (59) and had completed at least twenty-nine (29) years of total service;

or provided, that the member on his or her retirement date had attained the age of sixty-five (65)

and had completed at least ten (10) years of contributory service; or provided, that the member on

his or her retirement date had attained the age of fifty-five (55) and had completed twenty (20)

years of total service and provided, that the retirement allowance, as determined according to the

formula in § 16-16-13 is reduced actuarially for each month that the age of the member is less than

sixty-five (65) years and who retire before October 1, 2009, or are eligible to retire as of September

30, 2009.

     (ii) For teachers who become eligible to retire on or after October 1, 2009, and prior to July

1, 2012, benefits are available to teachers who have attained the age of sixty-two (62) and have

completed at least twenty-nine (29) years of total service or have attained the age of sixty-five (65)

and completed at least ten (10) years of contributory service. For teachers in service as of October

1, 2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior

to July 1, 2012, who have a minimum retirement age of sixty-two (62), the retirement age will be

adjusted downward in proportion to the amount of service the member has earned as of September

30, 2009. The proportional formula shall work as follows:

     (A) The formula shall determine the first age of retirement eligibility under the laws in

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effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of

sixty-two (62).

     (B) The formula shall then take the teacher’s total service credit as of September 30, 2009,

as the numerator and the years of service credit determined under (A) as the denominator.

     (C) The fraction determined in (B) shall then be multiplied by the age difference

determined in (A) to apply a reduction in years from age sixty-two (62).

     (c) Effective July 1, 2012, the following shall apply to all teachers not eligible to retire

prior to July 1, 2012:

     (i) A teacher with contributory service on or after July 1, 2012, shall be eligible to retire

upon the completion of at least five (5) years of contributory service and attainment of the teacher’s

Social Security retirement age.

     (ii) For teachers with five (5) or more years of contributory service as of June 30, 2012,

with contributory service on and after July 1, 2012, who have a retirement age of Social Security

Retirement Age, the retirement age will be adjusted downward in proportion to the amount of

service the teacher has earned as of June 30, 2012, but in no event shall a teacher’s retirement age

under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the teacher’s

retirement age determined under the laws in effect on June 30, 2012. The proportional formula shall

work as follows:

     (1) The formula shall determine the first age of retirement eligibility under the laws in

effect on June 30, 2012, which shall then be subtracted from Social Security retirement age;

     (2) The formula shall then take the teacher’s total service credit as of June 30, 2012, as the

numerator and the projected service at retirement age in effect on June 30, 2012, as the

denominator;

     (3) The fraction determined in (2) shall then be multiplied by the age difference determined

in (1) to apply a reduction in years from Social Security retirement age.

     (iii) Effective July 1, 2015, a teacher who has completed twenty (20) or more years of total

service and who has attained an age within five (5) years of the eligible retirement age under

subdivisions (c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the

retirement allowance shall be reduced actuarially for each month that the age of the teacher is less

than the eligible retirement age under subdivisions (c)(i) or (c)(ii) above or subsection (d) below in

accordance with the following table:

Year Preceding Cumulative Annual Cumulative Monthly

Retirement Reduction Reduction

For Year 1 9% 3% .75% 25%

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For Year 2 8% 3% .667% 25%

For Year 3 7% 3% .583% 25%

For Year 4 7% 3% .583% 25%

For Year 5 7% 3% .583% 25%

     (iv) Notwithstanding any other provisions of section § 16-16-12(c), a teacher who has

completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at

his or her eligible retirement date as determined under subsections (a) and (b) above provided that

a teacher making an election under this paragraph shall receive the teacher’s retirement benefit

determined and calculated based on the teacher’s service and average compensation as of June 30,

2012. This provision shall be interpreted and administered in a manner to protect a teacher’s

accrued benefit on June 30, 2012.

     (d) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015,

teachers in active service shall be eligible to retire upon the earlier of:

     (A) The attainment of at least age sixty-five (65) and the completion of at least thirty (30)

years of total service, or the attainment of at least age sixty-four (64) and the completion of at least

thirty-one (31) years of total service, or the attainment of at least age sixty-three (63) and the

completion of at least thirty-two (32) years of total service, or the attainment of at least age sixty-

two (62) and the completion of at least thirty-three (33) years of total service; or

     (B) The teacher’s retirement eligibility date under subsections (c)(i) or (c)(ii) above.

     (e) Except as specifically provided in §§ 36-10-9.1, 36-10-12 through 36-10-15, and 45-

21-19 through 45-21-22, no member shall be eligible for pension benefits under this chapter unless

     (i) The member shall have been a contributing member of the employees’ retirement

system for at least ten (10) years; or

     (ii) For teachers in active contributory service on or after July 1, 2012, the teacher shall

have been a contributing member of the employees’ retirement system for at least five (5) years.

     (2) Provided, however, a person who has ten (10) years service credit shall be vested;

provided that for teachers in active contributory service on or after July 1, 2012, a teacher who has

five (5) years of contributory service shall be vested.

     (3) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall be

counted towards vesting.

     (4) Any person who becomes a member of the employees’ retirement system pursuant to

§ 45-21-8 shall be considered a contributing member for the purpose of chapter 21 of title 45 and

this chapter.

     (5) Notwithstanding any other provision of law, no more than five (5) years of service

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credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

of service credit before January 1, 1995, shall be permitted to apply the purchases towards the

member’s service retirement. However, no further purchase will be permitted.

     (6) Notwithstanding any other provision of law, effective July 1, 2012, except for purchases

under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53:

     (i) For service purchases for time periods prior to a teacher’s initial date of hire, the

purchase must be made within three (3) years of the teacher’s initial date of hire; and

     (ii) For service purchases for time periods for official periods of leave as authorized by

law, the purchase must be made within three (3) years of the time the official leave was concluded

by the teacher. Notwithstanding paragraphs (i) and (ii) above, service purchases from time periods

prior to June 30, 2012, may be made on or prior to June 30, 2015.

     (f) No member of the teachers’ retirement system shall be permitted to purchase service

credits for casual or seasonal employment, for employment as a temporary or emergency employee,

a page in the general assembly, or for employment at any state college or university while the

employee is a student or graduate of the college or university.

