2017 -- S 0210

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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

     

     Introduced By: Senators DiPalma, DaPonte, Seveney, Sosnowski, and Pearson

     Date Introduced: February 02, 2017

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-16-22 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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     16-16-22. Contributions to state system.

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     (a) Prior to July 1, 2012, each teacher shall contribute into the system nine and one-half

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percent (9.5%) of compensation as his or her share of the cost of annuities, benefits, and

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allowances. Effective July 1, 2012, each teacher shall contribute an amount equal to three and

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three quarters percent (3.75%) of his or her compensation. Effective July 1, 2015, each teacher

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with twenty (20) or more years of total service as of June 30, 2012, shall contribute an amount

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equal to eleven percent (11%) of his or her compensation. The employer contribution on behalf of

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teacher members of the system shall be in an amount that will pay a rate percent of the

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compensation paid to the members, according to the method of financing prescribed in the State

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Retirement Act in chapters 8 -- 10 and 10.3 of title 36. This amount shall be paid forty percent

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(40%) by the state, and sixty percent (60%) by the city, town, local educational agency, or any

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formalized commissioner approved cooperative service arrangement by whom the teacher

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members are employed, effective July 1, 2018, the amount paid by the state shall be forty-two

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percent (42%) and fifty-eight percent (58%) by the city, town or local educational agency;

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effective July 1, 2019, the amount paid by the state shall be forty-four percent (44%) and fifty-six

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percent (56%) by the city, town or local educational agency; effective July 1, 2020, the amount

 

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paid by the state shall be forty-six percent (46%) and fifty-four percent (54%) by the city, town or

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local educational agency; effective July 1, 2021, the amount paid by the state shall be forty-eight

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percent (48%) and fifty-two percent (52%) by the city, town or local educational agency;

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effective July 1, 2022, the amount paid by the state shall be fifty percent (50%) and fifty percent

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(50%) by the city, town or local educational agency; with the exception of teachers who work in

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federally funded projects and further with the exception of any supplemental contributions by a

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local municipality employer under chapter 36-10.3 which supplemental employer contributions

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shall be made wholly by the local municipality. Provided, however, that the rate percent paid

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shall be rounded to the nearest hundredth of one percent (.01%).

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     (b) The employer contribution on behalf of teacher members of the system who work in

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fully or partially federally funded programs shall be prorated in accordance with the share of the

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contribution paid from the funds of the federal, city, town, or local educational agency, or any

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formalized commissioner approved cooperative service arrangement by whom the teacher

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members are approved.

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     (c) In case of the failure of any city, town, or local educational agency, or any formalized

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commissioner approved cooperative service arrangement to pay to the state retirement system the

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amounts due from it under this section within the time prescribed, the general treasurer is

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authorized to deduct the amount from any money due the city, town, or local educational agency

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from the state.

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     (d) The employer's contribution shared by the state shall be paid in the amounts

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prescribed in this section for the city, town, or local educational agency and under the same

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payment schedule. Notwithstanding any other provisions of this chapter, the city, town, or local

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educational agency or any formalized commissioner approved cooperative service arrangement

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shall remit to the general treasurer of the state the local employer's share of the teacher's

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retirement payments on a monthly basis, payable by the fifteenth (15th) of the following month.

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The amounts that would have been contributed shall be deposited by the state in a special fund

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and not used for any purpose. The general treasurer, upon receipt of the local employer's share,

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shall effect transfer of a matching amount of money from the state funds appropriated for this

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purpose by the general assembly into the retirement fund.

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     Upon reconciliation of the final amount owed to the retirement fund for the employer

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share, the state shall ensure that any local education aid reduction assumed for the FY 2010

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revised budget in excess of the actual savings is restored to the respective local entities.

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     (e) This section is not subject to ยงยง 45-13-7 through 45-13-10.

 

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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 EDUCATION -- TEACHERS' RETIREMENT

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     This act would gradually increase the state's contribution to the teachers' retirement

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system, while reducing the municipal contribution, eventually resulting in the contributions being

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shared equally.

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     This act would take effect upon passage.

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