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:

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

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

amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

benefits payable in accordance with the following table:

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

$17,000 or less $750 825

$17,001 to $25,000 875 963

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

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

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

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

based on the annual social security adjustment.

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

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

amended to read as follows:

     16-16-35. Contributions.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

of retired teachers.

     This act would take effect upon passage.

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