Section 120-RICR-00-00-1.17 - Rules for Exceeding the Allowable Monetary Limits at a State College, University or State School and State Operated FacilityA. Authority This Regulation pertaining to post retirement employment is adopted by the Employees' Retirement Board pursuant to the statutory authority found in R.I. Gen. Laws § 36-8-3.
B. Definitions "Calendar year" means January through December.
C. Rules for Exceeding the Allowable Monetary Limits at a State College, University or State School and State Operated Facility The purpose of this Regulation is to ensure consistent application of the Retirement Board laws and Rules governing post retirement employment. Specifically, this Regulation provides the process and procedures for determining when a retiree exceeds the statutory earnings limitations and how the retirees' pension benefit will be affected pursuant to R.I. Gen. Laws §§ 36-10-36(d)(2), (3) and (4), The provisions of § 1.17(C) of this Part shall be applicable to all retired members of the Employees' Retirement System of Rhode Island and Municipal Employees' Retirement System who retired under the provisions of R.I. Gen. Laws Chapters 36-8 through 36-10, Chapter 16-16 and Chapters 45-21 and 4521.2.
D. Procedure for Suspension of Pension Benefits and Recouping Overpayments 1. Once the retired member reaches the monetary limit provided by law, the retired members' pension benefit shall be suspended in the following manner should they continue employment: a. The retired member's pension benefit will be suspended for the remainder of the calendar year. Upon notification of termination from employment or the retired member's last day of employment in the calendar year to ERSRI, the retired member's pension benefit will be reinstated.(1) Example: A retiree accepts a position at a State university for the Spring semester and they and the employer report to ERSRI the following post retirement employment days worked, monthly earnings and last day of employment: MONTH | EARNINGS | DAYS WORKED |
JANUARY | $2,500.00 | 6 |
FEBRUARY | $4,500.00 | 8 |
MARCH | $3,500.00 | 7 |
APRIL | $4,500.00 | 8 |
MAY | $2,500.00 | 6 |
(2) Last day of employment for spring semester: May 152. The retiree reached the statutory earnings limit at the end of April and continued to work and get paid for six (6) additional days in May before ending employment for the semester. Data is provided on a monthly basis; the monthly pension benefit will be suspended effective the end of April. Monthly Pension Benefit:
$4,000.00
÷ 30 days
$133.33 per day X6 days
$799.98 amount of pension benefit to be suspended
The pension benefit for the month of May will be reinstated effective May 16 as follows
$4,000.00-$799.98 = $3200.02.
3. Should this retired member commence post retirement employment at a State college, university or State school for the Summer or Fall semester in the same calendar year, the pension benefit will be suspended in full from the first (1st) day of employment through the last of employment for that calendar year.E. Effective Date These Rules and Regulations were approved by the Retirement Board on December 14, 2016 and shall take effect twenty (20) days after filing with the Department of the Secretary of State, amending and superseding the prior Rules and Regulations promulgated on November 5, 2013.
120 R.I. Code R. 120-RICR-00-00-1.17
Amended effective 3/25/2019
Amended effective 5/27/2021