Chapter 408
2011 -- S 1111 SUBSTITUTE A AS AMENDED
Enacted 11/18/11
A N A C T
RELATING TO
PUBLIC OFFICERS AND EMPLOYEES--RETIREMENT SYSTEM -- CONTRIBUTION AND BENEFITS
Introduced By: Senators Paiva Weed, Goodwin, and Ruggerio
Date Introduced: October 18, 2011
It is enacted by the
General Assembly as follows:
SECTION
1. Legislative intent and findings.
(a)
It is the intention of the general assembly, in enacting this, the
Retirement Security Act
of 2011, to ensure the sustainability of the state’s public retirement
systems. In thoroughly
reviewing the condition of the retirement systems throughout the State of
Rhode Island and
assessing the need for comprehensive reform thereof, the general assembly
finds and declares that:
(1)
The State of
pension systems in the
country.
(2)
The State of
continues to endure some
of the highest unemployment and foreclosure rates in the
(3)
The current condition of
combined with the
state’s continuing financial instability and existing onerous tax burden,
threatens the base
pensions of current and future public workers, hampers the ability of the state
to provide its citizens
with vital services necessary for the public’s health, safety and welfare, and
places an unsustainable financial
burden on all
(4)
The state retirement system’s unfunded liability exceeds $7 billion as measured
by
well-established and
accepted public accounting standards.
(5)
The largest portion of the retirement system, the Employees Retirement System
of
Rhode Island (ERSRI)
fund for teachers and state employees, is funded at a level of 48% which is
well below benchmarks
for a viable, sustainable and adequately funded system.
(6)
Annual government contributions to ERSRI more than doubled between fiscal years
2005 and 2011 and those
contributions are estimated to double again in fiscal year 2013 to exceed
over $600 million.
Without immediate and comprehensive legislative action future contributions
will continue to grow
dramatically and exceed $1 billion dollars in necessary annual
contributions.
(7)
If pension contributions continue to grow at the current and projected levels,
they will
be unaffordable and the
pension security of our valued public employees will be placed in
jeopardy.
(8)
It is critical and of paramount importance to ensure that the public pension
plans in
(9)
Life expectancy is increasing dramatically as evidenced by the significant
changes
made to the mortality
tables in the most recent experience study conducted by the actuary for the
ERSRI and the Municipal
Employees Retirement System (MERS). It is essential that these new
life expectancy trends
be recognized and that retirement ages be increased in a manner that will
provide for a fiscally
sound balance between the career length of active employees and the
expected length of years
in which a retiree will receive plan benefits.
(10) The
vast majority of the unfunded liability for ERSRI is attributable to service
rendered by employees
who have already retired, and a very significant portion of this unfunded
liability is represented
by future cost of living adjustments (COLAs). Although the pension
benefits of active
employees have been reduced by recent legislative reforms, retirees still
receive
all the benefits that
were in place before the legislative changes. In order to provide a sound
benefit program for all
members of the retirement system, and to provide current and future
employees with adequate
benefit levels that will enable the state and its cities and towns to attract
and retain a highly qualified
workforce, it is essential that the COLA benefits for retirees be
impacted as part of this
comprehensive reform of the retirement system.
(11)
The national credit rating agencies that evaluate the security of
offerings have
consistently and unanimously emphasized the significant threat posed by the
unfunded liabilities of
the state’s current retirement system. Rapidly escalating pension costs
were a critical factor
in the negative outlook for the state’s credit rating recently issued by
Moody’s Investors
Service.
(12)
Future downgrades in the public debt markets related to the rising costs and
expenses of the
currently existing state pension system will substantially increase
capital cost structure
and adversely affect and greatly diminish the state’s ability to address
critical infrastructure
needs for education, transportation and other crucial public projects.
(13)
While plans in the Municipal Employees Retirement System (MERS), with an
average funding level of
73%, are generally more adequately funded than the ERS plans, annual
contributions to the
MERS plans will increase dramatically in Fiscal Year 2013 at an average rate
of more than 90% for
MERS police and fire plans, and greater than 60% for MERS general
municipal employee
plans. The dramatically increasing costs from rising contributions to the
MERS plan will result in
the further erosion of the ability of towns and cities to provide services
necessary for the
health, safety and welfare of their residents.
(14)
The fiscal peril related to the growing and substantial unfunded pension
liabilities
may necessitate other
already been shown to
jeopardize and result in the reduction of significant percentages of the base
of pensions of its
retired public servants.
(15)
The looming pension crisis has also impacted the ability of many
communities to access
the debt markets and has resulted in Moody’s Investors Service taking
negative action on
numerous localities which adversely impacts the taxpayers and their ability to
provide vital public
services.
(16)
The myriad of pension program designs throughout
inefficiencies and it is
efficient, equitable and fiscally prudent, wherever feasible, to promote
similar plan designs for
public employees in similar employment positions.
(b)
To advance and maintain the long-term stability of the public pension programs
sponsored by the State
of
and declares that it is
of critical and immediate public importance that these public pension
programs be
restructured:
(1)
To ensure that the state and its cities and towns will be able to provide
retirement
benefits that will
enable our public employees to enjoy a dignified retirement.
(2)
To ensure a secure and adequate source of retirement funds for public retiree
benefits.
(3)
To ensure that the cost of current and future benefits is not so great and
onerous that it
jeopardizes the ability
and obligation of the state and its town and cities to fund the costs of
providing our children
with an excellent public education; rebuilding and sustaining our
economy; maintaining
roads and bridges; providing assistance, care, and support of our neediest
and most vulnerable
citizens; and addressing other essential public programs and purposes.
(4)
The general assembly expressly finds and declares that the situation currently
confronting the State of
emergency stage and must
be addressed without delay and the enactment of the
Retirement Security Act of
2011 is reasonable and necessary to achieve and protect the
compelling public
interests listed herein. The general assembly further finds and declares
that the
achievement of those
compelling public interests, on balance, far outweigh any impact that such
enactment might have
upon the expectations of active and retired members of the affected
pension systems as to
potential future pension benefits.
SECTION
2. Section 36-8-1 of the General Laws in Chapter 36-8 entitled "Retirement
System - Administration"
is hereby amended to read as follows:
36-8-1. Definition
of terms. -- The following words and phrases as used in chapters 8 to
10 of this title unless
a different meaning is plainly required by the context, shall have the
following meanings:
(1) "Accumulated
contributions" shall mean the sum of all the amounts deducted from
the compensation of a member and credited to his or
her individual pension account together with
regular interest thereon.
(2) "Active member"
shall mean any employee of the State of
this section for whom the retirement system is
currently receiving regular contributions pursuant
to sections 36-10-1 and 36-10-1.1.
(3) "Actuarial
equivalent" shall mean an allowance or benefit of equal value to any other
allowance or benefit when computed upon the basis of
the actuarial assumptions and tables in use
by the system .
(4) "Annuity
reserve" shall mean the present value of all payments to be made on
account
of any annuity, benefit, or retirement allowance
granted under the provisions of chapter 10 of this
title computed upon the basis of such mortality tables
as shall be adopted from time to time by the
retirement board with regular interest.
(5) (a) "Average
compensation" for members eligible to retire as of September 30, 2009
shall mean the average of the highest three (3)
consecutive years of compensation, within the total
service when the average compensation was the highest.
For members eligible to retire on or after
October 1, 2009, "Average compensation"
shall mean the average of the highest five (5)
consecutive years of compensation within the total
service when the average compensation was
the highest.
(b) For members who
become eligible to retire on or after July 1, 2012, if more than one
half (1/2) of the member’s total years of service
consist of years of service during which the
member devoted less than thirty (30) business hours
per week to the service of the state, but the
member’s average compensation consists of three (3) or
more years during which the member
devoted more than thirty (30) business hours per week
to the service of the state, such member’s
average compensation shall mean the average of the
highest ten (10) consecutive years of
compensation within the total service when the average
compensation was the highest.
(6)
"Beneficiary" shall mean any person in receipt of a pension, an
annuity, a retirement
allowance, or other benefit as provided by chapter 10 of
this title.
(7) "Casual
employee" shall mean those persons hired for a temporary period, a
period of
emergency or
an occasional period to perform special jobs or functions not necessarily
related to
the work of regular employees.
(8) “Compensation” as
used in chapters 8 10 of this title, chapters 16 and 17 of
title 16, and chapter 21 of title 45 shall mean salary
or base wages earned and paid for the
performance of duties for covered employment,
including regular longevity or incentive plans
approved by the board, but shall not include payments
made for overtime or any other reason
other than performance of duties reasons other than performance of duties or
activities, including
but not limited to the types of payments listed below:
(i)
Payments contingent on the employee having terminated or died;
(ii) Payments made at
termination for unused sick leave, vacation leave, or compensatory
time;
(iii) Payments
contingent on the employee terminating employment at a specified time in
the future to secure voluntary retirement or to secure
release of an unexpired contract of
employment;
(iv) Individual salary
adjustments which are granted primarily in anticipation of the
employee’s retirement;
(v) Additional payments
for performing temporary or extra duties beyond the normal or
regular work day or work year.
(9) “Employee” shall
mean any officer or employee of the state of
business time is devoted exclusively to the services
of the state, but shall not include one whose
duties are of a casual or seasonal nature. The
retirement board shall determine who are employees
within the meaning of this chapter. The governor of
the state, the lieutenant governor, the
secretary of state, the attorney general, the general
treasurer, and the members of the general
assembly, ex officio, shall not be deemed to be
employees within the meaning of that term unless
and until they elect to become members of the system
as provided in § 36-9-6, but in no case shall
it deem as an employee, for the purposes of this
chapter, any individual who devotes less than
twenty (20) business hours per week to the service of
the state and who receives less than the
equivalent of minimum wage compensation on an hourly basis
for his or her services, except as
provided in § 36-9-24. Any commissioner of a municipal
housing authority any member of a part-
time state, municipal or local board,
commission, committee or other public authority shall not be
deemed to be an employee within the meaning of this
chapter.
(10) “Full actuarial
costs” or “full actuarial value” shall mean the lump sum payable by a
member claiming service credit for certain employment
for which that payment is required which
is determined according to the age of the member and
the employee’s annual rate of
compensation at the time he or she applies for service
credit and which is expressed as a rate
percent of the employee’s annual rate of compensation
to be multiplied by the number of years
for which he or she claims service credit as
prescribed in a schedule adopted by the retirement
board from time to time on the basis of computation by
the actuary. Except as provided in
sections 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4,
45-21-53, 36-10-8, 45-21-29, 8-3-16(b), 8-8-
10.1(b), 42-28-22.1(b) and 28- 30-18.1(b).
(i)
all All service credit purchases requested
after June 16, 2009 and prior to July 1, 2012,
except military credit a provided by § 36 9 31 and
16-16-7.1, shall be at full actuarial
value. and
(ii) all service
credit purchases requested after June 30, 2012 shall be at full actuarial
value which shall be determined using the system’s
assumed investment rate of return minus one
percent (1%).
The rules applicable
to a service credit purchase shall be the rules of the retirement
system in effect at the time the purchase application
is submitted to the retirement system.
(11) "Inactive
member" shall mean a member who has withdrawn from service as an
employee but who has not received a refund of
contributions.
(12) "Member
Members" shall mean any person included in the membership of the
retirement system as provided in sections 36-9-1 --
36-9-7.
(13) "Prior
service" shall mean service as a member rendered before July 1, 1936,
certified on his or her prior service certificate and
allowable as provided in section 36-9-28.
(14) "Regular
interest" shall mean interest at the rate of two percent (2%) per
annum,
compounded annually, or at such other rate determined
from the actual experience of the system
as may be prescribed from time to time by the board. at the assumed investment rate of return,
compounded annually, as may be prescribed from time to
time by the retirement board.
(15) "Retirement
allowance" shall mean annual payments for life made after retirement
under and in accordance with chapters 8 to 10 of this
title. All allowances shall be paid in equal
monthly installments beginning as of the effective
date thereof; provided, that a smaller pro rata
amount may be paid for part of a month where
separation from service occurs during the month
in which the application was filed, and when the
allowance ceases before the last day of the
month.
(16) "Retirement
board" or “board” shall mean the board provided in section 36-8-3
to
administer the retirement system.
(17) "Retirement
system" shall mean the employees' retirement system of the State of
(18) "Service"
shall mean service as an employee of the State of
described in subdivision (8) (9) of this
section.
(19) “Social Security
retirement age” shall mean a member’s full retirement age as
determined in accordance with the federal Old Age,
Survivors and Disability Insurance Act, not
to exceed age sixty-seven (67).
(20) (19)
"Total service" shall mean prior service as defined above, plus
service rendered
as a member on or after July 1, 1936.
SECTION
3. Chapter 36-8 of the General Laws entitled "Retirement System -
Administration" is
hereby amended by adding thereto the following section:
36-8-4.1.
Fiduciary and continuing education requirements. -- (a) A
member of the
board shall discharge duties with respect to the
retirement system:
(l) Solely in the
interest of the participants and beneficiaries;
(2) For the exclusive
purpose of providing benefits to participants and beneficiaries and
paying reasonable expenses of administering the
system;
(3) With the care,
skill, and caution under the circumstances then prevailing which a
prudent person acting in a like capacity and familiar
with those matters would use in the conduct
of an activity of like character and purpose;
(4) Impartially,
taking into account any differing interests of participants and
beneficiaries;
(5) Incurring only
costs that are appropriate and reasonable; and
(6) In accordance
with a good-faith interpretation of the law governing the retirement
system.
(b) The retirement
board shall establish mandatory continuing education requirements for
members of the board.
(c) In the event the
retirement board takes any action(s) contrary to the recommendation
of the plan actuary, the executive director shall
within thirty (30) days, provide notice of such
action(s) to all plan members, the governor, the
speaker of the house of representatives and the
president of the senate. The notice shall also be
posted electronically on the retirement board’s
website.
SECTION
4. Section 36-8-8.1 of the General Laws in Chapter 36-8 entitled
"Retirement
System -
Administration" is hereby repealed.
36-8-8.1.
Disclosure of special pension benefits. -- (a) (1) The
retirement board is
directed to conduct an audit of all special pension
benefits conferred on or after January 1, 1970,
to date by statute, by the retirement board, or by
other public officials or agencies, and report its
findings to the governor and to the general assembly
no later than March 15, 1993. The report
shall disclose all beneficiaries of special pension
benefits and shall describe in detail, by
beneficiary, the nature of the special pension
benefits received, including pension credits or
retirement benefits that were purchased by, awarded
to, conferred on, or obtained by individuals
other than for full time service as a paid employee of
the state of
report shall describe the manner and method by which
those special pension benefits were
conferred. For each beneficiary of special pension
benefits, the report will calculate the
contribution actuarially required to support the
special pension benefits conferred and the actual
contribution of the beneficiary, adjusted for the ordinary
contribution of the state to the retirement
system under section 36-10-2 and the investment return
of the fund. The report will:
(i)
Disclose for each beneficiary the difference between the actual contribution of
the
member and the contribution actuarially required to
fund the special pension benefit;
(ii) Render a
judgment as to whether the conferral of each benefit, by legislation or
otherwise, was correct, lawful and appropriate; and
(iii) Recommend
appropriate remedial legislation and/or administrative action including,
where warranted, the repeal of specific legislation
conferring inappropriate and/or unwarranted
retirement benefits upon individuals.
(2) The report will
include a description by the actuary of the effect on the retirement
fund of the special pension benefits described and
quantified in the report, and will be certified as
true and accurate.
(3) The cost of the
audit and the report shall not exceed the sum of five hundred
thousand dollars ($500,000).
(b) In each
subsequent annual report filed pursuant to section 36-8-8, the retirement
board will disclose all special pension benefits
awarded to any individual or group during the
reporting period and disclose for each member
receiving the special pension benefits the
difference between the actual contribution of the
member and the contribution actuarially
required to fund the special pension benefits awarded.
The report will include a description by the
actuary of the effect on the retirement fund of the
special pension benefits described and
quantified in the report.
(c) The retirement
board shall take all steps necessary and proper to timely implement
the provisions of this section, and shall, through
March 15, 1993, report to the governor and the
general assembly on a continuing basis its progress
towards and means of effectuating these
legislative purposes.
SECTION
5. Section 36-8-9 of the General Laws in Chapter 36-8 entitled "Retirement
System -
Administration" is hereby amended to read as follows:
36-8-9. Legal
adviser – Treasurer – Executive officers and secretary. – (a) There
shall
be a legal counsel to the board who shall be appointed
by the general treasurer. The general
treasurer shall be ex-officio chairperson and
treasurer of the retirement board and he or she shall
be responsible for appointing the custodian of
the funds and the treasurer thereof. There shall also
be an executive director who shall be appointed by the
retirement board. The executive director
shall be in charge of administration of the retirement
system and shall serve as secretary to the
retirement board. In addition, the retirement board
shall appoint an assistant director who shall
serve as director and/or secretary in the absence of
the director.
(b) Any negotiated
agreement entered into after June 1, 1992, between any state or
municipal agency or department and an employee or
employees, whose conditions are contrary to
the general laws or the rules, regulations, and
policies as adopted and promulgated by the
retirement board shall be null and void unless and
until approved by formal action of the
retirement board for good cause shown.
SECTION
6. Sections 36-9-2, 36-9-5, 36-9-20, 36-9-21, 36-9-25.1, 36-9-26 and 36-9-
31.1 of the General Laws in
Chapter 36-9 entitled "Retirement System-Membership and Service
Credits" are hereby
amended to read as follows:
36-9-2. Membership
of persons employed after establishment of system. – All
employees as defined in chapter 8 of this title who
became employees on or after July 1, 1936,
shall, under contract of their employment become
members of the retirement system and shall
receive no pension or retirement allowance from any
other pension or retirement system
supported wholly or in part by the State of
title 36 and
section 36-9-3, nor shall they be required to make contributions under any
other
pension or retirement system of the state except as
provided in chapter 10.3 of title 36, anything
to the contrary notwithstanding; provided, however,
that this section shall not apply to those
employees who may be required or elect to participate
in a retirement program existing by virtue
of chapter 17.1 of title 16 or section 36-10-9.1.
36-9-5. Officers
and employees exempt – Former court judges and clerks. – (a) The
members of the general assembly and the general
officers of the state, except to the extent herein
provided, the judges of the supreme, superior, family,
district courts, the traffic tribunal, judges of
the workers' compensation court except to the extent
herein provided, school teachers as defined
by section 16-16-1 except to the extent provided by
chapter 17 of title 16, and members of the
provided, however, that any justice or associate
justice or judge of the supreme court, superior
court, family court, district court, or traffic
tribunal, chairperson of the workers' compensation
court, or judge of the workers' compensation court who
was a member of the retirement system
prior to becoming a justice or associate justice or
judge, shall, upon his or her filing with the
retirement board a written waiver of all benefits
under the provisions of section 8-3-7 – 8-3-11 or
28-30-15 – 28-30-18 be permitted to elect to remain a
member of the retirement system by paying
into the retirement system such sums as provided in
section 36-10-1 computed on his or her
salary as a justice, associate justice, or judge and
shall be eligible for all benefits under this title.
(b) Any justice,
associate justice, or judge who shall have retired in accordance with the
provisions of this section and who shall be recalled
to service shall be recalled in accordance with
the provisions of section 8-3-7(b)(c),
section 28-30-15(b), or section 28-30-16, or section 28-30-
16.1.
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 into 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(910).
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 section 36-8-1(910).
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 section 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 section 45-21-2(5)
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 section 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(910).
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) The retirement board
shall fix and determine rules and regulations to govern the
provisions of this section.
36-9-21. Service
information submitted by department heads. – It shall be the duty of
the head of each department and agency to submit
furnish at the times and in the manner that the
retirement board and/or the retirement system may
direct, to the retirement board a
statement
showing information
concerning the name, title, compensation, duties, date of birth, and
length of
service of each member employed, and such
any other information which the retirement board or
retirement system considers necessary for the proper
execution of this chapter, and to give prompt
notice of all appointments, removals, deaths,
resignations, leaves of absence and changes in pay
of members as
the retirement board may require.
36-9-25.1. Leave
service credits. -- (a) Notwithstanding any other provisions of the
retirement law or rulings of the retirement board in
accordance with the powers vested therein,
state employees with at least one year of service who
have been granted by their appointing
authority a leave of absence without pay to further
their education in the field of their state
employment, shall be entitled to credit as service for
the various purposes of their retirement
system, provided the person, upon completion of his or
her educational leave, returns to state
service for at least one year; and provided further
that the employee makes arrangements to pay
into the retirement system on or before the date of
retirement and in such manner as the
retirement board may prescribe an amount equal to the
full actuarial cost as defined in subsection
36-8-l(9 10) based upon his or her
expected compensation but for the granting of leave without
pay.
(b) Any state employee
who is granted a leave of absence without pay for illness, injury,
or any other reason may receive credit therefor by making the full actuarial cost as defined in
subsection 3 6-8-1 (9 10); provided the
employee returns to state service for at least one year
upon completion of the leave. Credit for leaves of
absence shall be limited in the aggregate during
the total service of an employee to a period of four
(4) years.
36-9-26. Credits
for layoffs. -- (a) Members who are laid off for any reason and are not
on leave without pay may purchase up to one years’
credit for retirement purposes; provided the
member did not withdraw his or her retirement
contributions while on layoff, and returns to active
membership; provided, further, that the member
purchases that credit upon his or her return to
service from the layoff and pays into the retirement
system the full actuarial cost as defined in
subsection 36-8-1 (9 10).
(b) The retirement board
shall fix and determine rules and regulations to govern the
provisions of this section.
36-9-31.1. Peace corps,
teacher corps, and volunteers in service to
(a) Any active member
who served in the peace corps, teacher corps, or in Volunteers in
service to
aggregate; provided, that any member on an official
leave of absence for illness or injury shall be
eligible to purchase those credits while on the leave
of absence.
(b) The cost to purchase
these credits shall be the full actuarial cost as defined in
subsection 36-8-1(9 10) of that service
in the peace corps, teacher corps, or
maximum of four (4) years.
