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H 7806Benefit Programs

Public Officers and Employees - Retirement System - Contributions and Benefits

Allows retired state and municipal workers to take jobs with Rhode Island municipalities without suspending their pension benefits.

Held for study
Population
Affected
15
Email Legislator
Introduced Feb 12, 2026Committee House Finance

Plain-English Summary

This legislation changes the rules for retired state and municipal workers who wish to return to work for a city or town in Rhode Island. Currently, there are restrictions that limit how much a retiree can work for a municipality without losing their pension payments, unless the town is under state financial oversight. This bill removes those restrictions, allowing retirees to work as municipal employees without having their retirement benefits suspended or reduced. However, these returning workers will not earn any new service credits toward a second pension for this additional work.

For younger readers

When people work for the government for a long time, they retire and get a monthly payment called a pension. Usually, if they go back to work for a city or town, they have to stop getting that pension money while they are working. This new rule says that these retired workers can take a job with a city or town and get paid for their work while still keeping their pension money at the same time. They won't earn points toward a new pension, but they can keep the one they have while working.

Who & Where It Applies

Impacted groups
Retired State EmployeesRetired Municipal EmployeesMunicipal Hiring ManagersTaxpayersPublic Sector Unions
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Reduces ageism in the workforce by removing barriers that prevent older, experienced public servants from contributing their skills to local government operations.
  • Provides financial relief and economic flexibility to retirees who may be struggling with the rising cost of living, allowing them to supplement their fixed pension income.
  • Helps municipalities fill critical staffing shortages in public services by widening the pool of available qualified candidates to include seasoned professionals.
  • Creates a "double-dipping" scenario that may exacerbate wealth inequality between public sector retirees and private sector workers who do not have access to guaranteed pensions.
  • Could stifle the entry of younger, more diverse workers into the municipal workforce if positions are filled by returning retirees rather than new hires.
  • May disincentivize municipalities from raising wages to attract new talent, as they can rely on retirees willing to work for existing rates because they are already subsidized by a pension.
For Conservatives
  • Promotes individual economic freedom by removing government restrictions on how retired individuals can earn a living and where they can work.
  • Increases efficiency in local government by allowing towns to hire experienced workers who require less training than new recruits, potentially saving taxpayer money on onboarding.
  • Allows municipalities to address labor shortages based on market needs without heavy-handed state interference regarding who they are allowed to employ.
  • Expands the practice of "double-dipping" (collecting a government salary and a government pension simultaneously), which is often viewed as an abuse of the taxpayer-funded system.
  • Could encourage workers to retire earlier than necessary to start collecting a pension while continuing to work, potentially straining the long-term actuarial health of the pension system.
  • Removes specific safeguards that were originally intended to apply only to fiscally distressed communities, broadening a loophole to all municipalities regardless of need.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 2 additions · 5 deletions

SECTION 1. Section 36-10-36 of the General Laws in Chapter 36-10 entitled "Retirement System — Contributions and Benefits" is hereby amended to read as follows: 36-10-36. Post-retirement employment.

(a) On and after July 7, 1994, no member who has retired under the provisions of title 16, 36, or 45 may be employed or reemployed by any state agency or department unless any and all retirement benefits to which the member may be entitled by virtue of the provisions of title 16, 36, or 45 are suspended for the duration of any employment or reemployment. No additional service credits shall be granted for any post-retirement employment or reemployment and no deductions shall be taken from an individual’s salary for retirement contribution. Notice of any such post- retirement employment or reemployment shall be sent monthly to the retirement board by the employing agency or department and by the retired member.

(b) Any member who has retired under the provisions of title 16, 36, or 45 may be employed or reemployed by any municipality within the state that has accepted the provisions of chapter 21 of title 45 and participates in the municipal employees’ retirement system for a period of not more than seventy-five (75) working days or one hundred fifty (150) half days with half-day pay in any one calendar year without any forfeiture or reduction of any retirement benefits and allowances the member is receiving, or may receive, as a retired member. Pension payments shall be suspended whenever this period is exceeded. No additional contributions shall be taken, and no additional service credits shall be granted, for this service. Notice of this employment or reemployment shall be sent monthly to the retirement board by the employer and by the retired member.

(c) Any member who has retired under the provisions of title 16, 36, or 45 may be employed or reemployed by any municipality within the state that has not accepted the provisions of chapter 21 of title 45 and that does not participate in the municipal employees’ retirement system.

