2023 -- H 6289

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LC002808

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO TOWNS AND CITIES-OPTIONAL RETIREMENT FOR MEMBERS OF

POLICE FORCE AND FIREFIGHTERS

     Introduced By: Representatives Edwards, Bennett, Diaz, Baginski, Casimiro, Casey,
Hull, Noret, O'Brien, and Solomon

     Date Introduced: April 19, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 45-21.2-2, 45-21.2-5 and 45-21.2-6 of the General Laws in Chapter

45-21.2 entitled "Optional Retirement for Members of Police Force and Firefighters" are hereby

amended to read as follows:

     45-21.2-2. Definitions.

     As used in this chapter, the words defined in § 45-21-2 have the same meanings stated in

that section except that “employee” means any regular and permanent police official or officer and

any regular and permanent fire fighter. The retirement board shall determine who are employees

within the meaning of this chapter; and “final compensation” means for members who retire on or

prior to June 30, 2012, the average annual compensation, pay or salary of a member for services

rendered during the period of three (3) consecutive years within the total service of the member

when that average was highest. Effective on and after July 1, 2012, “final compensation” means

the average annual compensation of a member for services rendered during the period of the highest

five (5) consecutive years within the total service of the member, and compensation shall be defined

in accordance with § 36-8-1(8). Notwithstanding the prior sentence, in no event shall a member’s

final compensation be less than the member’s final compensation on or before June 30, 2012.

Effective on and after July 1, 2023, "final compensation" means the highest annual compensation

of a member for services rendered within the total service of the member, and compensation shall

be defined in accordance with § 36-8-1(8).

     45-21.2-5. Retirement on service allowance.

     (a) Retirement of a member on a service retirement allowance for members eligible to retire

on or before June 30, 2012, shall be made, subject to paragraph (a)(11) below, by the retirement

board as follows:

     (1) Any member who has attained or attains age seventy (70) shall be retired as stated in § 

45-21-16 subject to the discretions contained in that section; provided, that any member who is a

member of the Woonsocket fire department who has attained or attains an age of sixty-five (65)

years shall be retired. Retirement occurs on the first day of the next succeeding calendar month in

which the member has attained the age of sixty-five (65) years.

     (2) Any member may retire pursuant to this subdivision upon written application to the

board stating at what time the member desires to retire; provided, that the member at the specified

time for retirement has attained an age of fifty-five (55) years and has completed at least ten (10)

years of total service, and notwithstanding that the member may have separated from service.

     (3) Any member may retire pursuant to this subdivision upon written application to the

board stating at what time the member desires to retire; provided, that the member at the specified

time for retirement has completed at least twenty-five (25) years of total service, and

notwithstanding that the member may have separated from service.

     (4) Any member may retire pursuant to this subdivision upon written application to the

board stating at what time the member desires to retire; provided, that the member at the specified

time for retirement has attained an age of fifty (50) years and has completed at least twenty (20)

years of total service, notwithstanding that the member may have separated from service; provided,

that the service retirement allowance, as determined according to the formula provided in § 45-

21.2-6, is reduced one-half of one percent (1/2%) for each month that the age of the member is less

than fifty-five (55) years.

     (5) Any member of the South Kingstown police department may retire pursuant to this

subdivision upon written application to the board stating at what time the member desires to retire;

provided, that the member at the specified time for retirement has earned a service retirement

allowance of fifty percent (50%) of final compensation pursuant to § 45-21.2-6.1.

     (6) Any member of the Johnston police department may retire pursuant to this subdivision

upon written application to the board stating at what time the member desires to retire; provided,

that the member at the specified time for retirement has earned a service retirement allowance of

fifty percent (50%) of final compensation pursuant to § 45-21.2-6.2.

