2014 -- H 7142

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LC003580

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

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

ADMINISTRATION

     

     Introduced By: Representatives Hull, Casey, Johnston, Carnevale, and Messier

     Date Introduced: January 21, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 36-8-10.1 of the General Laws in Chapter 36-8 entitled "Retirement

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System - Administration" is hereby amended to read as follows:

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     36-8-10.1. Payment of administrative expense of the retirement board and

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maintaining the retirement system -- Restricted receipts account. -- (a) There is hereby

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created a restricted receipt account, under the control of the general treasurer, the proceeds of

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which shall be used solely to pay the expenses of the retirement board, the cost of maintaining the

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retirement system, and the costs of administering the retirement system; provided however, that

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any litigation costs paid from this account shall be limited to defending those actions that arise as

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a result of decisions made by the retirement board.

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      (b) There shall be transferred to this restricted receipt account seventeen and one-half

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(17.5) basis points (0.175%), where one hundred (100.0) basis points equals one percent (1.0%),

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of the average total investments before lending activities as reported in the annual report of the

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auditor general for the next preceding five fiscal years. Any nonencumbered funds on June 30 of

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any fiscal year shall be credited to the employees' retirement system of the state of Rhode Island

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and to the municipal employees' retirement system of the state of Rhode Island in the same

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proportion as their contributions to the restricted receipt account established by this section

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during the fiscal year.

 

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

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

ADMINISTRATION

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     This act would provide that any litigation costs paid from the restricted receipt account

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for the retirement board be limited to defending actions that arise as a result of decisions made by

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the board.

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     This act would take effect upon passage.

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