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H 8407Benefit Programs

Public Officers and Employees - Retirement System - Contribution and Benefits

This bill removes the $25,000 yearly earnings limit for retired state employees working part-time at state colleges.

Held for study
Population
Affected
15
Email Legislator
Introduced Apr 3, 2026Committee House Finance

Plain-English Summary

This bill changes the rules for retired state and municipal employees, including teachers, who return to work part-time at a state college, university, or state school. Previously, these retirees could not earn more than $25,000 in a calendar year from this part-time work without losing their pension benefits. This legislation removes that $25,000 earnings limit. The retirees are still restricted to teaching no more than two classes per semester, and their pay rate cannot exceed what other faculty members make under their union contracts.

For younger readers

When people who work for the government get older and stop working, they get a monthly payment called a pension. Sometimes, these retired people want to go back to work just a little bit at a state college or university to teach or help students. Before, there was a rule that said they could only earn up to $25,000 a year doing this extra work, or else they would lose their pension money. This new bill takes away that $25,000 limit, so they can earn more money from teaching without losing their pension.

Who & Where It Applies

Impacted groups
Retired state employeesRetired public school teachersState colleges and universitiesCollege studentsAdjunct professors
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Removes an arbitrary income cap, allowing experienced educators to continue contributing to public higher education without being financially penalized, thereby enhancing the quality of public universities.
  • Supports older workers and retirees by allowing them to supplement their fixed pension incomes during times of inflation or rising living costs.
  • Maintains the requirement that adjunct or part-time faculty are paid fairly according to collective bargaining agreements, supporting union standards while filling necessary educational roles.
  • May reduce opportunities for younger, diverse, or newly graduated educators to secure teaching positions if colleges rely more heavily on returning retirees.
  • Could encourage universities to rely on part-time, adjunct labor instead of creating full-time, tenured positions with full benefits, weakening the overall academic workforce.
  • Primarily benefits individuals who already have the security of a state pension, potentially widening the wealth gap between secure retirees and struggling adjunct professors who lack retirement benefits.
For Conservatives
  • Removes government-imposed earning caps, allowing individuals the economic freedom to work and earn as much as they want without being unjustly penalized.
  • Helps state colleges and universities address staffing shortages by tapping into a pool of experienced, willing retirees without needing to pay for new full-time benefits packages.
  • Rewards hard work and self-reliance by letting seniors continue to participate in the workforce and support themselves financially.
  • Allows former state employees to "double-dip" by receiving full taxpayer-funded pension payouts while simultaneously drawing another salary from a taxpayer-funded state institution.
  • By requiring compensation to match collective bargaining agreements, it maintains union control over wages rather than allowing free-market negotiation for part-time retiree labor.
  • Could potentially increase the overall payroll burden on state colleges and universities by removing the cap on how much these part-time instructors can be paid.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 3 additions · 2 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; provided, however, that retired, part-time or adjunct instructors may not teach or be hired to teach more than two (2) classes per semester. 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 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.