     (g) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not

receive service credit in this retirement system for any year or portion of a year which counts as

service credit in any other retirement system in which the member is vested or from which the

member is receiving a pension and/or any annual payment for life. This subsection shall not apply

to any payments received pursuant to the federal Social Security Act, 42 U.S.C. § 301 et seq.

     (h) A member who seeks to purchase or receive service credit in this retirement system

shall have the affirmative duty to disclose to the retirement board whether or not he or she is a

vested member in any other retirement system and/or is receiving a pension, retirement allowance,

or any annual payment for life. The retirement board shall have the right to investigate as to whether

or not the member has utilized the same time of service for credit in any other retirement system.

The member has an affirmative duty to cooperate with the retirement board including, by way of

illustration and not by way of limitation, the duty to furnish or have furnished to the retirement

board any relevant information that is protected by any privacy act.

     (i) A member who fails to cooperate with the retirement board shall not have the time of

service credit counted toward total service credit until the time the member cooperates with the

retirement board and until the time the retirement board determines the validity of the service credit.

     (j) A member who knowingly makes a false statement to the retirement board regarding

service time or credit shall not be entitled to a retirement allowance and is entitled only to the return

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of his or her contributions without interest.

     16-16-13. Amount of service retirement allowance.

     (a)(1)(i) For teachers eligible to retire on or before September 30, 2009, upon retirement

from service under § 16-16-12 a teacher whose membership commenced before July 1, 2005, and

who has completed at least ten (10) years of contributory service on or before July 1, 2005, shall,

receive a retirement allowance which shall be determined in accordance with schedule A for service

prior to July 1, 2012.

SCHEDULE A

YEARS OF SERVICE PERCENTAGE ALLOWANCE

1st through 10th inclusive 1.7%

11th through 20th inclusive 1.9%

21st through 34th inclusive 3.0%

35th 2.0%

     (ii) For teachers eligible to retire on or after October 1, 2009, who were not eligible to retire

on or before September 30, 2009, upon retirement for service under § 16-16-12, a teacher whose

membership commenced before July 1, 2005, and who has completed at least ten (10) years of

contributory service on or before July 1, 2005, shall receive a retirement allowance which shall be

determined in accordance with schedule A above for service on before September 30, 2009, and

shall be determined in accordance with schedule B in subsection (a)(2) below for service on or after

October 1, 2009, and prior to July 1, 2012:

     (2) Upon retirement from service under § 16-16-12 a teacher whose membership

commenced after July 1, 2005, or who has not completed at least ten (10) years of contributory

service as of July 1, 2005, shall receive a retirement allowance which shall be determined in

accordance with Schedule B for service prior to July 1, 2012.

SCHEDULE B

YEARS OF SERVICE PERCENTAGE ALLOWANCE

1st through 10th inclusive 1.60%

11th through 20th inclusive 1.80%

21st through 25th inclusive 2.0%

26th through 30th inclusive 2.25%

31st through 37th inclusive 2.50%

38th 2.25%

     (b) The retirement allowance of any teacher whose membership commenced before July 1,

2005, and who has completed at least ten (10) years of contributory service on or before July 1,

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2005, shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of his

or her average highest three (3) consecutive years of compensation multiplied by the number of

years of total service, but in no case to exceed eighty percent (80%) of the compensation, payable

at completion of thirty-five (35) years of service; provided, however, for teachers retiring on or

after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation

shall be based on the average highest five (5) consecutive years of compensation.

     The retirement allowance of any teacher whose membership commenced after July 1, 2005,

or who has not completed at least ten (10) years of contributory service as of July 1, 2005, shall be

in an amount equal to the percentage allowance specified in Schedule B of his or her average

highest three (3) consecutive years of compensation multiplied by the number of years of total

service, but in no case to exceed seventy-five percent (75%) of the compensation, payable at

completion of thirty-eight (38) years of service; provided, however, for teachers retiring on or after

October 1, 2009, who were not eligible to retire as of September 30, 2009 the calculation shall be

based on the average highest five (5) consecutive years of compensation.

     Any teacher who has in excess of thirty-five (35) years on or before June 2, 1985, shall not

be entitled to any refund, and any teacher with thirty-five (35) years or more on or after June 2,

1985, shall contribute from July 1, 1985, until his or her retirement.

     (c) For service prior to July 2012, the retirement allowance of a teacher shall be determined

in accordance with subsections (a)(1) and (a)(2) above. For service on and after July 1, 2012:

     (i) For teachers with fewer than twenty (20) years of total service as of June 30, 2012, a

teacher’s retirement allowance shall be equal to one percent (1%) one and one-half percent (1.5%)

of the teacher’s average compensation multiplied by the teacher’s years of total service on and after

July 1, 2012; and

     (ii) For teachers with twenty (20) or more years of total service as of June 30, 2012, a

teacher’s retirement allowance shall be equal to one percent (1%) of the teacher’s average

compensation multiplied by the teacher’s years of total service between July 1, 2012, and June 30,

2015, and two percent (2%) two and one-half percent (2.5%) of the teacher’s average compensation

multiplied by the teacher’s years of total service on and after July 1, 2015. For purposes of

computing a teacher’s total service under the preceding sentence, service purchases shall be

included in total service only with respect to those service purchases approved prior to June 30,

2012, and those applications for service purchases received by the retirement system on or before

June 30, 2012. In no event shall a teacher’s retirement allowance exceed the maximum limitations

set forth in subsection (b) above.

     SECTION 2. Section 36-8-1 of the General Laws in Chapter 36-8 entitled "Retirement

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System — Administration" is hereby amended to read as follows:

     36-8-1. Definition of terms.

     The following words and phrases as used in chapters 8 to 10 of this title unless a different

meaning is plainly required by the context, shall have the following meanings:

     (1) “Accumulated contributions” shall mean the sum of all the amounts deducted from the

compensation of a member and credited to his or her individual pension account.

     (2) “Active member” shall mean any employee of the state of Rhode Island as defined in

this section for whom the retirement system is currently receiving regular contributions pursuant to

§§ 36-10-1 and 36-10-1.1.

     (3) “Actuarial equivalent” shall mean an allowance or benefit of equal value to any other

allowance or benefit when computed upon the basis of the actuarial tables in use by the system.

