§ 8-3-15. Cost-of-living allowance.
(a) All justices of the supreme court, superior court, family court, or district court,
or their surviving spouses or domestic partners, who retire after January 1, 1970,
and who receive a retirement allowance pursuant to the provisions of this title shall,
on the first day of January next following the third anniversary date of retirement,
receive a cost-of-living retirement adjustment in addition to the justice's 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 allowance, not
compounded, to be continued during the lifetime of the justice or the justice's surviving
spouse or domestic partner. For the purpose of such computation, credit shall be given
for a full calendar year regardless of the effective date of the retirement allowance.
(b) Any justice who retired prior to January 31, 1977, shall be deemed for the purpose
of this section to have retired on January 1, 1977.
(c) For justices not eligible to retire 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 (a) above 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), as indexed,
of retirement allowance 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 justices eligible to retire as of September 30, 2009, or eligible
upon passage of this article, and for their beneficiaries, the provisions of this
subsection (c) shall not apply.
(d) This subsection (d) shall be effective for the period July 1, 2012, through June 30,
2015.
(1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (d)(2)
below, for all present and former justices, active and retired justices, and beneficiaries
receiving any retirement, disability, or death allowance or benefit of any kind, whether
provided for or on behalf of justices engaged on or prior to December 31, 1989, as
a non-contributory justice or engaged after December 31, 1989, as a contributory justice,
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 justice'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 (d)(1)(A) above. The "Five-Year Average Investment Return� shall mean the average
of the investment return of the most recent five (5) plan years as determined by the
retirement board. Subject to paragraph (d)(2) below, the benefit adjustment provided
by this paragraph 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 paragraph (d)(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 justices for such plan year.
In determining whether a funding level under this paragraph (d)(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 paragraph (d)(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 (5) plan years, a benefit adjustment shall be calculated and made in accordance
with paragraph (d)(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
(d) shall become effective July 1, 2012, and shall apply to any benefit adjustment
not granted on or prior to June 30, 2012.
(e) This subsection (e) shall become effective July 1, 2015.
(1)(A) As soon as administratively reasonable following the enactment into law of this subsection
(e)(1)(A), a one-time benefit adjustment shall be provided to justices and/or beneficiaries
of justices who retired on or before June 30, 2012, in the amount of two percent (2%)
of the lesser of either the justice's retirement allowance or the first twenty-five
thousand dollars ($25,000) of the justice'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
justices, active and retired justices, and beneficiaries receiving any retirement,
disability or death allowance or benefit of any kind, whether provided for or on behalf
of justices engaged on or prior to December 31, 1989, as a non-contributory justice
or engaged after December 31, 1989, as a contributory justice, the annual benefit
adjustment provided in any calendar year under this section for adjustments on and
after January 1, 2016, and subject to subsection (e)(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 justice'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
(e)(1)(B)(I) above.
The benefit adjustments provided by this subsection (e)(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 as provided in subsection (e)(3), the benefit adjustments under subsection
(e)(1)(B) 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 justices 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 (e)(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 (e)(2), in each fourth plan year commencing after June
30, 2012, commencing with the plan year ending June 30, 2016, and subsequently at
intervals of four plan years: (i) A benefit adjustment shall be calculated and made
in accordance with subsection (e)(1)(B) above; and (ii) Effective for members and/or
beneficiaries of members who retired on or before June 30, 2015, the dollar amount
in subsection (e)(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%).
(A) 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.