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1997 RETIREMENT LEGISLATION
There were a few changes in retirement law both on the State and Federal
levels in 1997:
Armed Service CreditAs of July 3, 1997, active members of the Employees'
Retirement system may purchase military service credit only for actual active duty military service.
The new law eliminates a provision that granted six months of service time for each fraction of
military service. Public Law 97-169 -- signed by Governor Almond July 3, 1997.
Post-Retirement EmploymentCurrently, if a retired member is re-employed
by any state agency, his or her pension benefit is suspended. However, this bill allows retired
employees who return to work at the Davies Vocational School and the Rhode Island School for the
Deaf to receive compensation up to $10,000 a year without any effect on their pension benefits.
Public Law 97-211 & 97-314 -- effective July 8, 1997.
City of Woonsocket MERS Fire UnitThis bill allows the City of Woonsocket
to add firefighters to its Municipal Employees Retirement System Fire Plan. Public Law 97-256 --
effective July 8, 1997 Public Law 99-487 Public Law 99-353
Town of Barrington MERS UnitThis new law grants a Cost of Living Adjustment
to certain members of the Barrington Municipal Employees Retirement System plan. Public Law 97-253 --
effective July 8, 1997.
The federal Taxpayer Relief Act of 1997 included several provisions that relate to public pension plans:
Permanent Moratorium on the Application of Nondiscrimination Rules
Public pension plans need not abide by federal laws originally designed to ensure that private pension
plans do not provide disproportionate benefits to certain highly compensated groups of employees.
Maximum Benefit Limitations for Police and Fire Participants
Effective December 31, 1996, police and fire members will no longer be subject to IRS limits on their
retirement benefits. All state employees, teachers and general municipal employees are still subject
to the Section 415 Maximum Benefit Limitations.
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