§ 36-10-35. Additional benefits payable to retired employees.
(a) All state employees and all beneficiaries of state employees receiving any service
retirement or ordinary or accidental disability retirement allowance pursuant to the
provisions of this title on or before December 31, 1967, shall receive a cost of living
retirement adjustment equal to one and one-half percent (1.5%) per year of the original
retirement allowance, not compounded, for each calendar year the retirement allowance
has been in effect. For the purposes of computation, credit shall be given for a full
calendar year regardless of the effective date of the retirement allowance. This cost
of living adjustment shall be added to the amount of the retirement allowance as of
January 1, 1968, and an additional one and one-half percent (1.5%) shall be added
to the original retirement allowance in each succeeding year during the month of January,
and provided further, that this additional cost of living increase shall be three
percent (3%) for the year beginning January 1, 1971, and each year thereafter, through
December 31, 1980. Notwithstanding any of the above provisions, no employee receiving
any service retirement allowance pursuant to the provisions of this title on or before
December 31, 1967, or the employee's beneficiary, shall receive any additional benefit
hereunder in an amount less than two hundred dollars ($200) per year over the service
retirement allowance where the employee retired prior to January 1, 1958.
(b) All state employees and all beneficiaries of state employees retired on or after January
1, 1968, who are receiving any service retirement or ordinary or accidental disability
retirement allowance pursuant to the provisions of this title shall, on the first
day of January next following the third anniversary date of the retirement, receive
a cost of living retirement adjustment, in addition to their retirement allowance,
in an amount equal to three percent (3%) of the original retirement allowance. In
each succeeding year thereafter through December 31, 1980, during the month of January,
the retirement allowance shall be increased an additional three percent (3%) of the
original retirement allowance, not compounded, to be continued during the lifetime
of the employee or beneficiary. For the purposes of computation, credit shall be given
for a full calendar year regardless of the effective date of the service retirement
allowance.
(c)(1) Beginning on January 1, 1981, for all state employees and beneficiaries of the state
employees receiving any service retirement and all state employees, and all beneficiaries
of state employees, who have completed at least ten (10) years of contributory service
on or before July 1, 2005, pursuant to the provisions of this chapter, and for all
state employees, and all beneficiaries of state employees who receive a disability
retirement allowance pursuant to §§ 36-10-12 — 36-10-15, the cost of living adjustment shall be computed and paid at the rate of three percent
(3%) of the original retirement allowance or the retirement allowance as computed
in accordance with § 36-10-35.1, compounded annually from the year for which the cost of living adjustment was determined
to be payable by the retirement board pursuant to the provisions of subsection (a)
or (b) of this section. Such cost of living adjustments are available to members who
retire before October 1, 2009, or are eligible to retire as of September 30, 2009.
(2) The provisions of this subsection shall be deemed to apply prospectively only and
no retroactive payment shall be made.
(3) The retirement allowance of all state employees and all beneficiaries of state employees
who have not completed at least ten (10) years of contributory service on or before
July 1, 2005, or were not eligible to retire as of September 30, 2009, shall, on the
month following the third anniversary date of retirement, and on the month following
the anniversary date of each succeeding year be adjusted and computed by multiplying
the retirement allowance by three percent (3%) or the percentage of increase in the
Consumer Price Index for All Urban Consumers (CPI-U) as published by the United States
Department of Labor Statistics determined as of September 30 of the prior calendar
year, whichever is less; the cost of living adjustment shall be compounded annually
from the year for which the cost of living adjustment was determined payable by the
retirement board; provided, that no adjustment shall cause any retirement allowance
to be decreased from the retirement allowance provided immediately before such adjustment.
(d) For state employees not eligible to retire in accordance with this chapter as of September
30, 2009, and not eligible upon passage of this article, and for their beneficiaries,
the cost of living adjustment described in subsection (c)(3) of this section shall
only apply to the first thirty-five thousand dollars ($35,000) of retirement allowance,
indexed annually, and shall commence upon the third (3rd) anniversary of the date
of retirement or when the retiree reaches age sixty-five (65), whichever is later.