     (4) “Annuity reserve” shall mean the present value of all payments to be made on account

of any annuity, benefit, or retirement allowance granted under the provisions of chapter 10 of this

title computed upon the basis of such mortality tables as shall be adopted from time to time by the

retirement board with regular interest.

     (5)(a) “Average compensation” for members eligible to retire as of September 30, 2009

shall mean the average of the highest three (3) consecutive years of compensation, within the total

service when the average compensation was the highest. For members eligible to retire on or after

October 1, 2009, “Average compensation” shall mean the average of the highest five (5) three (3)

consecutive years of compensation within the total service when the average compensation was the

highest.

     (b) For members who become eligible to retire on or after July 1, 2012, if more than one-

half (½) of the member’s total years of service consist of years of service during which the member

devoted less than thirty (30) business hours per week to the service of the state, but the member’s

average compensation consists of three (3) or more years during which the member devoted more

than thirty (30) business hours per week to the service of the state, such member’s average

compensation shall mean the average of the highest ten (10) consecutive years of compensation

within the total service when the average compensation was the highest; provided however,

effective July 1, 2015, if such member’s average compensation as defined in subsection (a) Above

is equal to or less than thirty-five thousand dollars ($35,000), such amount to be indexed annually

in accordance with § 36-10-35(h)(1)(B), such member’s average compensation shall mean the

greater of: (i) The average of the highest ten (10) consecutive years of compensation within the

total service when the average compensation was the highest; or (ii) The member’s average

compensation as defined in subsection (a) above. To protect a member’s accrued benefit on June

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30, 2012 under this § 36-8-1(5)(b), in no event shall a member’s average compensation be lower

than his or her average compensation determined as of June 30, 2012.

     (6) “Beneficiary” shall mean any person in receipt of a pension, an annuity, a retirement

allowance, or other benefit as provided by chapter 10 of this title.

     (7) “Casual employee” shall mean those persons hired for a temporary period, a period of

emergency or an occasional period.

     (8) “Compensation” as used in chapters 8 — 10 of this title, chapters 16 and 17 of title 16,

and chapter 21 of title 45 shall mean salary or wages earned and paid for the performance of duties

for covered employment, including regular longevity or incentive plans approved by the board, but

shall not include payments made for overtime or any other reason other than performance of duties,

including but not limited to the types of payments listed below:

     (i) Payments contingent on the employee having terminated or died;

     (ii) Payments made at termination for unused sick leave, vacation leave, or compensatory

time;

     (iii) Payments contingent on the employee terminating employment at a specified time in

the future to secure voluntary retirement or to secure release of an unexpired contract of

employment;

     (iv) Individual salary adjustments which are granted primarily in anticipation of the

employee’s retirement;

     (v) Additional payments for performing temporary or extra duties beyond the normal or

regular work day or work year.

     (9) “Employee” shall mean any officer or employee of the state of Rhode Island whose

business time is devoted exclusively to the services of the state, but shall not include one whose

duties are of a casual or seasonal nature. The retirement board shall determine who are employees

within the meaning of this chapter. The governor of the state, the lieutenant governor, the secretary

of state, the attorney general, the general treasurer, and the members of the general assembly, ex

officio, shall not be deemed to be employees within the meaning of that term unless and until they

elect to become members of the system as provided in § 36-9-6, but in no case shall it deem as an

employee, for the purposes of this chapter, any individual who devotes less than twenty (20)

business hours per week to the service of the state, and who receives less than the equivalent of

minimum wage compensation on an hourly basis for his or her services, except as provided in § 

36-9-24. Any commissioner of a municipal housing authority or any member of a part-time state,

municipal or local board, commission, committee or other public authority shall not be deemed to

be an employee within the meaning of this chapter.

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     (10) “Full actuarial costs” or “full actuarial value” shall mean the lump sum payable by a

member claiming service credit for certain employment for which that payment is required which

is determined according to the age of the member and the employee’s annual rate of compensation

at the time he or she applies for service credit and which is expressed as a rate percent of the

employee’s annual rate of compensation to be multiplied by the number of years for which he or

she claims service credit as prescribed in a schedule adopted by the retirement board from time to

time on the basis of computation by the actuary. Except as provided in §§ 16-16-7.1, 36-5-3, 36-

9-31, 36-10-10.4, 45-21-53, 36-10-8, 45-21-29, 8-3-16(c), 8-8-10.1(c), 42-28-22.1(d) and 28-30-

18.1(c):

     (i) all service credit purchases requested after June 16, 2009 and prior to July 1, 2012, shall

be at full actuarial value; and

     (ii) all service credit purchases requested after June 30, 2012 shall be at full actuarial value

which shall be determined using the system’s assumed investment rate of return minus one percent

(1%).

     The rules applicable to a service credit purchase shall be the rules of the retirement system

in effect at the time the purchase application is submitted to the retirement system.

     (11) “Funded ratio” shall mean the ratio of the actuarial value of assets to the actuarial

accrued liability consistent with the funding policy of the retirement board as defined in § 36-8-4.

     (12) “Inactive member” shall mean a member who has withdrawn from service as an

employee but who has not received a refund of contributions.

     (13) “Members” shall mean any person included in the membership of the retirement

system as provided in §§ 36-9-1 — 36-9-7.

     (14) “Prior service” shall mean service as a member rendered before July 1, 1936, certified

on his or her prior service certificate and allowable as provided in § 36-9-28.

     (15) “Regular interest” shall mean interest at the assumed investment rate of return,

compounded annually, as may be prescribed from time to time by the retirement board.

     (16) “Retirement allowance” shall mean annual payments for life made after retirement

under and in accordance with chapters 8 to 10 of this title. All allowances shall be paid in equal

monthly installments beginning as of the effective date thereof; provided, that a smaller pro rata

amount may be paid for part of a month where separation from service occurs during the month in

which the application was filed, and when the allowance ceases before the last day of the month.

     (17) “Retirement board” or “board” shall mean the board provided in § 36-8-3 to

administer the retirement system.

     (18) “Retirement system” shall mean the employees’ retirement system of the state of

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Rhode Island as defined in § 36-8-2.

     (19) “Service” shall mean service as an employee of the state of Rhode Island as described

in subdivision (9) of this section.

