2017 -- H 5071 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO EDUCATION -- TEACHERS' RETIREMENT BENEFITS

     

     Introduced By: Representatives Amore, Cunha, Craven, Kazarian, and Marshall

     Date Introduced: January 11, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-16-26 of the General Laws in Chapter 16-16 entitled "Teachers'

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Retirement [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby

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amended to read as follows:

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     16-16-26. Spouse's or domestic partner's benefits. -- (a) Spouse's and domestic

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partner's benefits are payable following the decease of a member as provided in §§ 16-16-25

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through 16-16-38. (b) The spouse or domestic partner shall be entitled to benefits upon attaining

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the age of sixty (60) years. (c) The spouse or domestic partner was living with the deceased

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member at the time of the member's death. A spouse or domestic partner is deemed to have been

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living with the deceased member if they were both members of the same household on the date of

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the deceased member's death, or the spouse or domestic partner was receiving regular

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contributions from the deceased member toward support on that date, or the deceased member

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had been ordered by a court to contribute to the spouse's or domestic partner's support. (d)

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Remarriage of the spouse or domestic partner or establishment of a domestic partnership shall

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render him or her ineligible to receive current or future benefits under this section. (e) The

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spouse or domestic partner of a member, as defined in this section, shall be entitled to monthly

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benefits payable in accordance with the following table:

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Highest Annual Salary Spouse's or Domestic Partner's Monthly Minimum Benefit

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$17,000 or less $750 825

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$17,001 to $25,000 875 963

 

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$25,001 to $33,000 1,000 $1,100

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$33,001 to $40,000 1,1251,238

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$40,001 and over 1,250 $1,375

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     (f) A yearly cost-of-living adjustment for spouse's or domestic partner's benefits shall be

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based on the annual social security adjustment.

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     SECTION 2. Section 16-16-35 of the General Laws in Chapter 16-16 entitled "Teachers'

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Retirement [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby

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amended to read as follows:

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     16-16-35. Contributions.

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     (a) The cost of the benefits provided in §§ 16-16-25 -- 16-16-38 shall be two percent

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(2%) of the member's annual salary up to but not exceeding an annual salary of ninety-six

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hundred dollars ($9,600) eleven thousand five hundred dollars ($11,500); one-half (1/2) of the

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cost shall be contributed by the member by deductions from his or her salary, and the other half

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(1/2) shall be contributed and paid by the respective city, town, or school district by which the

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member is employed. These contributions shall be in addition to the contributions provided in §

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16-16-22 and shall be paid into the teachers' survivors benefit fund created by §§ 16-16-25 -- 16-

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16-38 in the same manner as contributions are made under the provisions of § 16-16-22.

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     (b) In the event the market value of the Teachers' Survivor Benefit Plan assets shall

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decrease below one hundred and twenty (120%) one hundred (100%) percent of the Teachers'

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Survivor Benefit Plan liabilities as reported by a qualified actuary pursuant to § 16-16-37, the

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retirement board shall determine and fix the amount of contributions necessary to maintain a

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funding level of not less than one hundred and twenty (120%) one hundred (100%) percent of

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assets to liabilities ratio. Any adjusted cost of the benefits provided in §§ 16-16-25 -- 16-16-38

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shall be paid for by the member by deduction from his or her salary. These contributions shall be

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in addition to the contributions provided in § 16-16-22 and shall be paid into the teachers'

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survivors benefit fund created by §§ 16-16-25 -- 16-16-38 in the same manner as contributions

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are made under the provisions of § 16-16-22; provided, however, that payments to compensate

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for asset to liability ratios less than one hundred (100%) percent shall be amortized over

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individual ten (10) year close periods. Notwithstanding anything to the contrary in this chapter or

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in any other provision of Rhode Island law, no benefit enhancements, beyond the current

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provisions within §§16-16-25 through 16-16-38, shall be granted until the market value of the

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Teachers' Survivor Benefit Plan assets shall increase above one hundred and twenty (120%)

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percent of the Teachers' Survivor Benefit Plan liabilities as reported by a qualified actuary

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pursuant to §16-16-37.

 

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- TEACHERS' RETIREMENT BENEFITS

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     This act would increase the monthly minimum benefits of spouses and domestic partners

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of retired teachers.

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     This act would take effect upon passage.

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