SECTION
7. Sections 36-10-1, 36-10-2, 36-10-2.1, 36-10-8, 36-10-9, 36-10-9.1, 36-10-
9.2, 36-10-9.3, 36-10-9.6,
36-10-10, 36-10-10.2, 36-10-10.4, 36-10-11, 36-10-18, 36-10-19.1, 36-
10-33, 36-10-35 and
36-10-37 of the General Laws in Chapter 36-10 entitled "Retirement
System-Contributions and
Benefits" are hereby amended to read as follows:
36-10-1. Member
contributions – Deduction from compensation. – (a) Prior to July 1,
2012, each Each member of the retirement system shall
contribute an amount equal to eight and
one half three-quarters
percent ( 8.75%) (8.5%) of his or her compensation as his or her
share of
the cost of annuities, benefits, and allowances. Effective
July 1, 2012, each member of the
retirement system shall contribute an amount equal to
three and three quarters percent (3.75%) of
his or her compensation, except for correctional
officers as defined in section 36-10-9.2 who shall
contribute an amount equal to eight and three quarters
percent (8.75%) of his or her
compensation.
;provided, however, that each member will also initially contribute one
eighth of
one percent (0.125%) in the fiscal year beginning July
1, 1989, and one eighth of one percent
(0.125%) in the fiscal year beginning July 1, 1990.
Any contributions made by employees prior to
July 1, 1990, for the purpose of providing health
benefits to retirees as provided in section 36-12-
4 shall be transferred to each employee’s retirement
annuity account. Every person being a
member of the general assembly and electing to
participate in the benefits provided of section 36-
9-6, shall contribute an amount equal to thirty
percent (30%) of his or her compensation. The
contributions shall be made in the form of deductions
from compensation.
(b) The deductions
provided for herein shall be made notwithstanding that the minimum
compensation provided by law for any member shall be
reduced thereby. Every member shall be
deemed to consent and agree to the deductions made and
provided for herein and shall receipt of
for his or
her full compensation and payment of compensation, less the deductions, shall
be a full
and complete discharge and acquittance
of all claims and demands whatsoever for the services
rendered by the person during the period covered by
the payment except as to the benefit
provided under this chapter.
36-10-2. State
contributions. – (a) The State of Rhode Island shall make its
contribution
for the maintenance of the system, including the
proper and timely payment of benefits in
accordance with the provisions of this chapter and
chapters 8, 16, 28, 31 and 42 of this title, by
annually appropriating an amount equal to a percentage
of the total compensation paid to the
active membership. The percentage shall be computed by
the actuary employed by the retirement
system and shall be certified by the retirement board
to the director of administration on or before
the fifteenth day of October in each year. In arriving
at the yearly employer contribution the
actuary shall determine the value of:
(1) The contributions
made by the members;
(2) Income on
investments; and
(3) Other income of the
system.
(b) The Actuary shall
thereupon compute the yearly employer contribution that will:
(1) Pay the actuarial
estimate of the normal cost for the next succeeding fiscal year;
(2) Amortize the
unfunded liability of the system as of June 30, 1999 utilizing a time
period not to exceed thirty (30) years in accordance with section 36-10-2.1(b).
(3) Provided, that
the employer contribution shall be deferred from the effective date of
this act until June 15, 2010. The amounts that would
have been contributed shall be deposited in a
special fund and not used for any purpose.
(c) The State of
the contribution for state employees, state police,
and judges on a payroll frequency basis, and for
teachers in a manner pursuant to section 16-16-22.
(d) In accordance with
the intent of section 36-8-20 that the retirement system satisfy the
requirements of section 401(a) of the Internal Revenue
Code of 1986, the state shall pay to the
retirement system:
(i)
By June 30, 1995, an amount equal to the sum of the benefits paid to state
legislators
pursuant to section 36-10-10.1 in excess of ten
thousand dollars ($10,000) per member (plus
accrued interest on such amount at eight percent (8%))
for all fiscal years beginning July 1, 1991,
and ending June 30, 1995, but this amount shall be
paid only if section 36-10-10.1(e) becomes
effective January 1, 1995; and
(ii) By December 31,
1994, twenty million seven hundred eighty eight thousand eight
hundred twelve dollars and nineteen cents
($20,788,812.19) plus accrued interest on that amount
at eight percent (8%) compounded monthly beginning
March 1, 1991, and ending on the date this
payment is completed (reduced by amortized amounts
already repaid to the retirement system
with respect to the amounts withdrawn by the state
during the fiscal year July 1, 1990 – June 30,
1991); and
(iii) By June 30, 1995,
the sum of the amounts paid by the retirement system for retiree
health benefits described in section 36-12-4 for all
fiscal years beginning July 1, 1989, and ending
June 30, 1994, to the extent that the amounts were not
paid from the restricted fund described in
subsection (c).
(2) Any and all amounts
paid to the retirement system under this subsection shall not
increase the amount otherwise payable to the system by
the State of
subsection (a) for the applicable fiscal year. The
actuary shall make such adjustments in the
amortization bases and other accounts of the
retirement system as he or she deems appropriate to
carry out the provisions and intent of this
subsection.
(e) In addition to the
contributions provided for in subsection (a) through (c) and in order
to provide supplemental employer contributions to the
retirement system, commencing in fiscal
year 2006, and each year thereafter:
(1) Except for fiscal year
2009, fiscal year 2010 and fiscal year 2011, for each fiscal year
in which the actuarially determined state contribution
rate for state employees, including state
contributions under chapter 36-10.3, is lower than that for the prior fiscal year, the
governor shall
include an appropriation to that system equivalent to
twenty percent (20%) of the rate reduction
for the state’s contribution rate for state employees
to be applied to the actuarial accrued liability
of the state employees’ retirement system for state
employees for each fiscal year.
(2) Except for fiscal
year 2009, fiscal year 2010 and fiscal year 2011, for each fiscal year
in which the actuarially determined state contribution
rate for teachers, including state
contributions under chapter 36-10.3, is lower than that for the prior fiscal year, the
governor shall
include an appropriation to that system equivalent to
twenty percent (20%) of the rate reduction
for the state’s share of the contribution rate for
teachers to be applied to the actuarial accrued
liability of the state employees’ retirement system
for teachers for each fiscal year.
(3) The amounts to be
appropriated shall be included in the annual appropriation bill and
shall be paid by the general treasurer into the
retirement system.
(4) Assessments
pursuant to section 42-149-3.1 shall be included in the annual
appropriation bill and shall be paid by the general
treasurer into the retirement system beginning
FY2013.
(f) While the retirement
system's actuary shall not adjust the computation of the annual
required contribution for the year in which
supplemental contributions are received, such
contributions once made may be treated as reducing the
actuarial liability remaining for
amortization in the next following actuarial valuation
to be performed.
36-10-2.1. Actuarial
cost method. – (a) To determine the employer contribution rate for
the State of
compute the costs under chapter 10 of title 36 using
the entry age normal cost method. Effective
July 1, 2012, the entry age normal cost method shall
be as defined in Accounting Standard No. 27
of the Governmental Accounting Standards Board as in
effect from time to time.
(b) The determination of
the employer contribution rate for fiscal year 2013 2002 and
thereafter
shall include a reamortization of the current
Unfunded Actuarial Accrued Liability
(UAAL) over a closed twenty-five (25) year period. After
an initial period of five (5) years, future
actuarial gains and losses occurring within a plan
year will be amortized over individual new
twenty (20) year closed periods period not to exceed thirty (30) years.
36-10-8. Refund
of contributions – Repayment and restoration of credits. – A
member who withdraws from service or ceases to be a
member for any reason other than death or
retirement shall be paid on demand a refund consisting
of the accumulated contributions standing
to his or her credit in his or her individual account in
the annuity savings account, without
interest. Any member receiving a refund shall thereby
forfeit and relinquish all accrued rights as a
member of the system together with credits for total
service previously granted to the member;
provided, however, that if any member who has received
a refund shall subsequently reenter the
service and again become a member of the system, he or
she shall have the privilege of restoring
all money previously received or disbursed to his or
her credit as a refund of contributions, plus
regular interest for the period from the date of
refund to the date of the restoration. Upon the
repayment of such refund including accrued interest as
herein provided, the member shall again
receive credit for the amount of total service which
he or she had previously forfeited by the
acceptance of the refund. The restoration of that
credit shall be permitted only after the member
shall have rendered at least one year of continuous
service following his or her latest reentry into
service for which he or she shall have made
contributions to this system.
36-10-9. Retirement
on service allowance – In general. – Retirement of a member on a
service retirement allowance shall be made by the retirement
board as follows:
(1)(a)(i) Any member may retire upon his or her written
application to the retirement
board as of the first day of the calendar month in
which the application was filed; provided, the
member was separated from service prior thereto; and
further provided, however, that if
separation from service occurs during the month in
which application is filed, the effective date
shall be the first day following that separation from
service; and provided further that the member
on his or her retirement date attained the age of
sixty (60) and completed at least ten (10) years of
contributory service on or before July 1, 2005 or who,
regardless of age, has completed twenty-
eight (28) years of total service and has completed at
least ten (10) years of contributory service
on or before July 1, 2005, and who retire before
October 1, 2009 or are eligible to retire as of
September 30, 2009.
(ii) For members who
become eligible to retire on or after October 1, 2009 and prior to
July 1, 2012,
benefits are available to members who have attained the age of sixty-two (62)
and
completed at least ten (10) years of contributory
service. For members in service as of October 1,
2009 who were not eligible to retire as of September
30, 2009 but become eligible to retire prior
to July 1, 2012,
the minimum retirement age of sixty-two (62) 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
sixty-two (62).
(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 sixty-two (62).
(b)(i) Any member, who has not completed at least ten (10)
years of contributory service
on or before July I, 2005, may retire upon his or her
written application to the retirement board as
of the first day of the calendar month in which the
application was filed; provided, the member
was separated from service prior thereto; and further
provided, however, that if separation from
service occurs during the month in which application
is filed, the effective date shall be the first
day following that separation from service; provided,
the member or his or her retirement date
had attained the age of fifty-nine (59) and had
completed at least twenty-nine (29) years of total
service or provided that the member on his or her
retirement date had attained the age of sixty-
five (65) and had completed at least ten (10) years of
contributory service; or provided, that the
member on his or her retirement date had attained the
age of fifty-five (55) and had completed
twenty (20) years of total service provided, that the
retirement allowance, as determined
according to the formula in § 36-10-10 is reduced
actuarially for each month that the age of the
member is less than sixty-five (65) years, and who
retire before October 1, 2009 or are eligible to
retire as of September 30, 2009.
(ii) For members who
become eligible to retire on or after October 1, 2009 and prior to
July 1, 2012,
benefits are available to members who have attained the age of sixty-two (62)
and
completed at least twenty-nine (29) years of total
service or have attained the age of sixty-five
(65) and completed at least ten (10) years of
contributory service. For members in service as of
October 1, 2009 who were not eligible to retire as of
September 30, 2009 but become eligible to
retire prior to July 1, 2012, who have a minimum retirement age of sixty-two (62),
the retirement
age 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
sixty-two (62).
(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) above shall then be multiplied by the age difference
determined in (1) to apply a reduction in years from
age sixty-two (62).
(c) Effective July 1,
2012, the following shall apply to all members not eligible to retire
prior to July 1, 2012:
(i)
A member with contributory service on or after July 1, 2012, shall be eligible
to retire
upon the completion of at least five (5) years of
contributory service and attainment of the
member’s Social Security retirement age.
(ii) For members with
five (5) or more years of contributory service as of June 30, 2012,
with contributory service on and after July 1, 2012,
who have a retirement age of Social Security
Retirement Age, the retirement age will be adjusted
downward in proportion to the amount of
service the member has earned as of June 30, 2012, but
in no event shall a member’s retirement
age under this subparagraph (ii) be prior to the
attainment of age fifty-nine (59) or prior to the
member’s retirement age determined under the laws in
effect on June 30, 2012. The proportional
formula shall work as follows:
(1) The formula shall
determine the first age of retirement eligibility under the laws in
effect on June 30, 2012 which shall then be subtracted
from Social Security retirement age;
(2) The formula shall
then take the member’s total service credit as of June 30, 2012 as
the numerator and the projected service at retirement
age in effect on June 30, 2012 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
Social Security retirement age.
(iii) A member who
has completed twenty (20) or more years of total service and who
has attained an age within five (5) years of the
eligible retirement age under subparagraphs (c)(i)
or (c)(ii) 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 (c)(i)
or (c)(ii) above.
(iv) Notwithstanding
any other provisions of section 36-10-9(c), a member who has
completed ten (10) or more years of contributory
service as of June 30, 2012, may elect to retire
at his or her eligible retirement date as determined
under paragraphs (1)(a) and (1)(b) above
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 average
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.
(2) Any faculty employee
at a public institution of higher education under the jurisdiction
of the board of governors for higher education shall
not be involuntarily retired upon attaining the
age of seventy (70) years.
(3) Except as
specifically provided in section 36-10-9.1, section 36-10-12 – 36-10-15,
and section 45-21-19 – 45-21-22, (I) On or prior to
June 30, 2012 no member shall be eligible for
pension benefits under this chapter unless the member
shall have been a contributing member of
the employee's retirement system for at least ten (10)
years, or (II) For members in active
contributory service on or after July 1, 2012, the
member shall have been a contributing member
of the retirement system for at least five (5) years.
(ii) Provided, however, a
person who has ten (10) years service credit on or before June
16, 1991, shall be vested.
(iii) Furthermore, any
past service credits purchased in accordance with section 36-9-38
shall be counted towards vesting.
(iv) Any person who
becomes a member of the employees' retirement system pursuant to
section 45-21-4 shall be considered a contributing
member for the purpose of chapter 21 of title
45 and this chapter.
(v) Notwithstanding any
other provision of law, no more than five (5) years of service
credit may be purchased by a member of the system. The
five (5) year limit shall not apply to any
purchases made prior to January 1, 1995. A member who
has purchased more than five (5) years
of service credits before January 1, 1995, shall be
permitted to apply those purchases towards the
member's service retirement. However, no further
purchase will be permitted. Repayment in
accordance with applicable law and regulation of any
contribution previously withdrawn from the
system shall not be deemed a purchase of service
credit.
(vi) Notwithstanding
any other provision of law, effective July 1, 2012, except for
purchases under sections 16-16-7.1, 36-5-3, 36-9-31,
36-10-10.4, and 45-21-53, (A) For service
purchases for time periods prior to a member’s initial
date of hire, the purchase must be made
within three (3) years of the member’s initial date of
hire, (B) For service purchases for time
periods for official periods of leave as authorized by
law, the purchase must be made within three
(3) years of the time the official leave was concluded
by the member. Notwithstanding the
preceding sentence, service purchases from time
periods prior to June 30, 2012 may be made on
or prior to June 30, 2015.
(4) No member of the employees’
retirement system shall be permitted to purchase
service credits for casual, or seasonal, or
temporary employment, or emergency appointment, for
employment as a page in the general assembly, or for
employment at any state college or
university while the employee is a student or graduate
assistant of the college or university.
(5) Except as
specifically provided in section 16-16-6.2 and 16-16-6.4, a member shall
not receive service credit in this retirement system
for any year or portion of it, which counts as
service credit in any other retirement system in which
the member is vested or from which the
member is receiving a pension and/or any annual
payment for life. This subsection shall not apply
to any payments received pursuant to the federal
Social Security Act or to payments from a
military pension earned prior to participation in
state or municipal employment, or to military
service credits earned prior to participation in state
or municipal employment.
(6) A member who seeks
to purchase or receive service credit in this retirement system
shall have the affirmative duty to disclose to the
retirement board whether or not he or she is a
vested member in any other retirement system and/or is
receiving a pension, retirement
allowance, or any annual payment for life. The
retirement board shall have the right to investigate
as to whether or not the member has utilized the same
time of service for credit in any other
retirement system. The member has an affirmative duty
to cooperate with the retirement board
including, by way of illustration and not by way of
limitations the duty to furnish or have
furnished to the retirement board any relevant
information which is protected by any privacy act.
(7) A member who fails
to cooperate with the retirement board shall not have the time of
service counted toward total service credit until such
time as the member cooperates with the
retirement board and until such time as the retirement
board determines the validity of the service
credit.
(8) A member who
knowingly makes a false statement to the retirement board regarding
service time or credit shall not be entitled to a
retirement allowance and is entitled only to the
return of his or her contributions without interest.
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
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.
36-10-9.3.
Retirement on service allowance - Registered nurses. -- (a) This
section
shall apply to the retirement of members employed as
registered nurses within the department of
behavioral healthcare, developmental disabilities and
hospitals.
(b) Any member who has
attained the age of fifty (50) years may be retired subsequent to
the proper execution and filing of written
application; provided, however, that the member shall
have completed twenty-five (25) years of total service
within the department of behavioral
healthcare, developmental disabilities and hospitals
and who retires before October 1, 2009 or is
eligible to retire as of September 30, 2009.
(c) 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
twenty-five (25) years of total service within the
department of behavioral healthcare,
developmental disabilities and hospitals. 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), the retirement age 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).
36-10-9.6. Aeronautics
inspectors – Retirement. – (a) This section shall only apply to
the retirement of members employed as aeronautics
inspectors.
(b) In determining the creditable
credible service of any aeronautics inspector employed
by the State of
including a deferred retirement allowance, there may
be added to, and included in, total service as
defined in this chapter, not more than four (4) years
of applied work experience, the experience to
be defined as a pilot or aeronautics inspector. The
service shall not be counted as credible service
unless the member shall pay into the retirement system
the contribution equal to ten percent
(10%) of the member's first year earnings as an
aeronautics inspector for the first year purchased,
ten percent (10%) of the member's second year earnings
as an aeronautics inspector for the
second year purchased, ten percent (10%) of the
member's third year earnings as an aeronautics
inspector for the third year purchased, and ten
percent (10%) of the member's fourth year
earnings as an aeronautics inspector for the fourth
year purchased. Application to purchase credit
and payment for each year of the year for which he or
she claims credit shall be made on or
before December 31, 1987. Thereafter, a member
applying for credits shall pay full actuarial
costs.
36-10-10. Amount
of service retirement allowance. – (a)(1)(i)
For employees eligible
to retire on or before September 30, 2009, upon
retirement for service under section 36-10-9, a
member whose membership commenced before July 1, 2005
and who has completed at least ten
(10) years of contributory service on or before July
1, 2005 shall receive a retirement allowance
which shall be determined in accordance with schedule
A below for service prior to July 1, 2012:
Schedule A
Years of Service Percentage
Allowance
1st through 10th
inclusive 1.7%
11th through 20th
inclusive 1.9%
21st through 34th
inclusive 3.0%
35th 2.0%
(ii) For employees
eligible to retire on or after October 1, 2009, who were not eligible to
retire on or before September 30, 2009, upon
retirement from service under section 36-10-9, a
member whose membership commenced before July 1, 2005
and who has completed at least ten
(10) years of contributory service on or before July
1, 2005 shall receive a retirement allowance
which shall be determined in accordance with schedule
A above for service on before September
30, 2009, and shall be determined in accordance with
schedule B in subsection (a)(2) below for
service on or after October 1, 2009 and prior to
July 1, 2012.
(2) Upon retirement for
service under section 36-10-9, a member whose membership
commenced after July 1, 2005, or who has not completed
at least ten (10) years of contributory
service as of July 1, 2005, shall, receive a
retirement allowance which shall be determined in
accordance with Schedule B below for service prior
to July 1, 2012:
Schedule B
Years of Service Percentage
Allowance
1st through 10th
inclusive 1.60%
11th through 20th
inclusive 1.80%
21st through 25th
inclusive 2.0%
26th through 30th
inclusive 2.25%
31st through 37th
inclusive 2.50%
38th 2.25%
(b) The retirement allowance
of any member whose membership commenced before July
1, 2005 and who has completed at least ten (10) years
of contributory service on or before July 1,
2005 shall be in an amount equal to the percentage
allowance specified in subsection (a)(1) of his
or her average highest three (3) consecutive years of
compensation multiplied by the number of
years of total service, but in no case to exceed
eighty percent (80%) of the compensation payable
at completion of thirty-five (35) years of service; provided,
however, for employees retiring on or
after October 1, 2009 who were not eligible to retire
as of September 30, 2009 the calculation
shall be based on the average highest five (5)
consecutive years of compensation. Any member
who has in excess of thirty-five (35) years on or
before June 2, 1985, shall not be entitled to any
refund, and any member with thirty-five (35) years or
more on or after June 2, 1985, shall
contribute from July 1, 1985, until his or her
retirement. The retirement allowance of any member
whose membership commenced after July 1, 2005 or who
had not completed at least ten (10)
years of contributory service as of July 1, 2005,
shall, be in an amount equal to the percentage
allowance specified in Schedule B of his or her average
highest three (3) consecutive years of
compensation multiplied by the number of years of
total service, but in no case to exceed
seventy-five percent (75%) of the compensation payable
at the completion of thirty-eight (38)
years of service; provided, however, for employees
retiring on or after October 1, 2009 who were
not eligible to retire as of September 30, 2009 the
calculation shall be based on the average
highest five (5) consecutive years of compensation.
(c) Any member with
thirty-eight (38) years or more of service prior to December 31,
1985, shall not be required to make additional
contributions. Contributions made between
December 31, 1985, and July 1, 1987, by members with
thirty-eight (38) or more years of service
prior to December 31, 1985, shall be refunded by the
retirement board to the persons, their heirs,
administrators, or legal representatives.
(d) For service prior
to July 1, 2012, the retirement allowance of a member shall be
determined in accordance with subsections (a)(1)and
(a)(2) above. For service on and after July 1,
2012, a member’s retirement allowance shall be equal
to one percent (1%) of the member’s
average compensation multiplied by the member’s years
of service on and after July 1 2012. In
no event shall a member’s retirement allowance exceed
the maximum limitations set forth in
paragraph (b) above.
36-10-10.2. Amount
of service retirement allowance – Correctional officers. – (a)
Upon retirement for service under section 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 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
1st through 30th
inclusive 2%
31st 6%
32nd 5%
33rd 4%
34th 3%
35th 2%,
(ii) Two percent (2%)
of his or her average compensation multiplied by his or her years
of service on and after July 1, 2012 within the
department of corrections.