The thirty-five thousand dollar ($35,000) limit shall increase annually by the percentage
increase in the Consumer Price Index for All Urban Consumers (CPI-U) as published
by the United States Department of Labor Statistics determined as of September 30
of the prior calendar year or three percent (3%), whichever is less. The first thirty-five
thousand dollars ($35,000) of retirement allowance, as indexed, shall be multiplied
by the percentage of increase in the Consumer Price Index for All Urban Consumers
(CPI-U) as published by the United States Department of Labor Statistics determined
as of September 30 of the prior calendar year or three percent (3%), whichever is
less, on the month following the anniversary date of each succeeding year. For state
employees eligible to retire as of September 30, 2009, or eligible upon passage of
this article, and for their beneficiaries, the provisions of this subsection (d) shall
not apply.
(e) All legislators and all beneficiaries of legislators who are receiving a retirement
allowance pursuant to the provisions of § 36-10-9.1 for a period of three (3) or more years, shall, commencing January 1, 1982, receive
a cost of living retirement adjustment, in addition to a retirement allowance, in
an amount equal to three percent (3%) of the original retirement allowance. In each
succeeding year thereafter during the month of January, the retirement allowance shall
be increased an additional three percent (3%) of the original retirement allowance,
compounded annually, to be continued during the lifetime of the legislator or beneficiary.
For the purposes of computation, credit shall be given for a full calendar year regardless
of the effective date of the service retirement allowance.
(f) The provisions of §§ 45-13-7 — 45-13-10 shall not apply to this section.
(g) This subsection (g) shall be effective for the period July 1, 2012, through June 30,
2015.
(1) Notwithstanding the prior paragraphs of this section, and subject to subsection (g)(2)
below, for all present and former employees, active and retired members, and beneficiaries
receiving any retirement, disability or death allowance or benefit of any kind, the
annual benefit adjustment provided in any calendar year under this section shall be
equal to (A) multiplied by (B) where (A) is equal to the percentage determined by
subtracting five and one-half percent (5.5%) (the "subtrahend�) from the Five-Year
Average Investment Return of the retirement system determined as of the last day of
the plan year preceding the calendar year in which the adjustment is granted, said
percentage not to exceed four percent (4%) and not to be less than zero percent (0%),
and (B) is equal to the lesser of the member's retirement allowance or the first twenty-five
thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars
($25,000) amount to be indexed annually in the same percentage as determined under
(g)(1)(A) above. The "Five-Year Average Investment Return� shall mean the average
of the investment returns of the most recent five (5) plan years as determined by
the retirement board. Subject to subsection (g)(2) below, the benefit adjustment provided
by this subsection (g)(1) shall commence upon the third (3rd) anniversary of the date
of retirement or the date on which the retiree reaches their Social Security retirement
age, whichever is later. In the event the retirement board adjusts the actuarially
assumed rate of return for the system, either upward or downward, the subtrahend shall
be adjusted either upward or downward in the same amount.
(2) Except as provided in subsection (g)(3), the benefit adjustments under this section
for any plan year shall be suspended in their entirety unless the funded ratio of
the employees' retirement system of Rhode Island, the judicial retirement benefits
trust, and the state police retirement benefits trust, calculated by the system's
actuary on an aggregate basis, exceeds eighty percent (80%) in which event the benefit
adjustment will be reinstated for all members for such plan year.
In determining whether a funding level under this subsection (g)(2) has been achieved,
the actuary shall calculate the funding percentage after taking into account the reinstatement
of any current or future benefit adjustment provided under this section.
(3) Notwithstanding subsection (g)(2), in each fifth plan year commencing after June 30,
2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals
of five plan years, a benefit adjustment shall be calculated and made in accordance
with subsection (g)(1) above until the funded ratio of the employees' retirement system
of Rhode Island, the judicial retirement benefits trust, and the state police retirement
benefits trust, calculated by the system's actuary on an aggregate basis, exceeds
eighty percent (80%).
(4) Notwithstanding any other provision of this chapter, the provisions of this subsection
(g) shall become effective July 1, 2012, and shall apply to any benefit adjustment
not granted on or prior to June 30, 2012.
(h) This subsection (h) shall become effective July 1, 2015.
