S 2090Worker Benefits

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

This bill increases the pension benefit calculation rate to 2.5% for police and firefighters for service years starting in July 2026.

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Introduced Jan 16, 2026Committee Senate Finance

Plain-English Summary

This legislation modifies the retirement allowance calculations for members of the police force and firefighters within the state's optional retirement system. Specifically, it establishes that starting July 1, 2026, all members will accrue pension benefits at a rate of 2.5% of their final compensation for every year of service rendered after that date. This is an increase from the previous accrual rates. Service years prior to July 2026 will continue to be calculated based on the rates in effect during that time. The bill aims to increase the future pension payouts for these public safety employees.

For younger readers

When police officers and firefighters retire, they receive money called a "pension" to help them live after they stop working. This bill changes the math used to figure out how much money they will get. Starting in the summer of 2026, for every year they work, they will earn a slightly bigger piece of their final paycheck as part of their retirement money. This means that police officers and firefighters will likely get larger checks when they eventually retire in the future.

Who & Where It Applies

Impacted groups

Police OfficersFirefightersMunicipal TaxpayersCity and Town GovernmentsRetirement 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 by ensuring more robust financial security and dignified retirement benefits for first responders.
Supports the labor movement principle of defined benefit pensions, protecting workers against the erosion of retirement security seen in the private sector.
May improve the retention of experienced emergency personnel, ensuring that communities are served by seasoned professionals during crises.
Increases long-term financial liabilities for municipalities, which could divert critical budget resources away from social services, education, and community development programs.
Directs additional public funds specifically to law enforcement agencies without attaching conditions regarding police accountability or systemic reform.
Reinforces a two-tier system where public safety officers receive significantly more generous benefits than other essential public workers or the general working class.

For Conservatives

Demonstrates strong support for law enforcement and firefighters, reinforcing the commitment to maintaining law and order and public safety.
Serves as a recruitment and retention tool to ensure the state has a fully staffed and capable force to protect private property and citizens.
Honors the traditional values of rewarding service and sacrifice for those who undertake dangerous professions to protect the community.
Increases government spending and expands unfunded pension liabilities, which will inevitably lead to higher property taxes for residents and businesses.
Expands the size and cost of the public sector, creating a heavier financial burden on the private sector to support government employee benefits.
Locks future taxpayers into guaranteed payouts regardless of the economic climate, removing fiscal flexibility from local governments.

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.