(b) In no case shall a
retirement percentage allowance exceed the greater of the member’s
retirement percentage allowance on June 30, 2012 or eighty percent (80%) 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 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.
36-10-10.4. Effect
of deferral and/or reduction of salary. – (a) If subsequent to January
1, 1991, a member sustains a loss of salary due to a
deferral of salary or a reduction in salary in
order to avoid shutdowns, layoffs, or because of a retrenchment
of state or local finances, then in
calculating the service retirement allowance of the
member, the amount of salary deferred and/or
the amount of the reduction of salary shall not reduce
the amount of annual compensation of the
member for the purpose of establishing his or her
highest three (3) consecutive years of
compensation for members eligible to retire on or
before September 30, 2009, or his or her
highest five (5) consecutive years of compensation for
members who are not eligible to retire on
or before September 30, 2009. This provision is subject to subsection (c) of this
section.
(b) For purposes of
subsection (a), reduction of salary shall mean:
(i)
The actual dollar amount which represents the difference between the employee's
salary prior to the voluntary reduction of salary and
the employee's salary after the voluntary
reduction of salary; or
(ii) The actual dollar
amount which represents the difference between the employee's
salary prior to the renegotiation and/or alteration of
an existing collective bargaining agreement
and the employee's salary after the renegotiation
and/or alteration of an existing collective
bargaining agreement.
(2) Reduction of salary
also means the voluntary or negotiated reduction in the number of
hours that an employee works in a pay period and for
which he or she is paid.
(c) An employee who has
sustained a reduction in salary in accordance with subsection
(a) shall pay, prior to retirement, to the retirement
board an amount equal to the difference
between the amount of contribution the employee would
have paid on his or her salary prior to
the reduction in salary and the amount that the
employee actually contributed plus interest.
36-10-11. Service
allowance to member withdrawing from service before retirement
age. –
(a) The right of a service retirement allowance under the
provisions of this chapter shall
vest in a member who shall withdraw from service prior
to his or her attainment of the minimum
age of retirement specified in section 36-10-9 –
36-10-9.3 who shall not have received a refund,
provided the member shall have completed at least ten
(10) years of contributory service on or
before July 1, 2005 June 30, 2012, for
members terminating service or retiring on or before June
30, 2012, or at least five (5) years of contributory
service for members terminating service or
retiring on or after July 1, 2012. The member shall become entitled to a service
retirement
allowance upon his or her attainment of the age
established in section 36-10-9 or at his or her
option at any date subsequent thereto. The rate of
service retirement allowance payable in the
case of any member shall be that provided in section
36-10-10, for the period of total service
earned and accrued at the date of withdrawal from
service of the member.
(b) For a member who
shall not have completed at least ten (10) years of contributory
service on or before July 1, 2005, the right of a
service retirement allowance under the provisions
of this chapter shall vest in a member who shall
withdraw from service prior to his or her
attainment of the minimum age of retirement specified
in section 36-10-9 – 36-10-9.3 who shall
not have received a refund, provided, the member shall
have completed at least ten (10) years of
contributory service. The member shall become entitled
to a service retirement allowance upon
his or her attainment of the age of sixty-five (65)
years or at his or her option at any date
subsequent thereto. The rate of service retirement
allowance payable in the case of any member
shall be that provided in section 36-10-10, Schedule
B, for the period of total service earned and
accrued at the date of withdrawal from service of the
member.
36-10-18. Optional
benefits. -- (a) A beneficiary, or, if the beneficiary be an
incompetent, then the beneficiary's spouse or domestic
partner or if there is no spouse or domestic
partner, a guardian of the beneficiary's estate, may
elect to receive the benefit in a retirement
allowance, payable throughout life, or the beneficiary
may then elect to receive the actuarial
equivalent, at that time, of the beneficiary's
retirement allowance in a lesser retirement allowance
as determined by actuarial calculation, which shall be
payable throughout life with the provision
that:
(1) Option 1. Upon the
beneficiary's death, the beneficiary's lesser retirement allowance
shall be continued throughout the life of and paid to
such person having an insurable interest in
the beneficiary's life, as the beneficiary, the
beneficiary's spouse or domestic partner, or the
beneficiary's guardian so electing, shall nominate by
written designation duly acknowledged and
filed with the retirement board at the time of his or
her retirement.
(2) Option 2. Upon the
beneficiary's death, one-half (1/2) of the beneficiary's lesser
retirement allowance shall be continued throughout the
life of and paid to such person, having an
insurable interest in the beneficiary's life, as the
beneficiary, the beneficiary's spouse or domestic
partner, or the beneficiary's guardian so electing,
shall nominate by written designation duly
acknowledged and filed with the retirement board at
the time of the beneficiary's retirement.
(b)(1) For
purposes of any election under this section or section 36-10-19.1, the member,
member's spouse or domestic partner, or guardian, as
the case may be, may designate more than
one person to receive benefits after the member's
death, provided that the designation shall
specify the portion of the actuarial equivalent of the
member's retirement allowance to be paid to
each person, and provided further that the aggregate
actuarial value of the portions shall not
exceed the actuarial equivalent of the member's
retirement benefit determined:
(i)
In the case of an election under this section) as of the date of the
member's retirement;
or
(ii) In the case of an
election under section 36-10-19.1 as of the member's date of death.
(2) A member selecting
more than one person to receive benefits under this section or
section 36-10-19.1 may only select beneficiaries from
among his or her children, adopted
children, step-children, and/or spouse or domestic
partner.
(c) If prior to July
1, 2012, a member elected an optional form of benefit other than a life
annuity in accordance with paragraph (a)(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.
36-10-19.1. Optional
annuity protection - In service. -- (a) Upon the death of a
member having: (1) at At least ten (10) years of membership service on
or before June 30, 2012;
or (2) For active contributing members on or after
July 1, 2012, at least five (5) years of
membership service, the spouse or domestic partner of the member shall have the option to
elect
to receive option one as provided in section
36-10-18(a) in lieu of a return of contributions,
provided the spouse or domestic partner is the
designated beneficiary of the member's retirement
account. The election shall be based upon the amount
of retirement allowance or actuarial
equivalent that may accrue at the date of death of the
member.
(b) The election under
option one of section 36-10-18(a) for a person other than the
spouse or domestic partner of the member may be made
by the member, while in service,
provided the member has (1) at At least ten (10) years of membership service on
or before June
30, 2012 and
before retirement; or (2) For active contributing members on or after July
1, 2012, at
least five (5) years of membership service and before
retirement, on a form prescribed by
the
retirement board. The election shall be based upon the
amount of retirement allowances or
actuarial equivalents that may accrue at the date of
death of the member, provided that the
election form is executed and filed with the
retirement board prior to the date of death. The
election may be revoked or modified by the member at
any time prior to the date of retirement on
a form prescribed by the retirement board.
(c) Upon the death of a
member, the option shall become effective thirty (30) days after
the first day of the calendar month next following the
date of death of the member if death occurs
while in an employee status. Should death occur while
in an inactive member status, the option
under this section shall become payable on the first
of the month next succeeding that in which
the designated beneficiary attains the age of sixty
(60) years.
36-10-33. Penalty
for fraudulent claim or statement. -- Every person who knowingly
or willfully makes, presents, or in anyway procures
the making or presentation of any false or
fraudulent affidavit or affirmation concerning any
claim for pension or payment thereof, shall, in
every case, forfeit a sum not exceeding ten
thousand dollars ($10,000) one thousand dollars
($1,000), in
addition to the repayment of any and all money received from the retirement
system
because of a false or fraudulent claim or statement, with
interest, at the rate of twelve percent
(12%) per annum, to be sued and recovered by and in
the name of the retirement board of the
retirement system, and when recovered, paid over to
and thereupon become a part of the funds of
the retirement system.
36-10-35. Additional
benefits payable to retired employees. – (a) All state employees
and all beneficiaries of state employees receiving any
service retirement or ordinary or accidental
disability retirement allowance pursuant to the
provisions of this title on or before December 31,
1967, shall receive a cost of living retirement
adjustment equal to one and one-half percent
(1.5%) per year of the original retirement allowance,
not compounded, for each calendar year the
retirement allowance has been in effect. For the
purposes of computation, credit shall be given for
a full calendar year regardless of the effective date
of the retirement allowance. This cost of living
adjustment shall be added to the amount of the
retirement allowance as of January 1, 1968, and an
additional one and one-half percent (1.5%) shall be
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 shall be three percent (3%) for the
year beginning January 1, 1971, and each
year thereafter, through December 31, 1980.
Notwithstanding any of the above provisions, no
employee receiving any service retirement allowance
pursuant to the provisions of this title on or
before December 31, 1967, or the employee's
beneficiary, shall receive any additional benefit
hereunder in an amount less than two hundred dollars
($200) per year over the service retirement
allowance where the employee retired prior to January
1, 1958.
(b) All state employees
and all beneficiaries of state employees retired on or after January
1, 1968, who are receiving any service retirement or
ordinary or accidental disability retirement
allowance pursuant to the provisions of this title
shall, on the first day of January next following
the third anniversary date of the retirement, receive
a cost of living retirement adjustment, in
addition to his or her retirement allowance, in an
amount equal to three percent (3%) of the
original retirement allowance. In each succeeding year
thereafter through December 31, 1980,
during the month of January, the retirement allowance
shall be increased an additional three
percent (3%) of the original retirement allowance, not
compounded, to be continued during the
lifetime of the employee or beneficiary. For the
purposes of computation, credit shall be given for
a full calendar year regardless of the effective date
of the service retirement allowance.
(c)(1) Beginning on
January 1, 1981, for all state employees and beneficiaries of the state
employees receiving any service retirement and all
state employees, and all beneficiaries of state
employees, who have completed at least ten (10) years
of contributory service on or before July 1,
2005 pursuant to the provisions of this chapter, and
for all state employees, and all beneficiaries
of state employees who receive a disability retirement
allowance pursuant to section 36-10-12 –
36-10-15, the cost of living adjustment shall be computed
and paid at the rate of three percent
(3%) of the original retirement allowance or the
retirement allowance as computed in accordance
with section 36-10-35.1, compounded annually from the
year for which the cost of living
adjustment was determined to be payable by the
retirement board pursuant to the provisions of
subsection (a) or (b) of this section. Such cost of
living adjustments are available to members who
retire before October 1, 2009 or are eligible to
retire as of September 30, 2009.
(2) The provisions of
this subsection shall be deemed to apply prospectively only and no
retroactive payment shall be made.
(3) The retirement
allowance of all state employees and all beneficiaries of state
employees who have not completed at least ten (10)
years of contributory service on or before
July 1, 2005 or were not eligible to retire as of
September 30, 2009, shall, on the month following
the third anniversary date of retirement, and on the
month following the anniversary date of each
succeeding year be adjusted and computed by
multiplying the retirement allowance by three
percent (3%) or the percentage of increase in the
Consumer Price Index for all Urban Consumers
(CPI-U) as published by the United States Department
of Labor Statistics determined as of
September 30 of the prior calendar year, whichever is
less; the cost of living adjustment shall be
compounded annually from the year for which the cost
of living adjustment was determined
payable by the retirement board; provided, that no
adjustment shall cause any retirement
allowance to be decreased from the retirement
allowance provided immediately before such
adjustment.
(d) For state employees
not eligible to retire in accordance with this chapter as of
September 30, 2009 and not eligible upon passage of
this article, and for their beneficiaries, the
cost of living adjustment described in subsection (3)
above shall only apply to the first thirty-five
thousand dollars ($35,000) of retirement allowance, indexed
annually, and shall commence upon
the third (3rd) anniversary of the date of retirement
or when the retiree reaches age sixty-five
(65), whichever is later. The thirty-five thousand
dollar ($35,000) limit shall increase annually by
the percentage increase in the Consumer Price Index
for all Urban Consumers (CPI-U) as
published by the United States Department of Labor
Statistics determined as of September 30 of
the prior calendar year or three percent (3%),
whichever is less. The first thirty-five thousand
dollars ($35,000) of retirement allowance, as indexed,
shall be multiplied by the percentage of
increase in the Consumer Price Index for all Urban
Consumers (CPI-U) as published by the
United States Department of Labor Statistics
determined as of September 30 of the prior calendar
year or three percent (3%), whichever is less, on the
month following the anniversary date of each
succeeding year. For state employees eligible to
retire as of September 30, 2009 or eligible upon
passage of this article, and for their beneficiaries,
the provisions of this subsection (d) shall not
apply.
(e) All legislators and
all beneficiaries of legislators who are receiving a retirement
allowance pursuant to the provisions of section
36-10-9.1 for a period of three (3) or more years,
shall, commencing January 1, 1982, receive a cost of
living retirement adjustment, in addition to
a retirement allowance, in an amount equal to three
percent (3%) of the original retirement
allowance. In each succeeding year thereafter during
the month of January, the retirement
allowance shall be increased an additional three
percent (3%) of the original retirement
allowance, compounded annually, to be continued during
the lifetime of the legislator or
beneficiary. For the purposes of computation, credit
shall be given for a full calendar year
regardless of the effective date of the service
retirement allowance.
(f) The provisions of
section 45-13-7 – 45-13-10 shall not apply to this section.
(g)(1) Notwithstanding
the prior paragraphs of this section, and subject to paragraph (g)
(2) below, for all present and former employees,
active and retired members, and beneficiaries
receiving any retirement, disability or death
allowance or benefit of any kind, the annual benefit
adjustment provided in any calendar year under this
section shall be equal to (A) multiplied by
(B) where (A) is equal to the percentage determined by
subtracting five and one-half percent
(5.5%) (the “subtrahend”) from the Five-Year Average
Investment Return of the retirement
system determined as of the last day of the plan year
preceding the calendar year in which the
adjustment is granted, said percentage not to exceed
four percent (4%) and not to be less than
zero percent (0%), and (B) is equal to the lesser of
the member’s retirement allowance or the first
twenty-five thousand dollars ($25,000) of retirement
allowance, such twenty-five thousand
dollars ($25,000) amount to be indexed annually in the
same percentage as determined under
(g)(1)(A) above. The “Five-Year Average Investment
Return” shall mean the average of the
investment returns of the most recent five (5) plan
years as determined by the retirement board.
Subject to paragraph (g)(2) below, the benefit
adjustment provided by this paragraph shall
commence upon the third (3rd) anniversary of the date
of retirement or the date on which the
retiree reaches his or her Social Security retirement
age, whichever is later. In the event the
retirement board adjusts the actuarially assumed rate
of return for the system, either upward or
downward, the subtrahend shall be adjusted either
upward or downward in the same amount.
(2) Except as
provided in paragraph (g)(3), the benefit adjustments under this section for
any plan year shall be suspended in their entirety
unless the GASB Funded Ratio of the
Employees’ Retirement System of
State Police Retirement Benefits Trust, calculated by
the system’s actuary on an aggregate basis,
exceeds eighty percent (80%) in which event the
benefit adjustment will be reinstated for all
members for such plan year.
In determining
whether a funding level under this paragraph (g)(2) has been achieved, the
actuary shall calculate the funding percentage after
taking into account the reinstatement of any
current or future benefit adjustment provided under
this section. “GASB Funded Ratio” shall
mean the ratio of the actuarial value of assets to the
actuarial accrued liability.
(3) Notwithstanding
paragraph (g)(2), in each fifth plan year commencing after June 30,
2012 commencing with the plan year ending June 30,
2017, and subsequently at intervals of five
plan years, a benefit adjustment shall be calculated
and made in accordance with paragraph (g)(1)
above until the GASB Funded Ratio of the Employees’
Retirement System of
Judicial Retirement Benefits Trust and the State Police
Retirement Benefits Trust, calculated by
the system’s actuary on an aggregate basis, exceeds
eighty percent (80%).
(4) Notwithstanding
any other provision of this chapter, the provisions of this paragraph
(g) of Section 36-10-35 shall become effective July 1,
2012 and shall apply to any benefit
adjustment not granted on or prior to June 30, 2012.
36-10-37. Retirement
benefits for certain general state officers. -- Any person who
has served as governor, lieutenant governor, attorney
general, secretary of state, or general
treasurer for a period of twenty (20) consecutive
years shall be entitled, upon his or her
resignation or retirement, to receive annually during
his or her life a sum equal to three quarters
(3/4) of the salary he or she was receiving at the
time of his or her resignation or retirement. This
section shall not apply to any person initially
elected as governor, lieutenant governor, attorney
general, secretary of state, or general treasurer on
or after July 1, 2012.
SECTION
8. Title 36 of the General Laws entitled "PUBLIC OFFICERS AND
EMPLOYEES" is hereby
amended by adding thereto the following chapter:
CHAPTER
10.2
PENSION
PROTECTION ACT
36-10.2-1. Short
title. – This chapter shall be known and may be cited as the
"Rhode
36-10.2-2.
Purpose. – The purpose of the
provide current, retired and future public employees
financial retirement security by codifying
procedures that will promote the sustainability and
longevity of the state’s retirement systems.
The act will implement a fair process to be used to
facilitate needed changes in times of fiscal
distress.
36-10.2-3.
Definitions. – As used in this chapter, the following terms, unless
the context
requires a different interpretation, have the
following meanings:
(1) “Retirement
board” or “board” means the retirement board of the Employees’
Retirement System of the State of
(2) “Actuary” means
the actuary selected from time to time and employed by the board in
accordance with Chapter 36-8.
(3) “Plan” or “plans”
means any plan or plans that are part of the following public
retirement systems: the Employees’ Retirement System
of
Employees’ Retirement System of
Retirement Benefits Trust (SPRBT); and the
(JRBT).
(4) “Funded
percentage” means the percentage equal to a fraction— the numerator of
which is the actuarial value of the plan’s assets, as
determined by the actuary, and the
denominator of which is the accrued liability of the
plan, determined by the actuary using
actuarial assumptions approved by the board.
36-10.2-4.
Actuarial valuation methodology. – Actuarial accounting methods used
by
the actuary in determining the funded percentage shall
be determined by the board in compliance
with all applicable public pension accounting laws,
rules and regulations. The actuary or the
board shall not, year to year, change actuarial
methods for the sole purpose of achieving a more
favorable funding or fiscal result. Any actuarial assumptions
not determined by the board shall
be made by the actuary in good faith and in accordance
with accepted actuarial standards.
36-10.2-5.
Determination of endangered status. – A plan is in endangered status
for a
plan year if the retirement board determines, in
consultation with the plan actuary, that the plan:
(i)
Has a funded percentage of fifty percent (50%) or less; and (ii) The plan’s
funded
percentage has decreased for five (5) consecutive plan
years.
36-10.2-6. Annual certification
and notice requirements. – (1) Not later than
November 1st of each plan year of a plan, the actuary
shall certify to the board and the executive
director of the retirement system whether or not a
plan is in endangered status for such a plan
year.
(2) In any case in
which the actuary certifies that a plan is in endangered status for a
plan
year, the executive director of the retirement system
shall, not later than thirty (30) business days
following the certification, provide notification of
the endangered status to the members,
beneficiaries, the general assembly, the governor, the
general treasurer and any local or municipal
employer of a MERS plan determined to be in endangered
status. The notification shall also be
posted electronically on the retirement board’s
website.
36-10.2-7. Funding
improvement strategy procedure. – (1) In any case in which a plan
is in endangered status for a plan year, except for a
plan year where a plan is already in a funding
improvement period and meeting its scheduled funding
targets for the three (3) consecutive prior
plan years, a funding improvement strategy shall be
implemented not later than June 30th
following the date the plan was certified as being in
endangered status under section 36-10.2-6.
The plan actuary shall submit preliminary funding
improvement strategies including a default
strategy as described in subparagraphs (3) and (4) to
the board for review not later than January
1st following the date the plan was certified as being
in endangered status under section 36-10.2-
6.
(2) The funding
improvement strategy shall be formulated to achieve, based on
reasonably anticipated experience and reasonable
actuarial assumptions, the following
requirements:
(a) The plan’s funded
percentage shall improve in accordance with paragraph (i)
or
paragraph (ii), applying the paragraph that produces
the greater funded percentage increase for
the plan in a ten (10) year period.
(i)
As of the close of a ten (10) year funding improvement period, the plan’s
funded
percentage shall equal or exceed the sum of:
(I) The plan’s funded
percentage as of the beginning of the plan year that the actuary
initially certified the plan as endangered; plus
(II) Fifty percent (50%)
of the difference between eighty percent (80%) and the plan’s
funded percentage under paragraph (I); or
(ii) The plan’s
funded percentage shall improve at the rate of at least one percent (1%)
annually until the plan’s funded percentage equals or
exceeds eighty percent (80%).
(b) In the event that
the state or a local municipality, as the employer of a plan,
determines that, based on reasonable actuarial
assumptions and upon exhaustion of all reasonable
measures, the plan cannot reasonably be expected to
meet the guidelines of subdivisions (i) and
(ii), then the employer’s legislative governing body
shall provide a report to the retirement board,
no later than March 1st following the date the plan
was certified as being in endangered status
under section 36-10.2-6, explaining why the plan is
not reasonably expected to meet the
guidelines of subdivisions (i)
or (ii) and provide a reasonable funding improvement strategy to
emerge from endangered status.
(3) Not later than
January 1st following the date the plan was certified as being in
endangered status under 36-10.2-6, the actuary shall
provide to the board, and in the case of
MERS plan shall also provide to the impacted local
municipality’s legislative governing body, at
least five (5) funding improvement strategies but no
more than ten (10) funding improvement
strategies showing revised benefit structures, revised
contribution structures, or both, which, if
adopted, may reasonably be expected to enable the plan
to meet the applicable requirements
found in subparagraph (2).
(4) In addition to
any funding improvement strategies provided by the board in
subparagraph (3), the board shall include a default
funding improvement strategy (“Default A”)
that shall show increases in employer and employee
contributions under the plan necessary to
achieve the applicable requirements found in
subsection (2), assuming no amendments to reduce
future benefit accruals under the plan.
(5) Not later than
April 1st following the date the plan was certified as being in
endangered status under section 36-10.2-6, the board
shall submit the “Default A” strategy as
described in subparagraph (4) and one additional
funding improvement strategy, as selected by
the board, to the general assembly.
