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S 2249Cities & Towns

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

This bill grants retired police officers and firefighters a guaranteed, compounded 2.5% annual increase in their pension payments.

Held for study
Population
Affected
8
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Introduced Jan 23, 2026Committee Senate Finance

Plain-English Summary

This legislation amends the general laws regarding optional retirement for members of police forces and firefighters in Rhode Island. The key change introduced by this bill is the implementation of a mandatory annual pension increase. Specifically, it stipulates that active and retired members, as well as their beneficiaries, will receive a 2.5% escalation (Cost of Living Adjustment) on their pension payments. This increase is to be compounded annually, taking effect on January 1st following the year of the member's retirement.

For younger readers

This bill helps police officers and firefighters after they retire. When these workers stop working, they receive money every month called a pension to help them pay for food and housing. This bill changes the rules so that the amount of money they get goes up by 2.5% every single year. This is done to help them keep up with the rising cost of things like groceries and clothes. It ensures that the longer they are retired, the more money they receive to support themselves and their families.

Who & Where It Applies

Impacted groups
Police OfficersFirefightersRetired Municipal EmployeesBeneficiaries of RetireesTaxpayers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Ensures a dignified retirement for public sector workers by protecting their pension income against the eroding effects of inflation.
  • Strengthens the social safety net for municipal employees and their families, reducing the likelihood of financial insecurity in old age.
  • Honors the labor and sacrifices of workers who perform essential and often dangerous services for the community.
  • Increases funding and long-term financial commitments to police departments, which some activists argue diverts resources from social services and community investment.
  • Places a significant financial burden on municipal budgets, potentially leading to tax increases that disproportionately impact lower-income residents.
  • Provides guaranteed financial escalators to police unions without attaching any requirements for systemic reform or increased accountability.
For Conservatives
  • Demonstrates strong support for law enforcement and first responders, reinforcing the commitment to "Back the Blue" and public safety.
  • Helps recruit and retain high-quality personnel for police and fire departments by offering competitive, reliable retirement benefits.
  • Upholds the moral obligation to care for those who have risked their lives to protect property and maintain law and order.
  • Expands government spending and creates significant long-term unfunded liabilities that will burden taxpayers for decades.
  • Mandates a fixed 2.5% compound increase regardless of the state's economic health or actual inflation rates, lacking fiscal flexibility.
  • Increases the size and cost of the public sector, potentially requiring tax hikes on businesses and individuals to cover the escalating costs.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 7 additions · 3 deletions

SECTION 1. Section 45-21.2-5 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: 45-21.2-5. Retirement on service allowance.

(a) Retirement of a member on a service retirement allowance for members eligible to retire on or before June 30, 2012, shall be made, subject to paragraph (a)(11) below, by the retirement board as follows:

(1) Any member who has attained or attains age seventy (70) shall be retired as stated in §  45-21-16 subject to the discretions contained in that section; provided, that any member who is a member of the Woonsocket fire department who has attained or attains an age of sixty-five (65) years shall be retired. Retirement occurs on the first day of the next succeeding calendar month in which the member has attained the age of sixty-five (65) years.

(2) Any member may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement has attained an age of fifty-five (55) years and has completed at least ten (10) years of total service, and notwithstanding that the member may have separated from service.

(3) Any member may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement has completed at least twenty-five (25) years of total service, and notwithstanding that the member may have separated from service.

(4) Any member may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement has attained an age of fifty (50) years and has completed at least twenty (20) years of total service, notwithstanding that the member may have separated from service; provided, that the service retirement allowance, as determined according to the formula provided in § 45- 21.2-6, is reduced one-half of one percent (1/2%) for each month that the age of the member is less than fifty-five (55) years.

(5) Any member of the South Kingstown police department may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement has earned a service retirement allowance of fifty percent (50%) of final compensation pursuant to § 45-21.2-6.1.

(6) Any member of the Johnston police department may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement has earned a service retirement allowance of fifty percent (50%) of final compensation pursuant to § 45-21.2-6.2.

(7) Any member of the Cranston fire department hired after July 1, 1995, or any member of the Cranston fire department with five (5) years or less of service effective July 1, 1995, may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement has earned a service retirement allowance of fifty percent (50%) of final compensation for at least twenty (20) years service; final compensation for Cranston fire department members is based on the compensation components of weekly salary, longevity and holidays with longevity of the members highest year of earnings and members shall receive a three percent (3%) escalation of their pension payment compounded each year on January 1st following the year of retirement and continuing on an annual basis on that date; further, any illness or injury not covered in title 45 relating to the presumption of disability is governed by the collective bargaining agreement between the City of Cranston and members of the Cranston fire department.

