Sen. Louis P. DiPalma (D-Dist. 12, Middletown, Little Compton, Newport, Tiverton) has introduced legislation (2017-S 0210) that would gradually increase the state’s contribution to the teachers’ retirement system, while reducing the municipal contribution, which would eventually result in the contributions being shared equally between the state and municipalities.
“This legislation will provide meaningful tax relief for our municipal property taxpayers while also honoring the selfless hard work our teachers put in for our children’s education,” said Senator DiPalma.
Currently, the state is responsible for 40 percent of the contributions while municipalities are responsible for 60 percent of the contributions to the retirement system for teachers. According to the legislation, starting July 1, 2018, the state would contribute 42 percent and the municipalities would contribute 58 percent. Then, starting on July 1, 2019, the state’s share would rise to 44 percent and the municipalities’ responsibility would decrease to 56 percent. This change would continue until July 1, 2022, with the state and the municipalities each contributing 50 percent to the teachers’ retirement system.
The legislation has been referred to the Senate Committee on Finance.