2019 -- H 5034 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO PUBLIC OFFICES AND EMPLOYEES -- RETIREMENT

     

     Introduced By: Representatives Craven, Lombardi, Hull, and McEntee

     Date Introduced: January 04, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 36-9-20 of the General Laws in Chapter 36-9 entitled "Retirement

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System - Membership and Service Credits" is hereby amended to read as follows:

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     36-9-20. Credit for service as a teacher, municipal employee, or legislator.

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     (a) Any state employee who shall have rendered service as a teacher as defined under the

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provisions of chapters 16 and 17 of title 16 shall be entitled to credit for that service for the

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various purposes of this system, provided the member shall have been a contributing member of

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this system for that period. Any state employee who shall have been a contributing member of the

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municipal system as defined under the provisions of chapter 21 of title 45 shall be given credit for

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that service for the various purposes of this system, provided the member's contributions are

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transferred to this system. All contributions made by the member shall be transferred in toto to

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this system for the periods of service and the retirement system shall calculate the full actuarial

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value of the accrued benefit with the former employer. If the full actuarial value of the accrued

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benefit with the former employer is greater than the total employee contributions transferred, the

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retirement system shall also transfer the difference between the full actuarial value of the accrued

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benefit with the former employer and the employee's contributions from the account of the former

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employer to the account of the current employer. In any case in which a member shall have

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received a refund or refunds of contributions made to the system, the allowance of the aforesaid

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credit for service shall be conditioned upon the payment of the full actuarial cost as defined in

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subsection 36-8-1(10). Any service as defined herein for which no contributions were made may

 

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be granted provided the member pays to the retirement system the full actuarial cost as defined in

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§ 36-8-1(10). Any state employee or teacher as defined under the provisions of chapters 16 and

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17 of title 16 who shall have been employed by a municipality which did not elect to accept

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chapter 21 of title 45 as provided in § 45-21-4 shall be given credit for that service for the various

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purposes of this system, provided that the employee shall have met the definitional requirements

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of "employee" as stated in § 45-21-2(7) and provided the member pays to the retirement system

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an amount equal to the full actuarial value of the credit as certified by the retirement board;

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provided, however, that any state employee who shall have been employed by a municipality

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which did not elect to accept chapter 21 of title 45 as provided in § 45-21-4 shall be given credit

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for that service for the various purposes of this system, to a maximum period of four (4) years,

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provided the member pays to the retirement system the full actuarial cost as defined in subsection

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36-8-1(10). Nothing in this section shall be deemed to allow the purchase of four (4) years of

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service for credit in more than one retirement system.

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     (b) Any member who shall have rendered service both as a state employee under § 36-10-

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9, and service under § 36-10-9.2(a), shall be eligible to elect to combine the member's service

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under § 36-10-9.2(a) and service under § 36-10-9 to determine the member's retirement eligibility

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date under § 36-10-9. For any member making this election, the member will receive a single

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benefit equal to the accrued benefit computed under § 36-10-10.2, plus the accrued benefit

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computed under § 36-10-10.

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     (b)(c) The retirement board shall fix and determine rules and regulations to govern the

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provisions of this section.

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     SECTION 2. Sections 36-10-9.2 and 36-10-10.2 of the General Laws in Chapter 36-10

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entitled "Retirement System - Contributions and Benefits" are hereby amended to read as follows:

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     36-10-9.2. Retirement on service allowance -- Correctional officers.

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     (a) This section shall apply to the retirement of members employed as assistant director

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(adult services), assistant deputy director, chief of inspection, and associate directors, correctional

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officer, chief of security, work rehabilitation program supervisor, supervisor of custodial records

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and reports, and classification counselor within the department of corrections.

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     (b) (i) Any member who has attained the age of fifty (50) years may be retired subsequent

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to the proper execution and filing of a written application; provided, however, that the member

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shall have completed twenty (20) years of total service within the department of corrections and

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who retires before October 1, 2009 or is eligible to retire as of September 30, 2009.

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     (ii) For members who become eligible to retire on or after October 1, 2009, benefits are

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available to members who have attained the age of fifty-five (55) and have completed at least

 

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twenty-five (25) years of total contributory service within the department of corrections. For

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members in service as of October 1, 2009 who were not eligible to retire as of September 30,

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2009 but who are eligible to retire on or prior to June 30, 2012, the minimum retirement age of

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fifty-five (55) will be adjusted downward in proportion to the amount of service the member has

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earned as of September 30, 2009. The proportional formula shall work as follows:

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     (1) The formula shall determine the first age of retirement eligibility under the laws in

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effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

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fifty-five (55).

