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| 1. How to use our website (back to main index) |
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Q1. How do I obtain a user ID and password? |
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Q2. I forgot my password |
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Q3. How can I be sure that the information I submit using the website is secure? |
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Q4. What is PDF Format? |
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Q5. Why can't I open this form? |
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A1. "How do I obtain a user ID and password?" |
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To obtain a user ID and password for our site, you must be a Member or
Benefit Recipient of the Employees' Retirement System of Rhode Island or
Municipal Employees' Retirement System. From the main page, click on
"Manage Web Profile" or, from the login box, click the small text at the bottom
"Create New Account". These links will take you to a page where you
can create an account online. If we are unable to verify all the information we need,
those pages will tell you how to contact ERSRI in writing to obtain a user ID and Password.
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A2. "I forgot my password." |
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If you have forgotten your password, you should answer the secret question on the login
screen and your password will be emailed to you directly. If you still are unable to
login with this password, you can call ERSRI customer support. ERSRI will reset your web
account password, and you will receive a new password by email. |
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A3. "How can I be sure that the information I submit
using the website is secure?" |
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If you are using Internet Explorer, you will see a padlock icon on the right hand
hand side of the status bar. This indicates the website you are
currently visiting is secure. You could double-click on the padlock to view more information
about the website security.
If you are using Netscape Navigator you will see a padlock icon on the left-hand corner
of the status bar. If the padlock icon is locked, the website you are visiting is secure.
If the padlock is open the page you are currently in is not secure. You can double click
on the padlock to view more security information about the website.
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A4. "What is PDF Format?" |
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PDF format stands for Adobe© Portable Document Format.
This format is often used for web-based documents and can be read by
downloading Adobe© Acrobat© Reader©. |
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A5. "Why can't I open this form?" |
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You probably need to download Adobe© Acrobat© Reader©, which will allow you to read files
of the type PDF. PDF format stands for Adobe© Portable Document Format.
This format is often used for web-based documents and can be read by
downloading Adobe© Acrobat© Reader©. |
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2. The Employees' Retirement System of Rhode Island (back to main index)
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Q1. What is the Employees' Retirement System of Rhode Island? |
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Q2. Who governs the Employees' Retirement System of Rhode Island? |
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A1. "What is the Employees' Retirement System of Rhode
Island?" |
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The Employees' Retirement System of Rhode Island is a contributory retirement system governed by
Chapters 16, 36 and 45 of the Rhode Island General Laws. The plan provides retirement, disability
and survivor benefits to state employees, public school teachers, and municipal employees who
are employed by a participating municipality.
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A2. "Who governs the Employees' Retirement System of Rhode Island?"
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The Employees' Retirement System of Rhode Island is governed by a retirement
board. The board, which meets the second Wednesday of each
month, establishes rules and regulations for the agency. The board
also approves each application for disability benefits and hears appeals
by members who have been aggrieved by an administrative decision
of the executive director. Finally, the Board oversees the delivery
of services and information to its membership of over 32,000
active members and 19,000 benefit recipients. The retirement office staff is
managed by an executive director who oversees a staff of 25 full-time
employees.
The Board is composed of fifteen members chosen in accordance
with Chapter 36 of the Rhode Island General Laws and is chaired
by the General Treasurer. Its membership includes:
General Treasurer;
the director of administration or designee;
the budget officer or designee;
appointees of the Governor, subject to Senate approval;
appointees of the General Treasurer, subject to Senate approval;
President of the League of Cities and Town or designee;
active state employees or union representatives elected by the state membership;
active teacher or union representatives elected by the teacher membership;
municipal member or union representative elected by the municipal membership;
retired member elected by the plan retirees
chairperson of the House Finance Committee or designee;
chairperson of the Senate Finance Committee or designee;
public representative appointed by the Governor with a Certified Life Underwriter designation;
public representative appointed by the Governor.
For those members elected by the membership or appointed by the
Governor, the term of office is four years.
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| 3. Membership (back to main index) |
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Q1. Who is eligible to become a member of the Employees' Retirement System of Rhode Island?
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Q2. Am I required to become a member of the system?
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Q3. How much am I required to contribute?
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Q4. What does the state or municipality contribute to the retirement system?
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Q5. What happens to the money that I contribute to the system?
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Q6. How are my contributions invested?
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Q7. How much will I receive in retirement benefits?
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Q8. When can I retire?
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Q9. If I leave my job, can I receive a refund of my contributions?
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Q10. What happens if I leave my job, but am eligible for benefits upon reaching retirement age?
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Q11. If I leave my money in the system until I reach retirement age, will you automatically send me my benefit when I'm eligible to start collecting?
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A1. "Who is eligible to become a member of the Employees' Retirement System of Rhode Island?" |
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| State Employees: Any person who is employed by
the State of Rhode Island on at least a 20-hour-per-week basis is eligible for membership in the
Employees' Retirement System of Rhode Island.
Your employment cannot be of a casual or seasonal nature and your business time must be devoted
exclusively to the service of the state.
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| Municipal Employees: Any person who is employed on at least a 20-hour-per- week basis
is eligible for membership in the Municipal Employees' Retirement System.
Your employment cannot be of a casual or seasonal nature and your business time must be devoted
exclusively to the service of the participating municipality.
City or town council members are eligible for membership as provided in R.I.G.L. 45-21-14.1.
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Public School Teachers: Public school teachers are eligible for membership in the Employees' Retirement System provided they are:
(1) certified by the Board of Regents;
(2) engaged in teaching as a principal occupation; and
(3) regularly employed on at least a half-time basis as a teacher in
any city, town, regional school district or collaborative.
The statutory definition of teacher, found in R.I.G.L. 16-16.1, allows the following permissible titles:
teacher, supervisor, principal, assistant principal, superintendent or assistant superintendent, director,
assistant director, coordinator, consultant, dean, assistant educational administrator, nurse teacher,
and attendance officer, or any person working within the educational system certified by the Board of Regents;
or occupational or physical therapists licensed by the department of health and employed by a school
committee. Substitute teachers who work at least 3/4 of the school year are eligible for membership
as are school business administrators and school psychologists. School business administrators do not have
to hold a teaching certificate.
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A2. "Am I required to become a member of the system?" |
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Yes. Membership in the Employees' or Municipal Employees' Retirement System is a condition of
employment and is required of all employees who meet the statutory eligibility requirements. |
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A3. "How much am I required to contribute?" |
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The amount that you contribute to the system is based upon a percentage of your total salary, excluding overtime.
| Type of Employee |
Percentage |
| Teachers |
9.50% |
| State Employees |
8.75% |
| Police & Fire Members |
7.00% * |
| Municipal Employees |
6.00% * |
* Those public employees whose municipalities have Cost of Living
Adjustment (COLA) provisions, or police and fire members
whose municipalities have accepted the 20-year plan, contribute
an extra 1% into the retirement system.
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A4. "What does the state or municipality contribute to the retirement system?" |
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Each year, the retirement system's actuary determines the amount of money
necessary to fund the benefits of retirees and future benefit recipients of the system.
Based on the liability of the system, the actuary determines a percentage of payroll,
or employer contribution rate, that is necessary to properly fund the required benefits.
The actuary determines a different employer contribution rate for state employees, teachers,
and each participating municipality.
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A5. "What happens to the money that I contribute to the system?" |
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Once you are enrolled as a member in the Employees' or Municipal Employees' Retirement System,
an account is established in your name. Your employer deducts your retirement contributions and
transfers them to the system, where they are invested. Each year, contributing members receive a
statement showing the amount of contributions credited to their individual account. If for any
reason you have not contributed to the system during the previous year, you will not receive a
statement.
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A6. "How are my contributions invested?" |
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Your contributions to the Employees' and Municipal Employees' Retirement System
of Rhode Island are deposited into a trust fund set aside for the exclusive benefit of
the members of the retirement system and their beneficiaries.
The investments of the fund are managed by the nine-member State Investment Commission (SIC),
which is chaired by the General Treasurer. The other members of the SIC are the
state's Director of Administration, the Chairmen of the House and Senate Finance Committees,
the Chairman of the Higher Education Assistance Authority, a member of the retirement system
(or union official) appointed by the General Treasurer, and three members appointed by the Governor.
The SIC meets monthly to review and analyze the investment performance of the state's pension fund.
The commission invests 425 of the fund in US. stocks and 30% in U.S. bonds.
The remainder of the funds is invested in alternative, real estate and international investments.
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A7. "How much will I receive in retirement benefits?" |
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The amount of your retirement allowance will be determined by two factors:
your years of creditable service and your average salary for your three highest consecutive years.
The factors used to determine your allowance vary according to your plan membership.
State Employees & Teachers
Schedule "A"
Vested as of 7/1/05 |
State Employees & Teachers
Schedule "B"
Vested after 7/1/05 |
Municipal Employees |
| Years 1 - 10: 1.7% |
Years 1 - 10: 1.6% |
All Years: 2% (max 75%) |
| Years 11 - 20: 1.9% |
Years 11 - 20: 1.8% |
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| Years 21 - 34: 3% |
Years 21 - 25: 2.0% |
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| Year 35: 2% (Max. 80%) |
Year 26-30: 2.25%
Years 31-37: 2.5% (Max 75%) |
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A8. "When can I retire?" |
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The laws governing your retirement differ according to your status as a
state employee, public school teacher, or municipal employee. However, as of June 16, 1991,
members of the Employees' Retirement System of Rhode Island must have 10 years of contributing
service to retire. As of December 31, 1992, members of the Municipal Retirement System must
have 10 years of contributing service to retire.
