H 7444Cities & Towns

Towns and Cities - Optional Retirement for Members of Police Force and Firefighters

This bill increases the pension benefit calculation rate for police officers and firefighters for service years starting in July 2026.

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Introduced Jan 30, 2026Committee House Municipal Government & Housing

Plain-English Summary

This legislation increases future retirement benefits for members of the police force and firefighters who participate in the state's optional retirement system. Starting July 1, 2026, the formula used to calculate the annual pension allowance changes. For every year of service worked after that date, the retiree will earn 2.5% of their final compensation toward their pension, which is an increase from previous rates (typically 2% or 2.25%). Service years worked prior to July 2026 will continue to be calculated using the existing formulas.

For younger readers

This law is about the money police officers and firefighters get paid after they retire, which is called a pension. Right now, there is a specific math rule used to figure out how much money they get based on how many years they worked. This new law changes that math rule starting in the year 2026. It says that for every year they work after 2026, they will earn a little bit more money for their retirement than they do now. It is like getting a raise for their savings account.

Who & Where It Applies

Impacted groups

Police officersFirefightersMunicipal governmentsProperty taxpayersRetirement Board

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Strengthens the social safety net for public sector workers, ensuring that first responders have greater financial security and dignity in their retirement years.
Enhances the ability of municipalities to recruit and retain essential public safety personnel, potentially leading to more stable and experienced community service.
Supports organized labor interests by improving the compensation package for unionized municipal employees, affirming the value of public service work.
Increases long-term financial liabilities for municipalities, which may divert limited tax revenue away from other critical social services like education, housing, and mental health programs.
Disproportionately benefits law enforcement personnel, which may be viewed critically by advocates seeking to reallocate funding from policing to community-based safety initiatives.
Creates a disparity in benefit generosity between public safety officers and other public servants or private sector workers who do not have access to similar guaranteed defined benefit increases.

For Conservatives

Demonstrates strong support for law enforcement and first responders, aligning with values that prioritize public safety and respect for those in uniform.
Helps maintain a high-quality workforce for essential emergency services by offering competitive long-term benefits, ensuring communities remain safe.
Rewards long-term dedication and service to the community, upholding the traditional social contract between the government and those who protect it.
Expands government spending and increases unfunded pension liabilities, which violates principles of fiscal conservatism and debt reduction.
Will likely necessitate future increases in local property taxes to cover the higher costs of these guaranteed benefits, placing a heavier burden on taxpayers and businesses.
Strengthens public sector unions by enriching their benefit packages, which can be seen as inflating the size and cost of government bureaucracy.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 12 additions

SECTION 1. Section 45-21.2-6 of the General Laws in Chapter 45-21.2 entitled "Optional Retirement for Members of Police Force and Firefighters" is hereby amended to read as follows: 45-21.2-6. Service retirement allowance. (a)(1) Upon retirement from service pursuant to § 45-21.2-5, a member receives a retirement allowance which is a life annuity terminable at the death of the annuitant and shall be an amount equal to two percent (2%) of final compensation multiplied by the years of total service, provided that a member who retires upon the attainment of age of fifty-seven (57) years and has completed at least thirty (30) years of total service shall receive a retirement allowance which is a life annuity terminable at the death of the annuitant and shall be an amount equal to the greater of:

(i) Two and one quarter percent (2.25%) of final compensation multiplied by total years of service; or (ii) The member’s accrued benefit determined as of June 30, 2012, plus two and one quarter percent (2.25%) of final compensation multiplied by member’s years of service after June 30, 2012; provided further that the life annuity under this subsection (a) shall not exceed seventy-five percent (75%) of final compensation.

(2) Notwithstanding the provisions of subsection (a)(1) of this section, commencing on July 1, 2026, all members, regardless of age or years of service, shall receive a retirement allowance which is a life annuity terminable at the death of the annuitant and shall be equal to the member's accrued benefit determined pursuant to the provisions of subsection (a)(1) of this section as of June 30, 2026, plus two and one-half percent (2.5%) of the final compensation multiplied by the years of service after June 30, 2026. Provided, however, a member who retires upon attaining the age of fifty-seven (57) years and has completed at least thirty (30) years of total service, shall retain the same retirement allowance as calculated pursuant to provisions of subsection (a)(1) of this section for the period of July 1, 2012 through June 30, 2026 and then be credited for two and one-half percent (2.5%) per year for services rendered after June 30, 2026.

(b) Upon retirement, the member may elect to receive the actuarial equivalent of his or her retirement allowance in a lesser retirement allowance as determined by actuarial calculation, which is payable throughout life with the provision that:

(1) Option 1. A reduced retirement allowance payable during the member’s life with the provisions that after his or her death it shall continue during the life of and be paid to the person that he or she nominated by written designation duly acknowledged and filed with the retirement board at the time of retirement; or

(2) Option 2. A reduced retirement allowance payable during the member’s life with the provision that after his or her death an allowance equal to one-half (½) of his or her reduced allowance shall continue during the life of and be paid to the person that he or she nominated by written designation duly acknowledged and filed with the board at the time of retirement.

(c) If prior to July 1, 2012, a member elected an optional form of benefit other than a life annuity in accordance with paragraph (b)(1) or (2) above, the member may elect to change his or her form of benefit to a life annuity by filing an election with the retirement board on or before June 30, 2013, provided that the member’s beneficiary is still alive at the time the election is filed.

SECTION 2. This act shall take effect upon passage.