2012 -- H 8256

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LC02807

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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 PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM --

CONTRIBUTIONS AND BENEFITS

     Introduced By: Representatives Keable, Mattiello, and Melo

     Date Introduced: June 07, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 45-21.2-22 and 45-21.2-22.1 of the General Laws in Chapter 45-

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21.2 entitled "Optional Retirement for Members of Police Force and Fire Fighters" are hereby

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amended to read as follows:

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     45-21.2-22. Optional twenty year retirement on service allowance. -- (a) The local

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legislative bodies of the cities and towns may, by ordinance adopted, permit the retirement of a

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member on a service retirement allowance for members retiring eligible to retire on or before

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June 30, 2012 as follows:

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      (1) Any member may retire pursuant to this section upon his or her written application to

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the board stating at what time he or she desires to retire; provided, that the member, at the

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specified time for his or her retirement, has completed at least twenty (20) years of total service,

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and, notwithstanding that the member may have separated from service;

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      (2) Upon retirement from service pursuant to subdivision (1), a member receives a

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retirement allowance which is a life annuity terminable at the death of the annuitant, and is equal

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to two and one-half percent (2 1/2%) of final compensation multiplied by the years of total

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service, but not to exceed seventy-five percent (75%) of final compensation;

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      (3) Upon the adoption of a service retirement allowance, pursuant to this subdivision,

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each member contributes an amount equal to one percent (1%) more than that contribution

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required under section 45-21.2-14;

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      (4) This section is exempt from the provisions of chapter 13 of this title.

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      (b) For members retiring on or after July 1, 2012, the member's retirement allowance

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shall equal the sum of (i) and (ii) where (i) is the member's benefit calculated under (a)(1)-(4)

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above or section 45-21.2-5 for service on and before June 30, 2012 and (ii) is the member's

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benefit determined under section 45-21.2-6 for service on and after July 1, 2012. For service on

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and after July 1, 2012, the provisions of (a)(3) above shall no longer apply.

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     45-21.2-22.1. Burrillville police -- Optional twenty-year retirement on service

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allowance. -- (a) Notwithstanding section 45-21.2-22, the town council of the town of

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Burrillville, may by ordinance adopted, permit the retirement of a member on a service retirement

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allowance for members retiring eligible to retire on or before June 30, 2012, as follows:

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      (1) Any member may retire pursuant to this section upon his or her written application to

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the board stating at what time he or she desires to retire; provided, that the member, at the

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specified time of his or her retirement, has completed at least twenty (20) years of total service;

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      (2) Upon retirement from service, pursuant to subdivision (1), a member receives a

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retirement allowance that is a life annuity terminable at the death of the annuitant, and is equal to

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three percent (3%) of final compensation multiplied by the years of total service, but not to

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exceed sixty percent (60%) of final compensation;

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      (3) Upon retirement from service where member has in excess of twenty (20) years of

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service, a member receives a retirement allowance that is a life annuity terminable at the death of

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the annuitant, and is an amount equal to the sum of three percent (3%) of final compensation

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multiplied by the first twenty (20) years of service and one and one-half percent (1.5%) of final

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compensation multiplied by the years of service in excess of twenty (20) years. The annual

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retirement allowance in no event shall exceed seventy-five percent (75%) of final compensation;

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      (4) Upon the adoption of a service retirement allowance, pursuant to this section, each

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member shall contribute an amount equal to ten and two-tenths percent (10.2%) of the salary or

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compensation earned or accrued to the member;

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      (5) Notwithstanding anything to the contrary hereinabove, any member who retires with

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less than twenty (20) years of service shall be subject to section 45-21.2-6 for purposes of

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determining any service retirement allowance;

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      (6) This section is exempt from the provisions of chapter 13 of this title;

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      (7) Except as specifically set forth hereinabove, all other provisions of chapter 21.2 of

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this title shall be applicable to Burrillville police officers who make application to retire.

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      (b) For members retiring on or after July 1, 2012, the member's retirement allowance

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shall equal the sum of (i) and (ii) where (i) is the member's benefit calculated under (a)(1) through

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(a)(7) above for service on and before June 30, 2012 and (ii) is the member's benefit determined

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under section 45-21.2-6 for service on and after July 1, 2012. For service on and after July 1,

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2012, the provisions of (a)(4) above shall no longer apply.

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     SECTION 2. This act shall take effect upon passage.

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LC02807

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM --

CONTRIBUTIONS AND BENEFITS

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     This act would clarify the optional twenty (20) year retirement on service allowance for

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members of the police force and firefighter provisions of the general laws by deleting the

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language "retiring", and by inserting in place thereof the language "eligible to retire".

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     This act would take effect upon passage.

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LC02807

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