RI H7391

Reinstates full annual cost-of-living adjustments (COLA) for plan year 2026 for teachers and state employees who retired after July 1, 2012, removing the previous restriction that reduced benefits to 25% unless the pension system reached 80% funding

Provides municipal employees who retired after July 1, 2012, a one-time COLA of 2.89% for plan year 2026

Lowers the funded ratio threshold from 80% to 75% for full COLA reinstatement for all retirees going forward (effective July 1, 2024 provision referenced)

Beginning January 1, 2027, exempts state retirement system pension benefits from Rhode Island personal income tax

Takes effect upon passage