     (20) “Social Security retirement age” shall mean a member’s full retirement age as

determined in accordance with the federal Old Age, Survivors and Disability Insurance Act, not to

exceed age sixty-seven (67).

     (21) “Total service” shall mean prior service as defined above, plus service rendered as a

member on or after July 1, 1936.

     SECTION 3. Sections 36-10-9 and 36-10-10 of the General Laws in Chapter 36-10 entitled

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

     36-10-9. Retirement on service allowance — In general.

     Retirement of a member on a service retirement allowance shall be made by the retirement

board as follows:

     (1)(a)(i) Any member may retire upon his or her written application to the retirement board

as of the first day of the calendar month in which the application was filed; provided, the member

was separated from service prior thereto; and further provided, however, that if separation from

service occurs during the month in which application is filed, the effective date shall be the first

day following that separation from service; and provided further that the member on his or her

retirement date attained the age of sixty (60) and completed at least ten (10) years of contributory

service on or before July 1, 2005, or who, regardless of age, has completed twenty-eight (28) years

of total service and has completed at least ten (10) years of contributory service on or before July

1, 2005, and who retire before October 1, 2009, or are eligible to retire as of September 30, 2009.

     (ii) For members who become eligible to retire on or after October 1, 2009, and prior to

July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and

completed at least ten (10) years of contributory service. For members in service as of October 1,

2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior

to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in

proportion to the amount of service the member has earned as of September 30, 2009. The

proportional formula shall work as follows:

     (1) The formula shall determine the first age of retirement eligibility under the laws in

effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of

sixty-two (62).

     (2) The formula shall then take the member’s total service credit as of September 30, 2009,

as the numerator and the years of service credit determined under (1) as the denominator.

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     (3) The fraction determined in (2) shall then be multiplied by the age difference determined

in (1) to apply a reduction in years from age sixty-two (62).

     (b)(i) Any member, who has not completed at least ten (10) years of contributory service

on or before July 1, 2005, may retire upon his or her written application to the retirement board as

of the first day of the calendar month in which the application was filed; provided, the member was

separated from service prior thereto; and further provided, however, that if separation from service

occurs during the month in which application is filed, the effective date shall be the first day

following that separation from service; provided, the member or his or her retirement date had

attained the age of fifty-nine (59) and had completed at least twenty-nine (29) years of total service

or provided that the member on his or her retirement date had attained the age of sixty-five (65)

and had completed at least ten (10) years of contributory service; or provided, that the member on

his or her retirement date had attained the age of fifty-five (55) and had completed twenty (20)

years of total service provided, that the retirement allowance, as determined according to the

formula in § 36-10-10 is reduced actuarially for each month that the age of the member is less than

sixty-five (65) years, and who retire before October 1, 2009, or are eligible to retire as of September

30, 2009.

     (ii) For members who become eligible to retire on or after October 1, 2009 and prior to

July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and

completed at least twenty-nine (29) years of total service or have attained the age of sixty-five (65)

and completed at least ten (10) years of contributory service. For members in service as of October

1, 2009, who were not eligible to retire as of September 30, 2009, but become eligible to retire prior

to July 1, 2012, who have a minimum retirement age of sixty-two (62), the retirement age will be

adjusted downward in proportion to the amount of service the member has earned as of September

30, 2009. The proportional formula shall work as follows:

     (1) The formula shall determine the first age of retirement eligibility under the laws in

effect on September 30, 2009, which shall then be subtracted from the minimum retirement age of

sixty-two (62).

     (2) The formula shall then take the member’s total service credit as of September 30, 2009,

as the numerator and the years of service credit determined under (1) as the denominator.

     (3) The fraction determined in (2) above shall then be multiplied by the age difference

determined in (1) to apply a reduction in years from age sixty-two (62).

     (c) Effective July 1, 2012, the following shall apply to all members not eligible to retire

prior to July 1, 2012:

     (i) A member with contributory service on or after July 1, 2012, shall be eligible to retire

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upon the completion of at least five (5) years of contributory service and attainment of the member’s

Social Security retirement age.

     (ii) For members with five (5) or more years of contributory service as of June 30, 2012,

with contributory service on and after July 1, 2012, who have a retirement age of Social Security

Retirement Age, the retirement age will be adjusted downward in proportion to the amount of

service the member has earned as of June 30, 2012, but in no event shall a member’s retirement

age under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the

member’s retirement age determined under the laws in effect on June 30, 2012. The proportional

formula shall work as follows:

     (1) The formula shall determine the first age of retirement eligibility under the laws in

effect on June 30, 2012, which shall then be subtracted from Social Security retirement age;

     (2) The formula shall then take the member’s total service credit as of June 30, 2012, as

the numerator and the projected service at retirement age in effect on June 30, 2012, as the

denominator;

     (3) The fraction determined in (2) shall then be multiplied by the age difference determined

in (1) to apply a reduction in years from Social Security retirement age.

     (iii) Effective July 1, 2015, a member who has completed twenty (20) or more years of

total service and who has attained an age within five (5) years of the eligible retirement age under

subparagraphs (c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the

retirement allowance shall be reduced actuarially for each month that the age of the member is less

than the eligible retirement age under subparagraphs (c)(i) or (c)(ii) above or subsection (d) below

in accordance with the following table:

Year Preceding Cumulative Annual Cumulative Monthly

Retirement Reduction Reduction

For Year 1 9% 3% .75% 25%

For Year 2 8% 3% .667% 25%

For Year 3 7% 3% .583% 25%

For Year 4 7% 3% .583% 25%

For Year 5 7% 3% .583% 25%

     (iv) Notwithstanding any other provisions of section 36-10-9(c), a member who has

completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at

his or her eligible retirement date as determined under paragraphs (1)(a) and (1)(b) above provided

that a member making an election under this paragraph shall receive the member’s retirement

benefit determined and calculated based on the member’s service and average compensation as of

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June 30, 2012. This provision shall be interpreted and administered in a manner to protect a

member’s accrued benefit on June 30, 2012.

     (d) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015,

members in active service shall be eligible to retire upon the earlier of: (A) The attainment of at

least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the

attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of total

service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-two

(32) years of total service, or the attainment of at least age sixty-two (62) and the completion of at

least thirty-three (33) years of total service; or (B) The member’s retirement eligibility date under

subsections (c)(i) or (c)(ii) above.

