H5242

	2019 -- H 5242
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	LC000520
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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 TOWNS AND CITIES - PATHWAY TO RETIREMENT SECURITY ACT
	FOR LOCALLY ADMINISTERED PENSION FUNDS

	Introduced By: Representatives Vella-Wilkinson, Millea, Corvese, O'Brien, and Casimiro
	Date Introduced: January 31, 2019
	Referred To: House Finance
	It is enacted by the General Assembly as follows:
1	SECTION 1. Chapter 45-65 of the General Laws entitled "Retirement Security Act for
2	Locally Administered Pension Funds" is hereby amended by adding thereto the following section:
3	45-65-11. Diversion of pension funds.
4	(a) Subject to the provisions of subsection (b) of this section, a municipality shall not
5	divert existing pension funds or funds necessary for its contributions to the plan to the state.
6	(b) In the event that an emergency or unforeseen circumstance prevents a municipality
7	from making a required contribution to its plan, or requires the municipality to divert pension
8	funds to the state, then in that event the nonpayment or diversion of funds shall require, after a
9	public hearing, the approval of the town or city council, or applicable decision-making body. All
10	employees of the plan shall be provided with a minimum of thirty (30) days written notice of the
11	public hearing.
12	SECTION 2. This act shall take effect upon passage.
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	LC000520
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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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1	This act would provide that municipal pension funds may only be diverted to the state
2	upon the occurrence of emergency or unforeseen circumstances, and upon approval of the
3	applicable decision-making body after a public hearing, and a minimum of thirty (30) days prior
4	written notice to affected employees.
5	This act would take effect upon passage.
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	LC000520
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