(6) Not later than
June 30th following the date the plan was certified as being in
endangered status under section 36-10.2-6, the general
assembly shall select and enact into law
one of the two (2) submitted funding improvement
strategies. If no funding improvement strategy
is approved by the general assembly by June 30th, the
“Default A” strategy as described in
subparagraph (4) shall be enacted into law effective
July 1st following the date the plan was
certified as being in endangered status under section
36-10.2-6. “Default A” shall remain in
effect until either the actuary certifies under
section 36-10.2-6 for a plan year that the plan is no
longer in endangered status or the general assembly
selects a funding improvement strategy
consistent with the provisions of this chapter.
(7) Notwithstanding
any other law to the contrary, any reports and funding strategies
submitted to the board pursuant to this section shall
be public records.
36-10.2-8. Funding
improvement period. – (1) The funding improvement period for
any funding improvement strategy adopted pursuant to
this chapter shall begin on the first day of
July immediately after the adoption date of the funding
improvement strategy.
(2) The funding
improvement period shall be a ten (10) year period unless the actuary
certifies under section 36-10.2-6 for a plan year that
the plan is no longer in endangered status. In
such a case, the funding improvement period shall end
as of the close of the preceding plan year.
(3) A plan may not be
amended during the funding improvement period so as to be
inconsistent with the funding improvement strategy.
36-10.2-9.
Transition period. – Effective for plan years beginning July 1, 2012
any new
legislation enacted contemporaneously with this
chapter that is expected to improve the funding
percentage of such a plan to eighty percent (80%) or
greater within a reasonable funding
improvement period not to exceed twenty (20) years
shall be considered to constitute a funding
improvement strategy. The funding improvement period
shall be governed by such enacted
legislation and shall begin July 1, 2012.
36-10.2-10.
Severability. – The holding of any section or sections or parts
hereof to be
void, ineffective, or unconstitutional for any cause
shall not be deemed to affect any other section
or part hereof.
SECTION
9. Title 36 of the General Laws entitled "PUBLIC OFFICERS AND
EMPLOYEES" is hereby
amended by adding thereto the following chapter:
CHAPTER
10.3
DEFINED
CONTRIBUTION RETIREMENT PLAN
36-10.3-1.
Definitions. – As used in this chapter, the following terms, unless
the context
requires a different interpretation, shall have the
following meanings:
(1) “Compensation”
means compensation as defined in section 36-8-1(8).
(2) “Employee” means
an employee as defined in section 36-8-1(9) effective July 1,
2012.
(3) “Employer” means
the State of
a member of the Employees Retirement System under
chapters 8 through 10 of title 36 or chapter
16 of title 16 (ERS) or the Municipal Employees
Retirement System under chapters 21 and 21.2
of title 45 (MERS).
(4) “Plan” means the
retirement plan established by this chapter.
(5) A “public safety
member” shall mean a member of MERS who is a municipal fire
fighter or a municipal policeman or policewoman as
defined in section 45-21.2-2 who does not
participate in Social Security under the Federal Old
Age, Survivors, and Disability income
program.
(6) “Regular member”
means: (i) An employee who is a member of ERS other
than
correctional officers as defined in section 36-10-9.2;
or (ii) A member of MERS other than a
public safety member.
(7) The “retirement
board” or “board” shall mean the retirement board of the Employees
Retirement System of
plan administrator and plan trustee and shall
administer the plan in accordance with section 36-8-
4.1.
(8) “State investment
commission” or “commission” means the state investment
commission as defined in section 35-10-1.
(9) “Supplemental
employer” includes any employer that provides supplemental
contributions to the defined contribution retirement
plan as provided in section 36-10.3-3.
(10) “Supplemental
member” is defined in section 36-10.3-3.
36-10.3-2.
Establishment. – (1) A defined contribution retirement plan is
established for
members of the of the Employees’ Retirement System of
Employees’ Retirement System of
(2) The defined
contribution retirement plan is a plan in which retirement savings are
accumulated in an individual account for the exclusive
benefit of the member or beneficiaries.
The plan is established effective July 1, 2012, at
which time contributions by employers and
members begin.
(3) The defined
contribution plan established by this chapter is intended to qualify under
26 U.S.C. 401(a), 414(d), and 414(k) (Internal Revenue
Code) in effect from time to time as a
qualified governmental retirement plan established and
maintained by the state for its employees,
for the employees of participating political
subdivisions, public corporations, and public
organizations of the state, and for the employees of
other employers whose participation is
authorized by this chapter.
(4) (a) Exclusive
benefit. All funds of the plan shall be held in one or more trusts, in one
or more custodial accounts treated as trusts in
accordance with section 401(f) of the Internal
Revenue Code, or in a combination thereof. Under any
trust or custodial account, it shall be
impossible at any time prior to the satisfaction of
all liabilities with respect to employees and their
beneficiaries, for any part of the corpus or income to
be used for, or diverted to, purposes other
than the payment of retirement savings benefits to
employees and their beneficiaries. However,
this requirement shall not prohibit: (i) The return of a contribution within six (6) months after
the
plan administrator determines that the contribution was
made by a mistake of fact; or (ii) The
payment of expenses of the plan in accordance with
applicable law.
(b) Vesting on plan
termination. In the event of the termination (within the meaning of
the Internal Revenue Code) of the plan, the amounts
credited to members’ accounts shall become
fully and immediately vested.
(c) Forfeitures.
Amounts forfeited by an employee shall not be applied to increase the
benefits of any other employee, and shall reduce
employer contributions as shall be set forth in
the plan document.
(d) Required
distributions. In no event shall a member receive contributions in any year
that exceed the limitation set forth in section 415(c)
of the Internal Revenue Code.
(e) Limitation on
benefits. Benefits shall not be payable to the extent that they exceed the
limitations imposed by section 415 of the Internal
Revenue Code, 26 U.S.C. section 415, as
adjusted from time to time pursuant to section 415(d)
of the Internal Revenue Code. In no event
shall the member receive a retirement benefit in any
year that exceeds the limitations set forth in
section 415(b) of the Internal Revenue Code.
(f) Limitation on
compensation. Benefits and contributions shall not be computed with
reference to any compensation that exceeds the maximum
dollar amount permitted by section
401(a)(17) of the Internal Revenue Code as adjusted
for increases in the cost-of-living.
(5) The state
investment commission shall select an appropriate third-party administrator
for the plan and shall adopt such plan, trust and/or
custodial documents, with such features and
attributes as the commission determines necessary or
advisable in its discretion to effectuate the
provisions of this chapter in accordance with the
following:
(a) The commission
shall select one or more firm(s) or company(ies) to
provide
retirement plan investment, plan administration, and
communication services to employees who
participate in the defined contribution plan. The plan
shall provide for appropriate long-term
retirement oriented investments, and shall include
annuity or annuity-like options as determined
by the commission. In determining the firm or the
company to provide these plan services, the
commission shall consider all of the following:
(i)
The financial stability of the company or firm.
(ii) The cost of the
investments, plan administration, and services to the members.
(iii) The experience
of the company or firm in providing defined contribution retirement
plans.
(iv) The experience
of the company or firm in providing plan education, counseling, and
advice to participants of defined contribution plans.
(v) Any criminal
convictions, securities or antitrust law violations, material civil or
regulatory fines or judgments against the company or
firm which the company or firm shall be
required to disclose to the commission as part of the
selection process.
(b) The defined
contribution retirement plan shall include an option that any
disbursement of the accumulated assets in a
participant’s defined contribution plan account or
accounts may be made as a life annuity. The defined
contribution retirement plan may offer
participants a menu of lifetime annuity options,
either fixed or variable, or a combination of both.
(c) Accumulations in
the defined contribution plan are intended to be for retirement
purposes and loans or hardship distribution options
permitted under the plan, if any, shall be
structured for the primary purpose of this plan to
support members in their retirement.
(d) The plan shall
provide education, counseling and objective employee-specific plan
advice to employees.
(e) The plan shall
include a limited number of investment options which shall include
either: (i) Investment
portfolio options that are constructed to reflect different risk profiles such
as
conservative, moderate and aggressive; and/or (ii)
Options constructed to reflect different risk
profiles that automatically reallocate and rebalance contributions
as an employee ages.
36-10.3-3.
Supplemental participation for local public employers. – Employers
that
include job positions, other than public safety
positions, that do not participate in Social Security
under the Federal Old Age, Survivors and Disability
Income program, but which currently
contribute to ERS or MERS on behalf of such positions,
shall make supplemental contributions to
the plan on behalf of regular members in such
positions as a supplemental employer in
accordance with subsection 36-10.3-6(a). A
supplemental employer may request a different level
of supplemental contributions in accordance with
subsection 36-10.3-6(b) by an ordinance or
resolution of its governing body. A regular member in such
positions shall be referred to as a
“supplemental member” in section 36-10.3-6.
36-10.3-4. Member
contributions. – (1) Each regular member shall contribute to the
member's individual account in the plan an amount
equal to five percent (5%) of the member's
compensation from July 1 to the following June 30.
(2) Each public
safety member not participating in Social Security under the Federal Old
Age, Survivors and Disability Income program, shall
contribute to the member’s individual
account an amount equal to three percent (3%) of the
member’s compensation from July 1 to the
following June 30.
(3) Contributions by
supplemental members shall be governed by section 36-10.3-6.
(4) The employer
shall deduct the contribution from the member’s compensation at the
end of each payroll period, and the contribution shall
be credited by the plan to the member’s
individual account. The contributions shall be
deducted from the member’s compensation before
the computation of applicable federal taxes and shall
be treated as employer contributions under
26 U.S.C. 414(h)(2). A member shall not have the
option of making the payroll deduction directly
in cash instead of having the contribution picked up
by the employer.
(5) Contributions of
employees shall be made by payroll deductions. Every member shall
be considered to consent to payroll deductions. It is
of no consequence that a payroll deduction
may cause the compensation paid in cash to an employee
to be reduced below the minimum
required by law. Payment of an employee's
compensation, less payroll deductions, is a full and
complete discharge and satisfaction of all claims and
demands by the employee relating to
remuneration of services during the period covered by the
payment, except with respect to the
benefits provided under the plan.
(6) Additional
voluntary member contributions may be permitted in accordance with this
section in such manner as determined in the discretion
of the commission.
36-10.3-5.
Employer contributions. – (1) An employer shall contribute to each
regular
member’s individual account an amount equal to one
percent (1%) of the member’s
compensation at the end of each payroll period from
July 1 to the following June 30.
(2) An employer shall
contribute to the individual account of each public safety member,
not participating in Social Security under the Federal
Old Age, Survivors and Disability Income
program, an amount equal to three percent (3%) of the
member’s compensation from July 1 to the
following June 30.
(3) Contributions by
supplemental employers shall be governed by section 36-10.3-6.
36-10.3-6.
Supplemental employer and member contributions. – (a) A supplemental
member shall contribute to the member's individual
account an amount equal to two percent (2%)
of the member's compensation from July 1 to the
following June 30 in addition to the
requirements of section 36-10.3-4. For such members, a
supplemental employer shall contribute
to the member's individual account an amount equal to
two percent (2%) of the member's
compensation from July 1 to the following June 30 in
addition to the requirements of section 36-
10.3-5.
(b) A supplemental
employer may request a different level of supplemental member
contributions and supplemental employer contributions
subject to the approval of the state
investment commission.
36-10.3-7. Vesting
of contributions. – (1) The total amount contributed by the member,
including associated investment gains and losses,
shall immediately vest in the member and is
non-forfeitable.
(2) The total amount
contributed by the employer, including associated investment gains
and losses, vests with the member and is nonforfeitable upon completion of three (3) years of
contributory service. Service credited under ERS or
MERS prior to the effective date of this plan
shall be credited to members for vesting purposes.
36-10.3-8.
Investments. – The state investment commission shall determine from
time to
time the investment options available under the plan
and a member may direct his or her account
among the investment options offered under the plan
pursuant to the plan documents.
36-10.3-9.
Distributions. – The plan documents shall specify the distribution
options
available under the plan which shall include a lump
sum and rollover distribution option, and may
include such installment, annuity, hardship, loan or
death benefit options as determined by the
state investment commission in its discretion subject
to section 36-10.3-2(5).
36-10.3-10.
Rollover contributions and distributions. – (1) An employee entering
the
plan may elect, at the time and in the manner
prescribed by the administrator, to have all or part
of a direct rollover distribution from an eligible
retirement plan owned by the member paid
directly into the member's individual account.
(2) Rollover
contributions do not count as a purchase of membership service for the
purpose of determining years of service.
(3) A distributee may elect, at the time and in the manner
prescribed by the administrator,
to have all or part of an eligible rollover
distribution paid directly to an eligible retirement plan
specified by the distributee
in the direct rollover.
(4) In this section:
(a) "Direct
rollover" means the payment of an eligible rollover distribution by the
plan to
an eligible retirement plan specified by a distributee who is eligible to elect a direct rollover;
(b) “Distributee” means a member, or a beneficiary who is the
surviving spouse or
domestic partner of the member, or an alternate payee:
(c) "Eligible
retirement plan" means:
(i)
An individual retirement account described in 26 U.S.C. 408(d)(3)(A);
(ii) An annuity plan
described in 26 U.S.C. 403(a);
(iii) A qualified
trust described in 26 U.S.C. 401(a);
(iv) An annuity plan
described in 26 U.S.C. 403(b);
(v) A governmental
plan described in 26 U.S.C. 457(b);
(vi) An individual
retirement annuity defined in 26 U.S.C. 408(b); or
(vii) On or after
January 1, 2008, a Roth IRA described in 26 U.S.C. 408A;
(d) "Eligible
rollover distribution" means a distribution of all or part of a total
account to
a distributee, except for:
(i)
A distribution that is one of a series of substantially equal installments
payable not less
frequently than annually over the life expectancy of
the distributee or the joint and last survivor
life expectancy of the distributee
and the distributee's designated beneficiary, as
defined in 26
U.S.C. 401(a)(9);
(ii) A distribution
that is one of a series of substantially equal installments payable not
less frequently than annually over a specified period
of ten (10) years or more;
(iii) A distribution
that is required under 26 U.S.C. 401(a)(9);
(iv) The portion of
any distribution that is not includable in gross income; however, a
portion under this paragraph may be transferred only
to an individual retirement account or
annuity described in 26 U.S.C. 408(a) or (b), to a
qualified plan described in 26 U.S.C. 401(a) or
403(a), or to an annuity contract described in 26
U.S.C. 403(b), that agrees to separately account
for amounts transferred, including separately
accounting for the portion of the distribution that is
includable in gross income and the portion of the
distribution that is not includable in gross
income; and
(v) Other
distributions that are reasonably expected to total less than two hundred dollars
($200) during a year.
36-10.3-11. Annual
report and statement. – The retirement board shall submit to the
governor, the general treasurer, the auditor general,
the speaker of the house of representatives
and the president of the senate, on or before the
first day of December of each fiscal year, an
annual report including a financial statement of the
plan for the fiscal year of the state next
preceding said date. The retirement board shall cause
to be published for distribution among the
members of the system a financial statement
summarizing the results of operations for the fiscal
year. The report and financial statement shall also be
posted electronically on the retirement
board’s website.
36-10.3-12.
Severability. – The holding of any section or sections or parts
hereof to be
void, ineffective, or unconstitutional for any cause
shall not be deemed to affect any other section
or part hereof.
SECTION
10. Sections 16-16-1, 16-16-5, 16-16-6.1, 16-16-6.2, 16-16-6.4, 16-16-7.2, 16-
16-8, 16-16-12, 16-16-13,
16-16-22, 16-16-22.1 and 16-16-40 of the General Laws in Chapter 16-
16 entitled "Teachers'
Retirement" are hereby amended to read as follows:
16-16-1. Definitions.
– (a) The following words and phrases used in this chapter, unless a
different meaning is plainly required by the context,
have the following meanings:
(1) "Active
member" means any teacher as defined in this section for whom the
retirement system is currently receiving regular
contributions pursuant to section 16-16-22 and
16-16-22.1.
Except as otherwise
provided in this section, the words and phrases used in this chapter,
so far as applicable, have the same meanings as they
have in chapters 8 to 10 of title 36.
(2)
"Beneficiary" means any person in receipt of annuity, benefit, or
retirement allowance
from the retirement system as provided in this
chapter.
(3) "Child"
includes a stepchild of a deceased member who has been a stepchild for at
least one year immediately preceding the date on which
the member died or an adopted child of a
deceased member without regard to the length of time
the child has been adopted.
(4) "Former spouse
divorced" means a person divorced from a deceased member, but
only if the person meets one of the following
conditions:
(i)
Is the mother or father of the deceased member's child(ren);
(ii) Legally adopted the
deceased member's child(ren) while married to the deceased
member and while the child(ren)
was under the age of eighteen (18) years; or
(iii) Was married to the
deceased member at the time both of them legally adopted a
child(ren) under the age of
eighteen (18) years.
(5) "Member"
means any person included in the membership of the retirement system
under the provisions of this chapter.
(6) "Prior
service" means service as a teacher rendered prior to the first day of
July, 1949,
certified on his or her prior service certificate and allowable
as prior service under the provisions
of this chapter.
(7) "Retired
teacher" means any teacher who retired prior to July 1, 1949, pursuant to
the
provisions of G.L. 1938, ch.
195, as amended, and who on June 30, 1949, was in receipt of a
pension under the provisions of that chapter.
(8) "Retirement
system" and "system" means the employees' retirement system of
the
State of
established under that chapter.
(9) "Salary"
or "compensation" includes any and all salary paid for teaching
services
regardless of whether any part of the salary or
compensation is derived from any state or federal
grant or appropriation for teachers' salaries, as the
term is defined in section 36-8-1(7)(8).
“Average compensation” shall be defined in accordance
with section 36-8-1(5)(a).
(10) "Service"
means service as a teacher as described in subdivision (12) of this section.
Periods of employment as teacher, principal, assistant
principal, supervisor, superintendent, or
assistant superintendent shall be combined in
computing periods of service and employment.
(11) "Spouse"
means the surviving person who was married to a deceased member, but
only if the surviving person meets one of the
following conditions:
(i)
Was married to the deceased member for not less than one year immediately prior
to
the date on which the member died;
(ii) Is the mother or
father of the deceased member's child(ren);
(iii) Legally adopted
the deceased member's child(ren) while married to the
deceased
member and while the child(ren)
was under the age of eighteen (18) years; or
(iv) Was married to the
deceased member at the time both of them legally adopted a
child(ren) under the age of
eighteen (18) years.
(12) “Teacher” means a
person required to hold a certificate of qualification issued by or
under the authority of the board of regents for
elementary and secondary education and who is
engaged in teaching as his or her principal occupation
and is regularly employed as a teacher in
the public schools of any city or town in the state,
or any formalized, commissioner approved,
cooperative service arrangement. The term includes a person
employed as a teacher, supervisor,
principal, assistant principal, superintendent, or
assistant superintendent of schools, director,
assistant director, coordinator, consultant, dean,
assistant dean, educational administrator, nurse
teacher, and attendance officer or any person who has
worked in the field of education or is
working in the field of education that holds a
teaching or administrative certificate. and any
teacher who serves during a school year at least three
quarters (3/4) of the number of days that the
public schools are required by law to be in session
during the year. In determining the
number of
days served by a teacher the total number of days
served in any public school of any city or town
in the state may be combined for any one school year.
The term also includes a school business
administrator whether or not the administrator holds a
teaching or administrative certificate, and
also includes occupational therapists and physical
therapists licensed by the department of health
and employed by a school committee in the state, or by
any formalized, commissioner approved,
cooperative service arrangement
(13)
"Teaching" includes teaching, supervising, and superintending or
assistant
superintending of schools.
(14) "Total
service" means prior service as defined in subdivision (6) of this
section, plus
service rendered as a member of the system on or after
the first day of July, 1949.
(15) For purposes of
this chapter, "domestic partner" shall be defined as a person who,
prior to the decedent's death, was in an exclusive,
intimate and committed relationship with the
decedent, and who certifies by affidavit that their
relationship met the following qualifications:
(i)
Both partners were at least eighteen (18) years of age and were mentally
competent to
contract;
(ii) Neither partner was
married to anyone else;
(iii) Partners were not
related by blood to a degree which would prohibit marriage in the
State of
(iv) Partners resided
together and had resided together for at least one year at the time of
death; and
(v) Partners were
financially interdependent as evidenced by at least two (2) of the
following:
(A) Domestic partnership
agreement or relationship contract;
(B) Joint mortgage or
joint ownership of primary residence;
(C) Two (2) of: (I)
joint ownership of motor vehicle; (II) joint checking account; (III)
joint credit account; (IV) joint lease; and/or
(D) The domestic partner
had been designated as a beneficiary for the decedent's will,
retirement contract or life insurance.
(b) The masculine
pronoun wherever used shall also include the feminine pronoun.
(c) Any term not
specifically defined in this chapter and specifically defined in chapters
36-8 through 36-10 shall have the same definition as
set forth in chapters 36-8 through 36-10.
16-16-5. Service
creditable. – (a) In calculating "service", "prior
service", or "total
service" as defined in section 16-16-1, every
teacher shall be given credit for a year of service for
each year in which he or she shall have served as a
teacher; provided, that any teacher who
through illness or leave of absence without pay does
not serve a full school year may receive
credit for a full school year of service by paying the
full actuarial cost as defined in section 36-8-
1(9). Credit for leaves of absence shall be limited,
in the aggregate, during the total service of a
teacher to a period of four (4) years; provided,
however, every teacher who had been required to
resign for maternity reasons may receive credit for
maternity reasons by making contribution to
the system upon her return to teaching the amount she
would have contributed to the retirement
system, with regular interest, based upon her
expected compensation but for her absence due to
maternity reasons.
(b) The retirement board
shall fix and determine the time when and the conditions under
which the payments shall be made.
