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SB 2935

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

2026 Regular Session Introduced by John Burke and 4 co-sponsors

The bill lets retirees work in various public roles without losing benefits up to specified limits, but suspends pensions and bans new credits if limits are exceeded.

06/18/2026 Signed by Governor
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Bill Summary · SB 2935

Summary of SB 2935 (Rhode Island, 2026)

Purpose and intent

  • The bill proposes amendments to Rhode Island's public retirement laws to address post-retirement employment and reemployment of retired public officers and employees.
  • A central goal is to clarify when and how retired members may return to work in various capacities, including state, municipal, and educational settings, while preserving their retirement benefits under specific conditions.

Key provisions and changes

  1. Post-retirement employment for state employees (Section 36-10-36)

    • Retired members may not be employed or reemployed by state agencies or departments if doing so would suspend their retirement benefits. Specifically, benefits are suspended for the duration of any such post-retirement employment.
    • No new service credits or retirement deductions are allowed for post-retirement work.
    • Monthly notice of post-retirement employment must be sent to the retirement board by the employer and the retiree.
    • Exception: police officers (as defined in § 28-9.2-3) may be reemployed by a state agency or nongovernmental entity for state-funded detail work, subject to subsection (b) restrictions.

  2. Municipal post-retirement employment (Section 36-10-36, subsection (b)-(c))

    • A retiree may be employed by a Rhode Island municipality that has adopted the provisions of chapter 21 of title 45 and participates in the municipal retirement system for up to:
      • 75 working days or
      • 150 half days with half-day pay in a calendar year
      • Without any forfeiture or reduction of the retiree’s current retirement benefits.
    • If the period exceeds these limits, pension payments are suspended, and no additional contributions or service credits are granted. Monthly notices to the retirement board are required.
    • If the municipality does not participate in the municipal retirement system, the same allowances apply (subsection (c)).

  3. Non-receipt of additional credits and restrictions (subsection (d))

    • Several specific post-retirement employment scenarios are listed where retirees may work (e.g., mayor, administrator, council member, school committee member, certain state/local board roles) without forfeiting retirement benefits, but no additional service credits are granted for these services.

  4. Part-time and specific-role allowances (subsections (d)(2)-(d)(7))

    • Part-time opportunities for retirees in state colleges/universities and related roles:
      • Compensation capped at levels not exceeding the institution’s applicable collective bargaining agreement.
      • “Part-time” earnings not to exceed $25,000 in a calendar year (for teaching, advising, coaching).
      • No retirement credits awarded for these part-time roles.
    • Part-time driving education instruction for retirees certified to teach driver education may be offered with a cap of $15,000 per calendar year; no retirement credits granted.
    • Part-time nurse employment at state-operated facilities is allowed with annual limits and without retirement benefit forfeiture; pension payments suspend if the allowable period is exceeded; no additional credits or contributions for this service.
    • General magistrate/family court and district court roles may be performed without forfeiture of retirement benefits, with specific constraints (e.g., no compensation for magistrate services in family court; district court magistrates may receive difference in pay beyond their retirement pension).
    • Municipal service by a retiree is allowed without forfeiture, but the retiree must be appointed by the highest elected official in the municipality, and no additional service credits are granted.

  5. Reemployment of municipal retirees (Section 45-21-54)

    • Retired municipal employees may reenter service for up to 75 working days in a calendar year without interrupting pension benefits (benefits suspended if the period is exceeded).
    • Police officers have a separate provision: the 75-day rule does not apply to private detail work for police officers.
    • If the 75-day limit is exceeded, pension credit is not available, and no pension contributions are required for the additional service.
    • Elective offices such as city/town council or school committee may be held by retirees while retaining retirement allowances for other service.

Who/what would be affected

  • Retired public officers and employees under Rhode Island’s retirement systems (state and municipal) and specific categories (police, teachers, nurses, magistrates, district court personnel).
  • State agencies, municipalities, state colleges/universities, and state-operated facilities (nursing facilities, driver education programs, etc.).
  • Municipal retirement systems and participating municipalities under Chapter 21 of Title 45.

Timeline and procedural notes

  • Effective date: The act takes effect upon passage.
  • Legislative history:
    • Introduced March 4, 2026.
    • Referred to Senate Labor & Gaming; subsequent steps included a committee recommendation to hold for further study (April 8, 2026), and scheduled consideration updates (May–June 2026).

Potential impact considerations

  • Clarifies and limits post-retirement employment with explicit suspension rules for pension benefits when limits are exceeded.
  • Creates structured pathways for retirees to work part-time in education, nursing, government roles, and municipal service without compromising ongoing retirement benefits, while disallowing new retirement credits for such service.
  • Provides police-specific flexibility for state-funded detail work, with constraints.
  • Requires diligent notice to retirement boards to monitor post-retirement employment and benefit status.

Note: This summary reflects the bill as introduced and amended proposals; final provisions may change with legislative process.

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

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