WeVote
Log In

Bill

Bill

SB 2835

AN ACT RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- ADMINISTRATION

2026 Regular Session Introduced by Andrew Dimitri and 4 co-sponsors

Rhode Island SB 2835 changes retirement benefits by using the highest 3 consecutive years of earnings (instead of 5) to calculate final/average compensation for many new retirees,

05/14/2026 Committee recommended measure be held for further study
0
WeVote Research Nonpartisan
Bill Summary · SB 2835

Overview

SB 2835, introduced in the Rhode Island Senate in 2026, would modify the calculation of retirement benefits for state and municipal employees covered by Rhode Island’s retirement systems. The primary change is to adjust the cutoff date and redefine how “average compensation” and related final compensation calculations are determined for members who retire on or after the new date.

Purpose and intent

  • Align and simplify retirement benefit calculations by updating the period used to determine a member’s average/final compensation.
  • Move the retirement benefit calculation baseline from July 1, 2024 to July 1, 2012 for certain members, with an accompanying reduction in the number of years used to compute average compensation (from 5 years to 3 consecutive years of highest earnings).
  • Ensure consistency across both the state employees’ retirement system and the municipal employees’ retirement system.

Key provisions and changes

  • Definition updates (Chapter 36-8 and Chapter 45-21):
    • “Average compensation” for members retiring on or after the new cutoff date would be calculated as the average of the highest three consecutive years of compensation, rather than the higher-foregoing standard (which previously used five consecutive years for many members).
    • For some members who became eligible after July 1, 2012, special provisions exist if more than half of total service consisted of part-time or reduced-hour years; the bill specifies how the higher of certain year-averages should be used, with protections to avoid lower benefits than those determined as of June 30, 2012.
    • Retains existing frameworks for actuarial equivalence, annuity reserves, and regular interest, but ties final/average compensation calculations to the clarified 3-year high period for retirees after the new cutoff.
  • Definitions and scope:
    • Reiterates and harmonizes definitions for terms like “accumulated contributions,” “active member,” “service,” “final compensation,” and “retirement allowance” to align with the revised calculation method.
    • Extends similar definitional adjustments to the Municipal Employees’ Retirement System (Chapter 45-21), ensuring parallel treatment for municipal employees and participating municipalities.
  • Effective date:
    • The act would take effect upon passage (immediate effective date once enacted).

Who would be affected

  • State of Rhode Island employees and officials contributing to the State Employees’ Retirement System.
  • Municipal employees covered by the Municipal Employees’ Retirement System (via participating municipalities).
  • Retirees or future retirees who are eligible to retire on or after July 1, 2012 but with eligibility governed by the new July 1, 2012 cutoff under the revised calculation rules.

Procedural and timeline aspects

  • Introduced March 4, 2026 and referred to the Senate Finance Committee.
  • Scheduled for a hearing/consideration around May 14, 2026.
  • The act would take effect immediately upon passage, with changes retroactively affecting eligibility determinations for retirees meeting the new criteria when they retire on or after the updated cutoff date.

Practical impact

  • Potentially reduces or reshapes retirement benefits for some retirees by reducing the number of years used to calculate average/final compensation (from 5 to 3 years for many cases), particularly benefiting members with shorter high-earning periods and those near retirement who would now be measured on a shorter span of earnings.
  • Creates consistency between state and municipal systems in how average/final compensation is calculated for new retirees.
  • The overall actuarial impact would depend on the mix of members affected and historical earnings patterns; the retirement board would apply the revised schedules and protections when calculating benefits.

If you’d like, I can highlight specific sections of the bill text or provide a side-by-side comparison with the current rules to illustrate exact benefit differences for representative scenarios.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.