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SB 2027

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

2026 Regular Session Introduced by Pete Appollonio and 9 co-sponsors

Raises the annual post-retirement pay cap for driver education instructors from $15,000 to $25,000 while preserving retirees’ benefits and limiting earnings.

05/14/2026 Committee recommended measure be held for further study
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Bill Summary · SB 2027

Overview

SB 2027 (Rhode Island, 2026) modifies provisions related to post-retirement employment for public retirees and clarifies income limits for certain part-time teaching and related roles. The measure aims to adjust compensation thresholds for retirees who return to part-time instructional work and otherwise preserve retirement benefits while allowing limited post-retirement employment in specific scenarios.

Main purpose and intent

  • Update post-retirement employment rules under Rhode Island’s retirement system.
  • Increase the allowable gross pay for certain part-time roles held by retirees (specifically teachers certified to teach driver education) from $15,000 to $25,000 per calendar year.
  • Preserve retirement benefits and prevent loss of benefits for retirees taking on specified post-retirement employment, subject to statutory limits.

Key provisions and changes

  1. Post-retirement employment rules (Section 36-10-36):

    • Retirees may not work for state agencies if retirement benefits are not suspended for the duration of employment.
    • For certain state and municipal employment, retirees’ benefits may be suspended if employment exceeds defined limits; no additional service credits or contributions are allowed for post-retirement work.
    • Monthly reporting to the retirement board by employer and retiree is required.

  2. Municipal and state employment allowances (subsections a–c, d):

    • A retiree may be employed by:
      • A state municipality that has adopted Chapter 21 of Title 45 (up to 75 working days or 150 half-days per calendar year) without forfeiting retirement benefits.
      • A municipality not participating in the municipal employees' retirement system (conditions not specified beyond subsection).
    • Specific categories outline authorized roles and limitations, including elected/appointed municipal positions with continued eligibility for retirement benefits without extra service credits.

  3. Expanded post-retirement allowances and limits (subsection d):

    • (1) May serve in elected or appointed city/town leadership roles or on state/municipal boards without forfeiting retirement benefits; no service credits awarded for these roles.
    • (2) Retired state college/university teachers or state employees may be employed part-time to teach, advise, or coach at institutions, with pay not to exceed the institution’s collective bargaining agreement for faculty. Part-time defined as not exceeding $25,000 gross pay annually; no additional service credits.
    • (3) Driver education instructors (retired teachers) may be employed part-time by the Department of Education or Board of Governors for Higher Education; cap set at $15,000 (note: the bill text specifies the increased $25,000 cap for drivers education under subsection (d)(2); the explanatory note confirms the change to $25,000).
    • (4) Retired registered nurses may be employed per diem at state facilities or as nursing educators; part-time limit defined as up to 75 working days or 150 half-days per year with half pay; no service credits.
    • (5) General magistrates who retire and later work for the family court; no compensation and no retirement forfeiture or credits.
    • (6) District court clerks/magistrates reassigned to district court magistrate duties; retirement benefits continue, with potential pay differential to reflect sitting magistrate compensation; no service credits.
    • (7) Municipal employment by retirees without forfeiture or reduction of benefits, provided appointment is by the highest elected official; no service credits.

  4. Effective date (Section 2)

    • Takes effect upon passage.

Who is affected

  • Retired state and municipal employees, including teachers, nurses, magistrates, district court personnel, and elected/appointed municipal officials.
  • Retired teachers certified to teach driver education (and, by extension, those associated with driver education programs) are specifically impacted by the adjusted pay cap.
  • Employers (state and municipalities) responsible for reporting post-retirement employment to the retirement board.

Procedural and timeline aspects

  • Introduced January 9, 2026; referred to Senate Finance.
  • Hearing/consideration scheduled for May 14, 2026 (as of the action history).
  • Effective date: immediate upon passage.

Notes

  • The bill’s explanatory text confirms the intended increase of the driver education pay cap from $15,000 to $25,000 per calendar year.
  • The overall framework continues to suspend or limit retirement benefits when retirees engage in post-retirement employment beyond certain thresholds, preserving pension integrity while allowing targeted, limited employment.

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

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