Signed by Governor Lincoln Chafee

Vote Smart's Synopsis:

Vote to pass a bill that amends the state's pension system.

Highlights:

• Increases the amount of contribution to the retirement system from 8.5 percent to 8.75 percent of the member's compensation as his or her share of the cost of annuities, benefits, and allowances, effective prior to July 1, 2012 (Sec. 7)

• Reduces the amount of contribution to the retirement system to 3.75 percent of the member's compensation, except for correctional officers who shall contribute 8.75 percent, as of July 1, 2012 (Sec. 7).

• Specifies that a member in active contributory service on or after July 1, 2012, who is of the Social Security retirement age, shall be eligible to retire upon completing at least 5 years of contributory service (Sec. 7).

• Specifies that no member shall be eligible for pension benefits unless the member has been a contributing member of the employee's retirement system for at least 10 years for those in active contributory service on or prior to June 30, 2012, and at least 5 years for those in active contributory service on or after July 1, 2012 (Sec. 7).

• Specifies that the retirement allowance for services on or after July 1, 2012, shall be 1 percent of the member's average compensation multiplied by the member's years of service on or after July 1, 2012 (Sec. 7).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the state's pension system.

Highlights:

• Increases the amount of contribution to the retirement system from 8.5 percent to 8.75 percent of the member's compensation as his or her share of the cost of annuities, benefits, and allowances, effective prior to July 1, 2012 (Sec. 7)

• Reduces the amount of contribution to the retirement system to 3.75 percent of the member's compensation, except for correctional officers who shall contribute 8.75 percent, as of July 1, 2012 (Sec. 7).

• Specifies that a member in active contributory service on or after July 1, 2012, who is of the Social Security retirement age, shall be eligible to retire upon completing at least 5 years of contributory service (Sec. 7).

• Specifies that no member shall be eligible for pension benefits unless the member has been a contributing member of the employee's retirement system for at least 10 years for those in active contributory service on or prior to June 30, 2012, and at least 5 years for those in active contributory service on or after July 1, 2012 (Sec. 7).

• Specifies that the retirement allowance for services on or after July 1, 2012, shall be 1 percent of the member's average compensation multiplied by the member's years of service on or after July 1, 2012 (Sec. 7).

Full Bill Text