Bill Sponsors
Donovan, Fellela, McNamara, Speakman, Serpa, Messier, Phillips, Cotter, and Boylan
Committee
House Finance
Summary
Select
This legislation modifies the rules for the Employees’ Retirement System regarding Rhode Island teachers. Specifically, it allows a teacher who takes unpaid parental or medical leave during a school year to still receive credit for a full year of service for retirement purposes. To qualify for this credit, the teacher must have worked at least 135 school days during that year. This change ensures that teachers who miss a portion of the year due to health or family reasons, but still work the majority of the year, are not penalized in their pension calculations.
Sponsor
Analysis
Pros for Progressives
- Strengthens the social safety net for educators by ensuring that taking necessary unpaid time off for medical reasons or child-rearing does not penalize their long-term retirement security.
- Promotes gender equity in the workforce, as women disproportionately take parental leave and are more likely to be impacted by gaps in service credit accumulation.
- Improves worker retention and morale by acknowledging the human needs of workers, allowing them to balance health and family obligations without sacrificing future financial stability.
Cons for Progressives
- The requirement to work 135 days may still exclude teachers suffering from prolonged illnesses or complications from childbirth that require longer recovery periods, leaving the most vulnerable without coverage.
- Does not address the immediate financial burden of unpaid leave, as it only protects future retirement credits rather than providing paid family or medical leave during the absence.
- Focuses solely on teachers within the state retirement system, leaving out support staff, aides, or other educational workers who might face similar hardships but lack comparable protections.
Pros for Conservatives
- Supports traditional family values by removing bureaucratic penalties for teachers who prioritize childbirth and caring for their newborns during the crucial early months.
- Maintains a work requirement of 135 days, ensuring that full benefits are only awarded to those who have substantially contributed to the school year rather than offering a "free ride."
- May assist in retaining experienced teachers, reducing the administrative costs and disruptions associated with recruiting and training new hires to replace those who might otherwise leave the profession.
Cons for Conservatives
- Increases the unfunded liability of the state pension system by granting full-year service credits to employees who did not work a full year, potentially leading to higher taxes to cover the shortfall.
- Provides special privileges to public sector union members that are not available to private sector taxpayers who ultimately fund these benefits.
- Erodes the principle of "pay for performance" by allowing full credit for partial work, setting a precedent that could lead to further reductions in work requirements for government employees.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Teachers
- School Administrators
- Retirement Board
- Taxpayers
- Pregnant Women
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
None
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/09/2026 Introduced, referred to House Finance
Bill Text
SECTION 1. Section 16-16-5 of the General Laws in Chapter 16-16 entitled "Teachers’ Retirement [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is hereby amended to read as follows:
16-16-5. Service creditable.
(a) In calculating “service”, “prior service”, or “total service” as defined in § 16-16-1, every teacher shall be given credit for a year of service for each year in which he or she shall have served as a teacher; provided, that any teacher who through illness or leave of absence without pay does not serve a full school year may receive credit for a full school year of service by paying the full actuarial cost as defined in § 36-8-1(9). Credit for leaves of absence shall be limited, in the aggregate, during the total service of a teacher to a period of four (4) years; provided, however, every teacher who had been required to resign for maternity reasons may receive credit for maternity reasons by making contribution to the system upon her return to teaching the amount she would have contributed to the retirement system, with regular interest, based upon her expected compensation but for her absence due to maternity reasons.
(b) The retirement board shall fix and determine the time when and the conditions under which the payments shall be made.
(c) Any teacher who serves or who has served during a school year the number of days that the public schools are required by law to be in session during the year shall be given credit for a year of service for that year. A teacher who takes an unpaid parental or medical leave during the year shall be given credit for a year of service for that school year, provided they serve at least one- hundred thirty-five (135) school days. In determining the number of days served by a substitute teacher the total number of days served in any public school of any city or town in the state may be combined for any one school year. Any teacher shall be entitled to “prior service” credit for service prior to July 1, 1949, provided the teacher shall have been in service during the school year 1949- 1950. The teacher shall be entitled to service credit for any year subsequent to July 1, 1949 in accordance with this chapter, by making contribution to the retirement system of the full actuarial cost for any such service credit.
(d) Any teacher employed in at least a half (½) program including a job share program, or working at least half the number of days that the public schools are required to be in session, shall remain a contributing member and shall receive credit for that part-time service on a proportional basis. The purchase of any remaining program or job share time in which the teacher did not work shall not be permitted.
(e) In computing service or in computing compensation, the retirement board shall credit no more than one year of service on account of all service in one calendar year.
(f) Notwithstanding any other section of law, no member of the retirement system shall be permitted to purchase service credit for any portion of a year for which he or she is already receiving service credit in this retirement system.
SECTION 2. This act shall take effect upon passage.
16-16-5. Service creditable.
(a) In calculating “service”, “prior service”, or “total service” as defined in § 16-16-1, every teacher shall be given credit for a year of service for each year in which he or she shall have served as a teacher; provided, that any teacher who through illness or leave of absence without pay does not serve a full school year may receive credit for a full school year of service by paying the full actuarial cost as defined in § 36-8-1(9). Credit for leaves of absence shall be limited, in the aggregate, during the total service of a teacher to a period of four (4) years; provided, however, every teacher who had been required to resign for maternity reasons may receive credit for maternity reasons by making contribution to the system upon her return to teaching the amount she would have contributed to the retirement system, with regular interest, based upon her expected compensation but for her absence due to maternity reasons.
(b) The retirement board shall fix and determine the time when and the conditions under which the payments shall be made.
(c) Any teacher who serves or who has served during a school year the number of days that the public schools are required by law to be in session during the year shall be given credit for a year of service for that year. A teacher who takes an unpaid parental or medical leave during the year shall be given credit for a year of service for that school year, provided they serve at least one- hundred thirty-five (135) school days. In determining the number of days served by a substitute teacher the total number of days served in any public school of any city or town in the state may be combined for any one school year. Any teacher shall be entitled to “prior service” credit for service prior to July 1, 1949, provided the teacher shall have been in service during the school year 1949- 1950. The teacher shall be entitled to service credit for any year subsequent to July 1, 1949 in accordance with this chapter, by making contribution to the retirement system of the full actuarial cost for any such service credit.
(d) Any teacher employed in at least a half (½) program including a job share program, or working at least half the number of days that the public schools are required to be in session, shall remain a contributing member and shall receive credit for that part-time service on a proportional basis. The purchase of any remaining program or job share time in which the teacher did not work shall not be permitted.
(e) In computing service or in computing compensation, the retirement board shall credit no more than one year of service on account of all service in one calendar year.
(f) Notwithstanding any other section of law, no member of the retirement system shall be permitted to purchase service credit for any portion of a year for which he or she is already receiving service credit in this retirement system.
SECTION 2. This act shall take effect upon passage.