Current through September 18, 2024
A.
Introduction
This Administrative Regulation pertaining to the election
of the social security supplemental option is promulgated pursuant to R.I. Gen.
Laws §
36-8-3. The Regulation shall be
applicable to all State employees, correctional officers, teachers and
municipal employees who at the time of retirement, prior to November 17, 2011,
elected the social security supplemental option under R.I. Gen. Laws §§
36-10-10.3 or
45-21-17.2 and who have not
reached age sixty-two (62).
B. Application of R.I. Gen. Laws §§
36-10-10.3 and
45-21-17.2
1. R.I. Gen. Laws §§
36-10-10.3 and
45-21-17.2 permit a vested member
to elect this option which provides for payment of a larger benefit before the
attainment of age sixty-two (62) and a reduced amount thereafter. The reduced
amount shall be equal to the benefit before age sixty-two (62) including cost
of living increases minus the member's estimated social security benefit
payable at age sixty-two (62). The benefits payable before and after the
attainment of age sixty-two (62) will be actuarially determined to be
equivalent to the lifetime service retirement allowance as determined in R.I.
Gen. Laws §§
36-10-10 and
45-21-17 respectively.
2. This option is not available for
police/fire retirees, Disability retirees, nurses retiring from the Department
of Behavioral Healthcare Developmental Disabilities and Hospitals or Department
of Mental Health Retardation and Hospitals or schedule B retirees.
3. The purpose of this Regulation is to
permit retirees who had elected the social security supplemental option at the
time of retirement and prior to November 17, 2011, to adjust the effective date
of the reduction of the larger benefit before the attainment of age sixty-two
(62). This Regulation does not apply to any member retiring on or after
November 17, 2011. The adjustment under this Regulation will be actuarially
determined to be equivalent to the lifetime service retirement allowance as
determined in R.I. Gen. Laws §§
36-10-10 or
45-21-17. Members are precluded
from selecting joint and survivor options pursuant to R.I. Gen. Laws §§ 36-1019
and 45-21-30.
C. Procedure for Modification
1. Eligible retirees will be given a one (1)
time election to adjust the effective date of the reduction of the larger
benefit before the attainment of age sixty-two (62). This selection shall be
deemed irrevocable on issuance of the first (1st)
payment. Retirees, before the attainment of age sixty-two (62), who select this
adjustment, will have their current benefit adjusted during calendar year 2014
(January 1, 2014 to December 31, 2014).
2. Upon request, on a form provided by ERSRI,
an eligible retiree's current benefit will be reduced on the month following
the retiree's birthday during calendar year 2014 based on an actuarial
equivalent amount provided for this purpose. The actuarial equivalent amount
will be developed by the System actuary and will be based on the assumptions
and tables established on the retiree's date of retirement.
3. Retirees must submit their request on the
ERSRI form no later than sixty (60) days prior to the member's birthday in
calendar year 2014. In all cases, the eligible retiree will receive a larger
benefit before the attainment of age sixty-two (62) and a reduced amount
thereafter, and the reduced amount shall be equal to the benefit before the
reduction, including cost of living increases, minus the retiree's estimated
social security benefit payable at age sixty-two (62), and the benefits before
and after the adjustment will be actuarially determined to be equivalent to the
lifetime service retirement allowance as determined by R.I. Gen. Laws §§
36-1010 or
45-21-17 respectively, as required
by the Rhode Island General Laws.
4. Example of an adjustment:
a. Retirement Data
Age at Retirement: 55
Base Benefit: $4,750.00 per month (Prior to election of
optional form)
Social Security Option Elected at Retirement, adjustment of
$1,060.00
Benefit Until Age 62: $5,81.000 per month (Current Retiree
Payment)
Age 62 Reduction: $1,767.00 per month ($21,200.00 per
year)
Benefit at Age 62: $4,043.00 per month
b. Optional Adjustment
Age at 2014 Birthday: 60
Benefit Until Age 60: $5,810.00 per month (Current Retiree
Payment)
Age 60 Reduction: $1,582.00 per month (from actuarial
calculation)
Benefit at Age 60: $4,228.00 per month
c. The reduction amount is not impacted by
past or future COLAs.
D. Effective Date
This Regulation shall become effective upon adoption by the
Board.
