2012 -- H 7186 SUBSTITUTE A AS AMENDED

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LC00550/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TOWNS AND CITIES -- RETIREMENT OF MUNICIPAL EMPLOYEES

     Introduced By: Representatives Ucci, Petrarca, Carnevale, and Fellela

     Date Introduced: January 18, 2012

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 45-21.2-5 of the General Laws in Chapter 45-21.2 entitled

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"Optional Retirement for Members of Police Force and Fire Fighters" is hereby amended to read

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as follows:

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     45-21.2-5. Retirement on service allowance. -- (a) Retirement of a member on a service

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retirement allowance for members eligible to retire on or before June 30, 2012 shall be made,

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subject to paragraph (a)(11) below, by the retirement board as follows:

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      (1) Any member who has attained or attains age seventy (70) shall be retired as stated in

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section 45-21-16 subject to the discretions contained in that section; provided, that any member

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who is a member of the Woonsocket fire department who has attained or attains an age of sixty-

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five (65) years shall be retired. Retirement occurs on the first day of the next succeeding calendar

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month in which the member has attained the age of sixty-five (65) years.

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      (2) Any member may retire pursuant to this subdivision upon written application to the

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board stating at what time the member desires to retire; provided, that the member at the specified

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time for retirement has attained an age of fifty-five (55) years and has completed at least ten (10)

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years of total service, and notwithstanding that the member may have separated from service.

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      (3) Any member may retire pursuant to this subdivision upon written application to the

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board stating at what time the member desires to retire; provided, that the member at the specified

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time for retirement has completed at least twenty-five (25) years of total service, and

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notwithstanding that the member may have separated from service.

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      (4) Any member may retire pursuant to this subdivision upon written application to the

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board stating at what time the member desires to retire; provided, that the member at the specified

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time for retirement has attained an age of fifty (50) years and has completed at least twenty (20)

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years of total service, notwithstanding that the member may have separated from service;

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provided, that the service retirement allowance, as determined according to the formula provided

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in section 45-21.2-6, is reduced one-half of one percent ( 1/2%) for each month that the age of the

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member is less than fifty-five (55) years.

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      (5) Any member of the South Kingstown police department may retire pursuant to this

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subdivision upon written application to the board stating at what time the member desires to

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retire; provided, that the member at the specified time for retirement has earned a service

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retirement allowance of fifty percent (50%) of final compensation pursuant to section 45-21.2-

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6.1.

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      (6) Any member of the Johnston police department may retire pursuant to this

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subdivision upon written application to the board stating at what time the member desires to

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retire; provided, that the member at the specified time for retirement has earned a service

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retirement allowance of fifty percent (50%) of final compensation pursuant to section 45-21.2-

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6.2.

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      (7) Any member of the Cranston fire department hired after July 1, 1995, or any member

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of the Cranston fire department with five (5) years or less of service effective July 1, 1995, may

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retire pursuant to this subdivision upon written application to the board stating at what time the

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member desires to retire; provided, that the member at the specified time for retirement has

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earned a service retirement allowance of fifty percent (50%) of final compensation for at least

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twenty (20) years service; final compensation for Cranston fire department members is based on

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the compensation components of weekly salary, longevity and holidays with longevity of the

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members highest year of earnings and members shall receive a three percent (3%) escalation of

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their pension payment compounded each year on January 1st following the year of retirement and

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continuing on an annual basis on that date; further, any illness or injury not covered in title 45 of

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the general laws relating to the presumption of disability is governed by the collective bargaining

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agreement between the City of Cranston and members of the Cranston fire department.

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      (8) Any member of the Cranston police department hired after July 1, 1995, or any

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member of the Cranston police department with five (5) years or less of service effective July 1,

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1995, may retire pursuant to this subdivision upon written application to the board stating at what

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time the member desires to retire; provided, that the member at the specified time for retirement

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has earned a service retirement allowance of fifty percent (50%) of final compensation for at least

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twenty (20) years service; final compensation for Cranston police department members is based

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on the compensation components of weekly salary, longevity and holidays with longevity of the

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members highest year of earnings and members shall receive a three percent (3%) escalation of

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their pension payment compounded each year on January 1st following the year of retirement and

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continuing on an annual basis on that date; further, any illness or injury not covered in title 45 of

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the general laws relating to the presumption of disability is governed by the collective bargaining

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agreement between the City of Cranston and members of the Cranston police department.