If you are a state employee or public school teacher, you can retire with 28 years of service or at age 60 with 10 years of contributing service if you are under "Schedule A," vested as of 7/1/05. If you are a state employee or public school teacher vested after 7/1/05, you will retire under "Schedule B" and may retire at age 65 with 10 years of service, or at age 59 with 29 years of service.
If you are a municipal employee, you must have 30 years of service or have reached age 58 with 10 years of contributing service.
If you are a police & fire member, you can retire with 25 years of service or at age 55 with 10 years of contributing service.
If your municipality has adopted such a plan, you may also be eligible to retire at age 50
with 20 years of service.
In all cases, prior to retirement you must sign a statement indicating that you have not been
convicted of or pled guilty to any crime related to your public office or public employment,
as defined in R.I.G.L. Section 36-10.1-2.
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A9. "If I leave my job, can I receive a refund of my contributions?" |
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If you leave or terminate from state or municipal service, you may apply to receive a refund of your contributions. Members receive no interest on the return of contributions from the retirement system. Refund applications are available upon request to the retirement system or you can download the forms from this website. |
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A10. "What happens if I leave my job, but am eligible for benefits upon reaching retirement age?" |
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If you withdraw from service before you are eligible for retirement,
but after you have accumulated ten years of contributing service, you are eligible to
receive a deferred retirement allowance. Provided you have left your contributions
within the system, you may begin collecting a retirement benefit at age 60 (Schedule A) or 65 (Schedule B)
if you are a state employee or a public school teacher, or at age 58 if you are a municipal employee.
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A11. "If I leave my money in the system until I reach retirement age,
will you automatically send me my benefit when I’m eligible to start collecting?"
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No. It is your responsibility to notify the retirement office and submit
application when you reach the age at which you are eligible to collect your benefit.
If you are a teacher or state employee, you can collect your deferred benefit at age 60 (Schedule A) or 65 (Schedule B).
Municipal employees can collect a deferred benefit at age 58. You must notify the retirement
office of your intent to retire, and you are responsible for knowing when you are
eligible to do so. If you do not apply for retirement when you first become eligible to
receive benefits, you will not receive any retroactive benefits to the date you reached the
age of eligibility.
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| 4. Retirement (back to main index) |
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Q1. When can I retire?
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Q2. What are the retirement options available?
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Q3. Will I receive a Cost of Living Adjustment?
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Q4. How do I apply for retirement?
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Q5. When will I get my first benefit check?
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Q6. What exactly is COBRA?
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Q7. What happens when COBRA ends?
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Q8. Will my health benefits change when COBRA ends?
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Q9. What are my options for health coverage?
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Q10. Can I go with another health plan you don't offer?
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Q11. I don't like the health plan I switched to on my own. Can I
switch back to an ERSRI plan?
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Q12. How will I know when there is an Open Enrollment?
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Q13. Will I have to pay income tax on my retirement allowance?
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Q14. Can I have income tax withheld from my retirement allowance?
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Q15. Can I have other deductions, too?
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Q16. Can I go back to work after I retire?
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Q17. May I work part time for an ERSRI employer?
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Q18. May I work under 90 days as a substitute teacher,
and also work at a state school up to $12,000?
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Q19. Do I have to report my post-retirement employment?
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Q20. What if I exceed my limit?
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A1. "When can I retire?" |
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The laws governing your retirement differ according to your status as a state
employee, public school teacher, or municipal employee. However, as of June 16, 1991, members
of the Employees' Retirement System of Rhode Island must have 10 years of contributing service
to retire. As of December 31, 1992, members of the Municipal Retirement System must
have 10 years of contributing service to retire.
If you are a state employee or public school teacher, you can retire with 28 years of service or at age 60 with 10 years of contributing service
service if you are in Schedule A (vested as of 7/1/05).
Schedule B members (vested after 7/1/05) may
retire at age 65 with 10 years of service, or at age 59 with 29 years of service.
If you are a municipal employee, you must have 30 years of service or have reached age 58 with 10 years of contributing service.
If you are a police & fire member, you can retire with 25 years of service or at age 55 with 10 years of contributing service. If your municipality has adopted such a plan, you may also be eligible to retire at age 50 with 20 years of service.
In all cases, prior to retirement you must sign a statement indicating that you have not been convicted of or pled guilty to any crime related to your public office or public employment, as defined in R.I.G.L. Section 36-10.1-2. |
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A2. "What are the retirement options available?" |
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Service Retirement Allowance (SRA) / Maximum Plan:
The SRA/Maximum Plan allowance is based on your creditable service and salary as a public employee.
All pension payments will stop upon your death. If you select the SRA/Maximum plan,
you cannot change your retirement option after the date of retirement.
Below is an example of a pension benefit calculation that determines the SRA/ Maximum benefit.
Option #1/Joint and Survivor Full:
Option #1 provides that upon your death, your beneficiary will receive for his/her
lifetime the same monthly retirement allowance as you received. In order to finance this benefit,
there will be an actuarial reduction in your benefit amount, which is determined by the
age difference between you and your beneficiary. This means you will receive a lesser
monthly benefit amount than under the SRA/Maximum plan during your lifetime; however, your
pension will continue to be paid to your beneficiary after you die.
Option #2/Joint and Survivor Half:
Option #2 provides that upon the retiree’s death, the beneficiary will receive
for his/her lifetime a retirement allowance that is equal to half the retirement
allowance that was received by the member. Should you select Option #2, you are given
the right to change your retirement option provided the retiree and the beneficiary have
not divorced. You may elect to change your retirement option only once.
SRA Plus/Social Security Option (Not available for Schedule B members):
SRA Plus uses an estimate of the amount of Social Security you could receive at age 62,
to calculate an increased amount of retirement benefit you will receive from ERSRI prior to
attaining age 62. When you reach age 62, your retirement allowance reverts to the SRA allowance
minus an actuarial adjustment based on your previous increase. By increasing your ERSRI benefit
during the years you're not yet eligible for Social Security, and decreasing the ERSRI benefit
when you turn 62 and are eligible for Social Security, this option provides you with a more
even level of income during early retirement years.
See the Membership & Retirement Handbook for more information and examples of each type of retirement.
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A3. "Will I receive a Cost of Living Adjustment?" |
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Schedule A public school teachers and state employees receive a 3% compounded
COLA the third January following retirement and every January thereafter.
Thus, if you are a Schedule A state employee or public school teacher and retired in August 2000,
your first COLA was be reflected in your January 2003 pension benefit.
Municipal employees receive a cost-of-living adjustment only if the municipality
from which the member is retiring has adopted a COLA provision. If the COLA has been adopted,
it is 3% non-compounded effective on the next January following your retirement.
Schedule B Retirees receive COLA beginning the month after the 3rd anniversary date of
retirement, the lesser of 3% or the CPI-U as of September 30 of the prior calendar year,
compounded annually. |
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A4. "How do I apply for retirement?" |
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Contact the retirement system about six months prior to the date of your retirement.
We will send you a retirement application and other information, and make an appointment for you
to meet with one of our retirement counselors. Although not required, we strongly recommend that
you meet with a retirement counselor prior to your retirement to verify service credit and
purchases. This will help expedite the processing of your application and ensure timely issuance of
your first benefit check. Bring your completed retirement application with you on the day of your
appointment. You will also have to complete several other forms, including a Direct Deposit form,
election for tax withholding, and option selection form, before your retirement can be processed. |
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A5. "When will I get my first benefit check?" |
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Allow 2-3 months for receipt of your first benefit check, which will be
retroactive to the date of your retirement. Pension checks are issued in arrears; i.e. your
check for the month of January will be processed for availability January 31st. Your first check
will arrive in the mail. However, direct deposit is mandatory for all persons retiring after July 1998,
and subsequent checks will be electronically deposited in your account. |
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A6. "What exactly is COBRA?" |
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COBRA is a federal law that allows employees who are losing their medical
coverage to purchase from their employer,at full cost and for up to 18 months, the same benefits that they received as an active employee.
When going on COBRA, you may switch to any other health plan offered by your employer.
While on COBRA, you may also maintain any dental or vision plan you had as an active employee.
Payment for COBRA is arranged through your employer; deductions cannot be taken from your pension benefit.
If you are a state benefit recipient, a Retirement Counselor will help you complete the proper
paperwork if you choose COBRA. However, billing for COBRA health care is handled by the State Employee
Benefits Office. They will send you an initial bill indicating your monthly premium.
You will not receive a monthly bill, but you must pay the monthly premium on time.
If you are a municipal or teacher benefit recipient, your COBRA benefits will be administered
and billed through your former employer. Contact your personnel officer for assistance. |
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A7. "What happens when COBRA ends?" |
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Retired teachers or state employees may join a health plan through the retirement
office when their 18 months of COBRA coverage ends. However, you will be limited to the same
provider you had on COBRA. For example, if you have a Blue Cross plan while on COBRA, you may
not switch to a United plan when you go off COBRA and join a retirement-offered health plan.
