A N A C T
RELATING TO COST OF LIVING ADJUSTMENT FOR EMPLOYEES OF THE TOWN OF EAST GREENWICH
It is enacted by the General Assembly as follows:
SECTION 1. Section 45-21-52 of the General Laws in Chapter 45-21 entitled "Retirement of Municipal Employees" is hereby amended to read as follows:
45-21-52. Automatic increase in service retirement allowance -- (a) The local legislative bodies of the cities and towns may extend to their respective employees automatic adjustment increases in their service retirement allowances, by a resolution accepting any of the plans described in this section:
(1) Plan A. - All employees and beneficiaries of those employees receiving a service retirement or disability retirement allowance under the provisions of this chapter on December 31 of the year their city or town accepts this section, receive a cost of living adjustment equal to one and one-half percent (1 1/2%) per year of the original retirement allowance, not compounded, for each calendar year the retirement allowance has been in effect. This cost of living adjustment is added to the amount of the retirement allowance as of January 1 following acceptance of this provision, and an additional one and one-half percent (1 1/2%) is added to the original retirement allowance in each succeeding year during the month of January, and provided, further, that this additional cost of living increase is three percent (3%) for the year beginning January 1 of the year the plan is accepted and each succeeding year.
(2) Plan B. - All employees and beneficiaries of those employees receiving a retirement allowance under the provisions of this chapter on December 31 of the year their municipality accepts this section, receive a cost of living adjustment equal to three percent (3%) of their original retirement allowance. This adjustment is added to the amount of the retirement allowance as of January 1 following acceptance of this provision, and an additional three percent (3%) of the original retirement allowance, not compounded, is payable in each succeeding year in the month of January.
(3) Plan C. - All employees and beneficiaries of those employees who retire on or after January 1 of the year following acceptance of this section, on the first day of January next following the date of the retirement, receive a cost of living adjustment in an amount equal to three percent (3%) of the original retirement allowance.
(b) In each succeeding year in the month of January, the retirement allowance is increased an additional three percent (3%) of the original retirement allowance, not compounded.
(c) Upon acceptance of any of the plans in this section, each employee shall on January 1 next succeeding the acceptance, contribute by means of salary deductions, pursuant to section 45-21-41, one percent (1%) of the employee's compensation concurrently with and in addition to contributions otherwise being made to the retirement system.
(d) The city or town shall make any additional contributions to the system, pursuant to the terms of section 45-21-42, for the payment of any benefits provided by this section.
(e) The East Greenwich town council shall be allowed to accept Plan C of section 45-21-52(a)(3) for all employees of the town of East Greenwich who either, pursuant to contract negotiations, bargain for Plan C, or who are non-union employees who are provided with Plan C and who shall all collectively be referred to as the "Municipal-COLA Group" and shall be separate from all other employees of the town and school department, union or non-union, who are in the same pension group but have not been granted Plan C benefits. Upon acceptance by the town council, benefits in accordance with this section shall be available to all such employees who retire on or after January 1, 2003.
SECTION 2. This act shall take effect upon passage.