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HB 5972

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

2025 Regular Session Introduced by Robert Craven

HB 5972 requires retirement benefits be suspended during post-retirement state/municipal work, with limited exemptions for certain roles without forfeiture (days/pay caps).

04/22/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5972

Summary — HB 5972: "Retirement System — Contributions and Benefits" (Post‑Retirement Employment)

Note: the materials provided appear to include text from an unrelated Michigan bill (an amendment to the Third Party Administrator Act). This summary focuses on the Rhode Island bill titled "An Act Relating to Public Officers and Employees — Retirement System — Contributions and Benefits" (HB 5972), which amends R.I. Gen. Laws §36‑10‑36 concerning post‑retirement employment.

Purpose and intent

The bill clarifies and updates rules governing employment or reemployment of members who have retired under titles 16, 36, or 45 of Rhode Island law. It sets when retirement benefit payments must be suspended, preserves certain exceptions that allow retirees to work without forfeiting benefits, and establishes limits (days or dollar caps) and notice requirements for post‑retirement work.

Key provisions

  • General rule (existing/continued): A retiree employed or reemployed by a state agency/dept. must have retirement benefits suspended for the duration of that employment. No additional service credits or retirement deductions are granted for post‑retirement service. Monthly notice of such employment must be sent to the retirement board by both the employer and the retired member.

  • Municipal employment exception (with limits):

    • Retirees may work for participating municipalities (those that accepted chapter 21 of title 45 and participate in the municipal employees’ retirement system) up to 75 working days (or 150 half‑days) in a calendar year without forfeiture or reduction of retirement benefits.
    • Pension payments are suspended if that limit is exceeded. No additional service credits or contributions accrue for that service.
  • Broad exceptions (allow work without forfeiture, but no new service credits):

    • Elected local officials and certain unpaid or part‑time board/commission members (mayor, town/city manager/administrator, council member, school committee member, unpaid part‑time state/municipal boards) may serve and continue to receive retirement allowances; no additional service credit granted.
    • Retired faculty/teachers: Retirees from state colleges, universities, state schools, or those who retired as teachers may be reemployed part‑time for classroom instruction, advising, or coaching without loss of benefits. “Part‑time” is capped at $25,000 gross pay per calendar year.
    • Driver education instructors: Retired teachers or certified driver‑ed personnel may be reemployed part‑time to teach driver or motorcycle education, capped at $15,000 gross pay per year.
    • Registered nurses: Retired RNs may be employed per‑diem at state‑operated facilities (including nursing faculty roles) up to 75 working days (or 150 half‑days) per year without loss of benefits; pension suspended if exceeded.
    • Specific judicial/magistrate provisions: Certain retired general magistrates and district court clerks/magistrates have defined reemployment rules, including unpaid assignments or pay differentials, without forfeiting retirement benefits (with no additional contributions or service credits).

Who is affected

  • Retired members of Rhode Island retirement systems under titles 16, 36, and 45.
  • State agencies, participating and non‑participating municipalities, state colleges/universities, school systems, state‑operated health facilities, family and district courts.
  • Retirement board (receives required monthly notices) and payroll/HR administrators who must track days and pay caps.

Procedural status & timeline

  • Introduced: February 28, 2025 (per bill text). The header indicates introduction activity beginning January 22, 2025 in some records.
  • Referred to: House Finance (also shows referral to Judiciary in some materials).
  • Committee action: 04/22/2025 — Committee recommended the measure be held for further study.
  • Next steps: If revived, the bill would proceed from committee to floor consideration; current status is “held for further study.”

Potential impacts

  • Allows the state and municipalities to draw on experienced retirees for short‑term or part‑time roles while preserving retiree benefits under defined limits.
  • Financial impacts on the retirement system are limited by pay and day caps and by suspension of pensions when limits are exceeded; administrative burden increases due to monthly reporting and tracking.
  • Clarifies exceptions (e.g., education, nursing, certain judicial roles) which may aid workforce planning in higher education, driver education, nursing services, and courts.

If you want, I can produce a side‑by‑side comparison of the current §36‑10‑36 text and the bill’s changes, or draft a short legislative timeline chart.

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

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