If you join a retirement health plan during any ERSRI Open Enrollment (typically held each November),
you may switch providers at that time. |
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A8. "Will my health benefits change when COBRA ends?" |
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Yes. If you had a vision or dental plan, these will no longer be available to
you through ERSRI. There may also be other benefits that will change, such as prescription co-pay programs. |
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A9. "What are my options for health coverage?" |
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If you are a municipal employee, your health coverage is arranged through your former employer. Please contact them for information.
If you are a teacher, your employer may offer health coverage, or you may join a group health plan
through ERSRI. If you join an ERSRI plan, you will pay the full group rate for the plan of your choice,
and premiums will be deducted monthly from your pension benefit.
If you are a state employee, some or all of your benefit recipient health care cost may be
picked up by the State of Rhode Island. If you are receiving full coverage, the state will pay
for a basic health plan until age 65. If you choose a health plan offered by the state other than
the basic plan, there may be an additional cost to you which will be deducted from your pension benefit.
At age 65, if you receive full coverage, the state will pay for an over 65 "medigap"
plan used in conjunction with Medicare Parts A and B from Social Security. If you have
documented proof of ineligibility for Medicare, the state will pay an amount equal to the
amount the state will contribute towards your health plan is dependent upon the number
of years you have credited in the retirement system when you retire from the State of
Rhode Island; see the charts below.
| Creditable Service |
Age |
State-paid |
Benefit recipient-paid |
| 10 - 15 years |
60 |
50% |
50% |
| 16 - 22 years |
60 |
70% |
30% |
| 23 - 27 years |
60 |
80% |
20% |
| 28 years |
< 60 |
90% |
10% |
| 28 years |
60 |
100% |
0% |
| 35+ years |
any age |
100% |
0% |
At age 65 you must have Parts A and B of Medicare from Social Security to participate in
an over-65 plan. The state share is as follows:
| Creditable Service |
Age |
State-paid |
Benefit recipient-paid |
| 10 - 15 years |
65 |
50% |
50% |
| 16 - 19 years |
65 |
70% |
30% |
| 20 - 27 years |
65 |
90% |
10% |
| 28+ years |
65 |
100% |
0% |
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A10. "Can I go with another health plan you don't offer?" |
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Yes. If you have a health plan through ERSRI and find something better-suited to
your needs, you will need to cancel with us in writing. Note that if you switch to a
health plan outside of ERSRI, the state will not pick up any percentage of the cost. |
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A11. "I don't like the health plan I switched to on my own. Can I switch back to an ERSRI plan?" |
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You can join or change ERSRI health plans during any Open Enrollment. Open Enrollment
dates are subject to change, but are typically held each November, with changes effective the
following January. |
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A12. "How will I know when there is an Open Enrollment?" |
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As an ERSRI benefit recipient, you will be notified by mail prior to each
Open Enrollment. You will receive information on the health plans available and instructions on
how to change or join plans. Also, you will be notified of any informational health seminars held
during Open Enrollment. These seminars are staffed by the representatives from the health plans,
and are an excellent opportunity for you to receive information on each plan's benefits and limitations.
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A13. "Will I have to pay income tax on my retirement allowance?" |
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Yes. You have to pay federal income tax on regular retirement benefits you
receive from the State of Rhode Island. Rhode Island residents will
be subject to Rhode Island state tax on pension benefits. If you
reside in a state other than Rhode Island, check with your tax advisor
regarding your states tax regulations on retirement benefits received from ERSRI.
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A14. "Can I have income tax withheld from my retirement allowance?" |
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You may have federal and Rhode Island state withholding deducted from
your retirement allowance. To do this, you must complete tax form W4P when you retire.
The Retirement Office is required by law to inform all benefit recipients that they may elect to
have federal income tax withheld from their monthly benefit allowances. You may be subject to
tax penalties on your retirement income if you fail to pay or withhold sufficient tax.
You cannot have state income tax deducted from your retirement benefit for a state other than Rhode Island.
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A15. "Can I have other deductions, too?" |
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The Retirement Office will administer certain other monthly deductions from
your pension, including the cost for an ERSRI health plan, union dues, and state-sponsored group
life insurance if you are continuing a policy held as an active state employee. You may also have
a deduction made to the State Employees Credit Union, even if you choose another
financial institution for direct deposit of the balance of your pension benefit.
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A16. "Can I go back to work after I retire?" |
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You may not go back to work full time for the State of Rhode Island, any
Rhode Island municipality or any participating ERSRI unit and receive a retirement allowance from
the State of Rhode Island without suspending your pension.
If you do choose to return to work full time for the State of Rhode Island or in a
Rhode Island municipality or any participating ERSRI unit, your pension will be suspended.
Also, retirement contributions will not be deducted from your wages, nor will you receive further
service credit for working after retirement.
You may work full time for any federal agency or private company.
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A17. "May I work part time for an ERSRI employer?" |
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You may not work for any state agency or department on a part-time basis.
You may work part time on a limited basis for a Rhode Island municipality or public school system,
or Rhode Island state school, college or university, or as a nurse at a state operated facility.
Please read the limitations below.
75-day Rule for Working in a participating R.I. Municipality or Public School: Municipal benefit recipients
may return to work for a Rhode Island municipality or Rhode Island Public School system for
75 full days or 150 half days per calendar year. For retirement purposes, 3 hours or less equals
a half day; anything over 3 hours shall be considered a full day.
For municipal benefit recipients working in a public school system, the Retirement Office will
calculate days worked based on a school year (September 1st - August 31st).
90-day Rule for Substitute Teaching in a R.I. Public School or State School: If you are a
retired teacher, you may substitute in a Rhode Island public school for 90 full days
or 180 half days (3 hours or less) per school year (September 1st - August 31st).
Retired Teachers Working in a vacant position:
If you are a retired teacher and return to work in a RI public school in any position other than substitute, you
may do so upto 90 days in a school year provide the employing department certifies they have made a good faith effort to
fill the position with a non-retire person. . See the Membership & Retirement handbook for further details and reporting requirements.
Teaching at a Rhode Island State School, College or University:
If you retired from a state school, college or university, or are a retired teacher, you may teach at
a state school, college or university after retirement, subject to a gross wage limit of
$15,000 per calendar year.
Teaching Drivers Education or Motorcycle Drivers Education:
If you are a retired teacher, you may teach Driver's Ed or Motorcycle Driver's Ed,
but you are subject to a gross wage limit of $15,000 per calendar year.
Registered Nurses: Any member who retired from service as a registered nurse may work on a
per diem basis to provide professional nursing care and/or services at a state operated
facility in Rhode Island, subject to a gross wage limit of $12,000 per calendar year.
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A18. "May I work under 90 days as a substitute teacher,
and also work at a state school up to $15,000?" |
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No. You may choose one form of post-retirement employment and you must abide by the limitations for that form of employment. |
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A19. "Do I have to report my post-retirement employment?" |
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Yes. In all cases, you and your employer are required by law to report
your workdays or wages, whichever is applicable. Your employing unit has been provided
with forms to report monthly on your post-retirement employment, and they can be downloaded off the "ERSRI Forms" link at the top of this page. You should sign a form
each month, before your employer submits it to the Retirement Office. Forms are available at the Retirement Office.
Check with your employer to ensure that proper reporting is completed each month.
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A20. "What if I exceed my limit?" |
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If you exceed the limit, your pension will be suspended if you plan on
continuing to work, or reduced in proportion to the number of days you worked in excess of the
limit if you have stopped working. |
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| 5. Beneficiaries' Benefits (back to main index) |
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Q1. Must I name a beneficiary?
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Q2. What is the standard death benefit?
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Q3. If I die before I retire, what happens to the money Ive contributed to the system?
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Q4. What if I die shortly after I retire?
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A1. "Must I name a beneficiary?" |
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Every member of ERSRI or MERS, active or retired, is entitled to leave a standard death benefit
to a beneficiary. If you do not name a beneficiary, your death benefit will be issued to your estate. |
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A2. "What is the standard death benefit?" |
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For ERSRI or MERS members, the benefit is $800 per year of service, up to a maximum $16,000.
This amount is reduced 25% every year after retirement, but not below the minimum benefit of $4,000.
Even if you've chosen an option where your pension ends when you die,
your beneficiary is still entitled to a standard death benefit.
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A3. "If I die before I retire, what happens to the money I’ve contributed to the system?" |
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If you have under ten years of service at the time of your death,
your beneficiary will be entitled to a return of your contributions, in addition to the
standard death benefit.
If you have over ten years of service and have completed an Optional Annuity Protection form,
your beneficiary will have the option of receiving either a return of your contributions or a
monthly annuity, in addition to the standard death benefit. Spouses automatically get this option
provided the member had over ten years of service and the spouse was the sole beneficiary.
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A4. "What if I die shortly after I retire?" |
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No matter which pension benefit payment option you choose, your beneficiary is
entitled to the standard death benefit described above. If you have chosen Option #1 or
Option #2, your beneficiary will receive his/her predetermined monthly benefit.
If you have chosen the SRA/Maximum Plan or SRA Plus (Social Security Option) and you die before an
amount equal to your contributions has been returned to you through monthly benefits, your beneficiary
will be entitled to a return of your unpaid contributions as well as the standard death benefit.
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6. Service Credit (back to main index) |
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Q1. How do I receive credit towards my retirement allowance?
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Q2. Are there other types of credit that I may purchase?
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Q3. When can I purchase creditable service?