(c) Any teacher who
serves or who has served during a school year at least three-quarters
(3/4) of the
number of days that the public schools are required by law to be in session
during the
year shall be given credit for a year of service for
that year. In determining the number of days
served by a substitute teacher the total number of
days served in any public school of any city or
town in the state may be combined for any one school
year. Any teacher shall be entitled to “prior
service” credit for service prior to July 1, 1949,
provided the teacher shall have been in service
during the school year 1949-1950. The teacher shall be
entitled to service credit for any year
subsequent to July 1, 1949 in accordance with this
chapter, by making contribution to the
retirement system of the full actuarial cost for
any such service credit. amount he or she would
have contributed to the retirement system had he or
she been a member, plus regular interest
compounded annually to date of payment, payable at a
time or in any manner that may be
provided by the rules of the retirement board.
(d) Any teacher employed
in at least a half (1/2) program including a job share program,
or working at least half the number of days that the
public schools are required to be in session,
shall remain a contributing member and shall receive
credit for that part- time part-time service
on a proportional basis. The purchase of any remaining
program or job share time in which the
teacher did not work shall not be permitted.
(e) In computing service
or in computing compensation, the retirement board shall credit
no more than one year of service on account of all
service in one calendar year.
(f) Notwithstanding any
other section of law, no member of the retirement system shall
be permitted to purchase service credit for any
portion of a year for which he or she is already
receiving service credit in this retirement system.
16-16-6.1. Credit
for service outside state. – (a) In determining the creditable service
of
any teacher employed in any city or town for the
purpose of retirement, there may be added to,
and included in, total service as defined in this
chapter not more than five (5) years of service as a
teacher in the public school outside this state;
provided, however, this service shall not be counted
as creditable service unless the member shall pay into
the retirement system a contribution equal
to the full actuarial value of each year of credit for
which application is made based upon the
teacher's compensation at the time he or she makes
application to purchase credit for each year of
service for which he or she claims credit.
(b) Credit for service
outside the state which is purchased under paragraph (a) above may
also be used for retirement purposes under the
provisions of subsection (a) for teachers who retire
on ordinary disability under section 36-10-13 section
16-16-14 provided these teachers have at
least ten (10) years creditable service within the state.
(c) The term
"outside this state" means service in any state college, university,
school, or
public school in any other state of the
(d) The retirement board
shall fix and determine by rules and regulations the time when
and the conditions under which payments shall be made.
16-16-6.2. Service
credit for appropriate work experience – Contributions. – (a) In
determining the creditable service of any vocational
education teacher employed in any city or
town or by the state for the purpose of retirement or
a service retirement allowance (not including
a deferred retirement allowance), there may be added
to, and included in, total service as defined
in this chapter not more than five (5) years of
"appropriate work experience" pursuant to section
16-60-4(9)(ii). This service shall not be counted as
creditable service unless the member shall pay
into the retirement system a contribution equal to the
full actuarial costs for each year of service
for which he or she claims credit.
(b) Credit for
“appropriate work experience” which is purchased under paragraph (a)
above may
also be used for retirement purposes under the provisions of subsection (a) for
teachers who retire on ordinary disability under
section 36 10 13 section 16-16-14, provided those
teachers have at least ten (10) years’ creditable
service.
(c) The term
"appropriate work experience" means service in any industry,
business, or
other appropriate enterprise for which certification
credit has been given pursuant to the
"standards and qualifications for certification
of teachers" as provided in section 16-60-4(9)(ii).
16-16-6.4. Service
credit for appropriate work experience – Certified nurse teachers
– Contributions. – (a) In
determining the creditable service of any certified nurse teacher
employed by the state or by any city or town for the
purpose of retirement or a service retirement
allowance (not including a deferred retirement
allowance), there may be added to, and included
in, total service as defined in this chapter not more
than four (4) years of "appropriate work
experience." The service shall not be counted as
creditable service unless the member shall pay
into the retirement system a contribution equal to the
full actuarial costs for each year of the
service for which the member claims credit.
(b) Credit for
"appropriate work experience" which is purchased under paragraph
(a)
above may
also be used for retirement purposes under the provisions of subsection (a) for
certified nurse teachers who retire on ordinary
disability under section 36-10-13 or section 16-16-
14, provided
the certified nurse teachers have at least ten (10) years' creditable service.
(c) The term
"appropriate work experience" for the purposes of a certified nurse
teacher
means service in any industry, business, or other
appropriate enterprise where a member has
worked as a registered nurse and for which no credit
for the purposes of retirement has been
granted for either teaching in a school of nursing or
for any other appropriate work experience;
provided, however, that no member shall be allowed
credit for more than a total of four (4) years
of service credit.
16-16-7.2. Peace
corps, teacher corps, and volunteers in service to
– (a) Any active teacher who served in the peace corps,
teacher corps, or in volunteers in service
to
on an official leave of absence for illness or injury
shall be eligible to purchase the credits while
on the leave of absence.
(b) The cost to purchase
these credits shall be the full actuarial cost as defined in section
36-8-1(9)(10).
16-16-8. Credit
for service as a state or municipal employee. – Any member who shall
have rendered service as a state employee as defined
by the provisions of chapter 17 of this title
and chapters 8 – 10 of title 36 or who shall have
rendered service as an employee of a
participating municipality, as defined by chapter 21
of title 45, shall be entitled to credit for his or
her service for the various purposes of this system,
provided the member shall have been a
contributing member for that period. All contributions
made by the member shall be transferred
into 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 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
credit for service shall be conditioned upon the
repayment of the full actuarial cost as defined in
section 36-8-1(9)(10). Any service as
defined in this section for which no contributions were
made may be granted provided the member pays to the
retirement system the full actuarial cost as
defined in section 36-8-1(9)(10). The
retirement board shall fix and determine the rules and
regulations needed to govern the provisions of this
section.
16-16-12. Procedure
for service retirement. – Retirement of a member on a service
retirement allowance shall be made by the retirement
board as follows:
(a)(i)
Any member may retire upon his or her written application to the retirement
board as
of the first day of the calendar month in which the
application was filed, provided the member
was separated from service prior to filing the
application, and further provided however, that if
separation from service occurs during the month in
which the application is filed, the effective
date shall be the first day following the separation
from service, and provided further that the
member on retirement date has attained the age of
sixty (60) years and has completed at least ten
(10) years of contributory service on or before July
1, 2005, or regardless of age has completed
twenty-eight (28) years of total service and has
completed at least ten (10) years of contributory
service on or before July 1, 2005, and who retire
before October 1, 2009 or are eligible to retire as
of September 30, 2009.
(ii) For teachers who
become eligible to retire on or after October 1, 2009 and prior to
July 1, 2012,
benefits are available to teachers who have attained the age of sixty-two (62)
and
completed at least ten (10) years of contributory
service. For teachers in service as of October 1,
2009 who were not eligible to retire as of September
30, 2009 but became eligible to retire prior
to July 1, 2012,
the minimum retirement age of sixty-two (62) 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:
(A) 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
sixty-two (62).
(B) The formula shall
then take the teacher's total service credit as of September 30, 2009
as the numerator and the years of service credit
determined under (A) as the denominator.
(C) The fraction
determined in (B) shall then be multiplied by the age difference in (1) to
apply a reduction in years from age sixty-two (62).
(b)(i)
Any member, who has not completed at least ten (10) years of contributory
service on
or before July 1, 2005, may retire upon his or her
written application to the retirement board as of
the first day of the calendar month in which the
application was filed; provided, the member was
separated from service prior thereto; and further
provided, however, that if separation from
service occurs during the month in which application
is filed, the effective date shall be the first
day following that separation from service; provided,
the member on his or her retirement date
had attained the age of fifty-nine (59) and had
completed at least twenty-nine (29) years of total
service; or provided, that the member on his or her
retirement date had attained the age of sixty-
five (65) and had completed at least ten (10) years of
contributory service; or provided, that the
member on his or her retirement date had attained the
age of fifty-five (55) and had completed
twenty (20) years of total service and provided, that
the retirement allowance, as determined
according to the formula in section 16-16-13 is
reduced actuarially for each month that the age of
the member is less than sixty-five (65) years and who
retire before October 1, 2009 or are eligible
to retire as of September 30, 2009.
(ii) For teachers who
become eligible to retire on or after October 1, 2009 and prior to
July 1, 2012,
benefits are available to teachers who have attained the age of sixty-two (62)
and
have completed at least twenty-nine (29) years of
total service or have attained the age of sixty-
five (65) and completed at least ten (10) years of
contributory service. For teachers in service as
of October 1, 2009 who were not eligible to retire as
of September 30, 2009 but become eligible
to retire prior to July 1, 2012, who have a minimum retirement age of sixty-two (62),
the
retirement age 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:
(A) 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
sixty-two (62).
(B) The formula shall
then take the teacher's total service credit as of September 30, 2009
as the numerator and the years of service credit
determined under (A) as the denominator.
(C) The fraction
determined in (B) shall then be multiplied by the age difference
determined in (A) to apply a reduction in years from
age sixty-two (62).
(c) Effective July 1,
2012, the following shall apply to all teachers not eligible to retire
prior to July 1, 2012:
(i)
A teacher with contributory service on or after July 1, 2012, shall be eligible
to retire
upon the completion of at least five (5) years of
contributory service and attainment of the
teacher’s Social Security retirement age.
(ii) For teachers
with five (5) or more years of contributory service as of June 30, 2012,
with contributory service on and after July 1, 2012,
who have a retirement age of Social Security
Retirement Age, the retirement age will be adjusted
downward in proportion to the amount of
service the teacher has earned as of June 30, 2012,
but in no event shall a teacher’s retirement age
under this subparagraph (ii) be prior to the
attainment of age fifty-nine (59) or prior to the
teacher’s retirement age determined under the laws in
effect on June 30, 2012. The proportional
formula shall work as follows:
(1) The formula shall
determine the first age of retirement eligibility under the laws in
effect on June 30, 2012 which shall then be subtracted
from Social Security retirement age;
(2) The formula shall
then take the teacher’s total service credit as of June 30, 2012 as the
numerator and the projected service at retirement age
in effect on June 30, 2012 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
Social Security retirement age.
(iii) A teacher who
has completed twenty (20) or more years of total service and who has
attained an age within five (5) years of the eligible
retirement age under subdivisions (c)(i) or
(c)(ii) above, may elect to retire provided that the
retirement allowance shall be reduced
actuarially for each month that the age of the teacher
is less than the eligible retirement age under
subdivisions (c)(i) or
(c)(ii) above.
(iv) Notwithstanding
any other provisions of this section, a teacher who has completed
ten (10) or more years of contributory service as of June
30, 2012, may elect to retire at his or her
eligible retirement date as determined under
subsections (a) and (b) above provided that a teacher
making an election under this paragraph shall receive
the teacher’s retirement benefit determined
and calculated based on the teacher’s service and
average compensation as of June 30, 2012.
This provision shall be interpreted and administered
in a manner to protect a teacher’s accrued
benefit on June 30, 2012.
(c) Any member also
paying into the retirement system under the provisions of chapter 9
of title 36 shall not be disqualified from receiving
benefits provided by that chapter and the
provisions of this chapter simultaneously.
(d) Except as
specifically provided in section 36-10-9.1, 36-10-12 through 36-10-15, and
45-21-19 through 45-21-22, no member shall be eligible
for pension benefits under this chapter
unless
(i)
the The member shall have been a
contributing member of the employees' retirement
system for at least ten (10) years; or
(ii) For teachers in
active contributory service on or after July 1, 2012, the teacher shall
have been a contributing member of the employees’
retirement system for at least five (5) years.
(2) Provided, however, a
person who has ten (10) years service credit shall be vested;
provided that for teachers in active contributory
service on or after July 1, 2012, a teacher who
has five (5) years of contributory service shall be
vested.
(3) Furthermore, any
past service credits purchased in accordance with section 36-9-38
shall be counted towards vesting.
(4) Any person who
becomes a member of the employees' retirement system pursuant to
section 45-21-8 shall be considered a contributing
member for the purpose of chapter 21 of title
45 and this chapter.
(5) Notwithstanding any
other provision of law, no more than five (5) years of service
credit may be purchased by a member of the system. The
five (5) year limit shall not apply to any
purchases made prior to January 1, 1995. A member who
has purchased more than five (5) years
of service credit before January 1, 1995, shall be
permitted to apply the purchases towards the
member's service retirement. However, no further
purchase will be permitted. Repayment, in
accordance with applicable law and regulation, of any
contribution previously withdrawn from
the system shall not be deemed a purchase of service
credit.
(6) Notwithstanding
any other provision of law, effective July 1, 2012, except for
purchases under sections 16-16-7.1, 36-5-3, 36-9-31,
36-10-10.4, and 45-21-53:
(i)
For service purchases for time periods prior to a teacher’s initial date of
hire, the
purchase must be made within three (3) years of the
teacher’s initial date of hire; and
(ii) For service
purchases for time periods for official periods of leave as authorized by
law, the purchase must be made within three (3) years
of the time the official leave was
concluded by the teacher. Notwithstanding paragraphs (i) and (ii) above, service purchases from
time periods prior to June 30, 2012 may be made on or
prior to June 30, 2015.
(e) No member of the
teachers' retirement system shall be permitted to purchase service
credits for casual or seasonal employment, for
employment as a temporary or emergency
employee, a
page in the general assembly, or for employment at any state college or
university
while the employee is a student or graduate of the
college or university.
(f) Except as specifically
provided in section 16-16-6.2 and 16-16-6.4, a member shall
not receive service credit in this retirement system
for any year or portion of a year which counts
as service credit in any other retirement system in
which the member is vested or from which the
member is receiving a pension and/or any annual
payment for life. This subsection shall not apply
to any payments received pursuant to the federal
Social Security Act, 42 U.S.C. section 301 et
seq.
(g) A member who seeks
to purchase or receive service credit in this retirement system
shall have the affirmative duty to disclose to the
retirement board whether or not he or she is a
vested member in any other retirement system and/or is
receiving a pension, retirement
allowance, or any annual payment for life. The
retirement board shall have the right to investigate
as to whether or not the member has utilized the same
time of service for credit in any other
retirement system. The member has an affirmative duty to
cooperate with the retirement board
including, by way of illustration and not by way of
limitation, the duty to furnish or have
furnished to the retirement board any relevant
information that is protected by any privacy act.
(h) A member who fails
to cooperate with the retirement board shall not have the time of
service credit counted toward total service credit
until the time the member cooperates with the
retirement board and until the time the retirement
board determines the validity of the service
credit.
(i)
A member who knowingly makes a false statement to the retirement board
regarding
service time or credit shall not be entitled to a
retirement allowance and is entitled only to the
return of his or her contributions without interest.
16-16-13. Amount
of service retirement allowance. – (a)(1)(i)
For teachers eligible to
retire on or before September 30, 2009, upon
retirement from service under section 16-16-12 a
teacher whose membership commenced before July 1, 2005
and who has completed at least ten
(10) years of contributory service on or before July
1, 2005, shall, receive a retirement allowance
which shall be determined in accordance with schedule
A for service prior to July 1, 2012.
SCHEDULE A
YEARS OF SERVICE PERCENTAGE
ALLOWANCE
1st through 10th
inclusive 1.7%
11th through 20th
inclusive 1.9%
21st through 34th
inclusive 3.0%
5th 2.0%
(ii) For teachers
eligible to retire on or after October 1, 2009 who were not eligible to
retire on or before September 30, 2009, upon
retirement for service under section 16-16-12, a
teacher whose membership commenced before July 1, 2005
and who has completed at least ten
(10) years of contributory service on or before July
1, 2005 shall receive a retirement allowance
which shall be determined in accordance with schedule
A above for service on before September
30, 2009, and shall be determined in accordance with
schedule B in subsection (a)(2) below for
service on or after October 1, 2009 and prior to
July 1, 2012:
(2) Upon retirement from
service under section 16-16-12 a teacher whose membership
commenced after July 1, 2005 or who has not completed
at least ten (10) years of contributory
service as of July 1, 2005 shall receive a retirement
allowance which shall be determined in
accordance with Schedule B for service prior to
July 1, 2012.
SCHEDULE B
YEARS OF SERVICE PERCENTAGE
ALLOWANCE
1st through 10th inclusive
1.60%
11th through 20th
inclusive 1.80%
21st through 25th
inclusive 2.0%
26th through 30th
inclusive 2.25%
31st through 37th
inclusive 2.50%
38th 2.25%
(b) The retirement
allowance of any teacher whose membership commenced before July
1, 2005 and who has completed at least ten (10) years
of contributory service on or before July 1,
2005 shall be in an amount equal to the percentage
allowance specified in subsection (a)(1) of his
or her average highest three (3) consecutive years of
compensation multiplied by the number of
years of total service, but in no case to exceed
eighty percent (80%) of the compensation, payable
at completion of thirty-five (35) years of service;
provided, however, for teachers retiring on or
after October 1, 2009 who were not eligible to retire
as of September 30, 2009 the calculation
shall be based on the average highest five (5)
consecutive years of compensation.
The retirement allowance
of any teacher whose membership commenced after July 1,
2005 or who has not completed at least ten (10) years
of contributory service as of July 1, 2005
shall be in an amount equal to the percentage
allowance specified in Schedule B of his or her
average highest three (3) consecutive years of
compensation multiplied by the number of years of
total service, but in no case to exceed seventy-five
percent (75%) of the compensation, payable at
completion of thirty-eight (38) years of service;
provided, however, for teachers retiring on or
after October 1, 2009 who were not eligible to retire
as of September 30, 2009 the calculation
shall be based on the average highest five (5)
consecutive years of compensation.
Any teacher who has in
excess of thirty-five (35) years on or before June 2, 1985 shall
not be entitled to any refund, and any teacher with
thirty-five (35) years or more on or after June
2, 1985 shall contribute from July 1, 1985 until his
or her retirement.
(c) For service prior
to July 2012, the retirement allowance of a teacher shall be
determined in accordance with subsections (a)(1) and
(a)(2) above. For service on and after July
1, 2012, a teacher’s retirement allowance shall be
equal to one percent (1%) of the teacher’s
average compensation multiplied by the teacher’s years
of service on and after July 1, 2012. In no
event shall a teacher’s retirement allowance exceed
the maximum limitations set forth in
subsection (b) above.
16-16-22. Contributions
to state system. – (a) Prior to July 1, 2012, each Each teacher
member shall
contribute into the system nine and one-half percent (9.5%) of compensation as
his
or her share of the cost of annuities, benefits, and
allowances. Effective July 1, 2012, each teacher
shall contribute an amount equal to three and three
quarters percent (3.75%) of his or her
compensation.
The employer contribution on behalf of teacher members of the system shall be
in
an amount that will pay a rate percent of the
compensation paid to the members, according to the
method of financing prescribed in the State Retirement
Act in chapters 8 – 10 and 10.3 of title 36.
This amount shall be paid forty percent (40%)
by the state, and sixty percent (60%) by the city,
town, local educational agency, or any formalized
commissioner approved cooperative service
arrangement by whom the teacher members are employed,
with the exception of teachers who
work in federally funded projects and further with
the exception of any supplemental
contributions by a local municipality employer under
chapter 36-10.3 which supplemental
employer contributions shall be made wholly by the
local municipality. Provided,
however, that
the rate percent paid shall be rounded to the nearest
hundredth of one percent (.01%).
(b) The employer
contribution on behalf of teacher members of the system who work in
fully or partially federally funded programs shall be
prorated in accordance with the share of the
contribution paid from the funds of the federal, city,
town, or local educational agency, or any
formalized commissioner approved cooperative service
arrangement by whom the teacher
members are approved.
(c) In case of the
failure of any city, town, or local educational agency, or any formalized
commissioner approved cooperative service arrangement
to pay to the state retirement system the
amounts due from it under this section within the time
prescribed, the general treasurer is
authorized to deduct the amount from any money due the
city, town, or local educational agency
from the state.
(d) The employer's
contribution shared by the state shall be paid in the amounts
prescribed in this section for the city, town, or
local educational agency and under the same
payment schedule. Notwithstanding any other provisions
of this chapter, the city, town, or local
educational agency or any formalized commissioner
approved cooperative service arrangement
shall remit to the general treasurer of the state the
local employer's share of the teacher's
retirement payments on a monthly basis, payable by the
fifteenth (15th) of the following month,
provided that the employer contribution shall be
deferred from the effective date of this act until
June 15, 2010.
The amounts that would have been contributed shall be deposited by the state in
a
special fund and not used for any purpose. The general
treasurer, upon receipt of the local
employer's share, shall effect transfer of a matching
amount of money from the state funds
appropriated for this purpose by the general assembly
into the retirement fund., provided that for
the period from the effective date of this act until
June 15, 2010, the general treasurer shall not
make such transfer.
Upon reconciliation of
the final amount owed to the retirement fund for the employer
share, the state shall ensure that any local education
aid reduction assumed for the FY 2010
revised budget in excess of the actual savings is
restored to the respective local entities.
or town, pursuant to the provisions of section
414(h)(2) of the United States Internal Revenue
Code, 26 U.S.C. section 414(h)(2), may, pursuant to
appropriate local action by the city or town,
pick up and pay the contributions which would be
payable by the employees as teacher members
under section 16-16-22. The contributions so picked up
shall be treated as employer contributions
in determining tax treatment under the United States
Internal Revenue Code; however, each city
or town shall continue to withhold federal and state
income taxes based upon these contributions
until the internal revenue service rules that pursuant
to 26 U.S.C. section 414(h)(2) these
contributions shall not be included as gross income of
the employee until the time they are
distributed.
Employee contributions picked up pursuant to this section shall be treated and
identified as teacher member contributions for all
purposes of the retirement system except as
specifically provided to the contrary in this section.
(b) Teacher member
contributions picked up by a city or town shall be paid from the
same source of funds used for the payment of
compensation to a teacher member. A deduction
shall be made from a teacher member's compensation
equal to the amount of his or her
contributions picked up by his or her city or town
employer. This deduction, however, shall not
reduce his or her compensation for purposes of
computing benefits under the retirement system
pursuant to this chapter or chapter 10 of title 36.
Picked up contributions shall be transmitted to
the retirement system in accordance with the
provisions of section 16-16-22 and section 36-10-1.