(d) Notwithstanding the provisions of this section:

(1) Any retired member of the system shall be permitted to serve as an elected mayor, the town administrator, the city administrator, the town manager, the city manager, the chief administrative officer, or the chief executive officer of any city or town, city or town council member, school committee member, or unpaid member of any part-time state board or commission or member of any part-time municipal board or commission, and shall continue to be eligible for, and receive, the retirement allowance for service other than that as a mayor, administrator, council member, school committee member, or member of any state board or commission or member of any part-time municipal board or commission; provided, however, that no additional service credits shall be granted for any service under this subsection;

(2) Any retired member, who retired from service at any state college, university, state school, or who retired from service as a teacher under the provisions of title 16, or who retired from service under title 36 or title 45, may be employed or reemployed, on a part-time basis, by any state college, university, or state school for the purpose of providing classroom instruction, academic advising of students, and/or coaching. Compensation shall be provided at a level not to exceed the salary provided to other faculty members employed under a collective bargaining agreement at the institution. In no event shall “part-time” mean gross pay of more than twenty-five thousand dollars ($25,000) in any one calendar year. Any retired member who provides such instruction or service shall do so without forfeiture or reduction of any retirement benefit or allowance; provided, however, that no additional service credits shall be granted for any service under this subsection;

(3) Any retired member who retired from service as a teacher under the provisions of title 16, or as a state employee who, while an active state employee, was certified to teach driver education by the department of elementary and secondary education or by the board of governors for higher education, may be employed or reemployed, on a part-time basis, by the department of elementary and secondary education or by the board of governors of higher education for the purpose of providing classroom instruction in driver education courses in accordance with § 31- 10-19 and/or motorcycle driver education courses in accordance with § 31-10.1-1.1. In no event shall “part-time” mean gross pay of more than fifteen thousand dollars ($15,000) in any one calendar year. Any retired teacher who provides that instruction shall do so without forfeiture or reduction of any retirement benefit or allowance the retired teacher is receiving as a retired teacher; provided, however, that no additional service credits shall be granted for any service under this subsection;

(4) Any retired member who retired from service as a registered nurse may be employed or reemployed, on a per-diem basis, for the purpose of providing professional nursing care and/or services at a state-operated facility in Rhode Island, including employment as a faculty member of a nursing program at a state-operated college or university. In no event shall “part-time” mean gross pay of more than a period of seventy-five (75) working days or one hundred fifty (150) half days with half pay in any one calendar year. Any retired nurse who provides such care and/or services shall do so without forfeiture or reduction of any retirement benefit or allowance the retired nurse is receiving as a retired nurse; provided, however, that no additional service credits shall be granted for any service under this subsection. Pension payments shall be suspended whenever this period is exceeded. No additional contributions shall be taken and no additional service credits shall be granted for this service. Notice of this employment or reemployment shall be sent monthly to the retirement board by the employer and by the retired member;

(5) Any retired member who, at the time of passage of this section, serves as a general magistrate within the family court and thereafter retires from judicial service, may be employed or reemployed by the family court to perform such services as a general magistrate of the family court as the chief judge of the family court shall prescribe without any forfeiture or reduction of any retirement benefits and allowances that the member is receiving or may receive. For any such services or assignments performed after retirement, the general magistrate shall receive no compensation whatsoever, either monetary or in kind. No additional contributions shall be taken and no additional service credits shall be granted for this service;

(6) Any retired district court clerk/magistrate or magistrate of the district court who shall subsequently be assigned to perform service in accordance with § 8-8-8.1 or § 8-8-16.2(e), may be employed or reemployed by the district court to perform such services as a magistrate as the chief judge of the district court shall prescribe without any forfeiture or reduction of any retirement benefits and allowance that they are receiving or may receive. For any such services or assignment performed after retirement, the district court clerk/magistrate or magistrate shall receive, in addition to their retirement pension, the difference in pay and fringe benefits between their retirement pension, and that of a sitting magistrate of the district court with comparable state service time. No additional contributions shall be taken and no additional service credits shall be granted for this service; and

(7) Any retired member of the system, with no exceptions shall be permitted to serve as a municipal employee without any forfeiture or reduction of any retirement benefits and allowances that the member is receiving or may receive;. provided, that said member shall be appointed by and serves at the pleasure of the highest elected chief executive officer, as defined in § 45-9-2, in any city or town subject to the provisions of chapter 9 of title 45 entitled “Budget Commissions” relating to the appointment of a fiscal overseer, budget commission, receiver, and/or financial advisor. Provided further, that no additional service credits shall be granted for any service under this subsection.

SECTION 2. This act shall take effect upon passage.