     (7) Any member of the Cranston fire department hired after July 1, 1995, or any member

of the Cranston fire department with five (5) years or less of service effective July 1, 1995, may

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retire pursuant to this subdivision upon written application to the board stating at what time the

member desires to retire; provided, that the member at the specified time for retirement has earned

a service retirement allowance of fifty percent (50%) of final compensation for at least twenty (20)

years service; final compensation for Cranston fire department members is based on the

compensation components of weekly salary, longevity and holidays with longevity of the members

highest year of earnings and members shall receive a three percent (3%) escalation of their pension

payment compounded each year on January 1st following the year of retirement and continuing on

an annual basis on that date; further, any illness or injury not covered in title 45 relating to the

presumption of disability is governed by the collective bargaining agreement between the City of

Cranston and members of the Cranston fire department.

     (8) Any member of the Cranston police department hired after July 1, 1995, or any member

of the Cranston police department with five (5) years or less of service effective July 1, 1995, may

retire pursuant to this subdivision upon written application to the board stating at what time the

member desires to retire; provided, that the member at the specified time for retirement has earned

a service retirement allowance of fifty percent (50%) of final compensation for at least twenty (20)

years service; final compensation for Cranston police department members is based on the

compensation components of weekly salary, longevity and holidays with longevity of the members

highest year of earnings and members shall receive a three percent (3%) escalation of their pension

payment compounded each year on January 1st following the year of retirement and continuing on

an annual basis on that date; further, any illness or injury not covered in title 45 relating to the

presumption of disability is governed by the collective bargaining agreement between the City of

Cranston and members of the Cranston police department.

     (9) Any member of the Hopkinton police department may retire pursuant to this subdivision

upon written application to the board stating at what time the member desires to retire; provided,

that the member at the specified time for retirement has earned a service retirement allowance of

fifty percent (50%) of final compensation for at least twenty (20) years service; final compensation

for Hopkinton police department members is based on the compensation components of weekly

salary, longevity and holidays with longevity of the members highest year of earnings and members

shall receive a three percent (3%) escalation of their pension payment compounded each year on

January 1st following the year of retirement and continuing on an annual basis on that date.

     (10) Any member of the Richmond police department may retire pursuant to this

subdivision upon written application to the board stating at what time the member desires to retire;

provided, that the member at the specified time for retirement has earned a service retirement

allowance of fifty percent (50%) of final compensation for at least twenty-two (22) years’ service

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pursuant to § 45-21.2-6.3.

     (11) Notwithstanding any provision in this section to the contrary, for any service on or

after July 1, 2012, final compensation shall be defined in accordance with § 45-21.2-2, and no

benefit adjustments shall be provided except as set forth in §  45-21-52(c).

     (12) Notwithstanding any provisions of this section to the contrary, with respect to police

officers employed by the town of Johnston, only those police officers hired on or after July 1, 2010,

shall be eligible to be members of the Municipal Employees’ Retirement System of the state of

Rhode Island in accordance with this chapter.

     (b) Retirement of a member on a service retirement allowance eligible to retire on and after

July 1, 2012, shall be made by the retirement board as follows:

     (1) Any member may retire pursuant to this subdivision upon written application to the

board stating at what time the member desires to retire; provided, that the member at the specified

time for retirement attained the age of at least fifty-five (55) years and has completed at least

twenty-five (25) years of total service, and notwithstanding that the member may have separated

from service; or

     (2) Effective July 1, 2015, the member makes contributions to the plan effective July 1,

2015, in accordance with § 45-21.2-14, and (i) The member at the specified time for retirement

attained the age of at least fifty (50) years and has completed at least twenty-five (25) years of total

service; or (ii) The member has completed at least twenty-seven (27) years of total service

regardless of the member’s attained age, and notwithstanding that the member may have separated

from service.

     (3) 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

service, shall be eligible to retire upon the attainment of the member’s Social Security retirement

age.

     (4) If a member had ten (10) or more years of contributory service and attained age forty-

five (45) prior to July 1, 2012, and would have been eligible to retire at or prior to age fifty-two

(52) in accordance with the rules in effect prior to July 1, 2012, the member may retire upon

attainment of age fifty-two (52).

     (5) Effective July 1, 2015 Effective July 1, 2023, a member who has completed twenty (20)

or more years of total service who has attained an age within five (5) years of the eligible retirement

age under subparagraphs (b)(1) or (b)(2) or (b)(3) or (b)(4) above, may elect to retire provided that

the retirement allowance shall be reduced actuarially for each month that the age of the member is

less than the eligible retirement age under subparagraphs (b)(1) or (b)(2) or (b)(3) or (b)(4) above

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in accordance with the following table: may retire upon attainment of age fifty (50).

 Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly

Reduction

     For Year 1 9% .75%

     For Year 2 8% .667%

     For Year 3 7% .583%

     For Year 4 7% .583%

     For Year 5 7% .583%

(6) Notwithstanding any other provisions of this section, a member on June 30, 2012,

may elect to retire at his or her eligible retirement date as determined under the rules in effect on

June 30, 2012, provided that a member making an election under this paragraph shall receive the

member’s retirement benefit determined and calculated based on the member’s service and final

compensation as of June 30, 2012. This provision shall be interpreted and administered in a

manner to protect a member’s accrued benefit on June 30, 2012.

     45-21.2-6. Service retirement allowance.

     (a)(1) Upon retirement from service pursuant to § 45-21.2-5, a member receives a

retirement allowance which is a life annuity terminable at the death of the annuitant and shall be an

amount equal to two percent (2%) of final compensation multiplied by the years of total service,

provided that a member who retires upon the attainment of age of fifty-seven (57) years and has

completed at least thirty (30) years of total service shall receive a retirement allowance which is a

life annuity terminable at the death of the annuitant and shall be an amount equal to the greater of:

(i) Two and one quarter percent (2.25%) of final compensation multiplied by total years of service;

or (ii) The member’s accrued benefit determined as of June 30, 2012, plus two and one quarter

percent (2.25%) of final compensation multiplied by member’s years of service after June 30, 2012;

provided further that the life annuity under this subsection (a) shall not exceed seventy-five percent

(75%) of final compensation.

     (2) Notwithstanding the provisions of subsection (a)(1) of this section, commencing on

July 1, 2023, all members, regardless of age or years of service, shall receive a retirement allowance

which is a life annuity terminable at the death of the annuitant and shall be equal to the member's

accrued benefit determined pursuant to the provisions of subsection (a)(1) of this section as of June

30, 2023, plus two and one-half percent (2.5%) of the final compensation multiplied by the years

of service after June 30, 2023. Provided, however, a member who retires upon attaining the age of

fifty-seven (57) years and has completed at least thirty (30) years of total service, shall retain the

same retirement allowance as calculated pursuant to the provisions of subsection (a)(1) of this

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section for the period of July 1, 2012 through June 30, 2023 and then be credited for two and one-

half percent (2.5%) per year for services rendered after June 30, 2023.

     (b) Upon retirement, the member may elect to receive the actuarial equivalent of his or her

retirement allowance in a lesser retirement allowance as determined by actuarial calculation, which

is payable throughout life with the provision that:

     (1) Option 1. A reduced retirement allowance payable during the member’s life with the

provisions that after his or her death it shall continue during the life of and be paid to the person

that he or she nominated by written designation duly acknowledged and filed with the retirement

board at the time of retirement; or

     (2) Option 2. A reduced retirement allowance payable during the member’s life with the

provision that after his or her death an allowance equal to one-half (½) of his or her reduced

allowance shall continue during the life of and be paid to the person that he or she nominated by

written designation duly acknowledged and filed with the board at the time of retirement.

     (c) If prior to July 1, 2012, a member elected an optional form of benefit other than a life

annuity in accordance with paragraph (b)(1) or (2) above, the member may elect to change his or

her form of benefit to a life annuity by filing an election with the retirement board on or before

June 30, 2013, provided that the member’s beneficiary is still alive at the time the election is filed.

     SECTION 2. This act shall take effect upon passage.

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LC002808

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES-OPTIONAL RETIREMENT FOR MEMBERS OF

POLICE FORCE AND FIREFIGHTERS

***

     This act would increase the retirement service allowance for members of the police force

and firefighters by using the highest annual compensation of a member, allowing retirement at age

(50) and raising the multiplier to two and one-half percent (2.5%) for members age (57) with thirty

(30) years of service.

     This act would take effect upon passage.

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