(8) Any member of the Cranston police department hired after July 1, 1995, or any member of the Cranston police department with five (5) years or less of service effective July 1, 1995, may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement has earned a service retirement allowance of fifty percent (50%) of final compensation for at least twenty (20) years service; final compensation for Cranston police department members is based on the compensation components of weekly salary, longevity and holidays with longevity of the members highest year of earnings and members shall receive a three percent (3%) escalation of their pension payment compounded each year on January 1st following the year of retirement and continuing on an annual basis on that date; further, any illness or injury not covered in title 45 relating to the presumption of disability is governed by the collective bargaining agreement between the City of Cranston and members of the Cranston police department.

(9) Any member of the Hopkinton police department may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement has earned a service retirement allowance of fifty percent (50%) of final compensation for at least twenty (20) years service; final compensation for Hopkinton police department members is based on the compensation components of weekly salary, longevity and holidays with longevity of the members highest year of earnings and members shall receive a three percent (3%) escalation of their pension payment compounded each year on January 1st following the year of retirement and continuing on an annual basis on that date.

(10) Any member of the Richmond police department may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement has earned a service retirement allowance of fifty percent (50%) of final compensation for at least twenty-two (22) years’ service pursuant to § 45-21.2-6.3.

(11) Notwithstanding any provision in this section to the contrary, for any service on or after July 1, 2012, final compensation shall be defined in accordance with § 45-21.2-2, and no benefit adjustments shall be provided except as set forth in §  45-21-52(c).

(12) Notwithstanding any provision in this section or in § 45-21-52(c) or (d), active and retired members, and the beneficiaries receiving any retirement allowance or benefit of any kind, shall also receive a two and one-half percent (2.5%) escalation of their pension payment, compounded each year on January 1 following the year of retirement and continuing on an annual basis thereafter on that date. (12)(13) Notwithstanding any provisions of this section to the contrary, with respect to police officers employed by the town of Johnston, only those police officers hired on or after July 1, 2010, shall be eligible to be members of the Municipal Employees’ Retirement System of the state of Rhode Island in accordance with this chapter.

(b) Retirement of a member on a service retirement allowance eligible to retire on and after July 1, 2012, shall be made by the retirement board as follows:

(1) Any member may retire pursuant to this subdivision upon written application to the board stating at what time the member desires to retire; provided, that the member at the specified time for retirement attained the age of at least fifty-five (55) years and has completed at least twenty-five (25) years of total service, and notwithstanding that the member may have separated from service; or

(2) Effective July 1, 2015, the member makes contributions to the plan effective July 1, 2015, in accordance with § 45-21.2-14, and (i) The member at the specified time for retirement attained the age of at least fifty (50) years and has completed at least twenty-five (25) years of total service; or (ii) The member has completed at least twenty-seven (27) years of total service regardless of the member’s attained age, and notwithstanding that the member may have separated from service.

(3) Any member with contributory service on or after July 1, 2012, who has completed at least five (5) years of contributory service but who has not completed twenty-five (25) years of service, shall be eligible to retire upon the attainment of the member’s Social Security retirement age.

(4) If a member had ten (10) or more years of contributory service and attained age forty- five (45) prior to July 1, 2012, and would have been eligible to retire at or prior to age fifty-two

(52) in accordance with the rules in effect prior to July 1, 2012, the member may retire upon attainment of age fifty-two (52).

(5) Effective July 1, 2015, a member who has completed twenty (20) or more years of total service who has attained an age within five (5) years of the eligible retirement age under subparagraphs (b)(1) or (b)(2) or (b)(3) or (b)(4) above, may elect to retire provided that the retirement allowance shall be reduced actuarially for each month that the age of the member is less than the eligible retirement age under subparagraphs (b)(1) or (b)(2) or (b)(3) or (b)(4) above in accordance with the following table: Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly Reduction For Year 1 9% .75% For Year 2 8% .667% For Year 3 7% .583% For Year 4 7% .583% For Year 5 7% .583%

(6) Notwithstanding any other provisions of this section, a member on June 30, 2012, may elect to retire at his or her eligible retirement date as determined under the rules in effect on June 30, 2012, provided that a member making an election under this paragraph shall receive the member’s retirement benefit determined and calculated based on the member’s service and final compensation as of June 30, 2012. This provision shall be interpreted and administered in a manner to protect a member’s accrued benefit on June 30, 2012.

SECTION 2. This act shall take effect upon passage.