16-16-40. Additional
benefits payable to retired teachers. – (a) All teachers and all
beneficiaries of teachers receiving any service
retirement or ordinary or accidental disability
retirement allowance pursuant to the provisions of
this chapter and chapter 17 of this title, on or
before December 31, 1967, shall receive a cost of
living retirement adjustment equal to one and
one-half percent (1.5%) per year of the original
retirement allowance, not compounded, for each
year the retirement allowance has been in effect. For purposes
of computation credit shall be
given for a full calendar year regardless of the
effective date of the retirement allowance. This
cost of living retirement adjustment shall be added to
the amount of the service retirement
allowance as of January 1, 1970, and payment shall
begin as of July 1, 1970. An additional cost
of living retirement adjustment shall be added to the
original retirement allowance equal to three
percent (3%) of the original retirement allowance on
the first day of January, 1971, and each year
thereafter through December 31, 1980.
(b) All teachers and
beneficiaries of teachers receiving any service retirement or ordinary
disability retirement allowance pursuant to the
provisions of this title who retired on or after
January 1, 1968, shall, on the first day of January,
next following the third (3rd) year on
retirement, receive a cost of living adjustment, in
addition to his or her retirement allowance, an
amount equal to three percent (3%) of the original
retirement allowance. In each succeeding year
thereafter, on the first day of January, the
retirement allowance shall be increased an additional
three percent (3%) of the original retirement
allowance, not compounded, to be continued through
December 31, 1980.
(c)(1) Beginning on
January 1, 1981, for all teachers and beneficiaries of teachers receiving
any service retirement and all teachers and all
beneficiaries of teachers who have completed at
least ten (10) years of contributory service on or
before July 1, 2005, pursuant to the provisions of
this chapter, and for all teachers and beneficiaries
of teachers who receive a disability retirement
allowance pursuant to section 16-16-14 – 16-16-17, the
cost of living adjustment shall be
computed and paid at the rate of three percent (3%) of
the original retirement allowance or the
retirement allowance as computed in accordance with
section 16-16-40.1, compounded annually
from the year for which the cost of living adjustment
was determined to be payable by the
retirement board pursuant to the provisions of
subsection (a) or (b) of this section. Such cost of
living adjustments are available to teachers who
retire before October 1, 2009 or are eligible to
retire as of September 30, 2009.
(2) The provisions of
this subsection shall be deemed to apply prospectively only and no
retroactive payment shall be made.
(3) The retirement
allowance of all teachers and all beneficiaries of teachers who have
not completed at least ten (10) years of contributory
service on or before July 1, 2005 or were not
eligible to retire as of September 30, 2009, shall, on
the month following the third anniversary
date of the retirement, and on the month following the
anniversary date of each succeeding year
be adjusted and computed by multiplying the retirement
allowance by three percent (3%) or the
percentage of increase in the Consumer Price Index for
all Urban Consumers (CPI-U) as
published by the United States Department of Labor
Statistics, determined as of September 30 of
the prior calendar year, whichever is less; the cost
of living adjustment shall be compounded
annually from the year for which the cost of living
adjustment was determined payable by the
retirement board; provided, that no adjustment shall
cause any retirement allowance to be
decreased from the retirement allowance provided
immediately before such adjustment.
(d) For teachers not
eligible to retire in accordance with this chapter as of September 30,
2009 and not eligible upon passage of this article,
and for their beneficiaries, the cost of living
adjustment described in subsection (3) above shall
only apply to the first thirty-five thousand
dollars ($35,000) of retirement allowance, indexed
annually, and shall commence upon the third
(3rd) anniversary of the date of retirement or when
the retiree reaches age sixty-five (65),
whichever is later. The thirty-five thousand dollar
($35,000) limit shall increase annually by the
percentage increase in the Consumer Price Index for
all Urban Consumer (CPI-U) as published
by the United States Department of Labor Statistics
determined as of September 30 of the prior
calendar year or three percent (3%), whichever is
less. The first thirty-five thousand dollars
($35,000), as indexed, of retirement allowance shall
be multiplied by the percentage of increase
in the Consumer Price Index for all Urban Consumers
(CPI-U) as published by the
Department of Labor Statistics determined as of
September 30 of the prior calendar year or three
percent (3%), whichever is less, on the month
following the anniversary date of each succeeding
year. For teachers eligible to retire as of September
30, 2009 or eligible upon passage of this
article, and for their beneficiaries, the provisions
of this subsection (d) shall not apply.
(e)(1)
Notwithstanding the prior paragraphs of this section, and subject to paragraph
(e)
(2) below, for all present and former teachers, active
and retired teachers, and beneficiaries
receiving any retirement, disability or death
allowance or benefit of any kind, the annual benefit
adjustment provided in any calendar year under this
section shall be equal to (A) multiplied by
(B) where (A) is equal to the percentage determined by
subtracting five and one-half percent
(5.5%) (the “subtrahend”) from the Five-Year Average
Investment Return of the retirement
system determined as of the last day of the plan year
preceding the calendar year in which the
adjustment is granted, said percentage not to exceed
four percent (4%) and not to be less than
zero percent (0%), and (B) is equal to the lesser of
the teacher’s retirement allowance or the first
twenty-five thousand dollars ($25,000) of retirement
allowance, such twenty-five thousand
dollars ($25,000) amount to be indexed annually in the
same percentage as determined under
paragraph (e)(1)(A) above. The “Five-Year Average
Investment Return” shall mean the average
of the investment returns of the most recent five (5)
plan years as determined by the retirement
board. Subject to paragraph (e)(2) below, the benefit
adjustment provided by this paragraph shall
commence upon the third (3rd) anniversary of the date
of retirement or the date on which the
retiree reaches his or her Social Security retirement
age, whichever is later. In the event the
retirement board adjusts the actuarially assumed rate
of return for the system, either upward or
downward, the subtrahend shall be adjusted either
upward or downward in the same amount.
(2) Except as provided
in paragraph (e)(3), the benefit adjustments under this section for
any plan year shall be suspended in their entirety
unless the GASB Funded Ratio of the
Employees’ Retirement System of
State Police Retirement Benefits Trust, calculated by
the system’s actuary on an aggregate basis,
exceeds eighty percent (80%) in which event the
benefit adjustment will be reinstated for all
teachers for such plan year.
In determining
whether a funding level under this paragraph (e)(2) has been achieved, the
actuary shall calculate the funding percentage after
taking into account the reinstatement of any
current or future benefit adjustment provided under
this section. “GASB Funded Ratio” shall
mean the ratio of the actuarial value of assets to the
actuarial accrued liability.
(3) Notwithstanding
paragraph (e)(2), in each fifth plan year commencing after June 30,
2012 commencing with the plan year ending June 30,
2017, and subsequently at intervals of five
plan years, a benefit adjustment shall be calculated
and made in accordance with paragraph (e)(l)
above until the GASB Funded Ratio of the Employees’
Retirement System of
Judicial Retirement Benefits Trust and the State
Police Retirement Benefits Trust, calculated by
the system’s actuary on an aggregate basis, exceeds
eighty percent (80%).
(4) Notwithstanding
any other provisions of this chapter, the provisions of this paragraph
(e) of section 16-16-40 shall become effective July 1,
2012, and shall apply to any benefit
adjustments not granted on or prior to June 30, 2012.
SECTION
11. Sections 45-21-2, 45-21-6, 45-21-7, 45-21-8, 45-21-8.1, 45-21-9, 45-21-
12.1, 45-21-14.2, 45-21-16,
45-21-17, 45-21-17.2, 45-21-18, 45-21-30, 45-21-35, 45-21-41, 45-
21-46, 45-21-51.1,
45-21-52, 45-21-58 and 45-21-66 of the General Laws in Chapter 45-21
entitled "Retirement
of Municipal Employees are hereby amended to read as follows:
45-21-2. Definitions.
-- The following words and phrases as used in this chapter have the
following meanings unless a different meaning is
plainly required by the context:
(1) "Accumulated
contributions" means the sum of all amounts deducted from the
compensation of a member and credited to his or her
individual account in the members'
contribution reserve account.
(2) "Active
member" means any employee of a participating municipality as defined in
this section for whom the retirement system is
currently receiving regular contributions pursuant
to sections 45-21-41, 45-21-41.1 or 45-21.2-14.
(3) "Actuarial
reserve" means the present value of all payments to be made on account of
any annuity, retirement allowance, or benefit,
computed upon the basis of mortality tables
adopted by the retirement board with regular interest.
(4)
"Beneficiary" means any person in receipt of a retirement allowance,
annuity, or
other benefit as provided by this chapter.
(5) For purposes of this
chapter, "domestic partner" shall be defined as a person who,
prior to the decedent's death, was in an exclusive,
intimate and committed relationship with the
decedent, and who certifies by affidavit that their
relationship met the following qualifications:
(i)
Both partners were at least eighteen (18) years of age and were mentally
competent to
contract;
(ii) Neither partner
was married to anyone else;
(iii) Partners were not
related by blood to a degree which would prohibit marriage in the
state of
(iv)
Partners resided together and had resided together for at least one year at the
time
of death; and
(v) Partners were
financially interdependent as evidenced by at least two (2) of the
following:
(A) Domestic
partnership agreement or relationship contract;
(B) Joint mortgage or
joint ownership of primary residence;
(C) Two (2) of: (I)
Joint ownership of motor vehicle; (II) Joint checking account; (III)
Joint credit account; (IV) Joint lease; and/or
(D) The domestic
partner had been designated as a beneficiary for the decedent's will,
retirement contract or life insurance.
(6) "Effective
date of participation" means the date on which the provisions of this
chapter have become applicable to a municipality
accepting the provisions of the chapter in the
manner stated in § 45-21-4.
(7) “Employee means any
regular and permanent employee or officer of any
municipality, whose business time at a minimum of twenty
(20) hours a week is devoted to the
service of the municipality, including elective
officials and officials and employees of city and
town housing authorities. Notwithstanding the previous
sentence, the term “employee”, for the
purposes of this chapter, does not include any person
whose duties are of a casual or seasonal
nature. The retirement board shall decide who are
employees within the meaning of this chapter,
but in no case shall it deem as an employee any
individual who annually devotes less than twenty
(20) business hours per week to the service of the
municipality and who receives less than the
equivalent of minimum wage compensation on an hourly
basis for his or her services, except as
provided in section 45-2 1- 14.1. Casual employees
mean those persons hired for an occasional
period or a period of emergency to perform
special jobs or functions not necessarily related to the
work of regular employees. Any commissioner of a
municipal housing authority, or any member
of a part-time state board commission, committee or
other authority is not deemed to be an
employee within the meaning of this chapter.
(8) “Final compensation”
for members who are eligible to retire on or prior to June 30,
2012 shall
means 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 the average was highest, and as the term average
annual compensation is further defined in
subdivision 36-8-1(5)(a)(4). For
members eligible to retire on or after July 1, 2012, “final
compensation” means the average of the highest five
(5) consecutive years of compensation
within the total service when the final compensation
was the highest. For members who become
eligible to retire on or after July 1, 2012, if more
than one half (1/2) of the member’s total years
of service consist of years of service during which
the member devoted less than thirty (30)
business hours per week to the service of the municipality,
but the member’s average
compensation consists of three (3) or more years
during which the member devoted more than
thirty (30) business hours per week to the service of
a municipality, such member’s average
compensation shall mean the average of the highest ten
(10) consecutive years of compensation
within the total service when the average compensation
was the highest. Notwithstanding the
preceding provisions, in no event shall a member’s
final compensation be lower than his or her
final compensation determined as of June 30, 2012.
(9) "Fiscal
year" means the period beginning on July 1 in any year and ending on June
30
of the next succeeding year.
(10) "Full
actuarial costs" or "full actuarial value" mean the lump sum
payable by a
member claiming service credit for certain employment
for which payment is required, which is
determined according to the age of the member and his
or her annual rate of compensation at the
time he or she applies for service credit, and which
is expressed as a rate percent of the annual
rate of compensation to be multiplied by the number of
years for which he or she claims the
service credit, as prescribed in a schedule adopted by
the retirement board, from time to time, on
the basis of computation by the actuary. Except as
provided in sections 16-16-7.1, 36-5-3, 36-9-
31, 36-10-10.4, and subdivision 45-21-53: (i) All service credit purchases requested after June 16,
2009 and prior to July 1, 2012, shall be at full
actuarial value; and (ii) All service credit purchases
requested after June 30, 2012 shall be at full
actuarial value which shall be determined using the
system’s assumed investment rate of return minus one
percent (1%).
(11) "Governing
body" means any and all bodies empowered to appropriate monies for,
and administer the operation of, the units as defined
in subdivision (1) of this section.
(12) "Member"
means any person included in the membership of the retirement system
as provided in § 45-21-8.
(13)
"Municipality" means any town or city in the state of
town housing authority, fire, water, sewer district,
regional school district, public building
authority as established by chapter 14 of title 37, or
any other municipal financed agency to
which the retirement board has approved admission in
the retirement system.
(14)
"Participating municipality" means any municipality which has
accepted this
chapter, as provided in § 45-21-4.
(15) "Prior
service" means service as a member rendered before the effective date of
participation as defined in this section, certified on
his or her prior service certificate, and
allowable as provided in § 45-21-15.
(16) "Regular
interest" means interest compounded annually as determined by the
retirement board based upon the experience of the
system. at the assumed investment
rate of
return, compounded annually, as may be prescribed from
time to time by the retirement board.
(17) "Retirement
allowance" or "annuity" means the amounts paid to any member of
the
municipal employees' retirement system of the state of
member, as provided in this chapter. All retirement
allowances or annuities shall be paid in equal
monthly installments for life, unless otherwise
specifically provided.
(18) "Retirement
board" or “board” means the state retirement board created by
chapter
8 of title 36.
(19) "Retirement
system" means the "municipal employees' retirement system of the
state of
(20)
"Service" means service as an employee of a municipality of the state
of Rhode
Island as defined in subdivision (7).
(21) "Total
service" means prior service as defined in subdivision (15) plus service
rendered as a member on or after the effective date of
participation.
(22) Any term not
specifically defined in this chapter and specifically defined in chapters
36-8 through 36-10 shall have the same definition as
set forth in chapters 36-8 through 36-10.
45-21-6. Settlement
on withdrawal from system. -- (a) Upon withdrawal from the
system, the retirement board retains in the system
from contributions made by the members from
the municipality and by the municipality the following
amounts:
(1) An amount equal to
the actuarial value, determined in accordance with the actuarial
tables in use by the system, of the retirement and
disability allowances in force, being paid to
former employees of the municipality who were granted
allowances as members of the system or
to the beneficiaries of those members;
(2) An amount equal to
the actuarial value of deferred annuities to members who have
not retired but who have acquired a vested right to a
retirement allowance who may desire to
maintain that vested right; and
(3) An amount equal to
the accumulated contributions of the members who have not
acquired a vested right which shall be refunded to
those members.
(b) Any remainder in
the system after providing for the foregoing amounts shall be paid
over to the municipality in such amount as the
retirement board shall in its sole discretion
determine to be prudent and legally permissible; provided, that if no remainder exists and a
deficiency to pay those amounts has accumulated, the
municipality is liable to the system for the
amount of the deficiency as provided in this section.
45-21-7. Liability
of municipalities - Enforcement. -- (a) Each participating
municipality is liable to the retirement system for
the cost of funding a retirement system for its
employees who are members of the system, including all
contributions collected from employees,
including any contributions pursuant to chapter
36-10.3.
(b) The liability of a
municipality, including the liability under any formalized,
commissioner approved, cooperative service arrangement
under this chapter is enforceable by the
retirement board against the municipality through
appropriate action in the superior court.
(c) The state is further
empowered to withhold from any municipality that amount of the
municipality’s portion of any shared taxes which is
sufficient to satisfy the liability, including any
liability pursuant to chapter 36-10.3.
45-21-8. Membership
in system. -- Membership in the retirement system does not begin
before the effective date of participation in the
system as provided in § 45-21-4, and consists of
the following:
(a) Any employee of a
participating municipality as defined in this chapter, who
becomes an employee on and after the effective date of
participation, shall, under contract of his
or her employment, become a member of the retirement
system; provided, that the employee is
not receiving any pension or retirement allowance from
any other pension or retirement system
supported wholly or in part by a participating
municipality, and is not a contributor to any other
pension or retirement system of a participating
municipality. Any employee who is elected to an
office in the service of a municipality after the
effective date and prior to July 1, 2012, has the
option of becoming a member of the system, which
option must be exercised within sixty (60)
days following the date the employee assumes the
duties of his or her office, otherwise that
person is not entitled to participate under the
provisions of this section;
(b) Any employee or
elected official of a participating municipality in service prior to
the effective date of participation, who is not a
member of any other pension or retirement system
supported wholly or in part by a participating
municipality, and who does not notify the
retirement board in writing before the expiration of
sixty (60) days from the effective date of
participation that he or she does not wish to join the
system, shall automatically become a
member; and
(c) Any employee of a
participating municipality in service prior to the effective date of
participation, who is a member of any other pension or
retirement system supported wholly or in
part by a participating municipality on the effective
date of participation of their municipality,
who then or thereafter makes written application to
join this system, and waives and renounces all
accrued rights and benefits of any other pension or
retirement system supported wholly or in part
by a participating municipality, becomes a member of
this retirement system and shall not be
required to make contribution under any other pension
or retirement system of a participating
municipality, any thing to the contrary
notwithstanding.
(d) Notwithstanding the
provisions of this section, present firefighters employed by the
town of
system. If the town of
contributions to the pension plan, the auditor general
is authorized to redirect any
to cover the shortfall or to deduct that amount from
any moneys due the town from the state for
any purpose other than for education. Disability
determinations of present firefighters shall be
made by the state retirement board, subject to the
provisions of § 45-21-19 at the town of
the state retirement system.
(e) Notwithstanding the
provisions of this section, any City of
are presently members of Teamsters Local Union No.
251, hired between the dates of July 1,
2005 and June 30, 2010 inclusive and who are currently
members of the retirement system
established by this chapter, may opt out of said retirement
system and choose to enroll in a
defined contribution plan (i.e., a 403 (b) plan or
equivalent thereof) established by the City of
(f) Notwithstanding the
provisions of this section, any City of
will be members of Teamsters Local Union No. 251,
hired after June 30, 2010 shall be enrolled in
a defined contribution plan (i.e., a 403 (b) plan or
equivalent thereof) established by the City of
(g) Notwithstanding the
provisions of this section, any City of
defined in (e) and (f) of this section shall be
precluded from purchase of service credit for time
served on or after July 1, 2010 while participating in
the defined contribution plan (i.e., a 403 (b)
plan or equivalent thereof) established by the City of
employment with the City of
with another participating employer who has accepted
the provisions, as defined, in § 45-21-4.
45-21-8.1. Exclusion
of elected city, or town council members .Exclusion of elected
city, town council or other elected members. -- Notwithstanding
any provision of this chapter
or any provision of the general or public laws to the
contrary, no city or town council member,
school committee members or other local elected
officials, other than elected officials who are
compensated for devoting thirty-five (35) or more
hours per week to their elected position,
elected for the first time after November 4 June
30, 2012, shall be allowed membership into the
municipal employees’ retirement system, as a result of
that elective service.
45-21-9. Prior
service credit of members joining by election – Purchase of credit for
prior service. -- (a) No
employee of a participating municipality whose membership in the
retirement system is contingent on his or her own
election to join under § 45-21-8(c), shall
receive prior service credit unless the employee makes
application for membership within one
year from the effective date of participation of the
municipality by which the employee is
employed. Any employee who elects not to join this
retirement system, as provided in § 45-21-
8(b), may thereafter be admitted to membership, but no
employee shall receive credit for prior
service unless the employee applies for membership
within one year from the effective date of
participation of the municipality by which the employee
is employed.
(b) Any member who
becomes an employee after the effective date of participation by a
municipality into the system, has the privilege of
purchasing credit for prior service with the city
or town of which the employee is now employed. This
privilege does not become effective until a
member has had at least one year of service following
his or her latest reentry into membership
with the system, and credit is granted only when the
member makes a lump sum payment of six
percent (6%) of the rate of compensation in effect on
the date of reentry, plus regular interest,
compounded annually from that date to the date of
purchase. The maximum period of service that
may be purchased under this section is ten (10) years.
Upon granting prior service under the
provisions of this section, the board shall bill the
applicable city or town for its share of the total
liability for the prior service. Effective July 1,
2012, any purchase requested under this paragraph
shall be made by a member at full actuarial cost.
45-21-12.1. Credit
for service as a teacher or state employee. -- Any member who has
rendered service as a teacher, as defined under the
provisions of chapters 16 and 17 of title 16, or
as a state employee, as defined by the provisions of
chapters 8 to 10 of title 36, is entitled to credit
for that service for the various purposes of this
system; provided, that the member was a
contributing member for that period. All contributions
made by the member for those periods of
service shall be transferred in toto
to to this system 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 employing municipality. In any case
in which a member has received a refund or refunds of
contributions made to the system, the
allowance of the previously stated credit for service
is conditioned upon the repayment of the
refund or refunds, including regular interest from the
date of refund to the date of repayment. Any
service as defined in this section for which no
contributions were made, may be granted;
provided, that the member pays to the retirement system
a lump sum payment equal to the
amount had he or she been a member during that period,
plus interest as defined in this section.
Effective July 1, 2012, any purchase requested under
this paragraph shall be made by a member
at full actuarial cost. The retirement board shall fix and determine rules
and regulations that are
needed to govern the provisions of this section.
45-21-14.2. Leave
of absence credits. -- (a) Members with at least one year of
membership credits who have been granted an official
leave of absence without pay for illness,
injury, educational or, any other reason, may receive
credit for the leave by making contributions
to the retirement system, in a lump sum, in an amount
equal to the contribution the member
would have made to the retirement system based upon
the member's expected compensation but
for the granting of leave without pay, plus regular
interest compounded annually to date of
payment; provided, that the member returns to service
for at least one year immediately upon
completion of that leave. Credit for leaves of absence
under this section are limited, in the
aggregate, during the total service of a member to a
period of four (4) years maximum. Effective
July 1, 2012, any purchase requested under this paragraph
shall be made by a member at full
actuarial cost.
(b) The retirement board
fixes the time when and the conditions under which payments
are made under this section.
(c) This section is
exempt from the provisions of §§ 45-13-6 – 45-13-10.
