2012 -- H 8010

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LC02087

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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

     

     

     Introduced By: Representatives Brien, and Newberry

     Date Introduced: March 28, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

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amended by adding thereto the following chapter:

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     CHAPTER 21.4

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MUNICIPAL RETIREMENT PROGRAMS

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     45-21.4-1. Purpose. – It is the intent of this chapter to ensure that towns and cities have

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the authority to modify retirement benefits for non-vested municipal employees.

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     45-21.4-2. Definitions. – Terms used in this chapter shall have the same meanings as

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contained in section 45-21-2.

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     45-21.4-3. Limits on retirement benefits. – Notwithstanding any general law or special

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law of the state of Rhode Island to the contrary no current municipal ordinance, collective

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bargaining agreement, or interest arbitration award shall require employee retirement benefits that

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exceed the actuarial value of benefits afforded under state law for those municipal employees

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who participate in the municipal employees retirement system as authorized by chapters 45-21,

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45-21.1, and 45-21.2 of the Rhode Island general laws. For employees who have not already

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reached their vesting date in a pension plan that provides benefits with greater actuarial value

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under the municipal employees retirement system as authorized by chapters 45-21, 45-21.1, and

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45-21.2 of the Rhode Island general laws, and except as further limited by this chapter, town and

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city councils following normal procedures for approval of an ordinance are authorized to amend

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the retirement benefits for new and non-vested employees and such action shall take precedence

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over existing collective bargaining agreements for new and non-vested employees.

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     45-21.4-4. Reporting. – Prior to final action on such ordinance, the town or city clerk

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shall forward to the executive director of the state retirement system an actuarial study by a

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qualified actuarial firm which shall compute the normal cost of the benefits afforded to new

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and/or non-vested employees under the proposed ordinance. Such actuarial study shall be a public

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document and such reports shall be codified by the executive director in an annual report to the

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retirement board.

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     SECTION 2. This act shall take effect upon passage.

     

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LC02087

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES

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     This act would prohibit municipal ordinances, collective bargaining agreements, and

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interest arbitration awards from providing employee retirement benefits which exceed the

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actuarial value of benefits afforded under the municipal employees retirement system. This act

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would also authorize town and city councils to amend retirement benefits for new and non-vested

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employees.

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     This act would take effect upon passage.

     

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LC02087

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H8010