2012 -- S 2245 SUBSTITUTE A AS AMENDED

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LC00873/SUB A/2

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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 STATE AFFAIRS AND GOVERNMENT - STATE POLICE

     Introduced By: Senator Daniel DaPonte

     Date Introduced: January 26, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 42-28-22 of the General Laws in Chapter 42-28 entitled "State

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Police" is hereby amended to read as follows:

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     42-28-22. Retirement of members. -- (a) Whenever any member of the state police

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hired prior to July 1, 2007 has served for twenty (20) years, he or she may retire therefrom or he

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or she may be retired by the superintendent with the approval of the governor, and in either event

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a sum equal to one-half (1/2) of the whole salary for the position from which he or she retired

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determined on the date he or she receives his or her first retirement payment shall be paid him or

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her during life.

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      (b) For purposes of this section, the term "whole salary" means:

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      (1) For each member who retired prior to July 1, 1966, "whole salary" means the base

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salary for the position from which he or she retired as the base salary for that position was

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determined on July 31, 1972;

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      (2) For each member who retired between July 1, 1966 and June 30, 1973, "whole

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salary" means the base salary for the position from which he or she retired as the base salary,

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implemented by the longevity increment, for that position was determined on July 31, 1972 or on

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the date of his or her retirement, whichever is greater;

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      (3) For each member who retired or who retires after July 1, 1973 "whole salary" means

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the base salary, implemented by the longevity increment, holiday pay, and clothing allowance, for

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the position from which he or she retired or retires.

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      (c) (1) Any member who retired prior to July 1, 1977 shall receive a benefits payment

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adjustment equal to three percent (3%) of his or her original retirement, as determined in

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subsection (b) of this section, in addition to his or her original retirement allowance. In each

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succeeding year thereafter during the month of January, the retirement allowance shall be

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increased an additional three percent (3%) of the original retirement allowance, not compounded,

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to be continued until January 1, 1991. For the purposes of the computation, credit shall be given

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for a full calendar year regardless of the effective date of the service retirement allowance. For

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purposes of this subsection, the benefits payment adjustment shall be computed from January 1,

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1971 or the date of retirement, whichever is later in time.

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      (2) Any member of the state police who retires pursuant to the provisions of this chapter

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on or after January 1, 1977, shall on the first day of January, next following the third anniversary

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date of the retirement receive a benefits payment adjustment, in addition to his or her retirement

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allowance, in an amount equal to three percent (3%) of the original retirement allowance. In each

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succeeding year thereafter during the month of January, the retirement allowance shall be

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increased an additional three percent (3%) of the original retirement allowance, not compounded,

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to be continued until January 1, 1991. For the purposes of the computation, credit shall be given

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for a full calendar year regardless of the effective date of the service retirement allowance.

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      (3) Any retired member of the state police who is receiving a benefit payment

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adjustment pursuant to subdivisions (1) and (2) of this section shall beginning January 1, 1991

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and ending June 30, 2012, receive a benefits payment adjustment equal to fifteen hundred dollars

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($1,500).

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      (d) The benefits payment adjustment as provided in this section shall apply to and be in

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addition to the retirement benefits under the provisions of section 42-28-5, and to the injury and

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death benefits under the provisions of section 42-28-21.

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      (e) (1) Any member who retires after July 1, 1972 and is eligible to retire prior to July 1,

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2012 and who has served beyond twenty (20) years shall be allowed an additional amount equal

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to three percent (3%) for each completed year served after twenty (20) years, but in no event shall

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the original retirement allowance exceed sixty-five percent (65%) of his or her whole salary as

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defined in subsection (b) hereof or sixty-five percent (65%) of his or her salary as defined in

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subsection (b) hereof in his or her twenty-fifth (25th) year whichever is less.

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      (2) Each member who retired prior to July 1, 1975, shall be entitled to all retirement

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benefits as set forth above or shall be paid benefits as set forth in subdivision (b)(1) with "whole

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salary" meaning the base salary for the position from which he or she retired as the base salary for

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the position was determined on July 1, 1975, whichever is greater.

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      (f) (1) Any member who retires, has served as a member for twenty (20) years or more,

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and who served for a period of six (6) months or more of active duty in the armed service of the

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United States or in the merchant marine service of the United States as defined in section 2 of

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chapter 1721 of the Public Laws, 1946, may purchase credit for such service up to a maximum of

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two (2) four (4) years; provided that any member who has served at least six (6) months or more

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in any one year shall be allowed to purchase one year for such service and any member who has

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served a fraction of less than six (6) months in his or her total service shall be allowed to purchase

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six (6) months' credit for such service.

