2012 -- H 7895

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LC01901

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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 EDUCATION -- TEACHERS' RETIREMENT

     Introduced By: Representatives Brien, Phillips, and Baldelli-Hunt

     Date Introduced: March 06, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-16-22 of the General Laws in Chapter 16-16 entitled "Teachers'

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Retirement" is hereby amended to read as follows:

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     16-16-22. Contributions to state system. -- (a) Prior to July 1, 2012, each teacher shall

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contribute into the system nine and one-half percent (9.5%) of compensation as his or her share of

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the cost of annuities, benefits, and allowances. Effective July 1, 2012, each teacher shall

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contribute an amount equal to three and three quarters percent (3.75%) of his or her

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compensation. The employer contribution on behalf of teacher members of the system shall be in

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an amount that will pay a rate percent of the compensation paid to the members, according to the

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method of financing prescribed in the State Retirement Act in chapters 8 -- 10 and 10.3 of title 36.

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This amount shall be paid forty percent (40%) by the state, and sixty percent (60%) at a rate as is

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each year determined by the Rhode Island department of elementary and secondary education as

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the state share ratio, and the balance to be paid by the city, town, local educational agency, or any

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formalized commissioner approved cooperative service arrangement by whom the teacher

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members are employed, with the exception of teachers who work in federally funded projects and

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further with the exception of any supplemental contributions by a local municipality employer

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under chapter 36-10.3 which supplemental employer contributions shall be made wholly by the

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local municipality. Provided, however, that the rate percent paid shall be rounded to the nearest

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hundredth of one percent (.01%).

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      (b) The employer contribution on behalf of teacher members of the system who work in

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fully or partially federally funded programs shall be prorated in accordance with the share of the

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contribution paid from the funds of the federal, city, town, or local educational agency, or any

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formalized commissioner approved cooperative service arrangement by whom the teacher

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members are approved.

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      (c) In case of the failure of any city, town, or local educational agency, or any formalized

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commissioner approved cooperative service arrangement to pay to the state retirement system the

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amounts due from it under this section within the time prescribed, the general treasurer is

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authorized to deduct the amount from any money due the city, town, or local educational agency

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from the state.

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      (d) The employer's contribution shared by the state shall be paid in the amounts

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prescribed in this section for the city, town, or local educational agency and under the same

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payment schedule. Notwithstanding any other provisions of this chapter, the city, town, or local

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educational agency or any formalized commissioner approved cooperative service arrangement

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shall remit to the general treasurer of the state the local employer's share of the teacher's

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retirement payments on a monthly basis, payable by the fifteenth (15th) of the following month.

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The amounts that would have been contributed shall be deposited by the state in a special fund

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and not used for any purpose. The general treasurer, upon receipt of the local employer's share,

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shall effect transfer of a matching amount of money from the state funds appropriated for this

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purpose by the general assembly into the retirement fund.

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      Upon reconciliation of the final amount owed to the retirement fund for the employer

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share, the state shall ensure that any local education aid reduction assumed for the FY 2010

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revised budget in excess of the actual savings is restored to the respective local entities.

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      (e) This section is not subject to sections 45-13-7 through 45-13-10.

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     SECTION 2. This act shall take effect upon passage.

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LC01901

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO EDUCATION -- TEACHERS' RETIREMENT

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     This act would provide that the amount of the state’s contributions to the state retirement

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system would be at a rate determined each year as the state share ratio.

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     This act would take effect upon passage.

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LC01901

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