RI S3129

Public pension benefits administered by the Rhode Island Employees' Retirement System would be fully exempt from state income tax, allowing recipients to subtract these amounts from their federal adjusted gross income when calculating Rhode Island income.

The exemption applies to all ERSRI pension benefits with no income threshold or cap, unlike existing pension/annuity modifications that are limited to $50,000 and subject to income limits ($80,000 single/$100,000 joint).

ERSRI administers retirement benefits for state employees, teachers, state police, judges, and certain municipal employees.

The act would take effect immediately upon passage.