2014 -- H 7338

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LC003999

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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 TOWNS AND CITIES - MUNICIPAL RETIREMENT CONTRIBUTIONS

     

     Introduced By: Representatives Tomasso, Guthrie, Marcello, and Messier

     Date Introduced: February 06, 2014

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 45-65-7 of the General Laws in Chapter 45-65 entitled "Retirement

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Security Act for Locally Administered Pension Funds" is hereby amended to read as follows:

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     45-65-7. Failure to comply. -- (1) (a) With respect to any municipality that fails to

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comply with the requirements of this chapter within the prescribed time, the general treasurer is

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authorized to withhold moneys due to the municipality from the state for any purpose other than

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education, including, but not limited to, municipal aid and other aid provided under sections 45-

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13-5.1, 45-13-12, 44-34.1-2, 44-13-13, 44-18-18.1, 44-18-36.1(b) and 42-63.1-3.

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      (b) Notwithstanding any provision of any general or public laws to the contrary, in the

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event that a municipality reports a budgetary surplus of funds at the end of its fiscal year, but has

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not made its timely and legally required contribution to any locally administered pension, then in

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such event the municipality shall contribute that amount of its surplus funds necessary to meet its

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legally required pension fund obligations. If the municipality has failed to make its timely

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required contributions to more than one of its locally administered pension funds, then the

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municipality's surplus shall be proportionately contributed to each needy pension fund.

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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 TOWNS AND CITIES - MUNICIPAL RETIREMENT CONTRIBUTIONS

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     This act would require municipalities that fail to make required contributions to their

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locally administered pension funds, to use any budget surplus they may have to make up for their

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delinquent contributions.

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     This act would take effect upon passage.

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LC003999

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