H 7801Cities & Towns

Towns and Cities - Retirement of Municipal Employees

This bill increases the number of days a retired municipal employee can work from 75 to 90 without losing pension benefits.

Introduced

Population
Affected

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Introduced Feb 12, 2026Committee House Finance

Plain-English Summary

This legislation updates the rules for retired municipal employees in Rhode Island who wish to return to work for a municipality on a part-time basis. Currently, a retiree can work up to 75 days (or equivalent hours) in a calendar year without their pension benefits being paused. This bill increases that limit to 90 working days (or 630 hours). If a retiree works more than the allowed 90 days, their pension payments will be suspended until they stop working. This change does not affect existing rules regarding police details or elected officials.

For younger readers

When people work for a city or town for a long time, they eventually retire and get paid money called a pension to live on. Sometimes, these retired workers want to go back and do a little bit of work for the town. Right now, they are allowed to work 75 days a year and still keep their pension money. This new rule says they can work a little longer, up to 90 days a year, and still get their pension. If they work more than that, the pension payments stop until they stop working.

Who & Where It Applies

Impacted groups

Retired municipal employeesMunicipalitiesTaxpayersHuman Resource DepartmentsHiring Managers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Allows retired public servants to supplement their income, providing increased financial security for seniors in an economy with rising costs of living.
Helps municipalities fill critical staffing shortages with experienced workers, ensuring that public services remain available to the community without interruption.
Respects the autonomy of workers by granting them more flexibility to choose how much they wish to work during their retirement years.
Could discourage municipalities from hiring full-time, permanent employees with full benefits, relying instead on temporary labor from retirees.
Might limit job opportunities for younger or newer workers trying to enter the municipal workforce if positions are consistently filled by returning retirees.
Perpetuates a system where older individuals feel compelled to continue working to survive financially rather than enjoying a fully supported, secure retirement.

For Conservatives

Promotes government efficiency by allowing experienced workers to return to roles they know well, eliminating the costs associated with training new employees.
Supports individual economic freedom by removing government restrictions on how much a retiree is allowed to work if they choose to do so.
Provides a cost-effective solution for towns to manage workload fluctuations without committing to the long-term legacy costs of new full-time hires.
Allows individuals to collect both a taxpayer-funded pension and a taxpayer-funded salary simultaneously for a longer period, which some view as "double-dipping."
May delay necessary structural reforms to the pension system by making the current model more comfortable for beneficiaries rather than addressing long-term sustainability.
Could be perceived as expanding the government payroll and delaying the transition of certain municipal functions to the private sector.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 6 additions · 3 deletions

SECTION 1. Section 45-21-54 of the General Laws in Chapter 45-21 entitled "Retirement of Municipal Employees" is hereby amended to read as follows: 45-21-54. Reemployment of retired members. Any retired member of the system is permitted to reenter the service of the system for not more than ~~seventy-five (75)~~ ninety (90) working days or its equivalent of six hundred thirty (630) working hours in a calendar year without interruption of pension benefits. Pension payments, however, are suspended when that period is exceeded. This ~~seventy-five-day (75)~~ ninety-day (90) rule shall not apply to police officers, as defined in § 28-9.2-3, for the purposes of their working private details, paid for by a nongovernmental entity. If the retired member continues in service beyond the ~~seventy-five-day (75)~~ ninety (90) working day period (with his or her annuity temporarily suspended) the member is not eligible for pension credit for the additional service, nor is the member required to make pension contributions for this service; provided, that any retired member of the system is permitted to serve as an elected city or town council member or school committee member and continues to be eligible for and receive the retirement allowance for service other than that as a council member or school committee member.

SECTION 2. This act shall take effect upon passage.