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Q4. How do I purchase creditable service?
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A1. "How do I receive credit towards my retirement allowance?" |
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Generally, the number of years you have worked and contributed to the retirement
system will determine the amount of your retirement allowance. If you are a state or
municipal employee, you will receive one year of retirement credit for each year worked.
You must have worked a minimum of 20 hours per week.
Casual or seasonal employment is excluded. Contact, temporary, and limited position employment are also generally excluded as
casual employment, or employment for a special project, which is prohibited.
If you are a teacher, you will receive a year of retirement credit for each school year in
which you are employed and contribute at least 135 days.
Membership in other Participating Plans or Units
Time spent within other participating plans or units of the retirement system can be used towards
your eventual retirement. For example, if you were employed by both the Town of Bristol and the
State of Rhode Island (not concurrently), you may count both service periods towards your eventual retirement. Municipal credit must have been earned within a participating unit of the Municipal Retirement System. |
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A2. "Are there other types of credit that I may purchase?" |
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Yes, a member may be eligible to purchase other types of credit.
A total of five years of purchased service credit may be added to your total years of service,
but as of June 16, 1991 for state employees and December 31, 1992 for municipal employees, you
must have ten years of contributing service in order to retire. Service credit purchases
are not considered contributing service. Here is a description of the various types of
credit you may be eligible to purchase as a member of the Employees or Municipal Retirement System:
Restoration of Service Credit
If you return to membership after withdrawing your contributions upon separation from service, you
may restore your credits after completing one year of service from the date of your return.
You must pay into the system the amount you had refunded to you, plus interest.
Official Leave of Absence
You may purchase up to four years of credit for time spent on an Official Leave of absence from your
employment, as certified by your employer. You must pay into the system the amount you would have contributed to the system, plus
interest. Certain restrictions may apply regarding when you must have returned to work at the end of the leave,
depending on your employment. In general, you may only purchase such time provided you have returned to active employment for
at least one year.
Official Lay-off
You may purchase up to one year of credit for time spent on an official lay-off, provided you
were not on official leave without pay and did not withdraw your retirement contributions while laid off.
The cost of this purchase will be the amount you would have contributed to the system but for
the lay-off, plus interest.
Military Service Credit
You may purchase up to a maximum of four years credit for time spent on active duty for service in
the US Armed Services or Reserves or the Merchant Marine. The purchase of credit is based
upon 10% of your first full year of earnings. If you began your membership in the system after July 1, 1980,
you may buy your military credits interest free provided they are purchased within your first five years
of membership in the system.
Out-of-State and Private School Teaching
If you are a public school teacher within the State of Rhode Island, you are eligible to purchase up
to five years of out-of-state teaching or private school teaching time. You will be charged the
full actuarial value of such time based on your age and salary at the time of the purchase.
Credit for Service in a Non-Participating Municipality
Members may purchase service credit for time spent within other municipalities within Rhode Island
that are not part of MERS. For example, you might be eligible to purchase time spent working for
the City of Providence (which is not a MERS plan). You will be charged full actuarial value
based on your age and salary at the time of the purchase. |
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A3. "When can I purchase creditable service?" |
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You must be an active member of the retirement system in order to purchase retirement credit.
You cannot purchase time towards your retirement after you retire or terminate. |
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A4. "How do I purchase creditable service?" |
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See the Service Credit Info
section on this website. Additional information about the purchase process is available upon
request to the Member Services Department.
You can also download the forms necessary to purchase service through this website. |
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| 7. Disability (back to main index) |
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Q1. What happens if I should become permanently disabled while a member of the Employees' Retirement System of Rhode Island?
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Q2. Are there different types of disability benefits?
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Q3. Who makes the decision to grant disability benefits?
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Q4. Can anyone apply for accidental disability benefits?
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Q5. What will I receive if I am granted an accidental disability retirement allowance?
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Q6. Under what options can I receive my accidental disability retirement?
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Q7. Can anyone apply for ordinary disability benefits?
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Q8. What will I receive if I am granted ordinary disability benefits?
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Q9. Under what options can I receive ordinary disability benefits?
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Q10. Should I resign my present position if I am going to apply for disability benefits?
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Q11. How do I go about applying for disability benefits?
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Q12. What happens after my disability application is complete?
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Q13. What can you tell me about the medical examinations?
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Q14. Where and when will the medical exams take place?
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Q15. What happens after the medical exams are complete?
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Q16. What happens if the Disability Sub-Committee fails to certify that I am disabled?
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Q17. After my case has been approved by the Board, how long will it take before I receive my first check?
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Q18. What if I am receiving Worker's Compensation benefits at the time I am awarded accidental disability benefits?
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Q19. Will I receive a Cost-of-Living Adjustment on my disability retirement?
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Q20. Will I have to pay state and federal income tax on my disability benefit?
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Q21. Can I have my check sent directly to my bank?
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Q22. Can I continue my health coverage on disability retirement?
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Q23. I am a disabled state employee. Will the state pay for any part of my medical coverage?
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Q24. If I am not a state employee, do I qualify for any state-paid medical coverage?
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Q25. What percentage will the state pay at age 60 for state employee disability recipients?
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Q26. Because I understand that Medicare and Medigap insurance does not cover prescriptions, do I have to take Medicare and Medigap insurance at age 65?
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Q27. If I don't accept the Medigap insurance at age 65, will the state continue paying a portion of my insurance as a state disability benefit recipient?
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Q28. Are there any restrictions on what I may earn once I have been granted disability benefits?
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Q29. How much money can I make and still be eligible to receive my full disability benefits?
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Q30. Once I am retired on a disability retirement, will I ever be re-examined?
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A1. "What happens if I should become permanently disabled while a member of the Employees' Retirement System of Rhode Island?" |
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If you should find yourself disabled and unable to work for an extended period
of time, you may be eligible to receive disability benefits from the Employees' Retirement System of
Rhode Island. |
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A2. "Are there different types of disability benefits?" |
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Yes, there are different types of disability benefits. Accidental disability
benefits are available to those individuals who find themselves physically or mentally incapacitated
as a result of their work. In other words, the individual's disability is causally related to his/her
employment; and, but for his/her employment, the individual would not be disabled.
There are also ordinary disability benefits. You should apply for ordinary disability benefits if the
reason for your disability is independent of your employment as a public employee.
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A3. "Who makes the decision to grant disability benefits?" |
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The Employees' Retirement Board of Rhode Island makes the decision to grant disability
benefits. However, in granting benefits they must adhere to the legal standard regarding
disability found in the Rhode Island General Laws. In awarding an accidental disability benefit,
the board must find:
that the member is physically or mentally incapacitated for the performance of service as the
result of an accident while in the performance of duty. The disability cannot be the result of
willful negligence or misconduct on the part of the member, nor can the disability be the result
of age or length of service.
In reviewing an application for accidental disability, the Board will be particularly interested
in the relationship between your disability and the accident which is said to have caused your
condition. It will examine all the documents you have submitted which relate to your accident or
injury and in many instances will confer either by phone or in writing with your employer and
those individuals who have witnessed the event.
In granting an ordinary disability benefit, the Board need only find:
that the member is physically or mentally incapacitated for the performance of duty
and ought to be retired.
In every case of disability retirement, the Board is legally prohibited from granting you
benefits unless you meet certain requirements described in this handbook.
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A4. "Can anyone apply for accidental disability benefits?" |
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Any state employee, public school teacher, or municipal employee who is
contributing a percentage of his/her salary to the Employees' Retirement System of Rhode Island
and who has not attained the age of sixty-five is eligible to apply for accidental disability
benefits. There are no service requirements.
You must file your accidental disability application within 5 years of the date of the injury.
If you are a state employee or teacher and you have a re-injury, your application must be filed within
3 years of the re-injury or aggravation.
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A5. "What will I receive if I am granted an accidental disability retirement allowance?" |
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If you are granted accidental disability benefits, you will receive a pension that
is equal to sixty-six and two-thirds of your annual compensation as of the date of your
retirement from service.
Example:
$30,000 x 66-2/3% = $20,000
(salary) (accidental disability benefit) |
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A6. "Under what options can I receive my accidental disability retirement?" |
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You may receive your accidental disability retirement benefit under the Service
Retirement Allowance (SRA), Option 1 or Option 2. You cannot elect the Social Security Option
if you are receiving an accidental disability retirement.
Here is an explanation of the retirement options that are available to you as an accidental disability
benefit recipient:
Service Retirement Allowance/Maximum Plan
The Service Retirement Allowance for accidental disability is based on sixty-six and two-thirds (66 2/3)
percent of your salary as a public employee at the time of your retirement.
You receive more money under the Service Retirement Allowance than you do under Option 1 or Option 2.
Upon your death, however, all pension payments will stop. Furthermore, a retiree who selects the
Service Retirement Allowance cannot change his/her retirement option after the date of retirement.
Option # 1/Joint and Survivor Full
Option #1 provides that upon the retiree's death, the beneficiary will receive for his/her lifetime
the same retirement allowance as was received by the member. Thus, there will be an initial actuarial
reduction in the retirement amount granted to the retiree/member of the retirement system.
Should you select Option #1, you are given the right to change your retirement option one time only
provided the retiree and the beneficiary have not divorced.