     (2) Any faculty employee at a public institution of higher education under the jurisdiction

of the council on postsecondary education shall not be involuntarily retired upon attaining the age

of seventy (70) years.

     (3)(i) Except as specifically provided in § 36-10-9.1, §§ 36-10-12 — 36-10-15, and §§ 45-

21-19 — 45-21-22, (I) On or prior to June 30, 2012 no member shall be eligible for pension benefits

under this chapter unless the member shall have been a contributing member of the employee’s

retirement system for at least ten (10) years, or (II) For members in active contributory service on

or after July 1, 2012, the member shall have been a contributing member of the retirement system

for at least five (5) years.

     (ii) Provided, however, a person who has ten (10) years service credit on or before June 16,

1991, shall be vested.

     (iii) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall be

counted towards vesting.

     (iv) Any person who becomes a member of the employees’ retirement system pursuant to

§ 45-21-4 shall be considered a contributing member for the purpose of chapter 21 of title 45 and

this chapter.

     (v) Notwithstanding any other provision of law, no more than five (5) years of service

credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

of service credits before January 1, 1995, shall be permitted to apply those purchases towards the

member’s service retirement. However, no further purchase will be permitted. Repayment in

accordance with applicable law and regulation of any contribution previously withdrawn from the

system shall not be deemed a purchase of service credit.

     (vi) Notwithstanding any other provision of law, effective July 1, 2012, except for

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purchases under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53, (A) For service

purchases for time periods prior to a member’s initial date of hire, the purchase must be made

within three (3) years of the member’s initial date of hire, (B) For service purchases for time periods

for official periods of leave as authorized by law, the purchase must be made within three (3) years

of the time the official leave was concluded by the member. Notwithstanding the preceding

sentence, service purchases from time periods prior to June 30, 2012, may be made on or prior to

June 30, 2015.

     (4) No member of the employees’ retirement system shall be permitted to purchase service

credits for casual, seasonal, or temporary employment, or emergency appointment, for employment

as a page in the general assembly, or for employment at any state college or university while the

employee is a student or graduate assistant of the college or university.

     (5) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not

receive service credit in this retirement system for any year or portion of it, which counts as service

credit in any other retirement system in which the member is vested or from which the member is

receiving a pension and/or any annual payment for life. This subsection shall not apply to any

payments received pursuant to the federal Social Security Act or to payments from a military

pension earned prior to participation in state or municipal employment, or to military service credits

earned prior to participation in state or municipal employment.

     (6) A member who seeks to purchase or receive service credit in this retirement system

shall have the affirmative duty to disclose to the retirement board whether or not he or she is a

vested member in any other retirement system and/or is receiving a pension, retirement allowance,

or any annual payment for life. The retirement board shall have the right to investigate as to whether

or not the member has utilized the same time of service for credit in any other retirement system.

The member has an affirmative duty to cooperate with the retirement board including, by way of

illustration and not by way of limitations the duty to furnish or have furnished to the retirement

board any relevant information which is protected by any privacy act.

     (7) A member who fails to cooperate with the retirement board shall not have the time of

service counted toward total service credit until such time as the member cooperates with the

retirement board and until such time as the retirement board determines the validity of the service

credit.

     (8) A member who knowingly makes a false statement to the retirement board regarding

service time or credit shall not be entitled to a retirement allowance and is entitled only to the return

of his or her contributions without interest.

     36-10-10. Amount of service retirement allowance.

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     (a)(1)(i) For employees eligible to retire on or before September 30, 2009, upon retirement

for service under § 36-10-9, a member whose membership commenced before July 1, 2005, and

who has completed at least ten (10) years of contributory service on or before July 1, 2005, shall

receive a retirement allowance which shall be determined in accordance with schedule A below for

service prior to July 1, 2012:

Schedule A

Years of Service Percentage Allowance

     1st through 10th inclusive 1.7%

     11th through 20th inclusive 1.9%

     21st through 34th inclusive 3.0%

     35th 2.0%

     (ii) For employees eligible to retire on or after October 1, 2009, who were not eligible to

retire on or before September 30, 2009, upon retirement from service under § 36-10-9, a member

whose membership commenced before July 1, 2005, and who has completed at least ten (10) years

of contributory service on or before July 1, 2005, shall receive a retirement allowance which shall

be determined in accordance with schedule A above for service on before September 30, 2009, and

shall be determined in accordance with schedule B in subsection (a)(2) below for service on or after

October 1, 2009, and prior to July 1, 2012.

     (2) Upon retirement for service under § 36-10-9, a member whose membership

commenced after July 1, 2005, or who has not completed at least ten (10) years of contributory

service as of July 1, 2005, shall, receive a retirement allowance which shall be determined in

accordance with Schedule B below for service prior to July 1, 2012:

Schedule B

Years of Service Percentage Allowance

     1st through 10th inclusive 1.60%

     11th through 20th inclusive 1.80%

     21st through 25th inclusive 2.0%

     26th through 30th inclusive 2.25%

     31st through 37th inclusive 2.50%

     38th 2.25%

     (b) The retirement allowance of any member whose membership commenced before July

1, 2005, and who has completed at least ten (10) years of contributory service on or before July 1,

2005, shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of his

or her average highest three (3) consecutive years of compensation multiplied by the number of

LC002943 - Page 16 of 26

years of total service, but in no case to exceed eighty percent (80%) of the compensation payable

at completion of thirty-five (35) years of service; provided, however, for employees retiring on or

after October 1, 2009, who were not eligible to retire as of September 30, 2009 the calculation shall

be based on the average highest five (5) consecutive years of compensation. Any member who has

in excess of thirty-five (35) years on or before June 2, 1985, shall not be entitled to any refund, and

any member with thirty-five (35) years or more on or after June 2, 1985, shall contribute from July

1, 1985, until his or her retirement.

     The retirement allowance of any member whose membership commenced after July 1,

2005, or who had not completed at least ten (10) years of contributory service as of July 1, 2005,

shall, be in an amount equal to the percentage allowance specified in Schedule B of his or her

average highest three (3) consecutive years of compensation multiplied by the number of years of

total service, but in no case to exceed seventy-five percent (75%) of the compensation payable at

the completion of thirty-eight (38) years of service; provided, however, for employees retiring on

or after October 1, 2009, who were not eligible to retire as of September 30, 2009, the calculation

shall be based on the average highest five (5) consecutive years of compensation.