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     (2) The cost to purchase these credits shall be ten percent (10%) of the member's first

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year salary as a state policeman multiplied by the number of years and/or fraction thereof of such

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armed service up to a maximum of two (2) years four (4) years. The purchase price shall be paid

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into the general fund. For members hired on or after July 1, 1989, the purchase price shall be paid

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into a restricted revenue account entitled "state police retirement benefits" and shall be held in

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trust.

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      (3) There will be no interest charge provided the member makes such purchase during

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his or her twentieth (20th) year or within five (5) years from May 18, 1981, whichever is later,

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but will be charged regular rate of interest as defined in section 36-8-1 as amended to date of

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purchase from the date of his or her twentieth (20th) year of state service or five (5) years from

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May 18, 1981, whichever is later.

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     (4) Any member who is granted a leave of absence without pay for illness, injury or any

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other reason may receive credit therefor by making the full actuarial cost as defined in

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subdivision 36-8-1(10); provided the employee returns to state service for at least one year upon

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completion of the leave.

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     (4)(5) In no event shall the original retirement allowance exceed sixty-five percent (65%)

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of his or her whole salary as defined in subsection (b) hereof or sixty-five percent (65%) of his or

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her salary as defined in subsection (b) hereof in his or her twenty-fifth (25th) year, whichever is

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less.

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     (6) Notwithstanding any other provision of law, no more than five (5) years of service

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credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

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purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

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of service credits before January 1, 1995, shall be permitted to apply those purchases towards the

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member’s service retirement. However, no further purchase will be permitted. Repayment in

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accordance with applicable law and regulation of any contribution previously withdrawn from the

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system shall not be deemed a purchase of service credit.

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      (g) The provisions of this section shall not apply to civilian employees in the Rhode

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Island state police; and, further, from and after April 28, 1937, chapters 8 -- 10, inclusive, of title

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36 shall not be construed to apply to the members of the Rhode Island state police, except as

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provided by sections 36-8-3, 36-10-1.1, 42-28-22.1, and 42-28-22.2, and section 36-8-1(5) and

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(8)(a) effective July 1, 2012.

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      (h) Any member of the state police other than the superintendent of state police, who is

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hired prior to July 1, 2007 and who has served for twenty-five (25) years or who has attained the

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age of sixty-two (62) years, whichever shall first occur, shall retire therefrom.

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      (i) (1) Any member of the state police, other than the superintendent, who is hired on or

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after July 1, 2007 and who has served for twenty-five (25) years, may retire therefrom or he or

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she may be retired by the superintendent with the approval of the governor, and shall be entitled

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to a retirement allowance of fifty percent (50%) of his or her "whole salary" as defined in

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subsection (b) hereof.

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      (2) Any member of the state police who is hired on or after July 1, 2007 may serve up to

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a maximum of thirty (30) years, and shall be allowed an additional amount equal to three percent

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(3.0%) for each completed year served after twenty-five (25) years, but in no event shall the

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original retirement allowance exceed sixty-five percent (65%) of his or her "whole salary" as

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defined in subsection (b) hereof.

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      (j) Effective July 1, 2012, any other provision of this section notwithstanding:

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      (j) (1) Any member of the state police, other than the superintendent of state police, who

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is not eligible to retire on or prior to June 30, 2012 may retire at any time subsequent to the date

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the member's retirement allowance equals or exceeds fifty percent (50%) of average

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compensation as defined in section 36-8-1(5)(a), provided that a member shall retire upon the

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first to occur of:

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      (i) The date the member's retirement allowance equals sixty-five percent (65%); or

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      (ii) The later of the attainment of age sixty-two (62) or completion of five (5) years of

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service; provided however, any current member as of June 30, 2012 who has not accrued fifty

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percent (50%) upon attaining the age of sixty-two (62) shall retire upon accruing fifty percent

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(50%); and upon retirement a member shall receive a retirement allowance which shall equal:

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      (A) For members hired prior to July 1, 2007 the sum of (i), (ii) and (iii) where

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      (i) Is calculated as the member's years of total service before July 1, 2012 multiplied by

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two and one half percent (2.5%) of average compensation for a member's first twenty (20) total

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years,

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      (ii) Is calculated as the member's years of total service before July 1, 2012 in excess of

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twenty (20) years not to exceed twenty-five (25) years multiplied by three percent (3%) of

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average compensation, and

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      (iii) Is the member's years of total service on or after July 1, 2012 multiplied by two

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percent (2%) of average compensation as defined in section 36-8-1(5)(a).

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      (B) For members hired on or after July 1, 2007, the member's retirement allowance shall

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be calculated as the member's years of total contributory service multiplied by two percent (2%)

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of average compensation.