Option #2/Joint and Survivor Half
Option #2 provides that upon the retiree's death, the beneficiary will receive for his/her lifetime
a retirement allowance that is equal to half the retirement allowance that was received by the member.
Should you select Option #2, you are given the right to change your retirement option provided the
retiree and the beneficiary have not divorced. You may elect to change your retirement option
only once.
The ERSRI Handbook on Retirement contains detailed information about
the different retirement options, including Schedule A and Schedule B pension calculation.
View this publication.
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A7. "Can anyone apply for ordinary disability benefits?" |
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No. In order to apply for ordinary disability benefits, a member must have at
least five years of contributing service, three of which must be consecutive. The applicant
cannot be eligible for a regular retirement allowance. |
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A8. "What will I receive if I am granted ordinary disability benefits?" |
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If you are granted ordinary disability benefits, you will receive a retirement
allowance that is equal to what you would have received had you retired with a Service
Retirement Allowance, under either Schedule A for persons vested as of 7/1/05,
or Schedule B for persons vested after 7/1/05. If you have less than 10 years of service,
your ordinary disability benefit will be computed as if you had 10 years of service.
Here are some examples. The first is a state employee with 7 years of service and
an average salary
of $25,000 at the time of his retirement, calculated under Schedule A.
Example 1
State Employee
Service: 7 years (bumped up to 10 years)
Average Salary at time of Retirement: $25,000
Ordinary Disability Benefit/SRA:
First 10 years x 1.7% = 17% Total Percentage
17% x $25,000 = $4,250 yearly for life
(ordinary disability benefit)
The second is a municipal employee with 25 years of service and an annual
salary of $24,000 at the time of his retirement.
Example 2
Municipal Employee
Service: 25 years of service
Average Salary at time of Retirement: $24,000
Ordinary Disability Benefit/SRA:
25 years x 2.0% = 50% Total Percentage
50% x $24,000 = $12,000 yearly for life
(ordinary disability benefit)
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A9. "Under what options can I receive ordinary disability benefits?" |
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As of August 6, 1996, ordinary disability retirees may select from the Service
Retirement Allowance/Maximum Plan, Option #1/Joint & Survivor Full, or Option #2/Joint & Survivor
Half. Note that Service Retirement Allowance for ordinary disability is calculated by
multiplying your 3-year average salary by a percentage based on your years of service. See the
Membership and Retirement handbook for more information on service credit years and corresponding
percentages. Ordinary disability retirees may not elect the Social Security Option. |
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A10. "Should I resign my present position if I am going to apply for disability benefits?" |
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No. You must be an active member of the retirement system in order to apply for
disability benefits. Furthermore, should it be determined that you are fit and able to work,
you do not want to lose other rights and benefits you may have as a result of your present
position, your seniority, or local collective bargaining agreement. While you are applying
for benefits, you may be eligible to receive sick leave benefits or in the case of accidental
disability, Workers' Compensation payments. You may also want to purchase your Workers'
Compensation time provided you are on an official leave of absence. |
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A11. "How do I go about applying for disability benefits?" |
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If you have decided to apply for disability benefits, you should call the
Employees' Retirement System of Rhode Island at (401)-457-3900 and ask to speak with a
retirement counselor. The counselor will recommend that you make an appointment and
send you a Disability Retirement Application and Statement of Applicant's Physician. |
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A12. "What happens after my disability application is complete?" |
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In the case of accidental disability, we will be contacting your employer to
learn more about the injury or accident which led to your present state of disability. Once
all the preliminary information has been returned to our office and reviewed by our staff, we
will then set up medical examinations. |
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A13. "What can you tell me about the medical examinations?" |
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Current Rhode Island law requires that every person applying for disability
benefits be examined by three physicians. Medical panel exams are conducted by three
physicians appointed and paid for by the Employees' Retirement System of Rhode Island.
The physicians selected to examine a disability applicant should be knowledgeable in the area
of your particular disability.
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A14. "Where and when will the medical exams take place?" |
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You will receive the names, address and phone number of three physicians selected
by the retirement system. It is your responsibility to call and make an appointment with each
of them that is convenient for you. Please be aware that the physician may require you to take
tests as part of the medical panel examination that are related to your disability.
(E.g. exercise stress test may be required for a heart patient).
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A15. "What happens after the medical exams are complete?" |
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The physicians are required to submit a narrative regarding his/her examination
of the applicant and to sign a certificate as to whether, in his/her opinion, you are disabled,
and in the case of accidental disability, whether your disability is causally related to your
injury or accident.
The Disability Sub-Committee of the Employees' Retirement System of Rhode Island will then meet
to review all of the evidence, both medical and non-medical, that has been filed regarding your case.
The Disability Sub-Committee makes its recommendation to the full board who will then formally
approve or deny the application.
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A16. "What happens if the Disability Sub-Committee fails to certify that I am disabled?" |
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If the Sub-Committee denies your request for a disability benefit, you may
appeal and appear in person before the Disability Sub-Committee. The Sub-Committee will listen
to whatever additional evidence you present regarding your case including any additional
medical documentation which you have amassed. Although it is not required, an applicant
may choose to be represented by counsel before either the Disability Sub-Committee.
Should the Disability Sub-Committee ultimately deny your case, the applicant may request a further
appeal before the entire Retirement Board.
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A17. "After my case has been approved by the Board, how long will it take before I receive my first check?" |
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You will receive your first check thirty to sixty days after your
termination notice is received by this office. If necessary, a retroactive payment will be
made back to your date of retirement.
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A18. "What if I am receiving Worker's Compensation benefits at the time I am awarded accidental disability benefits?" |
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If you continue to receive Workers' Compensation benefits after you have been
awarded disability benefits, your disability benefit will be reduced by the amount of your
weekly Workers' Compensation benefit. Thus, you will be required to furnish our office with
information regarding your Worker's Compensation status.
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A19. "Will I receive a Cost-of-Living Adjustment on my disability retirement?" |
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State employees receive a cost-of-living adjustment added to their monthly disability
benefit check effective January 1st of the third year of retirement. Only those teachers on
ordinary disability receive a cost-of- living adjustment. Teachers on accidental disability
retirement do not. If you are entitled to a COLA, you will receive an additional 3% compounded
COLA each year.
Municipal employees receive a cost-of-living adjustment only if the municipality from which the
member is retiring has adopted a COLA provision. If the COLA has been adopted, the municipal
benefit recipients receive a 3% cost-of-living adjustment on the next January following their
retirement date. The 3% annual adjustment is not compounded.
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A20. "Will I have to pay state and federal income tax on my disability benefit?" |
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It depends. If you are a Rhode Island resident, you will have to pay state and
federal income tax on the ordinary disability benefits you receive from the State of Rhode Island. Different rules may apply if you are a resident of another state.
Accidental disability benefits from ERSRI are not taxable.
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A21. "Can I have my check sent directly to my bank?" |
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Your first check will arrive in the mail. However, direct deposit is mandatory
for all persons retiring after July 1988, and subsequent checks will be electronically
deposited in your account. A Direct Deposit authorization is included on the Disability
Retirement application.
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A22. "Can I continue my health coverage on disability retirement?" |
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Yes, if you are a member of one of State's group health care plans.
The cost will be deducted from your monthly check. |
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A23. "I am a disabled state employee. Will the state pay for any part of my medical coverage?" |
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Yes, but only if you are a disabled state employee who retired after July 1, 1989
with at least ten years of service. State-paid basic medical benefits begin at age 60.
The portion the state pays depends on your age and the number of years of service
at the time of retirement. See the chart below.
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A24. "If I am not a state employee, do I qualify for any state-paid medical coverage?" |
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No, only state benefit recipients may be eligible for state-paid medical coverage. |
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A25. "What percentage of my state health plan will the state pay for?" |
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The portion paid is based on the following chart:
| At Age 60 |
| Service |
Age |
State |
Retiree |
| 10 - 15 |
60 |
50% |
50% |
| 16 - 22 |
60 |
70% |
30% |
| 23 - 27 |
60 |
80% |
20% |
| 28 |
Under 60 |
90% |
10% |
| 28 |
60 |
100% |
0% |
| 35+ |
Any Age |
100% |
0% |
| At Age 65 |
| Service |
Age |
State |
Retiree |
| 10 - 15 |
65 |
50% |
50% |
| 16 - 19 |
65 |
70% |
30% |
| 20 - 27 |
65 |
90% |
10% |
| 28+ |
65 |
100% |
0% |
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A26. "Because I understand that Medicare and Medigap insurance does not cover prescriptions, do I have to take Medicare and Medigap insurance at age 65?" |
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No. You may continue with the "under 65" medical insurance even after age 65.
But be aware that Medicare might impose some penalties on you if you do not accept Part B and Part D of
Medicare at age 65.
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A27. "If I don't accept the Medigap insurance at age 65, will the state continue paying a portion of my insurance as a state disability retiree?" |
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Yes, but what the state will pay after age 65 is based on the cost of a basic
medigap insurance. You must pay the difference between what the state's cost is and what the
"under 65" coverage is. For example, if the "under 65" coverage costs $200 a month, and a
basic medigap insurance costs $75 per month, the state will pay a portion (50%) of the
$75 ($75 X 50% = $37.50) and you pay the difference of $162.50 ($200 - $37.50).
