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2012 -- H 7264 | |
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LC00725 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT | |
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____________A N A C TRELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM - CONTRIBUTIONS AND BENEFITS | |
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RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM - | |
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CONTRIBUTIONS AND BENEFITS | |
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Introduced By: Representatives Ehrhardt, and Reilly | |
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Date Introduced: January 26, 2012 | |
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Referred To: House Finance | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 36-10-2 of the General Laws in Chapter 36-10 entitled "Retirement |
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System-Contributions and Benefits" is hereby amended to read as follows: |
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36-10-2. State contributions. -- (a) The State of Rhode Island shall make its contribution |
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for the maintenance of the system, including the proper and timely payment of benefits in |
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accordance with the provisions of this chapter and chapters 8, 16, 28, 31 and 42 of this title, by |
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annually appropriating an amount equal to a percentage of the total compensation paid to the |
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active membership. The percentage shall be computed by the actuary employed by the retirement |
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system and shall be certified by the retirement board to the director of administration on or before |
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the fifteenth day of October in each year. In arriving at the yearly employer contribution the |
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actuary shall determine the value of: |
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(1) The contributions made by the members; |
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(2) Income on investments; and |
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(3) Other income of the system. |
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(b) The Actuary shall thereupon compute the yearly employer contribution that will: |
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(1) Pay the actuarial estimate of the normal cost for the next succeeding fiscal year; |
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(2) Amortize the unfunded liability of the system in accordance with section 36-10- |
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2.1(b). |
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(c) The State of Rhode Island shall remit to the general treasurer the employer's share of |
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the contribution for state employees, state police, and judges on a payroll frequency basis, and for |
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teachers in a manner pursuant to section 16-16-22. |
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(d) (1) In accordance with the intent of section 36-8-20 that the retirement system satisfy |
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the requirements of section 401(a) of the Internal Revenue Code of 1986, the state shall pay to the |
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retirement system: |
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(i) By June 30, 1995, an amount equal to the sum of the benefits paid to state legislators |
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pursuant to section 36-10-10.1 in excess of ten thousand dollars ($10,000) per member (plus |
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accrued interest on such amount at eight percent (8%)) for all fiscal years beginning July 1, 1991, |
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and ending June 30, 1995, but this amount shall be paid only if section 36-10-10.1(e) becomes |
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effective January 1, 1995; and |
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(ii) By December 31, 1994, twenty million seven hundred eighty eight thousand eight |
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hundred twelve dollars and nineteen cents ($20,788,812.19) plus accrued interest on that amount |
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at eight percent (8%) compounded monthly beginning March 1, 1991, and ending on the date this |
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payment is completed (reduced by amortized amounts already repaid to the retirement system |
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with respect to the amounts withdrawn by the state during the fiscal year July 1, 1990 -- June 30, |
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1991); and |
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(iii) By June 30, 1995, the sum of the amounts paid by the retirement system for retiree |
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health benefits described in section 36-12-4 for all fiscal years beginning July 1, 1989, and ending |
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June 30, 1994, to the extent that the amounts were not paid from the restricted fund described in |
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subsection (c). |
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(2) Any and all amounts paid to the retirement system under this subsection shall not |
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increase the amount otherwise payable to the system by the state of Rhode Island under |
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subsection (a) for the applicable fiscal year. The actuary shall make such adjustments in the |
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amortization bases and other accounts of the retirement system as he or she deems appropriate to |
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carry out the provisions and intent of this subsection. |
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(e) In addition to the contributions provided for in subsection (a) through (c) and in order |
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to provide supplemental employer contributions to the retirement system, commencing in fiscal |
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year 2006, and each year thereafter: |
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(1) Except for fiscal year 2009, fiscal year 2010, |
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2013, for each fiscal year in which the actuarially determined state contribution rate for state |
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employees, including state contributions under chapter 36-10.3, is lower than that for the prior |
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fiscal year, the governor shall include an appropriation to that system equivalent to twenty |
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percent (20%) of the rate reduction for the state's contribution rate for state employees to be |
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applied to the actuarial accrued liability of the state employees' retirement system for state |
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employees for each fiscal year; |
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(2) Except for fiscal year 2009, fiscal year 2010, |
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2013, for each fiscal year in which the actuarially determined state contribution rate for teachers, |
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including state contributions under chapter 36-10.3, is lower than that for the prior fiscal year, the |
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governor shall include an appropriation to that system equivalent to twenty percent (20%) of the |
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rate reduction for the state's share of the contribution rate for teachers to be applied to the |
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actuarial accrued liability of the state employees' retirement system for teachers for each fiscal |
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year; |
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(3) The amounts to be appropriated shall be included in the annual appropriation bill and |
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shall be paid by the general treasurer into the retirement system. |
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(4) Assessments pursuant to section 42-149-3.1 shall be included in the annual |
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appropriation bill and shall be paid by the general treasurer into the retirement system beginning |
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FY2013. |
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(f) While the retirement system's actuary shall not adjust the computation of the annual |
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required contribution for the year in which supplemental contributions are received, such |
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contributions once made may be treated as reducing the actuarial liability remaining for |
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amortization in the next following actuarial valuation to be performed. |
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SECTION 2. This act shall take effect upon passage. |
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LC00725 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM - | |
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CONTRIBUTIONS AND BENEFITS | |
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*** | |
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This act would extend the exemption for required contributions to include fiscal year |
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2013. |
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This act would take effect upon passage. |
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LC00725 | |
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