ARTICLE 23 SUBSTITUTE A AS AMENDED
RELATING TO ACTUARIAL FISCAL NOTES
SECTION 1. Section
22-12.1-1 of the General Laws in Chapter 22-12.1 entitled "Actuarial
Cost" is hereby amended to read as follows:
22-12.1-1. Actuarial cost required. – (a) Proposed
legislation which directly impacts the retirement system can potentially affect
the benefits of all plan participants and beneficiaries. Since it is in the
best interests of plan participants and beneficiaries to determine the
financial consequences of any proposed legislation which would directly impact
the state's liability to the retirement system, No no
committee shall recommend passage of any bill or resolution having an effect on
contributions, benefits and retirement allowances of the retirement system
pursuant to the provisions of chapters 8 -- 10 of title 36, unless the bill or
resolution shall be accompanied by a statement which shall set forth the full
actuarial costs or full actuarial value, as those terms are defined in section
36-8-1.
(b) These statements or notes shall
be known as "pension impact notes," and they shall accompany each
such bill or resolution prior to consideration of the house in which the bill
or resolution originated. The reasonable cost of preparing pension impact notes
shall be charged as an administrative expense and paid from the retirement
system's restricted receipts account established pursuant to section 36-8-10.1.
Only the chair of the senate committee on finance with the approval of the
president of the senate can request a pension impact note on proposed
legislation that originates in the senate. Only the chair of the house
committee on finance with the approval of the speaker of the house can request
a pension impact note on proposed legislation that originates in the house. The
governor can request a pension impact note on proposed legislation recommended
in the appropriation acts required by sections 35-3-7 or 35-3-8.
SECTION 2. Section
36-10-39 of the General Laws in Chapter 36-10 entitled "Retirement System-Contributions
and Benefits" is hereby amended to read as follows:
36-10-39. Fiscal impact of proposed legislation impacting the
retirement system. – Proposed legislation which directly
impacts the retirement system can potentially affect the benefits of all plan
participants and beneficiaries. Since it is in the best interests of plan
participants and beneficiaries to determine the financial consequences of Any
any proposed legislation which would increase directly impact
the state's liability to the retirement system, such legislation shall
not be approved by the general assembly unless a an fiscal
impact note explanatory statement or note, prepared and paid for by the
employees' retirement system of the state of Rhode Island is appended to
the proposed legislation which actuarially calculates, based upon approved
retirement board assumptions, the projected twenty (20) year cost of the
proposed legislation. These statements or notes shall be known as
"pension impact notes," and they shall accompany each such bill or
resolution prior to consideration of the house in which the bill or resolution
originated. The reasonable cost of preparing pension impact notes shall be
charged as an administrative expense and paid from the retirement system's
restricted receipts account established pursuant to section 36-8-10.1. Only the
chair of the senate committee on finance with the approval of the president of
the senate can request a pension impact note on proposed legislation that
originates in the senate. Only the chair of the house committee on finance with
the approval of the speaker of the house can request a pension impact note on
proposed legislation that originates in the house. The governor can request a
pension impact note on proposed legislation recommended in the appropriation
acts required by sections 35-3-7 or 35-3-8. This section shall be in
addition to the requirements of chapter 12 of title 22.
SECTION 3. Chapter
45-21 of the General Laws entitled "Retirement of Municipal
Employees" is hereby amended by adding thereto the following section:
45-21-42.2.
Fiscal impact of proposed legislation impacting the retirement system. – Proposed legislation which
directly impacts the retirement system can potentially affect the benefits of
all plan participants and beneficiaries.
Since it is in the best interests of plan participants and beneficiaries
to determine the financial consequences of any proposed legislation which would
directly impact the liability to the retirement system of participating
municipalities, such legislation shall not be approved by the general assembly
unless an explanatory statement or note, prepared and paid for by the
retirement system, is appended to the proposed legislation which actuarially
calculates, based upon approved retirement board assumptions, the projected
twenty (20) year cost of the proposed legislation. These statements or notes shall be known as “pension impact
notes,” and they shall accompany each such bill or resolution prior to consideration
by the chamber in which the bill or resolution originated. The reasonable cost of preparing pension
impact notes shall be charged as an administrative expense and paid from the
retirement system’s restricted receipts account established pursuant to section
36-8-10.1. Only the chair of the senate
committee on finance with the approval of the president of the senate can
request a pension impact note on proposed legislation that originates in the
senate. Only the chair of the house
committee on finance with the approval of the speaker of the house can request
a pension impact note on proposed legislation that originates in the
house. The governor can request a
pension impact note on proposed legislation recommended in the appropriation
acts required by sections 35-3-7 or 35-3-8.
This section shall be in addition to the requirements of chapter 12 of
title 22. If one or more participating
municipalities requests an actuarial study or other study that impacts only the
liability of the participating municipality making the request, the participating
municipality making the request shall pay any and all costs associated with the
preparation of the study or report.
SECTION 4. This article shall take effect upon passage.