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A28. "Are there any restrictions on what I may earn once I have been granted disability benefits?" |
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Yes. The statute is intended to provide disability benefits only for those
individuals who are permanently disabled from their employment and thus places financial
restrictions on what you may earn each year in addition to your disability benefit.
Each year, you will receive from ERSRI a Statement of Annual Earnings that asks you
to document your earnings for the past year. Further, all ERSRI and MERS benefit recipients
collecting a benefit are restricted by the statutes on post-retirement employment.
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A29. "How much money can I make and still be eligible to receive my full disability benefits?" |
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Your total earnings including both your disability benefit and your personal earnings cannot
exceed the amount of compensation presently paid to the individual who holds the position from
which you retired. For example, if you retired from a position as a physical education teacher
and that position presently pays $38,000, your pension and your outside earnings may not
exceed $38,000. If you earn in excess of $38,000, such amount must be refunded to the
Employees' Retirement System of Rhode Island.
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A30. "Once I am retired on a disability retirement, will I ever be re-examined?" |
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Yes. Once each year, the retirement board can require a disability retiree
under 65 to submit to a medical examination. If the medical examination determines that the
applicant can be engaged in a gainful occupation, his or her name can be placed on appropriate
lists for qualified positions in his/her department.
Should a disability recipient refuse to submit to a medical examination, his or her benefit
shall be discontinued until the recipient agrees to the exam. Should the recipient's refusal extend
for more than one year, all rights to the disability award shall be revoked.
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8. Police and Fire (back to main index)
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Q1. Who is eligible to become a police and fire member of the Employees' Retirement System of Rhode Island?
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Q2. Am I required to become a member of the system?
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Q3. How much am I required to contribute?
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Q4. What does the municipality contribute to the retirement system?
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Q5. What happens to the money that I contribute to the system?
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Q6. How are my contributions invested?
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Q7. When can I retire?
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Q8. How do I receive credit towards my retirement allowance?
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Q9. Are there other types of credit that I may purchase?
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Q10. What about my service as a call firefighter? May I purchase such time?
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Q11. When must I purchase creditable service?
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Q12. How do I purchase creditable service?
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Q13. How does the Employees' Retirement System determine my retirement allowance?
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Q14. Is there a limit to the amount of retirement benefit that I can receive?
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Q15. What happens if I leave my job before I am eligible for benefits?
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Q16. Will I have a choice of retirement options?
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Q17. I don't understand the different options. Can you explain to me how they work?
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Q18. What are the different option factors?
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Q19. Why do I need to select a beneficiary if I've chosen SRA?
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Q20. What is the amount of the death benefit to which my beneficiary is entitled?
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Q21. What happens if I should become permanently disabled while a member of the police or fire department?
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Q22. Are there different types of disability benefits?
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Q23. Who makes the decision to grant disability benefits?
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Q24. Can anyone apply for accidental disability benefits?
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Q25. What will I receive if I am granted accidental disability retirement allowance?
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Q26. Under what options can I receive my accidental disability retirement?
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Q27. Can anyone apply for ordinary disability benefits?
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Q28. What will I receive if I am granted ordinary disability benefits?
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Q29. Under what options can I receive ordinary disability benefits?
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Q30. What happens should a member lose his/her life in the line of duty?
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Q31. What will my spouse receive under the accidental death statute?
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Q32. How do I go about applying for my retirement?
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Q33. When I retire, how will I be covered for health insurance?
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Q34. Will I have to pay state and federal income tax on my retirement allowance?
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Q35. Can I have federal income tax withheld from my retirement allowance?
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Q36. Can I have my check sent directly to my bank?
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Q37. Can I work after I retire?
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Q38. Will cost-of-living adjustments be added to my retirement allowance each year?
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Q39. If I should die before I retire, what benefits would my survivor be entitled to?
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A1. "Who is eligible to become a police and fire member of the Employees' Retirement System of Rhode Island?" |
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You must be a regular and permanent member of a participating fire or police
department. Your employment cannot be casual or seasonal in nature and you must be employed
on at least a 20-hour basis. |
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A2. "Am I required to become a member of the system?" |
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Yes. Membership in the Municipal Employees' Retirement System is a condition
of employment and is required of all police and fire employees who meet the Board's
eligibility requirements. |
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A3. "How much am I required to contribute?" |
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The amount that you contribute to the system is based on the type of
retirement plan that has been selected by your participating municipality:
| Type |
Percentage |
| Police and Fire Member with 25-year plan of salary * |
7.00% |
| Police and Fire Member with 20-year plan of salary * |
8.00% |
* Those public safety members whose municipalities have COLA provisions pay an extra one percent into the retirement system.
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A4. "What does the municipality contribute to the retirement system?" |
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Each year, the retirement system's actuary determines the amount of money
necessary to fund the benefits of retirees and future benefit recipients of your individual
plan Based on the liability, the actuary determines a percentage of payroll or "employer
contributions" that is necessary to properly fund the level of benefits. The actuary determines
a different employer contribution rate for each police and fire plan. |
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A5. "What happens to the money that I contribute to the system?" |
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Once you are enrolled as a member in the Municipal Retirement System, an
account is established in your name. Your employer deducts your retirement contributions
and transfers them to the system. Each year, contributing members receive a statement showing
the amount of contributions credited to your account. |
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A6. "How are my contributions invested?" |
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Your contributions to the Municipal Employees' Retirement System of Rhode Island
are deposited into a trust fund set aside for the exclusive benefit of the members
and beneficiaries of the retirement system.
The investments of the fund are managed by a seven-member State Investment Commission (SIC)
chaired by the General Treasurer. The members of the State Investment Commission are the
state's Director of Administration, the Chairperson of the House and Senate Finance Committees,
and three members appointed by the Governor.
The SIC meets monthly to review and analyze the investment performance of
the state's pension fund.
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A7. "When can I retire?" |
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The laws governing your retirement differ according to your status as a
state employee, teacher, municipal employee, or fire and police member.
However, as of June 16, 1991, any member of the Employees' Retirement System of Rhode Island
must have 10 years of contributing service in order to retire. Members of the Municipal
Retirement System must have 10 years of contributing service as of December 31, 1992.
If you are a police or fire member, you must first find out what kind of plan your
municipality has adopted. There are really only two choices: the twenty-five year plan or
the twenty-year plan. Find out which plan you are enrolled in by asking your personnel director
or by calling the Employees' Retirement System.
If you are a police or fire member of a department that has adopted the twenty-five year plan,
you can retire with 25 years of service at any age, or at age 55 with ten years of contributing service.
You may also be eligible to retire at age 50 with twenty years of service. However, in the last case,
your retirement allowance will be reduced by 1/2 of one percent for each month that you are under
the age of 55.
If you are a police or fire member of a department that has adopted an optional twenty-year plan,
you may retire at any age as long as you have 20 years of service.
If you are a member of the South Kingston police department,
you may retire as soon as the amount of your earned retirement
allowance equals half pay or 50% of your salary.
All police and fire members must retire upon reaching age 70. Woonsocket officers must retire upon reaching age 65.
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A8. "How do I receive credit towards my retirement allowance?" |
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Generally, the number of years you have worked and contributed to the retirement
system will determine the amount of your retirement allowance. If you are a municipal fire and
police member, you will receive one year of retirement credit for each year worked. Again,
casual or seasonal employment is excluded. In addition to regular service credit, you may also
be eligible to receive credit for the following types of service. Please remember that purchases
may be added to your total years of service, but that as of December 31, 1992 for municipal employees,
you must have ten years of contributing service in order to retire. Purchases, other than
refunds and probationary time, are not considered contributing service.
No member may purchase more than five years of service credit as of January 1, 1995.Repayments of previously withdrawn refunds are not considered purchases and will not be included in your five year purchase total. |
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A9. "Are there other types of credit that I may purchase?" |
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Yes, a member is eligible to purchase other types of credit. Here is a description of the various types of credit available to you as a member of the Employees' Retirement System.
Refunds
If you return to service after taking a refund of your contributions upon separation from service,
you may restore your credits by paying into the system the amount you withdrew, plus interest,
after completing one year of service from the date of your return.
Membership in other Participating Plans or Units
Time spent within other participating plans or units of the retirement system can be used
towards your eventual retirement. For example, if you were employed by both the Town of Bristol
and the State of Rhode Island (not concurrently), you may count both service periods towards
your eventual retirement. Municipal credit must have been earned within a participating unit
of the Employees' Retirement System.
Leaves of Absence
You may currently purchase up to four years of credit for time spent on an official leave of
absence from your employment. You must pay into the system the amount you would have
contributed to the system, plus interest. You may only purchase such time provided you have
returned to active service immediately upon completion of the leave and have been employed for at least one year.
Layoffs
You may purchase up to one year of credit if you are laid off for any reason. You must pay
into the system the amount you would have contributed to the system, plus interest. You
must leave your contributions in the system and must be contributing at the time of purchase.
Military Service Credit
You can receive credit for time spent on active duty for service in the U.S. Armed Services
or the Merchant Marine. Pursuant to R.I.G.L. 36-5-3, this time is granted to you if you
were a member of the system for at least 6 months prior to entry into the armed forces and
returned within one year after release or discharge from honorable military service.
You may also purchase credit for military service prior to becoming a member.
The purchase of credit is based upon 10% of your first full year of earnings as a municipal employee. If you began
your membership in the system after July 1, 1980, you may buy your military credits interest
free provided they are purchased within your first five years of membership in the system.