45-21-16. Retirement
on service allowance. -- Retirement of a member on a service
retirement allowance shall be made by the retirement
board as follows:
(1) (i) Any member who is eligible to retire on or before
June 30, 2012, may retire upon
the member's written application to the retirement
board as of the first day of the calendar month
in which the application was filed, provided the
member was separated from service prior to the
application, and provided, further, that if separation
from service occurs during the month in
which application is filed, the effective date is the
first day following the separation from service,
provided that the member at the time so specified for
the member's retirement has attained the
applicable minimum retirement age and has completed at
least ten (10) years of total service or
who, regardless of age, completed thirty (30) years of
total service, and notwithstanding that
during the period of notification the member has
separated from service. The minimum ages for
service retirement (except for employees completing
thirty (30) years of service) is fifty-eight
(58) years.
(ii) Effective July
1, 2012, the following shall apply to all members not eligible to retire
prior to July 1, 2012:
(A) A member with
contributory service on or after July 1, 2012, shall be eligible to retire
upon the completion of at least five (5) years of
contributory service and attainment of the
member’s Social Security retirement age.
(B) For members with
five (5) or more years of contributory service as of June 30, 2012,
with contributory service on and after July 1, 2012,
who have a retirement age of Social Security
Retirement Age, the retirement age will be adjusted
downward in proportion to the amount of
service the member has earned as of June 30, 2012, but
in no event shall a member’s retirement
age under this subparagraph (B) be prior to the
attainment of age fifty-nine (59) or prior to the
member’s retirement age determined under the laws in
effect on June 30, 2012. The proportional
formula shall work as follows:
(1) The formula shall
determine the first age of retirement eligibility under the laws in
effect on June 30, 2012 which shall then be subtracted
from Social Security retirement age;
(2) The formula shall
then take the member’s total service credit as of June 30, 2012 as
the numerator and the projected service at retirement
age in effect on June 30, 2012 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
Social Security retirement age.
(C) A member who has
completed twenty (20) or more years of total service and who has
attained an age within five (5) years of the eligible
retirement age under subparagraphs (ii)(A) or
(ii)(B) 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 (ii)(A) or (ii)(B) above.
(D) Notwithstanding
any other provisions of section 42-21-16(1)(ii), a member who has
completed ten (10) or more years of contributory
service as of June 30, 2012, may elect to retire
at his or her eligible retirement date as determined
under paragraph (i) above 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 average 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.
(2) Except as
specifically provided in §§ 45-21-19 through 45-21-22, no member is
eligible for pension benefits under this chapter
unless:
(I) On or prior to
June 30, 2012 the member has been a contributing member of the
employees' retirement system for at least ten (10)
years; or
(II) For members in
active contributory service on or after July 1, 2012, the member
shall have been a contributing member of the
employees’ retirement system for at least five (5)
years.
(i)
Provided, however, a person who has ten (10) years service credit on or before
June
16, 1991 is vested.
(ii) Furthermore, any
past service credits purchased in accordance with § 45-21-62 are
counted towards vesting.
(iii) Any person who
becomes a member of the employees' retirement system pursuant to
§ 45-21-4 shall be considered a contributing member
for the purpose of this chapter.
(iv) Notwithstanding
any other provision of law, no more than five (5) years of service
credit may be purchased by a member of the System. The
five (5)-year limit does not apply to any
purchases made prior to the effective date of this
provision. A member who has purchased more
than five (5) years of service credit maximum, before
January 1, 1995, shall be permitted to apply
the purchases towards the member's service retirement.
However, no further purchase will be
permitted. Repayment, in accordance with applicable
law and regulation, of any contribution
previously withdrawn from the System is not deemed a
purchase of service credit.
(v) Notwithstanding
any other provision of law, effective July 1, 2012, except for
purchases under sections 16-16-7.1, 36-5-3, 36-9-31,
36-10-10.4, and 45-21-53:
(I) For service
purchases for time periods prior to a member’s initial date of hire; the
purchase must be made within three (3) years of the member’s
initial date of hire; and
(II) For service
purchases for time periods for official periods of leave as authorized by
law, the purchase must be made within three (3) years
of the time the official leave was
concluded by the member.
Notwithstanding (I)
and (II) above, service purchases from time periods prior to June 30,
2012 may be made on or prior to June 30, 2015.
(3) No member of the
municipal employees' retirement system is permitted to purchase
service credits for casual, temporary, emergency
or seasonal employment, for employment as a
page in the general assembly, or for employment at any
state college or university while the
employee is a student or graduate assistant of the
college or university.
(4) A member does not
receive service credit in this retirement system for any year or
portion of a year, which counts as service credit in
any other retirement system in which the
member is vested or from which the member is receiving
a pension and/or any annual payment
for life. This subsection does not apply to any
payments received pursuant to the Federal Social
Security Act or to payments from a military pension
earned prior to participation in state or
municipal employment, or to military service credits
earned prior to participation in state or
municipal employment.
(5) A member who seeks
to purchase or receive service credit in this retirement system
has the affirmative duty to disclose to the retirement
board whether or not he or she is a vested
member in any other retirement system and/or is
receiving a pension retirement allowance or any
annual payment for life. The retirement board has the
right to investigate whether or not the
member has utilized the same time of service for
credit in any other retirement system. The
member has an affirmative duty to cooperate with the
retirement board including, by way of
illustration and not by way of limitation, the duty to
furnish or have furnished to the retirement
board any relevant information which is protected by
any privacy act.
(6) A member who fails
to cooperate with the retirement board shall not have the time of
service counted toward total service credit until a
time that the member cooperates with the
retirement board and until a time that the retirement
board determines the validity of the service
credit.
(7) A member who
knowingly makes a false statement to the retirement board regarding
service time or credit is not entitled to a retirement
allowance and is entitled only to the return of
his or her contributions without interest.
45-21-17. Service
retirement allowance. -- (a) Upon retirement from service after
January 1, 1969, a member shall receive a retirement
allowance which is a life annuity terminable
upon death of the annuitant and is an amount is equal
to two percent (2%) of final compensation
multiplied by the number of years of total service,
not to exceed thirty-seven and one-half (37
1/2) years for services on and prior to June 30.
2012. For service on and after July 1, 2012, a
member’s retirement allowance shall be equal to one
percent (1%) of the member’s final
compensation multiplied by the member’s years of
service on and after July 1, 2012. In no event
shall a member’s retirement allowance exceed
seventy-five percent (75%) of the member’s final
compensation.
; provided, Provided, however, that every person elected prior
to July 1, 2012 who
has served as a part time elected official of the city
of
entitled to receive, upon retirement from that part
time service, and not being otherwise regularly
employed by the city of
equivalent to fifty percent (50%) of the salary
received at the time of retirement by that part time
elected official; and, provided, further, that if that
person retires after a period of service greater
than ten (10) years, the person is entitled to receive
an additional service retirement allowance
equivalent to five percent (5%) of the salary received
at the time of retirement for each whole
year of service, in excess of ten (10) years up to a
maximum additional allowance equivalent to
fifty percent (50%) of the salary received.
(b) This section also
applies to any former part time elected official of the city of
(c) Every person elected
prior to July 1, 2012 who serves or has served at least four (4)
years as a part time elected official of the city of
service as a member of the general assembly, and any
other credits acquired while serving as a
legislator, when computing the person's period of
service to the city of
provisions of this section.
45-21-17.2. Social
security supplemental option. -- (a) In lieu of the retirement on
service allowance, a vested member who retires in
accordance with § 45-21-16 may choose an
optional form of retirement benefit known as the
social security supplemental option.
(b) This option provides
for the payment of a larger benefit before the attainment of age
sixty-two (62) and a reduced benefit thereafter. The
reduced amount is equal to the benefit before
age sixty-two (62), including cost of living
increases, reduced by the member's estimated social
security benefit payable at age sixty-two (62).
Benefits payable under this option before and after
the attainment of age sixty-two (62) are actuarially
determined to be equivalent to the lifetime
service retirement allowance as determined in §
45-21-17.
(c) Election of this
social security supplemental option is available only to members with
ten (10) or more years of contributing service on or
before June 30, 2012 those who
elect the
service retirement allowance set forth in § 45-21-17.
45-21-18. Deferred
allowance on service retirement before minimum age. – The right
to a service retirement allowance under the provisions
of this chapter is vested in a member who
withdraws from service prior to the attainment of the
applicable minimum age of retirement as
prescribed in this section, who has not received a
refund; provided, that the member has
completed at least ten (10) years of total service,
or for members in active service on or after July
1, 2012, at least five (5) years of total service. The member becomes entitled to a service
retirement allowance upon the member's attainment of
the applicable minimum retirement age or
at the member's option at any date subsequent to
attaining that age. The rate of service retirement
allowance payable in the case of any member is that
provided in § 45-21-17 for the period of total
service earned and accrued at the date of withdrawal
from service of the member.
45-21-30. Optional
benefits on service retirement. -- (a) A beneficiary, or, if the
beneficiary is an incompetent, then his or her spouse
or domestic partner, or if he or she has no
spouse or domestic partner, a guardian of the
beneficiary’s estate, may elect to receive a benefit in
a retirement allowance, payable throughout life, or
the beneficiary may then elect to receive the
actuarial equivalent, at that time, of the
beneficiary’s retirement allowance in a lesser retirement
allowance as determined by actuarial calculation,
which shall be payable throughout life with the
provision that:
(1) Option 1. A reduced
retirement allowance payable during the beneficiary’s life, with
the provisions that after the beneficiary’s death, it
shall continue during the life of and be paid to
the person that the beneficiary has 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 beneficiary’s life, with
the provision that after the beneficiary’s death an
allowance equal to one-half (1/2) of the
beneficiary’s reduced allowance shall continue during
the life of and be paid to the person that the
beneficiary has nominated by written designation duly
acknowledged and filed with the board at
the time of retirement.
(b) This section does
not apply to any person who elects the social security supplemental
option related in section 45-21-17.2.
(c) This section is
exempt from the provisions of sections 45-13-6 - 45-13-10.
(d) If prior to July
1, 2012, a member elected an optional form of benefit other than a life
annuity in accordance with paragraph (a)(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.
45-21-35. Legal
adviser - General treasurer - Executive director - Assistant director.
– There shall be a legal counsel to the board appointed
by the general treasurer. The general
treasurer is the ex-officio chairperson of the
retirement board and he or she is the custodian of the
funds and
the treasurer of the retirement board and he or she shall be responsible for
appointing
the custodian.
There shall be an executive director appointed by the retirement board in
charge of
the administration of the retirement system and who
shall serve as secretary to the retirement
board. In addition, the retirement board shall appoint
an assistant director to serve as director
and/or secretary in the absence of the director.
45-21-41. Members'
contributions – Payroll deductions – Certification to board. –
(a) Prior to July 1, 2012, each Each member shall contribute an amount equal to six
percent (6%)
of salary or compensation earned and accruing to the
member; provided, that contributions by any
member cease when the member has completed the maximum
amount of service credit attainable.
Special compensation for additional fees shall not be
considered as compensation for contribution
purposes. Effective July 1, 2012, each member shall
contribute an amount equal to one percent
(1%) of his or her compensation as his or her share of
the cost.
(b) Each municipality
shall deduct the previously stated rate from the compensation of
each member on each and every payroll of the
municipality, and the deduction made during the
entire time a member is in service subject to
termination as stated in the foregoing paragraph.
(c) The deductions
provided for in this section shall be made notwithstanding that the
minimum compensation provided for by law for any
member is reduced by the compensation.
Every member is deemed to consent and agree to the
deductions made and provided for in this
section, and shall receipt for his or her full salary
or compensation; and payment of salary or
compensation less those deductions are a full and
complete discharge and acquittance of all
claims and demands for the services rendered by the
person during the period covered by the
payment except as to the benefits provided under this
chapter. Each participating municipality
shall certify to the retirement board the amounts
deducted from the compensation of members.
Each of the amounts, when deducted, shall be credited
to an individual account of the member
from whose compensation the deduction was made.
45-21-46. Forfeiture
for fraudulent claims. -- Every person who knowingly or willfully
makes or presents or in any way procures the making or
presentation of any false or fraudulent
affidavit or affirmation concerning any claim for
retirement allowance or payment of retirement
allowance, shall, in every case, forfeit a sum not
exceeding one ten thousand dollars ($10,000)
($1,000), to
be sued and recovered by and in the name of the retirement board, and when
recovered paid over to and become a part of the funds
of the retirement system.
45-21-51.1. Optional
annuity protection – Election of option by member. -- (a) Upon
death of a member having (1) at least ten (10)
years of membership service on or before June 30,
2012 or (2) for active contributing members on or
after July 1, 2012, at least five (5) years of
membership service, the spouse or domestic partner of the member has the option to elect
to
receive option one as provided in § 45-21-30 in lieu
of a return of contributions, provided the
spouse or domestic partner is the designated
beneficiary of the member's retirement account. The
election is based upon the amount of retirement
allowance or actuarial equivalent that may accrue
at the date of death of the member.
(b) The election under
option one for a person other than the spouse or domestic partner
of the member may be made by the member, while in service;
provided, that the member has (i)
at least ten (10) years of membership service on or
before June 30, 2012 and before retirement or
(ii) for active contributing members on or after July
1. 2012, at least five (5) years of membership
service and before retirement, on a form prescribed by the retirement board. The
election is based
upon the amount of retirement allowances or actuarial
equivalents that may accrue at the date of
death of the member; provided that the election form
is executed and filed with the retirement
board prior to the date of death. The election may be
revoked or modified by the member at any
time prior to the date of retirement, on a form
prescribed by the retirement board.
(c) Upon the death of a
member, the option becomes effective thirty (30) days after the
first day of the next calendar month following the
date of death of the member if death occurs
while in an employee status. Should death occur while
in an inactive member status, the option
under this section becomes payable on the first day of
the next succeeding month that in which
the designated beneficiary attains the age of sixty
(60) years.
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)(1) Notwithstanding
any other paragraphs of this section, and subject to paragraph (c)
(2) below, for all present and former employees,
active and retired members, and beneficiaries
receiving any retirement, disability or death
allowance or benefit of any kind by reason of
adoption of this section by their employer, the annual
benefit adjustment provided in any calendar
year under this section shall be equal to (A)
multiplied by (B) where (A) is equal to the
percentage determined by subtracting five and one-half
percent (5.5%) (the “subtrahend”) from
the Five-Year Average Investment Return of the
retirement system determined as of the last day
of the plan year preceding the calendar year in which
the adjustment is granted, said percentage
not to exceed four percent (4%) and not to be less
than zero percent (0%), and (B) is equal to the
lesser of the member’s retirement allowance or the
first twenty-five thousand dollars ($25,000) of
retirement allowance, such twenty-five thousand
dollars ($25,000) amount to be indexed annually
in the same percentage as determined under (c)(1)(A)
above. The “Five-Year Average Investment
Return” shall mean the average of the investment
returns of the most recent five (5) plan years as
determined by the retirement board. Subject to
paragraph (c)(2) below, the benefit adjustment
provided by this paragraph shall commence upon the
third (3rd) anniversary of the date of
retirement or the date on which the retiree reaches
his or her Social Security retirement age,
whichever is later; or for municipal police and fire
retiring under the provisions of chapter 45-
21.2, the benefit adjustment provided by this
paragraph shall commence on the later of the third
(3rd) anniversary of the date of retirement or the date
on which the retiree reaches age fifty- five
(55). In the event the retirement board adjusts the
actuarially assumed rate of return for the
system, either upward or downward, the subtrahend
shall be adjusted either upward or downward
in the same amount.
(2) Except as
provided in paragraph (c)(3) the benefit adjustments provided under this
section for any plan year shall be suspended in their
entirety for each municipal plan within the
municipal employees retirement system unless the
municipal plan is determined to be funded at a
GASB Funded Ratio equal to or greater than eighty
percent (80%) as of the end of the
immediately preceding plan year in accordance with the
retirement system’s actuarial valuation
report as prepared by the system’s actuary, in which
event the benefit adjustment will be
reinstated for all members for such plan year.
In determining
whether a funding level under this paragraph (c)(2) has been achieved, the
actuary shall calculate the funding percentage after taking
into account the reinstatement of any
current or future benefit adjustment provided under
this section. “GASB Funded Ratio” shall
mean the ratio of the actuarial value of assets to the
actuarial accrued liability.
(3) Notwithstanding
paragraph (c)(2), for each municipal plan that has a GASB Funded
Ratio of less than eighty percent (80%) as of June 30,
2012, in each fifth plan year commencing
after June 30, 2012 commencing with the plan year
ending June 30, 2017, and subsequently at
intervals of five (5) plan years, a benefit adjustment
shall be calculated and made in accordance with
paragraph (c)(1) above until the municipal plan’s GASB
Funded Ratio exceeds eighty percent
(80%).
(c)(d)
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 §
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)(e) The
city or town shall make any additional contributions to the system, pursuant to
the terms of § 45-21-42, for the payment of any
benefits provided by this section.
(e)(f) The
52(a)(3) for all employees of the town of
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.
45-21-58. Credits
for layoffs. -- (a) Members who are laid off for any reason and are not
on leave without pay may purchase up to one year's
credit for retirement purposes; provided, that
the member did not withdraw his or her retirement
contributions while on layoff, and returns to
active membership; provided, further, that the member
purchases the credit upon his or her return
to service from being laid off and pays into the
retirement system, in a lump sum, the amount he
or she would have contributed to the system but for
the layoff plus regular interest. Effective July
1, 2012 any purchase under this paragraph shall be at
full actuarial cost.
(b) The retirement board
shall fix and determine rules and regulations to govern the
provisions of this section.
45-21-66. Severability.--
The holding of any section or sections or parts of this chapter to
be void, ineffective, or unconstitutional for any
cause shall not be deemed to affect any other
section or part hereof.
SECTION
12. Sections 45-21.2-2, 45-21.2-5, 45-21.5-5.1, 45-21.5-6, 45-21.5-6.1, 45-
21.2-6.2, 45-21.2-6.3,
45-21.2-14, 45-21.2-16, 45-21.2-18, 45-21.2-19, 45-21.2-20, 45-21.2-21,
45-21.2-22, 45-21.2-22.1
and 45-21.2-25 of the General Laws in Chapter 45-21.2 entitled
"Optional Retirement
for Members of Police Force and Fire Fighters" 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.
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
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
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
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
of the
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
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 of
the general laws relating to the presumption of
disability is governed by the collective bargaining
agreement between the City of
(8) Any member of the
member of the
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
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 of
the general laws relating to the presumption of
disability is governed by the collective bargaining
agreement between the City of
(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
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 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 section 45-21.2-2, and
no benefit adjustments shall be provided except as set
forth in subsection 45-21-52(c).
(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.
(2) 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.
(3) 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).
(4) 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) 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) above.
(5) 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.
45-21.2-5.1. Retirement
credits for layoffs. -- (a) Members who are laid off for any
reason, and not on leave without pay, may purchase
layoff time up to one year service credit for
retirement purposes, provided the member did not
withdraw his or her retirement contributions
while on the layoff, and returns to active service.
(b) Provided, further,
that the member purchases the credit within one year of the
member's return to service from the layoff and (1)
for purchases on or prior to June 30, 2012, the
member pays
into the retirement system in a lump sum the amount the member would have
contributed to the system but for the layoff plus
regular interest and (2) for purchases on or after
July 1, 2012, the member pays into the retirement
system in a lump sum the full actuarial cost of
the time being purchased.
(c) The retirement board
shall fix and determine rules and regulations to govern the
provisions of this section.
45-21.2-6. Service
retirement allowance. -- (a) Upon retirement from service pursuant
to subdivision (1), (2), or (3) of § 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, but not to exceed seventy-five
percent (75%) of final compensation.
(b) Upon retirement
from service pursuant to subdivision (4) of § 45-21.2-5, a member
receives a retirement allowance which is a life
annuity terminable at the death of the annuitant
computed in accordance with subsection (a) of this
section, reduced by one-half of one percent (
1/2%) for each month that the member was under age
fifty-five (55) at his or her retirement.
(c)(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 (1/2) 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.
45-21.2-6.1.
retirement from service pursuant to subdivision (1),
(2), or (5) of § 45-21.2-5, a member of the
terminable at the death of the annuitant, and is an
amount equal to the sum of two and one-half
percent (2.5%) of final compensation multiplied by the
years of service accrued after July 1, 1993
and until June 30, 2012 and two percent (2%) of final compensation multiplied
by the years of
service accrued prior to July 1, 1993. For service
on and after July 1, 2012, a member’s service
retirement allowance shall be determined in accordance
with § 45-21.2-6. The annual
retirement
allowance in no event shall exceed seventy-five
percent (75%) of final compensation.
45-21.2-6.2.
from service pursuant to subdivision (1), (2), or (6)
of § 45-21.2-5, a member of the
police department receives a retirement allowance
which is a life annuity terminable at the death
of the annuitant, and is an amount equal to the sum of
two percent (2%) of final compensation
multiplied by the first twenty-five (25) years of
service and four percent (4%) of final
compensation multiplied by the years of service in
excess of twenty-five (25) years for service on
and prior to June 30, 2012. For service on and after
July 1, 2012, a member’s service retirement
allowance shall be determined in accordance with §
45-21.2-6. The annual retirement
allowance
in no event shall exceed seventy-five percent (75%) of
final compensation.
45-21.2-6.3.
from service pursuant to chapter 45-21.2-5, a member
of the
receive a retirement allowance which shall be
terminable at the death of the annuitant, and shall
be an amount equal to the sum of two and two thousand
seven hundred twenty-seven ten
thousandths of a percent (2.2727%) of final
compensation (average of final three years' salary)
multiplied by the years of service on and prior to
June 30, 2012. For service on and after July 1,
2012, a member’s service retirement allowance shall be
determined in accordance with section
45-21.2-6.
The annual retirement allowance in no event shall exceed seventy-five percent
(75%)
of final compensation.
45-21.2-14. Contributions.
-- (a) Each member shall contribute an amount equal to
seven percent (7%) of the salary or compensation
earned or accruing to the member. Special
compensation or additional fees shall not be
considered as compensation for contribution
purposes.
(b) Deductions are made
in accordance with § 45-21-14 and credited in accordance with
§ 45-21-43.