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      (9) Any member of the Hopkinton police department may retire pursuant to this

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subdivision upon written application to the board stating at what time the member desires to

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retire; provided, that the member at the specified time for retirement has earned a service

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retirement allowance of fifty percent (50%) of final compensation for at least twenty (20) years

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service; final compensation for Hopkinton police department members is based on the

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compensation components of weekly salary, longevity and holidays with longevity of the

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members highest year of earnings and members shall receive a three percent (3%) escalation of

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their pension payment compounded each year on January 1st following the year of retirement and

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continuing on an annual basis on that date.

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      (10) Any member of the Richmond police department may retire pursuant to this

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subdivision upon written application to the board stating at what time the member desires to

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retire; provided, that the member at the specified time for retirement has earned a service

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retirement allowance of fifty percent (50%) of final compensation for at least twenty-two (22)

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years' service pursuant to section 45-21.2-6.3.

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      (11) Notwithstanding any provision in this section to the contrary, for any service on or

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after July 1, 2012, final compensation shall be defined in accordance with section 45-21.2-2, and

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no benefit adjustments shall be provided except as set forth in subsection 45-21-52(c).

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     (12) Notwithstanding any provisions of this section to the contrary, with respect to police

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officers employed by the town of Johnston, only those police officers hired on or after July 1,

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2010 shall be eligible to be members of the Municipal Employees’ Retirement System of the state

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of Rhode Island in accordance with this chapter.

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      (b) Retirement of a member on a service retirement allowance eligible to retire on and

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after July 1, 2012 shall be made by the retirement board as follows:

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      (1) Any member may retire pursuant to this subdivision upon written application to the

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board stating at what time the member desires to retire; provided, that the member at the specified

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time for retirement attained the age of at least fifty-five (55) years and has completed at least

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twenty-five (25) years of total service, and notwithstanding that the member may have separated

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from service.

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      (2) Any member with contributory service on or after July 1, 2012, who has completed at

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least five (5) years of contributory service but who has not completed twenty-five (25) years of

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service, shall be eligible to retire upon the attainment of the member's Social Security retirement

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age.

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      (3) If a member had ten (10) or more years of contributory service and attained age

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forty-five (45) prior to July 1, 2012 and would have been eligible to retire at or prior to age fifty-

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two (52) in accordance with the rules in effect prior to July 1, 2012, the member may retire upon

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attainment of age fifty-two (52).

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      (4) A member who has completed twenty (20) or more years of total service who has

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attained an age within five (5) years of the eligible retirement age under subparagraphs (b)(1) or

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(b)(2) above, may elect to retire provided that the retirement allowance shall be reduced

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actuarially for each month that the age of the member is less than the eligible retirement age

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under subparagraphs (b)(1) or (b)(2) above.

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      (5) Notwithstanding any other provisions of this section, a member on June 30, 2012,

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may elect to retire at his or her eligible retirement date as determined under the rules in effect on

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June 30, 2012 provided that a member making an election under this paragraph shall receive the

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member's retirement benefit determined and calculated based on the member's service and final

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compensation as of June 30, 2012. This provision shall be interpreted and administered in a

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manner to protect a member's accrued benefit on June 30, 2012.

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     SECTION 2. This act shall take effect upon passage.

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LC00550/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES -- RETIREMENT OF MUNICIPAL EMPLOYEES

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     This act would, with respect to police officers employed by the town of Johnston, limit

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membership in the Municipal Employees’ Retirement System to those officers hired on or after

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July 1, 2010.

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     This act would take effect upon passage.

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LC00550/SUB A

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