Rhode Island 2015 Pension Settlement
Retirement Age:
The retirement ages for some are earlier than retirement ages listed above based on proportionality chart. Member's full retirement age is no earlier than age fifty-nine (59). See ERSRI account for Article 7 age, which comes with a penalty, and full RIRSA age, which is full retirement age without penalty.
Service Credits: (Twenty (20) years of service as of June 30, 2012)
Service Credits: (Fifteen (15) years of service as of June 30, 2012)
Service Credits: (Ten (10) years of service as of June 30, 2012)
COLA (Cost of Living Adjustment) Calculation:
- 33 years of service (Full retirement age is 62)
- 32 years of service (Full retirement age is 63)
- 31 years of service (Full retirement age is 64)
- 30 years of service (Full retirement age is 65)
The retirement ages for some are earlier than retirement ages listed above based on proportionality chart. Member's full retirement age is no earlier than age fifty-nine (59). See ERSRI account for Article 7 age, which comes with a penalty, and full RIRSA age, which is full retirement age without penalty.
Service Credits: (Twenty (20) years of service as of June 30, 2012)
- For those who had twenty (20) years of service as of June 30, 2012, members defined contribution account (401k like) will cease to receive additional contributions. The value of account will continue to grow based on market conditions.
- Will only participate in defined benefit account with an accrual rate of 2% per year instead of 1%. Contribution rate increase from 10.75% to 11%
Service Credits: (Fifteen (15) years of service as of June 30, 2012)
- For those who have fifteen (15) years of service but less than twenty (20) as of June 30, 2012, the school department's contribution to members defined contribution account (401k like) will increase from 1% to 1.5%. Because Lincoln is a non-social security district, the school department's contribution is 3.5%. Total of 10.5% contributed to defined contribution account.
Service Credits: (Ten (10) years of service as of June 30, 2012)
- For those who have ten (10) years of service but less than fifteen (15) as of June 30, 2012, the school department's contribution to members defined contribution account (401k like) will increase from 1% to 1.25%. Because Lincoln is a non-social security district, the school department's contribution is 3.25%. Total of 10.25% contributed to defined contribution account.
COLA (Cost of Living Adjustment) Calculation:
- The pension plan needs to be 80% funded for an annual COLA to be paid out on the first $25,000 of pension.
- If the plan is not 80% funded, there is a formula that is used for every four (4) years commencing January 2017.
- COLA FORMULA: 50% of COLA calculated using five (5) year average of investment return to a max of 4%. Other 50% is calculated using previous year's CPI-U index to a max of 3%. Using the COLA formula, the maximum COLA is 3.5%. COLA formula will be calculated annually and will never produce a number less than 0%.