Bill Sponsors
O'Brien, McEntee, Dawson, Biah, Noret, Furtado, Messier, Read, Corvese, and Slater
Committee
House Finance
Summary
Select
This legislation amends the retirement statutes for Rhode Island teachers, state employees, and municipal employees. It introduces a "Rule of 85" provision effective July 1, 2026. Under this new rule, active employees who have completed at least 28 years of total service will be eligible to retire when their age combined with their years of service equals 85. This provides an alternative eligibility pathway to the existing age and service requirements currently in place for these public pension systems.
Sponsor
Analysis
Pros for Progressives
- Restores a level of dignity and financial security to public servants by allowing those with long careers to retire earlier than current stringent requirements allow.
- Potentially opens up employment opportunities for a younger, more diverse generation of teachers and civil servants by allowing senior staff to exit the workforce.
- Acknowledges the physical and emotional toll of long-term public service, particularly in education, by providing a fair exit ramp for burnt-out employees.
Cons for Progressives
- Could place additional strain on the pension system's unfunded liability, potentially diverting future budget resources away from active social services and education funding.
- May result in a "brain drain" of the most experienced educators and public administrators, potentially lowering the quality of public services delivered to the community.
- Does not address the needs of public employees with fewer years of service who may still face economic hardship or difficult working conditions but cannot meet the 28-year threshold.
Pros for Conservatives
- Encourages the retirement of higher-paid senior employees, which allows the state and municipalities to replace them with entry-level staff at lower salary steps, potentially saving on payroll.
- Facilitates workforce turnover, preventing stagnation in government agencies and allowing for the restructuring of roles without layoffs.
- Strictly limits the benefit to those with significant tenure (28 years), rewarding long-term work rather than expanding handouts to short-term employees.
Cons for Conservatives
- Increases the state's unfunded pension liabilities, likely requiring future tax increases or bailouts to sustain the retirement system.
- Expands government benefits for public sector union members, strengthening the position of labor organizations that often oppose conservative policy.
- Reduces the labor force participation rate by incentivizing able-bodied, experienced individuals to stop working and draw from public funds earlier than necessary.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Public School Teachers
- State Employees
- Municipal Employees
- Taxpayers
- Retirement Board
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
None
BillBuddy Impact Ratings
Importance
Measures population affected and overall level of impact.
Freedom Impact
Level of individual freedom impacted by the bill.
Public Services
How much the bill is likely to impact one or more public services.
Regulatory
Estimated regulatory burden imposed on the subject(s) of the bill.
Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
Impact the bill will have on the environment, positive or negative.
Privacy Impact
Impact the bill is likely to have on the privacy of individuals.
Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/16/2026 Introduced, referred to House Finance
Bill Text
SECTION 1. Section 16-16-12 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:
16-16-12. 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 LC003663 - Page 2 of 15 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 Retirement Cumulative Annual Reduction Cumulative Monthly Reduction For Year 1 9% .75% LC003663 - Page 3 of 15 For Year 2 8% .667% For Year 3 7% .583% For Year 4 7% .583% For Year 5 7% .583%
(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)(i) 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.
(ii) Notwithstanding any other provisions of subsections (c) or (d)(i) of this section, commencing July 1, 2026, teachers in active service who have at least twenty-eight (28) years of total service, shall be eligible to retire upon the earlier of:
(A) When the teacher's age when combined with their number of years of service, totals the number eighty-five (85); or
(B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) of this section.
(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. LC003663 - Page 4 of 15
(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 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 LC003663 - Page 5 of 15 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 of his or her contributions without interest.
SECTION 2. Section 36-10-9 of the General Laws in Chapter 36-10 entitled "Retirement System — Contributions and Benefits" is 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.
(3) The fraction determined in (2) shall then be multiplied by the age difference determined LC003663 - Page 6 of 15 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 upon the completion of at least five (5) years of contributory service and attainment of the member’s LC003663 - Page 7 of 15 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 Retirement Cumulative Annual Reduction Cumulative Monthly Reduction
For Year 1 9% .75%
For Year 2 8% .667%
For Year 3 7% .583%
For Year 4 7% .583%
For Year 5 7% .583%
(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 June 30, 2012. This provision shall be interpreted and administered in a manner to protect a LC003663 - Page 8 of 15 member’s accrued benefit on June 30, 2012.
(d)(i) 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.
