2019 -- S 0274 SUBSTITUTE A

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LC001515/SUB A/4

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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: Senators Gallo, and Ciccone

     Date Introduced: February 13, 2019

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

service for credit in more than one retirement system.

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

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

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

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

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

computed under § 36-10-10.

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

provisions of this section.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

fifty-five (55).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

computed under § 36-10-10.

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

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

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

by the retirement board.

     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

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

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

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

after July 1, 2012.

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

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

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

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

accordance with Schedule A below:

Schedule A

     Years of Service Percentage Allowance

     1 through 30 inclusive 2%

     31st 6%

     32nd 5%

     33rd 4%

     34th 3%

     35th 2%

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

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

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

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

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

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

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

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

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

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

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

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

received by the retirement board.

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

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

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

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

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

     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

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

calculation of retirement benefits.

     This act would take effect upon passage.

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