Section 120-RICR-00-00-1.16 - Regulation Regarding the Election of R.I. Gen. Laws Sections 36-10-10.3 and 45-21-17.2 Social Security Supplemental OptionA. 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 45-21-17.21. 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.
120 R.I. Code R. 120-RICR-00-00-1.16
Amended effective 3/25/2019
Amended effective 5/27/2021