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Summary

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This legislation amends Rhode Island's retirement laws to modify the rules for post-retirement employment. It allows retired state and municipal employees, including teachers and nurses, to return to work in specific public sector roles without suspending their pension benefits. The bill outlines specific exceptions for positions such as town administrators, part-time college faculty (capped at $25,000/year), driver education instructors, and registered nurses (up to 75 days/year). It prohibits the accrual of additional service credits during this re-employment and requires monthly reporting to the retirement board.
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Analysis

Pros for Progressives

  • Helps address critical staffing shortages in public nursing programs and education by allowing experienced retirees to return to the workforce to teach.
  • Provides support to financially distressed municipalities by allowing them to hire experienced retirees as administrators without the burden of full benefit costs.
  • Allows retired public servants to supplement their income during retirement, contributing to the financial security of the elderly community.

Cons for Progressives

  • Allows for "double-dipping" (collecting a pension and a salary), which may be viewed as wealth accumulation by older generations while younger workers struggle.
  • Could potentially block career advancement opportunities for younger, diverse public servants by keeping retirees in senior leadership positions.
  • May disincentivize the state from hiring new, permanent employees with full benefits, potentially eroding the standard employment model for public service.

Pros for Conservatives

  • Promotes fiscal responsibility by allowing the state and towns to utilize experienced labor on a part-time basis without paying for expensive new benefits packages.
  • Supports local governance (home rule) by allowing towns to hire the most qualified city managers and administrators, even if they are currently retired.
  • Increases individual economic freedom by removing government barriers that prevent retirees from working if they choose to do so.

Cons for Conservatives

  • Permits "double-dipping" at the taxpayer's expense, where an individual draws a state pension and a government salary simultaneously.
  • Expands government bureaucracy by creating complex exemptions and administrative overhead to track working days and earnings for retirees.
  • Undermines the definition of retirement, potentially creating a class of government dependents who remain on the public payroll indefinitely.

Constitutional Concerns

None Likely

Impact Overview

Groups Affected

  • Retired state employees
  • Retired teachers
  • Registered nurses
  • Municipalities
  • State colleges and universities

Towns Affected

All

Cost to Taxpayers

None

Revenue Generated

None

BillBuddy Impact Ratings

Importance

20

Measures population affected and overall level of impact.

Freedom Impact

20

Level of individual freedom impacted by the bill.

Public Services

30

How much the bill is likely to impact one or more public services.

Regulatory

10

Estimated regulatory burden imposed on the subject(s) of the bill.

Clarity of Bill Language

90

How clear the language of the bill is. Higher ambiguity equals a lower score.

Enforcement Provisions

70

Measures enforcement provisions and penalties for non-compliance (if applicable).

Environmental Impact

0

Impact the bill will have on the environment, positive or negative.

