AN ACT RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- MEMBERSHIP AND SERVICE CREDITS

2026 Regular Session Introduced by Sam Azzinaro and 8 co-sponsors

The bill lets Rhode Island retirement members buy up to 4 years of military or National Guard/reserve service credits, at 10% of first-year pay per year, with timing-based interest

05/12/2026 Committee recommended measure be held for further study

Summary of HB 7254 (Rhode Island, 2026) – Retirement System: Membership and Service Credits

Purpose and intent

HB 7254 proposes to expand the ability of active members in Rhode Island’s Retirement System to purchase retirement service credits for time served in military or related national guard/reserve service. The bill aims to recognize and reward military and reserve service by allowing eligible members to convert that service into credited years for retirement calculations, subject to specific limits and costs. The measure takes effect upon passage.

Key provisions and changes

Armed service credit options for active members (a):

An active member who served on active duty in the U.S. armed forces or in the U.S. Merchant Marine (as defined in P.L. 1946, ch. 1721, § 2) may purchase up to four years of credit for that service, provided they have an honorable discharge.
Members on an official leave of absence for illness or injury may also purchase military credits during the leave.

National Guard/Reserve service for police/firefighters (b):

Police officers or firefighters who served in the National Guard or reserves and qualify as veterans may purchase creditable service at a ratio of 5 years of guard/reserve service equals 1 year of creditable service, up to a maximum of four years.
If on an official leave of absence for illness or injury, they may purchase military credits during the leave.

Cost of purchasing credits (c/d):

The cost to purchase credits is 10% of the member’s first-year earnings (as defined in chapter 9) multiplied by the number of years and fractions of years being purchased, up to 4 years.
No interest is charged if the purchase is made within the member’s first five years of membership.
If purchased after five years of membership, regular interest accrues from the date of enrollment into membership until the purchase date.
An exception: members who were already in the retirement system prior to July 1, 1980, would not be charged interest on the purchase of armed services credits.

Effective date (Section 2): The act takes effect upon passage.

Who is affected

Active members of the Rhode Island Retirement System seeking to obtain additional retirement credit for military or National Guard/reserve service.

Specifically benefits police officers and firefighters who served in the National Guard or reserves and qualify as veterans.

Potentially current retirees or those with prior system membership pre-1980 in terms of interest applicability.

Procedural and timeline aspects

The bill was introduced on January 21, 2026, and referred to the House Finance Committee.

A hearing/consideration was scheduled for May 12, 2026.

Immediate effect upon passage once enacted.

Potential impact

Members can bolster retirement benefits by converting military or reserve service into additional credited years, potentially increasing eventual pension benefits.

The cost structure (10% of first-year earnings per year purchased) and interest rules provide clarity on affordability and timing, with an incentive to act within the first five years of membership.

The policy includes a protective carve-out for pre-1980 members regarding interest.