     (c) Any member with thirty-eight (38) years or more of service prior to December 31, 1985,

shall not be required to make additional contributions. Contributions made between December 31,

1985, and July 1, 1987, by members with thirty-eight (38) or more years of service prior to

December 31, 1985, shall be refunded by the retirement board to the persons, their heirs,

administrators, or legal representatives.

     (d) For service prior to July 1, 2012, the retirement allowance of a member shall be

determined in accordance with subsections (a)(1) and (a)(2) above. For service on and after July 1,

2012, a member’s retirement allowance shall be equal to:

     (i) For members with fewer than twenty (20) years of total service as of June 30, 2012, one

percent (1%) one and one-half percent (1.5%) of the member’s average compensation multiplied

by the member’s years of total service on and after July 1 2012; and

     (ii) For members with twenty (20) or more years of total service as of June 30, 2012, a

member’s retirement allowance shall be equal to one percent (1%) one and one-half percent (1.5%)

of the member’s average compensation multiplied by the member’s years of total service between

July 1, 2012, and June 30, 2015, and two percent (1%) two and one-half percent (2.5%) of the

member’s average compensation multiplied by the member’s years of total service on and after

July 1, 2015. For purposes of computing a member’s total service under the preceding sentence,

service purchases shall be included in total service only with respect to those service purchases

approved prior to June 30, 2012, and those applications for service purchases received by the

LC002943 - Page 17 of 26

retirement system on or before June 30, 2012.

     In no event shall a member’s retirement allowance exceed the maximum limitations set

forth in paragraph (b) above.

     SECTION 4. Sections 45-21-2, 45-21-16 and 45-21-17 of the General Laws in Chapter 45-

21 entitled "Retirement of Municipal Employees" are hereby amended to read as follows:

     45-21-2. Definitions.

     The following words and phrases as used in this chapter have the following meanings

unless a different meaning is plainly required by the context:

     (1) “Accumulated contributions” means the sum of all amounts deducted from the

compensation of a member and credited to his or her individual account in the members’

contribution reserve account.

     (2) “Active member” means any employee of a participating municipality as defined in this

section for whom the retirement system is currently receiving regular contributions pursuant to §§ 

45-21-41, 45-21-41.1 or 45-21.2-14.

     (3) “Actuarial reserve” means the present value of all payments to be made on account of

any annuity, retirement allowance, or benefit, computed upon the basis of mortality tables adopted

by the retirement board with regular interest.

     (4) “Beneficiary” means any person in receipt of a retirement allowance, annuity, or other

benefit as provided by this chapter.

     (5) For purposes of this chapter, “domestic partner” shall be defined as a person who, prior

to the decedent’s death, was in an exclusive, intimate and committed relationship with the decedent,

and who certifies by affidavit that their relationship met the following qualifications:

     (i) Both partners were at least eighteen (18) years of age and were mentally competent to

contract;

     (ii) Neither partner was married to anyone else;

     (iii) Partners were not related by blood to a degree which would prohibit marriage in the

state of Rhode Island;

     (iv) Partners resided together and had resided together for at least one year at the time of

death; and

     (v) Partners were financially interdependent as evidenced by at least two (2) of the

following:

     (A) Domestic partnership agreement or relationship contract;

     (B) Joint mortgage or joint ownership of primary residence;

     (C) Two (2) of: (I) Joint ownership of motor vehicle; (II) Joint checking account; (III) Joint

LC002943 - Page 18 of 26

credit account; (IV) Joint lease; and/or

     (D) The domestic partner had been designated as a beneficiary for the decedent’s will,

retirement contract or life insurance.

     (6) “Effective date of participation” means the date on which the provisions of this chapter

have become applicable to a municipality accepting the provisions of the chapter in the manner

stated in § 45-21-4.

     (7) “Employee” means any regular and permanent employee or officer of any municipality,

whose business time at a minimum of twenty (20) hours a week is devoted to the service of the

municipality, including elective officials and officials and employees of city and town housing

authorities. Notwithstanding the previous sentence, the term “employee,” for the purposes of this

chapter, does not include any person whose duties are of a casual or seasonal nature. The retirement

board shall decide who are employees within the meaning of this chapter, but in no case shall it

deem as an employee any individual who annually devotes less than twenty (20) business hours per

week to the service of the municipality and who receives less than the equivalent of minimum wage

compensation on an hourly basis for his or her services, except as provided in § 45-21-14.1. Casual

employees mean those persons hired for an occasional period or a period of emergency to perform

special jobs or functions not necessarily related to the work of regular employees. Any

commissioner of a municipal housing authority, or any member of a part-time state board

commission, committee or other authority is not deemed to be an employee within the meaning of

this chapter.

     (8)(a) “Final compensation” for members who are eligible to retire on or prior to June 30,

2012, means the average annual compensation, pay, or salary of a member for services rendered

during the period of three (3) consecutive years within the total service of the member when the

average was highest, and as the term average annual compensation is further defined in §  36-8-

1(5)(a). For members eligible to retire on or after July 1, 2012, “final compensation” means the

average of the highest five (5) consecutive years of compensation within the total service when the

final compensation was the highest.

     (b) For members who become eligible to retire on or after July 1, 2012, if more than one

half (½) of the member’s total years of service consist of years of service during which the member

devoted less than thirty (30) business hours per week to the service of the municipality, but the

member’s average compensation consists of three (3) or more years during which the member

devoted more than thirty (30) business hours per week to the service of a municipality, such

member’s average compensation shall mean the average of the highest ten (10) consecutive years

of compensation within the total service when the average compensation was the highest; provided

LC002943 - Page 19 of 26

however, effective July 1, 2015, if such member’s average compensation as defined in subsection

(a) above is equal to or less than thirty-five thousand dollars ($35,000), such amount to be indexed

annually in accordance with § 45-21-52(d)(1)(B), such member’s average compensation shall

mean the greater of: (i) The average of the highest ten (10) consecutive years of compensation

within the total service when the average compensation was the highest; or (ii) The member’s

average compensation as defined in subsection (a) above. To protect a member’s accrued benefit

on June 30, 2012, under this subsection (8)(b), in no event shall a member’s average compensation

be lower than his or her average compensation determined as of June 30, 2012.