(1)(A) As soon as administratively reasonable following the enactment into law of this subsection
(h)(1)(A), a one-time benefit adjustment shall be provided to members and/or beneficiaries
of members who retired on or before June 30, 2012, in the amount of two percent (2%)
of the lesser of either the member's retirement allowance or the first twenty-five
thousand dollars ($25,000) of the member's retirement allowance. This one-time benefit
adjustment shall be provided without regard to the retiree's age or number of years
since retirement.
(B) Notwithstanding the prior subsections of this section, for all present and former
employees, active and retired members, and beneficiaries receiving any retirement,
disability or death allowance or benefit of any kind, the annual benefit adjustment
provided in any calendar year under this section for adjustments on and after January
1, 2016, and subject to subsection (h)(2) below, shall be equal to (I) multiplied
by (II):
(I) shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii)
where:
(i) is equal to the percentage determined by subtracting five and one-half percent (5.5%)
(the "subtrahend�) from the five-year average investment return of the retirement
system determined as of the last day of the plan year preceding the calendar year
in which the adjustment is granted, said percentage not to exceed four percent (4%)
and not to be less than zero percent (0%). The "five-year average investment return�
shall mean the average of the investment returns of the most recent five (5) plan
years as determined by the retirement board. In the event the retirement board adjusts
the actuarially assumed rate of return for the system, either upward or downward,
the subtrahend shall be adjusted either upward or downward in the same amount.
(ii) is equal to the lesser of three percent (3%) or the percentage increase in the Consumer
Price Index for All Urban Consumers (CPI-U) as published by the U.S. Department of
Labor Statistics determined as of September 30 of the prior calendar year. In no event
shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be less
than zero percent (0%).
(II) is equal to the lesser of either the member's retirement allowance or the first twenty-five
thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such
amount to be indexed annually in the same percentage as determined under subsection
(h)(1)(B)(I) above.
The benefit adjustments provided by this subsection (h)(1)(B) shall be provided to
all retirees entitled to receive a benefit adjustment as of June 30, 2012, under the
law then in effect, and for all other retirees the benefit adjustments shall commence
upon the third anniversary of the date of retirement or the date on which the retiree
reaches their Social Security retirement age, whichever is later.
(2) Except for members and/or beneficiaries of members who retired on or before June 30,
2012, the benefit adjustments under subsection (h)(1)(B) for any plan year shall be
reduced to twenty-five percent (25%) of the benefit adjustment unless the funded ratio
of the employees' retirement system of Rhode Island, the judicial retirement benefits
trust, and the state police retirement benefits trust, calculated by the system's
actuary on an aggregate basis, exceeds eighty percent (80%) in which event the benefit
adjustment will be reinstated for all members for such plan year. Effective July 1,
2024, the funded ratio of the employees' retirement system of Rhode Island, the judicial
retirement benefits trust, and the state police retirement benefits trust, calculated
by the system's actuary on an aggregate basis, of exceeding eighty percent (80%) for
the benefit adjustment to be reinstated for all members for such plan year shall be
replaced with seventy-five percent (75%).
In determining whether a funding level under this subsection (h)(2) has been achieved,
the actuary shall calculate the funding percentage after taking into account the reinstatement
of any current or future benefit adjustment provided under this section.
(3) Effective for members and/or beneficiaries of members who retired after June 30, 2012,
or on or before June 30, 2015, the dollar amount in subsection (h)(1)(B)(II) of twenty-five
thousand eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one
thousand and twenty-six dollars ($31,026) until the funded ratio of the employees'
retirement system of Rhode Island, the judicial retirement benefits trust, and the
state police retirement benefits trust, calculated by the system's actuary on an aggregate
basis, exceeds eighty percent (80%). Effective July 1, 2024, the funded ratio of the
employees' retirement system of Rhode Island, the judicial retirement benefits trust,
and the state police retirement benefits trust, calculated by the system's actuary
on an aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five
percent (75%).
(i) Effective for members and/or beneficiaries of members who have retired on or before
July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within
sixty (60) days following the enactment of the legislation implementing this provision,
and a second one-time stipend of five hundred dollars ($500) in the same month of
the following year. These stipends shall be payable to all retired members or beneficiaries
receiving a benefit as of the applicable payment date and shall not be considered
cost of living adjustments under the prior provisions of this section.