Pension Relief

By: NEARI

Published: September 27, 2024

In 2024, NEARI members made Pension Relief a priority issue of the NEARI Legislative Agenda and leveraged our collective voice and collective action to win the change we deserve.

5 to 3 Year Average Salary Option Explainer

NEARI members advocated for the 5-to-3-year average salary option because it 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

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 was 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 did NEARI members secure this win?

All of us work hard, providing vital services to our communities, and all of us deserve a secure retirement. Over 38 years, the State of Rhode Island chipped away at our retirement benefits, with the biggest cut hitting us in 2011. Together, we reversed that trend through collective action. Check out the timeline to learn more!

June 2024

Pension Relief passed in the Rhode Island State Budget

Following months of NEARI members and allies calling on the state legislature to deliver pension relief, the General Assembly tackled the retirement issues by changing the pension calculation of benefits to use the highest three years of salary instead of five ("the 5-to-3 bill"), which impacts every one of our active members regardless of date of hire. Additionally, the COLA was restored for those who retired prior to 2012. Also, COLA restoration for all others will now go into effect when the pension fund is 75 percent funded instead of 80 percent.

April 25, 2024

NEARI testifies to support pension relief for active and retired members

NEARI Lobbyist Erich Haslehurst testified on multiple retirement bills before a joint HouseEducation & Finance hearing. In his testimony, Eric shares how NEARI is on record supporting pension relief for active and retired members. In fact, over the last many months, NEARI has publicly supported nearly every pension bill heard at the General Assembly! Watch the recorded testimony.

April 11, 2024

Pension improvement bills submitted at the General Assembly

Representative Jay Edwards and Senator Walter Felag 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).

February 6, 2024

NEARI members wearing NEARI branded scarves laugh together in folding chairs at lobby day in 2024.

NEARI members advocate at Lobby Day

When more than 120 NEARI members came to the State House to advocate for strong public education and good jobs for all, they urged legislators to support legislation for pension relief.

December 2023

NEARI Retired testifies at Pension Advisory Group hearing

NEARI-Retired President Ray Pouliot testified in the Pension Advisory Working Group Session Three on behalf of NEARI Retired members. You can watch his testimony here.

November 2023

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.

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Pension Relief