     Notwithstanding the preceding provisions, in no event shall a member’s final compensation

be lower than his or her final compensation determined as of June 30, 2012.

     (9) “Fiscal year” means the period beginning on July 1 in any year and ending on June 30

of the next succeeding year.

     (10) “Full actuarial costs” or “full actuarial value” mean the lump sum payable by a

member claiming service credit for certain employment for which payment is required, which is

determined according to the age of the member and his or her annual rate of compensation at the

time he or she applies for service credit, and which is expressed as a rate percent of the annual rate

of compensation to be multiplied by the number of years for which he or she claims the service

credit, as prescribed in a schedule adopted by the retirement board, from time to time, on the basis

of computation by the actuary. Except as provided in §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4,

and 45-21-53: (i) All service credit purchases requested after June 16, 2009, and prior to July 1,

2012, shall be at full actuarial value; and (ii) All service credit purchases requested after June 30,

2012, shall be at full actuarial value which shall be determined using the system’s assumed

investment rate of return minus one percent (1%).

     (11) “Governing body” means any and all bodies empowered to appropriate monies for,

and administer the operation of, the units as defined in subdivision (1) of this section.

     (12) “Member” means any person included in the membership of the retirement system as

provided in § 45-21-8.

     (13) “Municipality” means any town or city in the state of Rhode Island, any city or town

housing authority, fire, water, sewer district, regional school district, public building authority as

established by chapter 14 of title 37, or any other municipal financed agency to which the retirement

board has approved admission in the retirement system.

     (14) “Participating municipality” means any municipality which has accepted this chapter,

as provided in § 45-21-4.

     (15) “Prior service” means service as a member rendered before the effective date of

LC002943 - Page 20 of 26

participation as defined in this section, certified on his or her prior service certificate, and allowable

as provided in § 45-21-15.

     (16) “Regular interest” means interest at the assumed investment rate of return,

compounded annually, as may be prescribed from time to time by the retirement board.

     (17) “Retirement allowance” or “annuity” means the amounts paid to any member of the

municipal employees’ retirement system of the state of Rhode Island, or a survivor of the member,

as provided in this chapter. All retirement allowances or annuities shall be paid in equal monthly

installments for life, unless otherwise specifically provided.

     (18) “Retirement board” or “board” means the state retirement board created by chapter 8

of title 36.

     (19) “Retirement system” means the “municipal employees’ retirement system of the state

of Rhode Island” as defined in § 45-21-32.

     (20) “Service” means service as an employee of a municipality of the state of Rhode Island

as defined in subdivision (7).

     (21) “Total service” means prior service as defined in subdivision (15) plus service

rendered as a member on or after the effective date of participation.

     (22) Any term not specifically defined in this chapter and specifically defined in chapters

8 through 10 of title 36 shall have the same definition as set forth in chapters 8 through 10 of title

36.

     45-21-16. Retirement on service allowance.

     Retirement of a member on a service retirement allowance shall be made by the retirement

board as follows:

     (1)(i) Any member who is eligible to retire on or before June 30, 2012, may retire upon the

member’s written application to the retirement board as of the first day of the calendar month in

which the application was filed, provided the member was separated from service prior to the

application, and provided, further, that if separation from service occurs during the month in which

application is filed, the effective date is the first day following the separation from service, provided

that the member at the time so specified for the member’s retirement has attained the applicable

minimum retirement age and has completed at least ten (10) years of total service or who, regardless

of age, completed thirty (30) years of total service, and notwithstanding that during the period of

notification the member has separated from service. The minimum ages for service retirement

(except for employees completing thirty (30) years of service) is fifty-eight (58) years.

     (ii) Effective July 1, 2012, the following shall apply to all members not eligible to retire

prior to July 1, 2012:

LC002943 - Page 21 of 26

     (A) A member with contributory service on or after July 1, 2012, shall be eligible to retire

upon the completion of at least five (5) years of contributory service and attainment of the member’s

Social Security retirement age.

     (B) For members with five (5) or more years of contributory service as of June 30, 2012,

with contributory service on and after July 1, 2012, who have a retirement age of Social Security

retirement age, the retirement age will be adjusted downward in proportion to the amount of service

the member has earned as of June 30, 2012, but in no event shall a member’s retirement age under

this subparagraph (B) be prior to the attainment of age fifty-nine (59) or prior to the member’s

retirement age determined under the laws in effect on June 30, 2012. The proportional formula shall

work as follows:

     (1) The formula shall determine the first age of retirement eligibility under the laws in

effect on June 30, 2012, which shall then be subtracted from Social Security retirement age;

     (2) The formula shall then take the member’s total service credit as of June 30, 2012, as

the numerator and the projected service at retirement age in effect on June 30, 2012, as the

denominator;

     (3) The fraction determined in (2) shall then be multiplied by the age difference determined

in (1) to apply a reduction in years from Social Security retirement age.

     (C) Effective July 1, 2015, a member who has completed twenty (20) or more years of total

service and who has attained an age within five (5) years of the eligible retirement age under

subparagraphs (ii)(A) or (ii)(B) above or subsection (iii) below, may elect to retire provided that

the retirement allowance shall be reduced actuarially for each month that the age of the member is

less than the eligible retirement age under subparagraphs (ii)(A) or (ii)(B) above or subsection (iii)

below in accordance with the following table:

Year Preceding Cumulative Annual Cumulative Monthly

Retirement Reduction Reduction

For Year 1 9% 3% .75% 25%

For Year 2 8% 3% .667% 25%

For Year 3 7% 3% .583% 25%

For Year 4 7% 3% .583% 25%

For Year 5 7% 3% .583% 25%

      (D)(1) Notwithstanding any other provisions of § 42-21-16(1)(ii), a member who has

completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire at

his or her eligible retirement date as determined under paragraph (i) above provided that a member

making an election under this paragraph shall receive the member’s retirement benefit determined

LC002943 - Page 22 of 26

and calculated based on the member’s service and average compensation as of June 30, 2012. This

provision shall be interpreted and administered in a manner to protect a member’s accrued benefit

on June 30, 2012.

