Pension Reform Assessment

The Details of RIRSA: State and Teachers Provision Current Plan New Plan Member Contribution Rate 8.75/9.50% (State/Teachers) 3.75% (State & Teachers) DC Member Contributions 5.00% +1.00% ER Match Unreduced Retirement Eligibility 65/10, 62/29 Reduced Retirement Eligibility 62/20, reduced from 65 COLA (All members, including current retirees) CPI capped at 3%, on first $35,000 SS NRA; Transition rules: 1) eligibles remain eligible; 2) those age 52+ and vested with retirement age <62 can retire at 62; 3) members with 10+ years of service may retire at current retirement as of 6/30/12 with benefit at distribution date calculated using accrued benefit as of 6/30/12 5 Years from NRA, reduced Investment related (2% target at 7.5% investment returns on first $25K) For all others, COLA suspended until 80% funding reached A COLA will occur every 5th year during the suspension When COLA returns, delayed until later of SS NRA or 3 yrs after retirement Average Salary Period 5 Years 5 Years Vesting 10 Years 5 Years for DB 3 Years for DC Amortization Schedule 19 Years 25 Years GRS 14

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