Bill > H5318

This bill changes the cutoff date for calculating retirement benefits for teachers and state employees from July 1, 2024, to July 1, 2012. Specifically, the bill modifies how "average compensation" is defined for retirement calculations. For members eligible to retire on or after July 1, 2012, average compensation will now mean the average of the highest three consecutive years of compensation within their total service. This change affects both state employees (in Section 1) and municipal employees (in Section 2). The bill includes provisions to protect members' accrued benefits, ensuring that no member's average compensation will be lower than what was determined as of June 30, 2012. For members who worked part-time for more than half their career but had some full-time years, there are special calculations to determine their average compensation. The bill takes effect immediately upon passage, potentially impacting retirement calculations for a significant number of public employees in Rhode Island.

Budget and Finance

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