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HB 7806

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

2026 Regular Session Introduced by Jon Brien and 3 co-sponsors

Allows retirees to work in certain public roles or part-time jobs without forfeiting existing retirement benefits, under defined limits.

04/16/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7806

Comprehensive Summary of HB 7806 (Rhode Island, 2026)

Bill at a Glance

  • Title: AN ACT RELATING TO PUBLIC OFFICERS AND EMPLOYEES — RETIREMENT SYSTEM — CONTRIBUTIONS AND BENEFITS
  • Introduced: February 12, 2026
  • Sponsor(s): Reps. Finkelman, Paplauskas, Phillips, J. Brien (with multiple co-sponsors)
  • Committee: House Finance
  • Status: Recommended for further study (as of April 16, 2026)
  • Effective Date: On passage (immediate)

Purpose and Intent

The bill would modify Rhode Island’s post-retirement employment framework for retirees of state and certain public employee retirement systems. Its central goal is to (1) remove restrictions on post-retirement employment by municipalities and (2) preserve all retirement benefits when retirees take on certain roles or part-time employment with specific public entities. The act emphasizes allowing retired public employees to return to work without forfeiting current retirement benefits, subject to defined conditions and categories of employment.

Key Provisions and Changes

A. General Post-Retirement Employment Rules (Section 36-10-36)

  • Current baseline retained: Since July 7, 1994, retirees may not be employed by state agencies in a way that would affect retirement benefits; if employed, benefits are suspended for the duration of employment, and no new service credits or retirement contributions are allowed.
  • Notice requirement: Employers and retirees must provide monthly notice to the retirement board about post-retirement employment.

B. Municipal Employment (Non-State Agencies)

  • Category: Retired members may be employed or reemployed by municipalities within Rhode Island that have adopted Chapter 21 of Title 45 (municipal improvements framework) and participate in the Municipal Employees' Retirement System.
  • Duration: Up to 75 working days or 150 half-days per calendar year.
  • Compensation and Benefits: No forfeiture or reduction of any retirement benefits already being received; no new retirement contributions or service credits.
  • Notice: Monthly notice to the retirement board by both employer and retiree.

C. Municipal Employment (Other Municipalities)

  • Category: Retired members may be employed by municipalities that have not adopted Chapter 21/municipal retirement participation.
  • Note: The text permits this but does not include the same day-count or benefit provisions as the Section B municipal category; further details would be governed by existing law not altered here.

D. Specific Allowed Roles Without Forfeiture (Broad Exceptions)

The bill enumerates several roles in which a retiree may serve without forfeiture or reduction of retirement benefits, and with no additional service credits:
1. Elected or senior municipal/administrative leadership roles (e.g., mayor, town/city administrator, manager, chief administrative/exec officer, council member, school committee member, unpaid state/municipal board or commission member).
2. Retired state college/university employees or teachers may be employed part-time to provide classroom instruction, academic advising, and/or coaching, with pay not exceeding the institution’s collective bargaining agreement and limits on gross pay:
- For instructors: not more than $25,000 per calendar year.
3. Licensed teachers who previously taught driver education or related programs may be employed part-time by the Department of Elementary and Secondary Education or Board of Governors for Higher Education, for driver education and/or motorcycle driver education, with a strict cap:
- Not more than $15,000 gross pay per calendar year.
4. Retired registered nurses may be employed on a per-diem basis for state-operated facilities or as nursing program faculty, with a cap:
- Not more than 75 working days or 150 half-days per year (same as maximum for some municipal reemployment) and no retirement benefit forfeiture. Pension payments suspend if this period is exceeded.
5. Retired general magistrates (family court) may be employed by the family court for assigned services without forfeiture or reduction, with no compensation to the retiree for such services.
6. Retired district court clerks/magistrates assigned to specific judicial roles may be employed and receive the difference between their retirement pension and the pay of a sitting magistrate, with no additional service credits or retirement contributions.
7. Any retired member may serve as a municipal employee at the pleasure of the highest elected chief executive officer of a city or town under Chapter 9 of Title 45 (Budget Commissions), without forfeiture or reduction in retirement benefits, and without additional service credits.

General principle across these subsections: retirees can engage in specified public sector roles and specific part-time work without losing current retirement benefits or earning new retirement credits.

E. Effective Date

  • The act takes effect upon passage (immediate).

Who is Affected

  • Retired members of Rhode Island public retirement systems (state and certain public employers).
  • Municipalities and state public agencies that hire retirees under the outlined scenarios.
  • Retirement boards responsible for monitoring post-retirement employment and ensuring compliance with benefit rules.

Procedural and Timeline Aspects

  • The bill moves through the standard legislative process: introduction, referral to House Finance, and committee action.
  • The current action: committee recommended holding the measure for further study (April 16, 2026), indicating ongoing review and potential future amendments.
  • No new post-retirement service credits are granted under most provisions; however, some specific roles (e.g., magistrates with compensation differentials) may influence pension calculations in unique ways as described.

Impact Considerations

  • Potential for increased flexibility in staffing, particularly for municipal governments seeking experienced retirees for limited-term or part-time roles.
  • Clear protection for retirees to maintain their existing retirement benefits during and after post-retirement service, subject to defined caps and periods.
  • Administrative requirements include mandatory monthly notices to retirement boards from both employers and retirees.

If you’d like, I can provide a side-by-side comparison with existing law or summarize related fiscal or budgetary implications once the committee releases additional analyses.

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

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