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      (C) Any member of the state police who is eligible to retire on or prior to June 30, 2012

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shall retire with a retirement allowance calculated in accordance with paragraph (a) and (e) above

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except that whole salary shall be defined as final compensation where compensation for purposes

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of this section and section 42-28-22.1 includes base salary, longevity and holiday pay.

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      (D) Notwithstanding the preceding provisions, in no event shall a member's final

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compensation be lower than his or her final compensation determined as of June 30, 2012.

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      (2) In no event shall a member's original retirement allowance under any provisions of

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this section exceed sixty-five percent (65%) of his or her average compensation.

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      (3) For each member who retires on or after July 1, 2012, except as provided in

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paragraph (j)(1)(C) above, compensation and average compensation shall be defined in

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accordance with section 36-8-1(5)(a) and (8), provided that for a member whose regular work

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period exceeds one hundred forty-seven (147) hours over a twenty-four (24) day period at any

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time during the four (4) year period immediately prior to his/her retirement that member shall

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have up to four hundred (400) hours of his/her pay for regularly scheduled work earned during

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this period shall be included as "compensation" and/or "average compensation" for purposes of

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this section and section 42-28-22.1.

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      (4) (i) Notwithstanding the prior paragraphs of this section, and subject to paragraph

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(4)(ii) below, for all present and former members, active and retired members, and beneficiaries

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receiving any retirement, disability or death allowance or benefit of any kind, whether for or on

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behalf of a non-contributory member or contributory member, the annual benefit adjustment

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provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A)

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is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the

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"subtrahend") from the Five-Year Average Investment Return of the retirement system

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determined as of the last day of the plan year preceding the calendar year in which the adjustment

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is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

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(0%), and (B) is equal to the lesser of the member's retirement allowance or the first twenty-five

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thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000)

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amount to be indexed annually in the same percentage as determined under (4)(i)(A) above. The

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"Five-Year Average Investment Return" shall mean the average of the investment returns for the

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most recent five (5) plan years as determined by the retirement board. Subject to paragraph (4)(ii)

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below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

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anniversary of the date of retirement or the date on which the retiree reaches age fifty-five (55),

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whichever is later. In the event the retirement board adjusts the actuarially assumed rate of return

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for the system, either upward or downward, the subtrahend shall be adjusted either upward or

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downward in the same amount.

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      (ii) Except as provided in paragraph (4)(iii), the benefit adjustments under this section

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for any plan year shall be suspended in their entirety unless the GASB Funded Ratio of the

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Employees' Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the

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State Police Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis,

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exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

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members for such plan year.

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      In determining whether a funding level under this paragraph (4)(ii) has been achieved,

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the actuary shall calculate the funding percentage after taking into account the reinstatement of

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any current or future benefit adjustment provided under this section. "GASB Funded Ratio" shall

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mean the ratio of the actuarial value of assets to the actuarial accrued liability.

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      (iii) Notwithstanding paragraph (4)(ii), in each fifth plan year commencing after June 30,

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2012 commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

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(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

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(4)(i) above until the GASB Funded Ratio of the Employees' Retirement System of Rhode Island,

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the Judicial Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated

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by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

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      (iv) The provisions of this paragraph (j)(4) of section 42-28-22 shall become effective

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July 1, 2012 and shall apply to any benefit adjustment not granted on or prior to June 30, 2012.

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      (v) The cost-of-living adjustment as provided in this paragraph (j)(4) shall apply to and

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be in addition to the retirement benefits under the provisions of section 42-28-5 and to the injury

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and death benefits under the provisions of section 42-28-21.

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      (5) 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 retired in accordance with (j)(1)

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above, shall be eligible to retire upon the attainment of member's Security retirement age as

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defined in 36-8-1(19).

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      (6) In no event shall a member's retirement allowance be less than the member's

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retirement allowance calculated as of June 30, 2012 based on the member's years of total service

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and whole salary as of June 30, 2012.

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      (k) In calculating the retirement benefit for any member, the term base salary as used in

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subdivision (b)(3) or average compensation as used in paragraph (j) shall not be affected by a

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deferral of salary plan or a reduced salary plan implemented to avoid shutdowns or layoffs or to

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effect cost savings. Basic salary shall remain for retirement calculation that which it would have

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been but for the salary deferral or salary reduction due to a plan implemented to avoid shutdowns

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or layoffs or to effect cost savings.

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     SECTION 2. This act shall take effect upon passage.

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LC00873/SUB A/2

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - STATE POLICE

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     This act would increase the amount of service credit time a member of the state police

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may purchase for active military service from two (2) years to four (4) years and would allow

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credit for certain leaves of absence.

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     This act would take effect upon passage.

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LC00873/SUB A/2

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