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HB 8407

AN ACT RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- CONTRIBUTION AND BENEFITS

2026 Regular Session Introduced by Justine Caldwell and 9 co-sponsors

HB 8407 tightens post-retirement work rules, preserving benefits, requiring monthly reporting, and capping part-time teaching and per-diem nursing pay while allowing some leadershi

05/19/2026 Committee recommended measure be held for further study
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Bill Summary · HB 8407

Overview

HB 8407 (Rhode Island, 2026) is an act related to the state retirement system, specifically addressing post-retirement employment and certain limitations for retirees who return to work in various public sector roles. The bill aims to regulate when and how retirees may be employed or reemployed, preserve retirement benefits during post-retirement work, and impose specific limits on part-time teaching opportunities and other post-retirement service.

Main purpose and intent

  • To govern post-retirement employment by retirees who receive retirement benefits, ensuring benefits are preserved or suspended as appropriate, and defining the conditions under which retirees may work for state agencies, municipalities, schools, and certain public bodies.
  • To limit the amount of post-retirement, part-time instructional work by retired educators and certain other retirees to reduce potential abuses or impact on retirement benefits.
  • To specify eligibility and compensation rules for various categories of retirees who return to service in different capacities.

Key provisions and changes

  • Post-retirement employment within state agencies or departments

    • After retirement, a member may not be employed or reemployed unless all retirement benefits are suspended for the duration of employment.
    • No new service credits or retirement contributions are allowed for post-retirement work.
    • Monthly notices of any post-retirement employment must be sent to the retirement board by both employer and retiree.

  • Municipal post-retirement employment

    • Retirees may be employed by municipalities that have accepted Chapter 21 of Title 45 for up to 75 working days or 150 half-days (in one calendar year) without forfeiting retirement benefits.
    • If the limit is exceeded, pension payments are suspended. No new contributions or service credits are granted.
    • Notice of employment must be sent monthly to the retirement board by both employer and retiree.

  • Municipalities not in the Municipal Employees' Retirement System

    • Retirees may still be employed or reemployed by municipalities that have not accepted Chapter 21 or do not participate in the municipal retirement system, under unspecified terms, but the text indicates continued eligibility for such employment.

  • Expanded permissible post-retirement roles with no additional credits

    • Retired members may serve in various municipal and state leadership or advisory roles (mayor, administrator, council member, school committee member, and certain board/commission positions) without forfeiture of retirement benefits, but no additional service credits are granted for these roles.

  • Higher education and teaching exceptions

    • Retired members who previously served as state college/university teachers or state school instructors may be employed part-time by state colleges/universities to teach or advise or coach, with limitations:
    • No more than two classes per semester.
    • Compensation capped at a level not exceeding the institution’s bargaining-unit salary for the position.
    • Part-time defined as gross pay no more than $25,000 in a calendar year.
    • No new service credits; no forfeiture or reduction of retirement benefits.

  • Driver education and related teaching

    • Retired teachers certified to teach driver education or motorcycle driver education may be employed part-time by the state department of education or the board of governors, with:
    • No more than $15,000 gross pay per calendar year.
    • No new service credits; no forfeiture or reduction of retirement benefits.

  • Nursing post-retirement employment

    • Retired registered nurses may be employed on a per-diem basis at state-operated facilities, including nursing education roles.
    • Part-time pay limits: not more than 75 working days or 150 half-days per year.
    • Pension suspended if the work period exceeds limits; no new contributions or service credits.

  • Judicial and district court retirees

    • General magistrates and certain district court retirees may serve in specific roles without forfeiture of retirement benefits.
    • For some roles, the retiree may receive compensation equivalent to differences between their pension and a sitting magistrate’s pay (where applicable), but no new service credits and no new contributions.

  • Municipal employee service

    • Retired members may serve as municipal employees (appointed by the highest elected chief executive officer) without forfeiture of retirement benefits or new service credits.

Affected parties

  • Retired members of Rhode Island's retirement system (state and certain municipal retirees).
  • State agencies, municipalities, state colleges/universities, state schools, and various public boards, commissions, and authorities that may hire retirees.
  • Retirement board and employers who must process and report post-retirement employment.

Procedural and timeline aspects

  • Effective date: The act takes effect upon passage.
  • Administrative requirements: Employers and retirees must provide monthly notices to the retirement board for post-retirement employment.
  • Reporting and monitoring: The retirement board oversees suspensions of benefits, credits, and contributions when retirees exceed limits or return to service.

Summary

HB 8407 clarifies and tightens the rules around post-retirement employment for Rhode Island public employees. It emphasizes preserving retirement benefits during certain post-retirement employment, requires monthly reporting to the retirement board, and sets specific limits (notably for part-time instructional roles and per-diem nursing work). It also broadens permissible roles for retirees (e.g., local government leadership positions) without affecting retirement benefits or granting new service credits, while controlling compensation levels for part-time teaching roles to align with existing pay structures. The act seeks to balance the need for experienced retirees to provide public services with protection of retirement benefits and fiscal discipline.

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

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