S 2543Cities & 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 days annually.

On the floor38 Yea0 Nay0 Not voting

Population
Affected

Introduced Feb 13, 2026Committee Senate Finance

Plain-English Summary

This legislation updates the rules regarding retired municipal employees who wish to return to work for a municipality while still collecting their pension. Currently, a retiree can work up to 75 days (or equivalent hours) in a calendar year without their pension payments being suspended. This bill increases that limit to 90 working days or 630 working hours per year. If a retiree works beyond this new limit, their pension payments will be temporarily suspended for the remainder of their employment period.

For younger readers

When people retire from working for a town or city, they usually get money called a "pension" to help them pay for things. Sometimes, these retired workers want to go back and work a little bit to help out. Right now, the rules say they can work for 75 days a year and still get their pension money. This new rule changes that number to 90 days. This means they can work a few more weeks each year without losing their pension checks.

Who & Where It Applies

Impacted groups

Retired municipal employeesMunicipal hiring managersCity and town administratorsMunicipal HR departmentsTaxpayers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Supports the financial stability of retirees by allowing them to earn additional income through part-time work without jeopardizing their pension benefits.
Strengthens public services by allowing experienced former employees to fill staffing gaps, ensuring continuity of services for the community.
Provides a flexible labor solution for municipalities, potentially reducing the strain on existing full-time staff and improving overall workplace conditions.
May limit opportunities for younger workers or new entrants into the workforce if municipalities rely on retirees rather than creating permanent positions.
Could be perceived as "double-dipping" by allowing individuals to collect a public salary and a public pension simultaneously, potentially diverting funds that could support broader social programs.
Might delay necessary systemic reforms or modernization in municipal departments by relying on the "old guard" rather than bringing in fresh perspectives.

For Conservatives

Promotes fiscal responsibility by allowing municipalities to hire experienced workers for temporary roles without the cost of training or full benefits packages associated with new hires.
Increases individual economic freedom by removing government restrictions on how much a private citizen can work while retaining their earned benefits.
Enhances government efficiency by utilizing skilled labor to address backlogs or shortages without expanding the permanent size of the government workforce.
Facilitates "double-dipping" at the taxpayer's expense, allowing individuals to draw two streams of income from public funds simultaneously.
May discourage the reduction of government roles by making it easier to fill vacancies rather than eliminating unnecessary positions.
Could lessen the urgency to fix structural issues within municipal pension systems by creating workarounds for benefit distribution.

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.