(ii) Notwithstanding any other provisions of subsections (c) or (d)(i) of this section, commencing July 1, 2026, teachers in active service who have at least twenty-eight (28) years of total service, shall be eligible to retire upon the earlier of:
(A) When the teacher's age when combined with their number of years of service, totals the number eighty-five (85); or
(B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) of this section.
(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 LC003663 - Page 9 of 15 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 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 LC003663 - Page 10 of 15 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.
SECTION 3. Section 45-21-16 of the General Laws in Chapter 45-21 entitled "Retirement of Municipal Employees" is hereby amended to read as follows:
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:
(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 LC003663 - Page 11 of 15 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 Retirement Cumulative Annual Reduction Cumulative Monthly Reduction
For Year 1 9% .75%
For Year 2 8% .667%
For Year 3 7% .583%
For Year 4 7% .583%
For Year 5 7% .583%
(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 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)(A) 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.
(B) Notwithstanding any other provisions of subsections (ii) or (iii)(A) of this section, commencing July 1, 2026, members in active service who have at least twenty-eight (28) years of LC003663 - Page 12 of 15 total service shall be eligible to retire upon the earlier of:
(I) When the teacher's age when combined with their number of years of service, totals the number eighty-five (85); or
(II) The member's retirement eligibility date under subsections (ii)(A) or (ii)(B) of this section.
(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
(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 LC003663 - Page 13 of 15 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.
SECTION 4. This act shall take effect upon passage.
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 LC003663 - Page 2 of 15 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 Retirement Cumulative Annual Reduction Cumulative Monthly Reduction For Year 1 9% .75% LC003663 - Page 3 of 15 For Year 2 8% .667% For Year 3 7% .583% For Year 4 7% .583% For Year 5 7% .583%
(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)(i) 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.
(ii) Notwithstanding any other provisions of subsections (c) or (d)(i) of this section, commencing July 1, 2026, teachers in active service who have at least twenty-eight (28) years of total service, shall be eligible to retire upon the earlier of:
(A) When the teacher's age when combined with their number of years of service, totals the number eighty-five (85); or
(B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) of this section.
(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. LC003663 - Page 4 of 15
(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 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 LC003663 - Page 5 of 15 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 of his or her contributions without interest.
SECTION 2. Section 36-10-9 of the General Laws in Chapter 36-10 entitled "Retirement System — Contributions and Benefits" is 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.
(3) The fraction determined in (2) shall then be multiplied by the age difference determined LC003663 - Page 6 of 15 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 upon the completion of at least five (5) years of contributory service and attainment of the member’s LC003663 - Page 7 of 15 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 Retirement Cumulative Annual Reduction Cumulative Monthly Reduction
For Year 1 9% .75%
For Year 2 8% .667%
For Year 3 7% .583%
For Year 4 7% .583%
For Year 5 7% .583%
(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 June 30, 2012. This provision shall be interpreted and administered in a manner to protect a LC003663 - Page 8 of 15 member’s accrued benefit on June 30, 2012.
(d)(i) 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.
(ii) Notwithstanding any other provisions of subsections (c) or (d)(i) of this section, commencing July 1, 2026, teachers in active service who have at least twenty-eight (28) years of total service, shall be eligible to retire upon the earlier of:
(A) When the teacher's age when combined with their number of years of service, totals the number eighty-five (85); or
(B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) of this section.
(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 LC003663 - Page 9 of 15 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 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 LC003663 - Page 10 of 15 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.
SECTION 3. Section 45-21-16 of the General Laws in Chapter 45-21 entitled "Retirement of Municipal Employees" is hereby amended to read as follows:
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:
(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 LC003663 - Page 11 of 15 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 Retirement Cumulative Annual Reduction Cumulative Monthly Reduction
For Year 1 9% .75%
For Year 2 8% .667%
For Year 3 7% .583%
For Year 4 7% .583%
For Year 5 7% .583%
(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 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)(A) 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.
(B) Notwithstanding any other provisions of subsections (ii) or (iii)(A) of this section, commencing July 1, 2026, members in active service who have at least twenty-eight (28) years of LC003663 - Page 12 of 15 total service shall be eligible to retire upon the earlier of:
(I) When the teacher's age when combined with their number of years of service, totals the number eighty-five (85); or
(II) The member's retirement eligibility date under subsections (ii)(A) or (ii)(B) of this section.
(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
(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 LC003663 - Page 13 of 15 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.
SECTION 4. This act shall take effect upon passage.