Reinstates, for all teachers and state employees who retired after July 1, 2012, their annual cost of living adjustment for retirement plan year 2026.

Rhode Island Bill Summary: Teacher and State Employee Retirement Cost of Living Adjustment

This bill would restore a yearly cost-of-living adjustment (COLA) for retired teachers and state employees for the 2026 retirement plan year. A COLA is a periodic increase added to retirement payments to help retirees keep up with rising prices over time. The people affected by this bill are those who retired after July 1, 2012 — a group that had their regular COLA suspended or reduced as part of Rhode Island's 2011 pension reform law, which was passed to address the state's financial challenges at the time.

Under the 2011 reforms, COLAs for many retirees were frozen or made conditional, meaning some retired teachers and state workers have gone years without seeing their pension checks increase to match inflation. This bill would reinstate that adjustment specifically for the 2026 plan year, giving those retirees a one-year boost to their pension payments to help offset the rising cost of everyday expenses like groceries, housing, and healthcare.

It is important to note that this bill applies only to the 2026 plan year — it is not a permanent restoration of COLAs going forward. The bill has been introduced in the Rhode Island House and referred to the House Finance Committee, where lawmakers will review its potential costs to the state before deciding whether to advance it further.