You may only purchase up to four years of military credit. |
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A10. "What about my service as a call firefighter? May I purchase such time?" |
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Yes, but only if you are a member of the North Providence fire department,
North Kingston fire department or East Greenwich fire district. You will receive one year
of credit for every three years of service as a member of the call system and you must
contribute based upon the last year of compensation for each three-year period plus regular interest.
In East Greenwich, you may also receive service credit as a volunteer firefighter.
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A11. "When must I purchase creditable service?" |
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You must be an active member of the retirement system in order to purchase retirement
credit. You cannot purchase time towards your retirement after you retire or terminate. |
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A12. "How do I purchase creditable service?" |
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See the Service Credit Info
section on this website. Additional information about the purchase process is available upon
request to the Member Services Department.
You can also download the forms necessary to purchase service through this website. |
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A13. "How does the Employees' Retirement System determine my retirement allowance?" |
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The amount of your retirement allowance will be determined by two factors: your years of creditable service and your average salary for your three highest consecutive years. The factors used to determine your allowance vary according to your plan membership.
| Police and Fire |
Percentage |
| All Years |
2.0% |
| Optional Twenty-Year Plan |
2.5 |
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A14. "Is there a limit to the amount of retirement benefit that I can receive?" |
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Municipal employees cannot receive a retirement allowance that exceeds
75% of their average salary for their three highest consecutive years. |
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A15. "What happens if I leave my job before I am eligible for benefits? " |
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If you withdraw from service before you are eligible for retirement, but
after you have accumulated ten years of contributing service, you are eligible to receive a
deferred retirement allowance. Provided you have left your contributions within the system,
you may begin collecting at age 55. |
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A16. "Will I have a choice of retirement options?" |
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Police and Fire members of the Employees' Retirement System are eligible for the following options:
Service Retirement Allowance/Maximum Plan
The Service Retirement Allowance is based on your creditable service and salary as a public employee.
You receive more money under the Service Retirement Allowance than you do under Option 1 or Option 2.
Furthermore, a retiree who selects the Service Retirement Allowance cannot change his/her
retirement option after the date of retirement.
Option #1/Joint and Survivor Full
Option #1 provides that upon the retiree's death, the beneficiary will receive for his/her
lifetime the same retirement allowance as was received by the member. Thus, there will be an
initial actuarial reduction in the retirement amount granted to the retiree/member of the retirement
system. If under Option #1, you select a beneficiary who is not your spouse, the beneficiary may
not be more than 10 years younger than the member retiree. Should you select Option 1, you are
given the right to change your retirement option one time only provided the retiree and the
beneficiary have not divorced.
Option #2/Joint and Survivor Half
Option #2 provides that upon the retiree's death, the beneficiary will receive for his/her lifetime a
retirement allowance that is equal to half the retirement allowance that was originally received
by the member. Should you select Option 2, you are given the right to change your retirement
option provided that the retiree and the beneficiary have not divorced. You may elect to change
your retirement option only once.
The police and fire statutes also provide that upon your death (either active or retired), your
spouse provided that she/he does not remarry will receive 30% of your salary plus an additional 10%
for each child under age 18 to a maximum family benefit of 50%. In the case of an active death,
however, this benefit will not be awarded if the member has filled out an Optional Annuity
Protection form.
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A17. "I don't understand the different options. Can you explain to me how they work?" |
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Here's an example using a 49-year old firefighter with 25 years of service and an average salary of $40,000.
He is enrolled in a twenty-five year plan:
| Paul Firefighter |
| Member's Age: |
49 Years |
| Creditable Service: |
25 Years |
| Average Salary: |
$40,000 |
| Spouse: |
46 years / 3 years younger |
| Service Retirement Allowance/SRA: |
| 25 years x 2.0% = |
50.0% |
| 50% x $40,000 = |
$20,000 yearly for life |
| (service) x (salary) = |
(retirement allowance) |
| 30% x $40,000 = |
$12,000 (spousal benefit so long as he/she does not remarry) |
| Option #1: |
| Member's Age: |
49 years |
| Spouse: |
46 years / 3 years younger |
| SRA Allowance: |
$20,000 |
| Option #1 Factor of 78% (See Option Chart) |
| 78% x $20,000 = |
$15,600 allowance to member for life. |
| Beneficiary will also receive $15,600 for his/her lifetime. No spousal benefit necessary. |
| Option #2: |
| Member's Age: |
49 years |
| Spouse: |
46 years / 3 years younger |
| SRA Allowance: |
$20,000 |
| Option #2 Factor of 88% (See Option Chart) |
| 88% x $20,000 = |
$17,600 yearly allowance to member for life. |
| (factor x SRA) |
|
| Beneficiary will receive half of member's allowance or $8,000 for his/her lifetime. No spousal benefit necessary. |
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A18. "What are the different option factors?" |
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If the beneficiary is younger than the member:
| Beneficiary's Age Compared to Member's Age |
Percentage of Benefit Paid to Member |
| |
Option 1 |
Option 2 |
| Same Age |
81% |
89% |
| 1 Year Younger |
80% |
89% |
| 2 Years Younger |
79% |
88% |
| 3 Years Younger |
78% |
88% |
| 4 Years Younger |
77% |
87% |
| 5 Years Younger |
76% |
86% |
| 6 Years Younger |
75% |
86% |
| 7 Years Younger |
74% |
85% |
| 8 Years Younger |
74% |
84% |
| 9 Years Younger |
73% |
84% |
| 10 Years Younger |
72% |
83% |
| 11 Years Younger |
71% |
83% |
| 12 Years Younger |
70% |
82% |
| 13 Years Younger |
69% |
82% |
| 14 Years Younger |
68% |
81% |
| 15 Years Younger |
67% |
80% |
| 16 Years Younger |
67% |
80% |
| 17 Years Younger |
66% |
79% |
| 18 Years Younger |
65% |
79% |
| 19 Years Younger |
64% |
78% |
| 20 Years Younger |
64% |
78% |
If the beneficiary is older than the member:
| Beneficiary's Age Compared to Member's Age |
Percentage of Benefit Paid to Member |
| |
Option 1 |
Option 2 |
| Same Age |
81% |
89% |
| 1 Year Older |
82% |
90% |
| 2 Years Older |
83% |
90% |
| 3 Years Older |
84% |
91% |
| 4 Years Older |
85% |
92% |
| 5 Years Older |
86% |
92% |
| 6 Years Older |
86% |
93% |
| 7 Years Older |
87% |
93% |
| 8 Years Older |
88% |
94% |
| 9 Years Older |
89% |
94% |
| 10 Years Older |
90% |
95% |
| 11 Years Older |
91% |
95% |
| 12 Years Older |
91% |
95% |
| 13 Years Older |
92% |
96% |
| 14 Years Older |
93% |
96% |
| 15 Years Older |
93% |
97% |
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A19. "Why do I need to select a beneficiary if I've chosen SRA?" |
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Regardless of which option you select, your beneficiary is eligible to receive a death benefit.
Thus, it is imperative that all retirees have on file the name of a current beneficiary.
Otherwise, your death benefit will be issued to your estate. |
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A20. "What is the amount of the death benefit to which my beneficiary is entitled?" |
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For each year of service that you have rendered, your beneficiary will receive
a death benefit of $800.00 up to a maximum of $16,000. This amount is reduced 225 every
year after retirement, all beneficiaries will receive a minimum benefit of $4,000. |
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A21. "What happens if I should become permanently disabled while a member of the police or fire department?" |
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If you should find yourself disabled and unable to work for an extended period
of time, you may be eligible to receive disability benefits from the Employees' Retirement
System of Rhode Island. |
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A22. "Are there different types of disability benefits?" |
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Yes, there are different types of disability benefits. Accidental disability
benefits are available to those individuals who find themselves physically or mentally
incapacitated because of a work-related accident. In other words, the individual's disability
is causally related to his/her employment and, but for his/her employment, the individual
would not be disabled.
There are also ordinary disability benefits. You should apply for ordinary disability benefits
if the reason for your disability is independent of your employment as a public employee.
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A23. "Who makes the decision to grant disability benefits?" |
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The Employees' Retirement Board of Rhode Island makes the decision to grant disability benefits. However, in granting benefits they must adhere to the
legal standard regarding disability found in the Rhode Island General Laws.
In awarding an accidental disability benefit, the board must find:
that the member is physically or mentally incapacitated for the performance of service
as the result of an accident while in the performance of duty. The disability cannot be the
result of willful negligence or misconduct on the part of the member, nor can the disability
be the result of age or length of service.
In reviewing an application for accidental disability, the Board will be particularly
interested in the relationship between your disability and the accident which is said to have
caused your condition. It will examine all the documents which you have submitted which relate
to your accident or injury and in many instances will confer either by phone or in writing with your
employer and those individuals who have witnessed the event.
In granting an ordinary disability benefit, the Board need only find:
that the member is physically or mentally incapacitated for the performance of duty and ought to be retired.
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A24. "Can anyone apply for accidental disability benefits?" |
| |
Any active member of a police or fire department may apply for an accidental disability retirement provided he/she has not attained the age of sixty-five. There are no service requirements.
You must file your accidental disability application within 5 years of the date of the accident.
