AN ACT RELATING TO TOWNS AND CITIES -- RETIREMENT OF MUNICIPAL EMPLOYEES

2026 Regular Session Introduced by Gordon Rogers and 1 co-sponsor

Raises the annual reemployment limit for retired municipal workers to 90 days (630 hours) without pension interruption, with pension implications if exceeded.

06/09/2026 Senate read and passed

Summary of Bill SB 2543 (2026) – Rhode Island

Purpose and intent

The bill amends Rhode Island law governing retirement of municipal employees to modify the allowance for reemployment after retirement.

Specifically, it increases the maximum number of days a retired municipal employee may work in a calendar year without interrupting pension benefits.

Key provisions and changes

Amends Rhode Island General Laws, § 45-21-54 (Reemployment of retired members).

New limit: a retired member may reenter municipal service for up to 90 working days (or an equivalent of 630 working hours) in a calendar year without interrupting pension benefits.

Previously, the limit was 75 days; the bill raises this limit to 90 days.

Pension payments are suspended if the retired member exceeds the 90-day/630-hour limit.

If the retired member works beyond the 90-day/630-hour period, the member:

Does not earn pension credit for the additional service.
Is not required to make pension contributions for that additional service.

Exception: Police officers (as defined in § 28-9.2-3) and their private details are governed differently; the 75/90-day rule does not apply to the purposes of their private details paid by nongovernmental entities.

A retired member remains eligible to serve as an elected city or town council member or school committee member and continue receiving retirement allowances for service other than that as a council member or school committee member.

Who is affected

Retired municipal employees who seek reemployment within Rhode Island municipalities.

Specifically affects those who might take on short-term or intermittent roles after retirement.

The change primarily benefits retirees who can work up to 90 days a year without losing pension benefits.

Police retirees engaged in private details are subject to the rule’s non-applicability for those details, per the exception noted.

Municipalities employing retirees, and pension administrators administering § 45-21-54, will implement the updated limit.

Procedural and timeline aspects

Introduced: February 13, 2026, by Senators Rogers and de la Cruz.

Referred to: Senate Finance.

Effective date: The act takes effect upon passage (no separate transition period specified).

Legislative action history shows a scheduled hearing/consideration in May 2026 (May 14, 2026).

Additional notes

The accompanying explanation confirms the core change: increasing the annual reemployment limit to 90 days (or 630 hours) and clarifying pension implications if the limit is exceeded.

The bill preserves retirement benefits for most reemployment scenarios within the new limit and clarifies credit and contribution rules for hours beyond the limit.

If you’d like, I can provide a side-by-side comparison of the current law versus the proposed changes or a plain-language Q&A for retirees and municipal employers.