Privacy Impact

0

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 Senate Finance

Bill Text

SECTION 1. Section 36-10-36 of the General Laws in Chapter 36-10 entitled "Retirement System — Contributions and Benefits" is hereby amended to read as follows:
36-10-36. Post-retirement employment.
(a) On and after July 7, 1994, no member who has retired under the provisions of title 16, 36, or 45 may be employed or reemployed by any state agency or department unless any and all retirement benefits to which the member may be entitled by virtue of the provisions of title 16, 36, or 45 are suspended for the duration of any employment or reemployment. No additional service credits shall be granted for any post-retirement employment or reemployment and no deductions shall be taken from an individual’s salary for retirement contribution. Notice of any such post- retirement employment or reemployment shall be sent monthly to the retirement board by the employing agency or department and by the retired member.
(b) Any member who has retired under the provisions of title 16, 36, or 45 may be employed or reemployed by any municipality within the state that has accepted the provisions of chapter 21 of title 45 and participates in the municipal employees’ retirement system for a period of not more than seventy-five (75) working days or one hundred fifty (150) half days with half-day pay in any one calendar year without any forfeiture or reduction of any retirement benefits and allowances the member is receiving, or may receive, as a retired member. Pension payments shall be suspended whenever this period is exceeded. No additional contributions shall be taken, and no additional service credits shall be granted, for this service. Notice of this employment or reemployment shall be sent monthly to the retirement board by the employer and by the retired member.
(c) Any member who has retired under the provisions of title 16, 36, or 45 may be employed or reemployed by any municipality within the state that has not accepted the provisions of chapter 21 of title 45 and that does not participate in the municipal employees’ retirement system.
(d) Notwithstanding the provisions of this section:
(1) Any retired member of the system shall be permitted to serve as an elected mayor, the town administrator, the city administrator, the town manager, the city manager, the chief administrative officer, or the chief executive officer of any city or town, city or town council member, school committee member, Rhode Island state labor relations board member, or unpaid member of any part-time state board or commission or member of any part-time municipal board or commission, and shall continue to be eligible for, and receive, the retirement allowance for service other than that as a mayor, administrator, council member, school committee member, or member of any state board or commission or member of any part-time municipal board or commission; provided, however, that no additional service credits shall be granted for any service under this subsection;
(2) Any retired member, who retired from service at any state college, university, state school, or who retired from service as a teacher under the provisions of title 16, or who retired from service under title 36 or title 45, may be employed or reemployed, on a part-time basis, by any state college, university, or state school for the purpose of providing classroom instruction, academic advising of students, and/or coaching. Compensation shall be provided at a level not to exceed the salary provided to other faculty members employed under a collective bargaining agreement at the institution. In no event shall “part-time” mean gross pay of more than twenty-five thousand dollars ($25,000) in any one calendar year. Any retired member who provides such instruction or service shall do so without forfeiture or reduction of any retirement benefit or allowance; provided, however, that no additional service credits shall be granted for any service under this subsection;
(3) Any retired member who retired from service as a teacher under the provisions of title 16, or as a state employee who, while an active state employee, was certified to teach driver education by the department of elementary and secondary education or by the board of governors for higher education, may be employed or reemployed, on a part-time basis, by the department of elementary and secondary education or by the board of governors of higher education for the purpose of providing classroom instruction in driver education courses in accordance with § 31- 10-19 and/or motorcycle driver education courses in accordance with § 31-10.1-1.1. In no event LC003842 - Page 2 of 5 shall “part-time” mean gross pay of more than fifteen thousand dollars ($15,000) in any one calendar year. Any retired teacher who provides that instruction shall do so without forfeiture or reduction of any retirement benefit or allowance the retired teacher is receiving as a retired teacher; provided, however, that no additional service credits shall be granted for any service under this subsection;
(4) Any retired member who retired from service as a registered nurse may be employed or reemployed, on a per-diem basis, for the purpose of providing professional nursing care and/or services at a state-operated facility in Rhode Island, including employment as a faculty member of a nursing program at a state-operated college or university. In no event shall “part-time” mean gross pay of more than a period of seventy-five (75) working days or one hundred fifty (150) half days with half pay in any one calendar year. Any retired nurse who provides such care and/or services shall do so without forfeiture or reduction of any retirement benefit or allowance the retired nurse is receiving as a retired nurse; provided, however, that no additional service credits shall be granted for any service under this subsection. Pension payments shall be suspended whenever this period is exceeded. No additional contributions shall be taken and no additional service credits shall be granted for this service. Notice of this employment or reemployment shall be sent monthly to the retirement board by the employer and by the retired member;
(5) Any retired member who, at the time of passage of this section, serves as a general magistrate within the family court and thereafter retires from judicial service, may be employed or reemployed by the family court to perform such services as a general magistrate of the family court as the chief judge of the family court shall prescribe without any forfeiture or reduction of any retirement benefits and allowances that the member is receiving or may receive. For any such services or assignments performed after retirement, the general magistrate shall receive no compensation whatsoever, either monetary or in kind. No additional contributions shall be taken and no additional service credits shall be granted for this service;
(6) Any retired district court clerk/magistrate or magistrate of the district court who shall subsequently be assigned to perform service in accordance with § 8-8-8.1 or § 8-8-16.2(e), may be employed or reemployed by the district court to perform such services as a magistrate as the chief judge of the district court shall prescribe without any forfeiture or reduction of any retirement benefits and allowance that they are receiving or may receive. For any such services or assignment performed after retirement, the district court clerk/magistrate or magistrate shall receive, in addition to their retirement pension, the difference in pay and fringe benefits between their retirement pension, and that of a sitting magistrate of the district court with comparable state service time. No additional contributions shall be taken and no additional service credits shall be granted for this LC003842 - Page 3 of 5 service; and
(7) Any retired member of the system shall be permitted to serve as a municipal employee without any forfeiture or reduction of any retirement benefits and allowances that the member is receiving or may receive; provided, that said member shall be appointed by and serves at the pleasure of the highest elected chief executive officer, as defined in § 45-9-2, in any city or town subject to the provisions of chapter 9 of title 45 entitled “Budget Commissions” relating to the appointment of a fiscal overseer, budget commission, receiver, and/or financial advisor. Provided further, that no additional service credits shall be granted for any service under this subsection.

SECTION 2. This act shall take effect upon passage.

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