     (iii) Notwithstanding any other provisions of subsection (ii) above, effective July 1, 2015,

members in active service shall be eligible to retire upon the earlier of: (I) The attainment of at

least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the

attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of total

service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-two

(32) years of total service, or the attainment of at least age sixty-two (62) and the completion of at

least thirty-three (33) years of total service; or (II) The member’s retirement eligibility date under

subsections (ii)(A) or (ii)(B) above.

     (2) Except as specifically provided in §§ 45-21-19 — 45-21-22, no member is eligible for

pension benefits under this chapter unless:

     (I) On or prior to June 30, 2012, the member has been a contributing member of the

employees’ retirement system for at least ten (10) years; or

     (II) For members in active contributory service on or after July 1, 2012, the member shall

have been a contributing member of the employees’ retirement system for at least five (5) years.

     (i) Provided, however, a person who has ten (10) years service credit on or before June 16,

1991, is vested.

     (ii) Furthermore, any past service credits purchased in accordance with § 45-21-62 are

counted towards vesting.

     (iii) Any person who becomes a member of the employees’ retirement system pursuant to

§ 45-21-4 shall be considered a contributing member for the purpose of this chapter.

     (iv) Notwithstanding any other provision of law, no more than five (5) years of service

credit may be purchased by a member of the System. The five (5)-year limit does not apply to any

purchases made prior to the effective date of this provision. A member who has purchased more

than five (5) years of service credit maximum, before January 1, 1995, shall be permitted to apply

the purchases towards the member’s service retirement. However, no further purchase will be

permitted. Repayment, in accordance with applicable law and regulation, of any contribution

previously withdrawn from the System is not deemed a purchase of service credit.

     (v) Notwithstanding any other provision of law, effective July 1, 2012, except for purchases

under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53:

     (I) For service purchases for time periods prior to a member’s initial date of hire; the

purchase must be made within three (3) years of the member’s initial date of hire; and

LC002943 - Page 23 of 26

     (II) For service purchases for time periods for official periods of leave as authorized by

law, the purchase must be made within three (3) years of the time the official leave was concluded

by the member.

     Notwithstanding (I) and (II) above, service purchases from time periods prior to June 30,

2012, may be made on or prior to June 30, 2015.

     (3) No member of the municipal employees’ retirement system is permitted to purchase

service credits for casual, temporary, emergency or seasonal employment, for employment as a

page in the general assembly, or for employment at any state college or university while the

employee is a student or graduate assistant of the college or university.

     (4) A member does not receive service credit in this retirement system for any year or

portion of a year, which counts as service credit in any other retirement system in which the member

is vested or from which the member is receiving a pension and/or any annual payment for life. This

subsection does not apply to any payments received pursuant to the federal Social Security Act or

to payments from a military pension earned prior to participation in state or municipal employment,

or to military service credits earned prior to participation in state or municipal employment.

     (5) A member who seeks to purchase or receive service credit in this retirement system has

the affirmative duty to disclose to the retirement board whether or not he or she is a vested member

in any other retirement system and/or is receiving a pension retirement allowance or any annual

payment for life. The retirement board has the right to investigate whether or not the member has

utilized the same time of service for credit in any other retirement system. The member has an

affirmative duty to cooperate with the retirement board including, by way of illustration and not by

way of limitation, the duty to furnish or have furnished to the retirement board any relevant

information which is protected by any privacy act.

     (6) A member who fails to cooperate with the retirement board shall not have the time of

service counted toward total service credit until a time that the member cooperates with the

retirement board and until a time that the retirement board determines the validity of the service

credit.

     (7) A member who knowingly makes a false statement to the retirement board regarding

service time or credit is not entitled to a retirement allowance and is entitled only to the return of

his or her contributions without interest.

     45-21-17. Service retirement allowance.

     (a) Upon retirement from service after January 1, 1969, a member shall receive a retirement

allowance which is a life annuity terminable upon death of the annuitant and is an amount equal to

two percent (2%) of final compensation multiplied by the number of years of total service, not to

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exceed thirty-seven and one-half (37½) years for services on and prior to June 30, 2012. For service

on and after July 1, 2012: (i) For members with fewer than twenty (20) years of total service as of

June 30, 2012, a member’s retirement allowance shall be equal to one percent (1%) of the member’s

final compensation multiplied by the member’s years of total service on and after July 1, 2012; and

(ii) For members with twenty (20) or more years of total service as of June 30, 2012, a member’s

retirement allowance shall be equal to one percent (1%) one and one-half percent (1.5%) of the

member’s average compensation multiplied by the member’s years of total service between July 1,

2012, and June 30, 2015, and two percent (1%) two and one-half percent (2.5%) of the member’s

average compensation multiplied by the member’s years of total service on and after July 1, 2015.

For purposes of computing a member’s total service under the preceding sentence, service

purchases shall be included in total service only with respect to those service purchases approved

prior to June 30, 2012, and those applications for service purchases received by the retirement

system on or before June 30, 2012. In no event shall a member’s retirement allowance exceed

seventy-five percent (75%) of the member’s final compensation. Provided, however, that every

person elected prior to July 1, 2012, who has served as a part time elected official of the city of

Cranston for a period of ten (10) years, is entitled to receive, upon retirement from that part time

service, and not being otherwise regularly employed by the city of Cranston in which that person

has served, a service retirement allowance equivalent to fifty percent (50%) of the salary received

at the time of retirement by that part time elected official; and, provided, further, that if that person

retires after a period of service greater than ten (10) years, the person is entitled to receive an

additional service retirement allowance equivalent to five percent (5%) of the salary received at the

time of retirement for each whole year of service, in excess of ten (10) years up to a maximum

additional allowance equivalent to fifty percent (50%) of the salary received.

     (b) This section also applies to any former part time elected official of the city of Cranston

who is presently receiving retirement benefits from the municipal retirement system.

     (c) Every person elected prior to July 1, 2012, who serves or has served at least four (4)

years as a part time elected official of the city of Cranston may include that person’s years of service

as a member of the general assembly, and any other credits acquired while serving as a legislator,

when computing the person’s period of service to the city of Cranston pursuant to the provisions

of this section.

     SECTION 5. 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

***

     This act would amend sections of law relating to retirement of various public employees

and the calculation of their final average salary and service accruals.

     This act would take effect upon passage.

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