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A25. "What will I receive if I am granted accidental disability retirement allowance?" |
| |
If you are granted accidental disability benefits, you will receive a pension that
is equal to sixty-six and two-thirds of your annual compensation as of the date of your retirement
from service.
Example:
$40,000 x 66-2/3% = $26,640.
(salary) (accidental disability benefit)
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A26. "Under what options can I receive my accidental disability retirement?" |
| |
You can receive your accidental disability retirement benefit under the Service
Retirement Allowance (SRA), Option 1 or Option 2. |
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A27. "Can anyone apply for ordinary disability benefits?" |
| |
No. In order to apply for ordinary disability benefits, a member must have at least
five years of contributing service. The applicant cannot be eligible for a regular retirement allowance. |
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A28. "What will I receive if I am granted ordinary disability benefits?" |
| |
If you are granted ordinary disability benefits, you will receive a retirement
allowance that is equal to what you would have received had you retired with a Service Retirement
Allowance. If you have less than 10 years of service, your ordinary disability benefit will be
computed as if you had 10 years of service.
Here is an example:
| Police Officer Service: |
| Service: |
7 years (bumped up to 10 years) |
| Average Salary at time of Disability Retirement: |
$33,000 |
| Ordinary Disability Benefit/SRA: |
| First 10 years x 2% = |
20.0% total percentage |
| 20% x $33,000 = |
$6,600 yearly for life (ordinary disability benefit) |
|
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A29. "Under what options can I receive ordinary disability benefits?" |
| |
As of August 6, 1996, new applicants for ordinary disability are eligible to select
an option upon retirement. As with accidental disability, you can only receive your ordinary
disability retirement benefit under the Service Retirement Allowance (SRA), Option1 or Option2.
You cannot elect the Social Security Option if you are receiving an ordinary disability retirement.
If you have decided to apply for disability benefits, you should call the Employees'
Retirement System at (401) 457-3900 and ask to speak with a retirement counselor. The counselor
will recommend that you make an appointment and send you a Disability Retirement Packet
that includes the Green Handbook on Disability Retirement. |
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A30. "What happens should a member lose his/her life in the line of duty?" |
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If you should lose your life in the line of duty, your spouse and dependent
beneficiaries will be eligible to receive accidental death benefits. In order to receive such
benefits, however, evidence submitted to the retirement board must show that the member's death
"was the natural and proximate result" of an accident while in the performance of duty and that
the accident was not the result of member's negligence. |
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A31. "What will my spouse receive under the accidental death statute?" |
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In addition to a return of contributions, the member's spouse will receive a monthly
annuity equal to 50% of the member's compensation at the time of death. In addition, the
member's spouse will receive an additional 10% for each child under the age of eighteen. The
entire benefit cannot exceed 66-2/3rds percent and will cease should the widow or widower remarry
after receipt of the benefits. |
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A32. "How do I go about applying for my retirement?" |
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You should contact the retirement system about six months prior to the date of
your retirement. We will send you an Application for Retirement and make an appointment for you
to meet with one of our retirement counselors. Although it is not required, we strongly recommend
that you meet with a retirement counselor prior to your retirement.
You should bring your completed Retirement Application and a copy of your birth certificate
with you on the day of your appointment. You will also have to fill out an Option Selection Form
before your retirement can be processed.
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A33. "When I retire, how will I be covered for health insurance?" |
| |
As a municipal employee, you should contact your municipal personnel department
regarding benefit recipient health care benefits.
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A34. "Will I have to pay state and federal income tax on my retirement allowance?" |
| |
Yes. If you are a Rhode Island resident, you will have to pay state and federal
income tax on the retirement benefits you receive from the State of Rhode Island. Different rules
may apply if you are a resident of another state. Accidental disability retirements from the
ERSRI are not taxable. |
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A35. "Can I have federal income tax withheld from my retirement allowance?" |
| |
Yes. You must complete tax form W4P when you retire. The Retirement Office is
required by law to inform all benefit recipients that they may elect to have federal income tax
withheld from their monthly benefit allowances. You may be subject to tax penalties on your
retirement income if you fail to pay or withhold sufficient tax. |
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A36. "Can I have my check sent directly to my bank?" |
| |
Your first check will arrive in the mail. However, direct deposit is mandatory
for all persons retiring after July 1988, and subsequent checks will be electronically deposited
in your account. A Direct Deposit authorization is included on the Retirement application. |
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A37. "Can I work after I retire?" |
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You may not go back to work full-time for any participating municipal unit in
ERSRI and receive a retirement allowance from the State of Rhode Island.
ou may work on a part-time basis under limited circumstances.
See the Membership & Retirement handbook for more information on post-retirement
employment limitations. You may work for a private employer or the federal government.
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A38. "Will cost-of-living adjustments be added to my retirement allowance each year?" |
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Municipal employees receive a cost-of-living adjustment only if the municipality
from which the member is retiring has adopted a COLA provision. If the COLA has been adopted,
municipal benefit recipients receive a 3% cost-of-living adjustment on the next January following
their retirement date. The 3% annual adjustment is not compounded. |
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A39. "If I should die before I retire, what benefits would my survivor be entitled to?" |
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If you have over ten years of service and have completed an Optional Annuity
Protection form, your beneficiary will have the option of receiving either a return of
contributions or a monthly annuity in addition to the death benefit. Spouses will automatically
get this option provided the member had over ten years of service and the spouse was the sole
beneficiary.
Or, your spouse may elect a yearly annuity of up to 50% of your rate of compensation
at the time of your death depending upon the number of dependent children. Should your spouse
re-marry and have children of the deceased member under the age of eighteen, he/she will still be
eligible to receive 10% of your rate of compensation for each child under the age of eighteen up
to a maximum family benefit of 50%.
If the spouse is divorced from the member at the time of death, no benefits are available.
Public safety member should only fill out an Optional Annuity Protection form if their
beneficiary is not the spouse as the OAP form will negate whatever benefits are available under
the police and fire statutes.
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| 9. Wage and Contribution (back to
main index) |
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Q1. What are the key difference between the old and
new wage and contribution file formats? |
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Q2. How do you build a wage and contribution record? |
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Q3. What sections of a wage and contribution record are required for each status code? |
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Q4. Why does a status need to be reported for each employee? |
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Q5. Why does a position need to be reported for each employee? |
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Q6. How should a correction to a wage and contribution report be reported to ERSRI? |
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Q7. How do I filter member records by Appropriation Account Number? |
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A1. "How should a correction to a wage and contribution report
be reported to ERSRI?" |
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The key difference between the new wage and contribution file format and the old wages and contribution file are as follows:
- One wage and contribution file format will be used by all employers.
- No punctuation marks will be allowed (i.e. no decimal points in currency fields. The last two digits will always represent
the decimal amount.)
- The record is a fixed length of 302 positions. If the reported data is not long enough to fill the number of spaces allowed,
preceding zeros should be added to numeric fields and blank spaces should be added to the end of alphanumeric fields.
- Addresses will only be reported for new hires.
- Records should be ordered by SSN and then Reported Wages Code.
- An employee's date of birth will no longer need to be reported.
- New organization codes (system codes) will be issued.
- All dates will contain four-digit years.
- Actual units and base units, or number of paid days will be used to calculate service credit.
- Additional wage codes (transaction codes) have been added.
- An employee's salary will be divided into Employer Reported Wages and Federally Funded Wages (for Teachers/Certified).
- Employer contributions will be reported.
- Employer survivor benefit contributions and federally funded contributions will be reported for Teachers/Certified.
- A status code and status date will be reported.
- A position code will be reported.
- An additional address line has been added.
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A2. "How do you build a wage and contribution record?" |
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All wage and contribution records require a Reported Wage Code in order for the retirement system to determine
the type of transaction being processed. After determining the correct wage code to use for the specific situation, fill out the required
sections for that particular wage code. |
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A3. "What sections of a wage and contribution record are required
for each status code?" |
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All sections are required for the status code 01-New Hire/Reinstatement.
For all other status codes, all sections are required except for the address section. |
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A4. "Why does a status need to be reported for each employee?" |
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Status codes are used to inform the retirement system the current status of your
employees. Reporting an accurate status code will prevent ERSRI from needing to contact you to determine when an
employee was on-leave or on workers compensation. |
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A5. "Why does a position need to be reported for each employee?" |
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The four character position codes are extremely important because they are used to determine
to which benefit structure a member belongs. |
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A6. "How should a correction to a wage and contribution report be reported to ERSRI?" |
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Any time a correction to a wage and contribution report that was previously sent to ERSRI
is needed, an adjustment will need to be reported. Adjustments can be reported in one of two different ways:
1) A separate Adjustment Report can be sent to ERSRI.
2) An adjustment record can be added to the next regular wage and contribution report. |
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A7. "How do I filter member records by Appropriation Account Number?" |
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The Appropriation Account Number filter is only applicable to the
web accounts that deal with wage and contribution reporting for the State of Rhode Island
(Agency Number 2000).
To see your Agency Number, login to the secure area of the site and click 'Agency Information' on the navigation bar
Enter the Appropriation Account Number for your agency and click 'Filter' to return member
records in your agency that have wage and contribution reporting errors.
If you have entered an invalid Appropriation Account Number, you can either correct the
Appropriation Account Number or you can leave the field blank and click 'Filter' to return
all member records for the State of Rhode Island (Agency Number 2000).
Note: Only 20 records are displayed at a time.
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