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     (2) The formula shall then take the member's total service credit as of September 30,

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2009 as the numerator and the years of service credit determined under (1) as the denominator.

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     (3) The fraction determined in (2) shall then be multiplied by the age difference

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determined in (1) to apply a reduction in years from age fifty-five (55).

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     (c) Any member with contributory service on or after July 1, 2012, who has completed at

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least five (5) years of contributory service but who has not completed twenty-five (25) years of

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contributory service, shall be eligible to retire upon the attainment of the member's Social

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Security retirement age or, notwithstanding any other provisions, effective July 1, 2015, members

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in active service shall be eligible to retire upon the earlier of:

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     (1) The attainment of at least age sixty-five (65) and the completion of at least thirty (30)

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years of total service, or the attainment of at least age sixty-four (64) and the completion on at

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least thirty-one (31) years of total service, or the attainment of at least age sixty-three (63) and the

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completion on at least thirty-two (32) years of total service, or the attainment of at least age sixty-

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two (62) and the completion on at least thirty-three (33) years of total service; or

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     (2) The member's retirement eligibility date under § 36-10-9(c)(ii).

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     (d) Any member who shall have rendered service both as a state employee under § 36-10-

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9, and service under § 36-10-9.2(a), shall be eligible to elect to combine the member's service

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under § 36-10-9.2(a) and service under § 36-10-9 to determine the member's retirement eligibility

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date under § 36-10-9. For any member making this election, the member will receive a single

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benefit equal to the accrued benefit computed under § 36-10-10.2, plus the accrued benefit

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computed under § 36-10-10.

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     (e) The provisions of subsection (d) shall also apply to members who have retired on a

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service retirement allowance on or after July 1, 2012. Any such request for adjustment shall be in

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writing to the retirement board and shall apply prospectively from the date the request is received

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by the retirement board.

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     36-10-10.2. Amount of service retirement allowance -- Correctional officers.

 

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     (a) Upon retirement for service under § 36-10-9.2, a member with twenty-five (25) or

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more years of service as of June 30, 2012 shall receive a retirement allowance of an amount

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determined under (i) below. All other members shall receive a retirement allowance of an amount

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equal to the sum of (i) below for service prior to July 1, 2012, plus (ii) below for service on and

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after July 1, 2012.

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     (i) Two percent (2%) of his or her average compensation multiplied by his or her first

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thirty (30) years of total service within the department of corrections; any and all years of

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remaining service shall be issued to the member at a retirement allowance of an amount equal to

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his or her average compensation multiplied by the percentage allowance determined in

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accordance with Schedule A below:

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Schedule A

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     Years of Service Percentage Allowance

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     1 through 30 inclusive 2%

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     31st 6%

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     32nd 5%

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     33rd 4%

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     34th 3%

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     35th 2%

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     (ii) On and after July 1, 2012, two percent (2%) of his or her average compensation

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multiplied by his or her first thirty (30) years of total service within the department of corrections,

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and three percent (3%) of his or her average compensation multiplied by the member's thirty-first

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(31st) through thirty-fifth (35th) years of service.

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     (b) A member who has rendered service as a state employee under § 36-10-9 shall be

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eligible to combine the accrued benefit under § 36-10-10 as a state employee with the accrued

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benefit under this section, provided the member has first obtained eligibility under §§ 36-10-

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9.2(a), (b)(i) or (b)(ii). The accrual under § 36-10-10 will be added in the year in which service

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was rendered consistent with the schedules provided under § 36-10-10.

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     (c) The provisions of subsection (b) shall also apply to members who have retired on a

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service retirement allowance on or after July 1, 2012. Any such request for adjustment shall be in

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writing to the retirement board and will only apply prospectively from the date the request is

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received by the retirement board.

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     (b)(d) In no case shall a retirement percentage allowance exceed the greater of the

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member's retirement percentage allowance on June 30, 2012 or seventy-five percent (75%). Any

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member who has in excess of thirty-five (35) years on or before July 1, 1987, shall not be entitled

 

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to any refund. Any member with thirty-five (35) years or more on or after July 1, 1987, shall

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contribute from July 1, 1987, until his or her retirement, provided, however, that any member

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with thirty-eight (38) years of service prior to July 1, 1987, shall not be required to contribute.

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     SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC OFFICES AND EMPLOYEES -- RETIREMENT

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     This act would allow state employees and correctional officers to combine their years of

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service under both pension systems, for the determination of their retirement eligibility date and

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calculation of retirement benefits.

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     This act would take effect upon passage.

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