2018 -- H 7118

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LC003467

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO TOWNS AND CITIES - PATHWAY TO RETIREMENT SECURITY ACT

FOR LOCALLY ADMINISTERED PENSION FUNDS

     Introduced By: Representatives Vella-Wilkinson, McNamara, Casey, Messier, and
Jacquard

     Date Introduced: January 11, 2018

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 45-65 of the General Laws entitled "Retirement Security Act for

Locally Administered Pension Funds" is hereby amended by adding thereto the following section:

     45-65-11. Diversion of pension funds.

     (a) Subject to the provisions of subsection (b) of this section, a municipality shall not

divert existing pension funds or funds necessary for its contributions to the plan, to the state.

     (b) In the event that an emergency or unforeseen circumstance prevents a municipality

from making a required contribution to its plan, or requires the municipality to divert pension

funds to the state, then in the event the nonpayment or diversion of funds shall require, after a

public hearing, the approval of the town or city council, or applicable decision-making body. All

employees of the plan shall be provided with a minimum of thirty (30) days written notice of the

public hearing.

     SECTION 2. This act shall take effect upon passage.

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LC003467

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES - PATHWAY TO RETIREMENT SECURITY ACT

FOR LOCALLY ADMINISTERED PENSION FUNDS

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     This act would provide that municipal pension funds only be diverted to the state upon

approval of the applicable decision-making body after a public hearing, and a minimum of thirty

(30) days prior written notice to affected employees.

     This act would take effect upon passage.

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LC003467

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