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2024 Pension Relief
Pension improvements to address the reforms enacted in 2011 are a top priority for NEARI in 2024.
Pension improvement bills submitted at the General Assembly
Representative Jay Edwards and Senator Walter Felag have submitted legislation in their respective chambers to address pension relief for Rhode Island teachers and municipal and state employees. Both bills put forward the 5 to 3 average salary change in how an employee in the ERSRI has their pension benefit calculated (keep reading for details on 5 to 3 and why NEARI recommends it as the 2024 strategy toward increasing pension benefits for all active members in the ERSRI system).
- Senate Bill 2979: Introduced, referred to Senate Finance
- House Bill 8149*: Introduced, referred to House Finance
*H8149 teachers were unintentionally omitted from the bill draft. It will need to be amended to include teacher benefits.
Tell legislators to support S2979 & H8149 today!
Why does NEARI recommend the 5 to 3 Year Average Salary option for pension relief in 2024?
The 5-to-3-year average salary option is:
- Strategically most attainable in this landscape
- Impacts all active members regardless of date of hire
- Reached Labor consensus on this option
- No other proposal will have this kind of member reach
Timeline and Strategy at a glance
What is the 5 to 3 Year Average Salary?
State law provides that an employee’s final average salary is based on the average of the five highest consecutive years of earnings, regardless of when they occur. The average salary formula was increased to five years from three years in 2009 (it was not part of 2011 pension reform).
What is being proposed?
Legislation would amend the final average salary formula from the highest five years of pay to the highest three years of pay for teachers and state and municipal employees.
What does this mean for me?
The “5 to 3” option provides relief to as many active members as possible
While salary increases will always vary by member:
- On average a municipal employee will see their pension increased by an additional $470
- On average a state employee will see their pension increased by an additional $963
- On average a teacher will see their pension increased by an additional $1024
How can I get involved?
All of us work hard, providing vital services to our communities, and all of us deserve a secure retirement. For the past 38 years, the State of Rhode Island has chipped away at our retirement benefits, with the biggest cut hitting us in 2011. Together we can reverse that trend.
To win the 5 to 3 option, we need the Rhode Island House and Senate to support us!
Send a postcard!
Flyers for sharing in your Local
Why is this happening now?
As directed by the General Assembly and required by Rhode Island Law, the General Treasurer convened a Pension Advisory Working Group to assess the impacts and unintended consequences of the Rhode Island Retirement Security Act of 2011. The Advisory Working Group met six times over four months beginning in November 2023. Experts and stakeholders were given the opportunity to testify before the Group at each meeting.
NEARI testifies at Pension Advisory Group hearing
Executive Director Mary Barden and Vice President Amy Mullen testified at the second session of the Pension Advisory Working Group empaneled by General Treasurer James Diossa. Watch the testimony here
NEARI-Retired President Ray Pouliot testified in Session Three. You can watch his testimony here.
Documents and Links
For a full selection of documents and meeting materials from the Advisory Group, visit Treasury.ri.gov and click Meeting Materials in the left-side tab
Final Report of the RI Pension Advisory Working Group February 26, 2024
Advisory Group Actuarial Impact (PDF) January 31, 2024
Pension Advisory Working Group Options for Consideration January 17, 2024
NEA Retired President Ray Pouliot testimony December 14, 2023
Pension Advisory Working Group Brief by General Treasurer James Diossa
April 10 Informational Webinar
NEARI members are invited to join us to review the 5 to 3 option and what it may mean for our membership this year as a first step toward positive pension improvements to the state system.