(c) Each municipality
shall make contributions to the system to provide the remainder of
the obligation for retirement allowances, annuities,
and other benefits provided in this section,
after applying the accumulated contribution of
members, interest income on investments, and
other accrued income. The contribution shall be
compiled in accordance with §§ 45-21-42 – 45-
21-44, except that contributions for the first five
(5) years of the system shall likewise be
determined by the board.
(d) Provided, that
members of the
1985 and until June 30, 2012, contribute an
amount equal to eight percent (8%) of salary or
compensation or additional fees are not considered as
compensation for retirement purposes. For
service on and after July 1, 2012, a member of the
contributions in accordance with paragraph (a) above.
(e) Provided, further,
that for service on or prior to June 30, 2012, members of the City of
equal to ten percent (10%) of their weekly salary; and
those members of the City of
department with five (5) years or less of service
effective July 1, 1995, have the option to either
remain in the City of
ordinance by the
percent (10%) of their weekly salary commencing July
1, 1995. The City of
request and the retirement board may authorize
additional members of the City of
department hired after July 1, 1987, the option to
either remain in the City of
plan to which they belonged prior to the adoption of
local ordinance by the
as stated in § 45-21.2-22 or contribute to the State
of
retirement on service allowance an amount equal to ten
percent (10%) of their weekly salary
beginning on a date specified by the retirement board.
For service on and after July 1, 2012, a
member of the City of
paragraph (a) above and a member’s benefit shall be
calculated in accordance with subsection 45-
21.2-22(b).
(f) Further, provided,
that for service on and prior to June 30, 2012, members of the City
of
amount equal to ten percent (10%) of their weekly
salary; and those members of the City of
option to either remain in the City of
adoption of local ordinance by the
the State of
equal to ten percent (10%) of their weekly salary
commencing July 1, 1995. The City of
may request and the retirement board may authorize
additional members of the City of
police department hired after July 1, 1987, the option
to either remain in the City of
pension plan to which they belonged prior to the
adoption of local ordinance by the
council as stated in § 45-21.2-22 or contribute to the
State of
year retirement on service allowance an amount equal
to ten percent (10%) of their weekly salary
beginning on a date specified by the retirement board.
For service on and after July 1, 2012, a
member of the City of
paragraph (a) above and a member’s benefit shall be
calculated in accordance with subsection 45-
21.2-22(b).
45-21.2-16. Call
system credit -
who, from January 1, 1960 and thereafter, was a member
of the call system of the North
retirement system for one year for every three (3)
years served as a member of the call system;
provided, that the person pays into the retirement
system in the manner, at the times and in an
amount that the retirement board may prescribe, (1)
for purchases requested on or before June 30,
2012, an
amount based upon his or her compensation for the last year of each three (3)
year
period at the time of purchase of the credit and
regular interest as defined in chapter 8 of title 36;
and (2) for purchases requested on or after July 1,
2012, the full actuarial cost of the time being
purchased.
45-21.2-18. Call
system credit -
who, from January 1, 1950 and thereafter, was a member
of the call system of the North
retirement system for one year for every three (3)
years served as a member of the call system;
provided, that the person pays into the retirement
system in the manner, at the times and in an
amount that the retirement board may prescribe, (1)
for purchases requested on or before June 30,
2012, an
amount based upon his or her compensation for the last year of each three (3)
year
period at the time of purchase of the credit and regular
interest as defined in chapter 8 of title 36;
and (2) for purchases requested on or after July 1,
2012, the full actuarial cost of the time being
purchased.
45-21.2-19. Volunteer
time and call system credit –
Any person who, from January 1, 1943 and thereafter,
was a volunteer member and/or a member
of the call system of the
purposes of the retirement system for one year for every
three (3) years served as a volunteer
and/or call fire fighter of the district; provided,
that the person pays into the retirement system in
the manner, at the times and in an amount that the
retirement board may prescribe, (1) for
purchases requested on or before June 30, 2012, an amount based upon his or her compensation,
which for the purposes of this section is deemed to be
in an amount of not less than three hundred
dollars ($300) annually, for the last year of each
three (3) year period at the time of purchase of
the credit, and regular interest as defined in chapter
8 of title 36; and (2) for purchases requested
on or after July 1, 2012, the full actuarial cost of
the time being purchased.
45-21.2-20. Persons
eligible for optional benefits – Time of election – Modification or
revocation – Effective date. -- (a) The
optional provisions of § 45-21.2-6(c)(b) are applicable
only to a member applying for a service retirement
allowance, an accidental disability retirement
allowance, an ordinary disability retirement allowance
or any inactive member applying for
retirement under vested rights. The election under
option 1 or 2 is made at the time of retirement
of the member as part of his or her application for a
retirement allowance.
(b) The election is
based upon the amount of retirement allowances that may accrue at the
date of death of the member, and may be revoked or
modified by the member at any time after
retirement on a form prescribed by the retirement
board; and, provided, further, that, during this
time, the named beneficiary has not been divorced from
the member.
(c) The option in the
case of death of a retired member becomes effective on the day
following the death of the member, and payment of
benefits are made in accordance with the
provisions of this section, subject to the limitations
prescribed in § 45-21.2-6.
45-21.2-21. Optional
annuity protection – Death while employee or inactive member
status. -- The election under option 1
may be made by the member while in service; provided,
that the member has at least ten (10) years of
membership service for members terminating on or
before June 30, 2012, or at least five (5) years of
membership service for members terminating on
or after July 1, 2012, and before retirement, on a form prescribed by the
retirement board. The
election is based upon the amount of retirement
allowances or actuarial equivalents that may
accrue at the date of death of the member; provided,
that the election form is executed and filed
with the retirement board prior to the date of death.
The election may be revoked or modified by
the member at any time prior to the date of
retirement, on a form prescribed by the retirement
board; provided, that, during this time, the named
beneficiary has not been divorced from the
member. Upon death of a member making this election,
the option selected becomes effective
thirty (30) days after the first day of the calendar
month following the date of death of the
member if death occurs while in an employee status.
Should death occur while in an inactive
member status, the option selected under this section
becomes payable on the first of the month
succeeding that in which the designated beneficiary
attains the age of sixty (60) years.
45-21.2-22. Optional
twenty year retirement on service allowance. -- (a) The
local
legislative bodies of the cities and towns may, by
ordinance adopted, permit the retirement of a
member on a service retirement allowance for
members retiring on or before June 30, 2012 as
follows:
(1) Any member may
retire pursuant to this section upon his or her written application to
the board stating at what time he or she desires to
retire; provided, that the member, at the
specified time for his or her retirement, has
completed at least twenty (20) years of total service,
and, notwithstanding that the member may have
separated from service;
(2) Upon retirement from
service pursuant to subdivision (1), a member receives a
retirement allowance which is a life annuity
terminable at the death of the annuitant, and is equal
to two and one-half percent (2 1/2%) of final
compensation multiplied by the years of total
service, but not to exceed seventy-five percent (75%)
of final compensation;
(3) Upon the adoption of
a service retirement allowance, pursuant to this subdivision,
each member contributes an amount equal to one percent
(1%) more than that contribution
required under § 45-21.2-14;
(4) This section is
exempt from the provisions of chapter 13 of this title.
(b) For members
retiring on or after July 1, 2012, the member’s retirement allowance
shall equal the sum of (i)
and (ii) where (i) is the member’s benefit calculated
under (a)(1)-(4)
above or section 45-21.2-5 for service on and before
June 30, 2012 and (ii) is the member’s
benefit determined under section 45-21.2-6 for service
on and after July 1, 2012. For service on
and after July 1, 2012, the provisions of (a)(3) above
shall no longer apply.
45-21.2-22.1. Burrillville
police – Optional twenty-year retirement on service
allowance. -- (a) Notwithstanding
§ 45-21.2-22, the town council of the town of
by ordinance adopted, permit the retirement of a
member on a service retirement allowance for
members retiring on or before June 30, 2012, as follows:
(1) Any member may
retire pursuant to this section upon his or her written application to
the board stating at what time he or she desires to retire;
provided, that the member, at the
specified time of his or her retirement, has completed
at least twenty (20) years of total service;
(2) Upon retirement from
service, pursuant to subdivision (1), a member receives a
retirement allowance that is a life annuity terminable
at the death of the annuitant, and is equal to
three percent (3%) of final compensation multiplied by
the years of total service, but not to
exceed sixty percent (60%) of final compensation;
(3) Upon retirement from
service where member has in excess of twenty (20) years of
service, a member receives a retirement allowance that
is a life annuity terminable at the death of
the annuitant, and is an amount equal to the sum of
three percent (3%) of final compensation
multiplied by the first twenty (20) years of service
and one and one-half percent (1.5%) of final
compensation multiplied by the years of service in
excess of twenty (20) years. The annual
retirement allowance in no event shall exceed
seventy-five percent (75%) of final compensation;
(4) Upon the adoption of
a service retirement allowance, pursuant to this section, each
member shall contribute an amount equal to ten and
two-tenths percent (10.2%) of the salary or
compensation earned or accrued to the member;
(5) Notwithstanding
anything to the contrary hereinabove, any member who retires with
less than twenty (20) years of service shall be
subject to § 45-21.2-6 for purposes of determining
any service retirement allowance;
(6) This section is
exempt from the provisions of chapter 13 of this title;
(7) Except as
specifically set forth hereinabove, all other provisions of chapter 21.2 of
this title shall be applicable to Burrillville police
officers who make application to retire.
(b) For members
retiring on or after July 1, 2012, the member’s retirement allowance
shall equal the sum of (i)
and (ii) where (i) is the member’s benefit calculated
under (a)(1)
through (a)(7) above for service on and before June
30, 2012 and (ii) is the member’s benefit
determined under section 45-21.2-6 for service on and
after July 1, 2012. For service on and after
July 1, 2012, the provisions of (a)(4) above shall no
longer apply.
45-21.2-25. Severability.--
The holding of any section or sections or parts of this chapter
to be void, ineffective, or unconstitutional for any
cause shall not be deemed to affect any other
section or part hereof.
SECTION
13. Sections 42-28-5, 42-28-8, 42-28-21, 42-28-22, 42-28-22.1, 42-28-22.2,
42-28-22.3
and 42-28-23 of the General
Laws in Chapter 42-28 entitled "State Police" are hereby amended to
read as follows:
42-28-5. Superintendent
– Appointment, tenure, duties, and retirement. -- (a) The
governor shall appoint the superintendent of state
police, who shall serve at the pleasure of the
governor and shall perform the duties prescribed by
this chapter.
(b) Any superintendent
who has served for at least ten (10) years and has reached the age
of sixty (60) years, may resign his or her office, and
thereafter shall receive annually during his or
her life a sum equal to fifty percent (50%) of the
salary he or she was receiving at the time of his
or her resignation, or for any superintendant hired
on or after July 1, 2012 a sum equal to fifty
percent (50%) of the average compensation as defined
in 36-8-1(5)(a) he or she was receiving at
the time of his or her resignation.
(c) In no event shall
the retirement allowance granted to a superintendent in accordance
with subsection (b) plus any other retirement
allowance received by the superintendent from any
state or municipal retirement system exceed
seventy-five percent (75%) of the average
compensation as defined in 36-8-1(5)(a) he or she was
receiving at the time of his or her
resignation. This subsection (c) shall only
apply to superintendents hired on or after July 1, 2012.
42-28-8. Clerk
of division. -- The superintendent may employ a clerk who shall be a
competent stenographer, and the general assembly shall
annually appropriate such sum as it may
deem necessary for the payment of the salary of the
clerk. The clerk shall be numbered among the
personnel of the division within the meaning of §§
42-28-21 and 42-28-22. Any clerk hired on or
after July 1, 2012 shall be considered a civilian
employee in accordance with the provisions of
42-28-22(g).
42-28-21. Injury
and death benefits. -- (a) If any member of the division whose service
is terminated on or after January 1, 1960 shall have
in the course of performance of his or her
duties suffered injury causing disability or causing
death, that member or his or her surviving
dependent relatives, whose dependence shall be
determined from time to time by the
superintendent subject to confirmation by the
governor, shall be entitled to an annual pension of
seventy-five percent (75%) of the annual salary paid
to that member at the time of his or her
termination of service by reason of injury or death.
In the event that the member thus disabled or
killed in the performance of his or her official
duties is the superintendent, then confirmation and
determination provided by this section shall be made
by the governor. The provisions of chapters
29 – 38, inclusive, of title 28, shall not apply to
members of the division.
(b) Upon the death of a
member due to any cause other than that incurred while in the
course of performance of his or her duties, occurring
while in service or after retirement, if that
member shall have rendered at least ten (10) years of
service as a member of the
state police, his or her surviving widow or domestic
partner shall be entitled to a pension equal to
two percent (2%) of his or her last annual salary as
determined by the provision of § 42-28-22 as
amended herein for each year of service as a member of
the state police, subject to a minimum
pension of twenty-five percent (25%) of salary, and
subject to the following conditions:
(1) The widow or widower
or domestic partner shall have been married to or a domestic
partner of the member at least one year on the date of
death of the member or on the date of
retirement, whichever first occurs, and in any event
while the member was in active service;
(2) the The widow or widower or domestic partner
shall be at least forty (40) years of
age, otherwise payment of the annuity shall be deferred
until she attains such age;
(3) the The annuity shall terminate in any event when he or
she remarries or enters into a
domestic partnership or dies.
(c) If a widow or
widower or domestic partner shall have minor children in his or her
care, payment of the annuity shall commence
immediately regardless of whether the widow or
widower or domestic partner shall have attained age
forty (40) years or not. In such a case, the
payment to the widow or widower or domestic partner
shall be increased one-third (1/3) on
account of each minor child, provided that the maximum
payment shall be fifty percent (50%) of
annual salary.
(d) Allowances on
account of minor children shall terminate upon their attainment of age
eighteen (18) and if unemancipated
and a full-time student to age twenty-two (22) years, death, or
marriage, whichever first occurs. In the event a widow
or widower or domestic partner remarries
or enters into a domestic partnership or dies, payment
on account of minor children shall be
increased to twice the amounts previously payable on
account of the children, subject to a
combined payment to all children equal to fifty
percent (50%) of the final salary of the member.
(e) For purposes of this
chapter, "domestic partner" shall be defined as a person who,
prior to the decedent's death, was in an exclusive,
intimate and committed relationship with the
decedent, and who certifies by affidavit that their
relationship met the following qualifications:
(1) Both partners were
at least eighteen (18) years of age and were mentally competent to
contract;
(2) Neither partner was
married to anyone else;
(3) Partners were not
related by blood to a degree which would prohibit marriage in the
state of
(4) Partners resided
together and had resided together for at least one year at the time of
death; and
(5) Partners were
financially interdependent as evidenced by at least two (2) of the
following:
(i)
Domestic partnership agreement or relationship contract;
(ii) Joint mortgage or
joint ownership of primary residence;
(iii) Two (2) of: (A)
joint ownership of motor vehicle; (B) joint checking account; (C)
joint credit account; (D) joint lease; and/or
(iv) The domestic
partner had been designated as a beneficiary for the decedent's will,
retirement contract or life insurance.
(f) Effective July 1,
2012, any reference in this section to “salary” or “annual salary”
shall be changed to “average compensation” as defined
in 36-8-1(5)(a).
42-28-22. Retirement
of members. -- (a) Whenever any member of the state police
hired prior to July 1, 2007 has served for twenty (20)
years, he or she may retire therefrom or he
or she may be retired by the superintendent with the
approval of the governor, and in either event
a sum equal to one-half (1/2) of the whole salary for
the position from which he or she retired
determined on the date he or she receives his or her
first retirement payment shall be paid him or
her during life.
(b) For purposes of this
section, the term "whole salary" means:
(1) For each member who
retired prior to July 1, 1966, "whole salary" means the base
salary for the position from which he or she retired
as the base salary for that position was
determined on July 31, 1972;
(2) For each member who
retired between July 1, 1966 and June 30, 1973, "whole salary"
means the base salary for the position from which he
or she retired as the base salary,
implemented by the longevity increment, for that
position was determined on July 31, 1972 or on
the date of his or her retirement, whichever is
greater;
(3) For each member who
retired or who retires after July 1, 1973 "whole salary" means
the base salary, implemented by the longevity
increment, holiday pay, and clothing allowance, for
the position from which he or she retired or retires.
(c)(1) Any member
who retired prior to July 1, 1977 shall receive a benefits payment
adjustment equal to three percent (3%) of his or her
original retirement, as determined in
subsection (b) of this section, in addition to his or
her original retirement allowance. In each
succeeding year thereafter during the month of
January, the retirement allowance shall be
increased an additional three percent (3%) of the
original retirement allowance, not compounded,
to be continued until January 1, 1991. For the
purposes of the computation, credit shall be given
for a full calendar year regardless of the effective
date of the service retirement allowance. For
purposes of this subsection, the benefits payment
adjustment shall be computed from January 1,
1971 or the date of retirement, whichever is later in
time.
(2) Any member of the
state police who retires pursuant to the provisions of this chapter
on or after January 1, 1977, shall on the first day of
January, next following the third anniversary
date of the retirement receive a benefits payment
adjustment, in addition to his or her retirement
allowance, in an amount equal to three percent (3%) of
the original retirement allowance. In each
succeeding year thereafter during the month of
January, the retirement allowance shall be
increased an additional three percent (3%) of the
original retirement allowance, not compounded,
to be continued until January 1, 1991. For the
purposes of the computation, credit shall be given
for a full calendar year regardless of the effective
date of the service retirement allowance.
(3) Any retired member
of the state police who is receiving a benefit payment adjustment
pursuant to subdivisions (1) and (2) of this section
shall beginning January 1, 1991 and ending
June 30, 2012,
receive a benefits payment adjustment equal to fifteen hundred dollars
($1,500). In
each succeeding year thereafter during the month of
January, the retirement allowance shall be
increased by fifteen hundred dollars ($1,500) to be
continued during the lifetime of the member.
(d) The benefits payment
adjustment as provided in this section shall apply to and be in
addition to the retirement benefits under the
provisions of § 42-28-5, and to the injury and death
benefits under the provisions of § 42-28-21, and to
the death and disability payments as provided
in § 42-28-36.
(e)(1)Any member
who retires after July 1, 1972 and is eligible to retire prior to July 1,
2012 and who
has served beyond twenty (20) years shall be allowed an additional amount equal
to three percent (3%) for each completed year served after
twenty (20) years, but in no event shall
the original retirement allowance exceed sixty-five
percent (65%) of his or her whole salary as
defined in subsection (b) hereof or sixty-five percent
(65%) of his or her salary as defined in
subsection (b) hereof in his or her twenty-fifth
(25th) year whichever is less.
(2) Each member who
retired prior to July 1, 1975, shall be entitled to all retirement
benefits as set forth above or shall be paid benefits
as set forth in subdivision (b)(1) with "whole
salary" meaning the base salary for the position
from which he or she retired as the base salary for
the position was determined on July 1, 1975, whichever
is greater.
(f)(1) Any member
who retires, has served as a member for twenty (20) years or more,
and who served for a period of six (6) months or more
of active duty in the armed service of the
United States or in the merchant marine service of the
1721 of the Public Laws, 1946, may purchase credit for
such service up to a maximum of two (2)
years; provided that any member who has served at
least six (6) months or more in any one year
shall be allowed to purchase one year for such service
and any member who has served a fraction
of less than six (6) months in his or her total
service shall be allowed to purchase six (6) months'
credit for such service.
(2) The cost to purchase
these credits shall be ten percent (10%) of the member's first
year salary as a state policeman multiplied by the
number of years and/or fraction thereof of such
armed service up to a maximum of two (2) years. The
purchase price shall be paid into the
general fund. For members hired on or after
July 1, 1989, the purchase price shall be paid into a
restricted revenue account entitled “state police
retirement benefits” and shall be held in trust.
(3) There will be no
interest charge provided the member makes such purchase during his
or her twentieth (20th) year or within five (5) years
from May 18, 1981, whichever is later, but
will be charged regular rate of interest as defined in
§ 36-8-1 as amended to date of purchase from
the date of his or her twentieth (20th) year of state
service or five (5) years from May 18, 1981,
whichever is later.
(4) In no event shall
the original retirement allowance exceed sixty-five percent (65%) of
his or her whole salary as defined in subsection (b)
hereof or sixty-five percent (65%) of his or
her salary as defined in subsection (b) hereof in his or
her twenty-fifth (25th) year, whichever is
less.
(g) The provisions of
this section shall not apply to civilian employees in the Rhode
Island state police; and, further, from and after
April 28, 1937, chapters 8 – 10, inclusive, of title
36 shall not be construed to apply to the members of
the
provided by §§ 36-8-3, 36-10-1.1, 42-28-22.1, and
42-28-22.2, and section 36-8-1(5) and (8)(a)
effective July 1, 2012.
(h) Any other
provision of the section notwithstanding any member of the state police
other than the superintendent of state police, who is
hired prior to July 1, 2007 and who has
served for twenty-five (25) years or who has attained
the age of sixty-two (62) years, whichever
shall first occur, shall retire therefrom.
(i)(1)
Any other provision of the section notwithstanding any member of the
state police,
other than the superintendent, who is hired on or
after July 1, 2007 and who has served for
twenty-five (25) years, may retire therefrom
or he or she may be retired by the superintendent
with the approval of the governor, and shall be
entitled to a retirement allowance of fifty percent
(50%) of his or her “whole salary” as defined in
subsection (b) hereof.
(2) Any member of the state
police who is hired on or after July 1, 2007 may serve up to
a maximum of thirty (30) years, and shall be allowed
an additional amount equal to three percent
(3.0%) for each completed year served after
twenty-five (25) years, but in no event shall the
original retirement allowance exceed sixty-five
percent (65%) of his or her "whole salary" as
defined in subsection (b) hereof.
(j) Effective July 1,
2012, any other provision of this section notwithstanding:
(j)(l) Any member of
the state police, other than the superintendent of state police, who is
not eligible to retire on or prior to June 30, 2012
may retire at any time subsequent to the date the
member’s retirement allowance equals or exceeds fifty
percent (50%) of average compensation as
defined in section 36-8-1(5)(a), provided that a
member shall retire upon the first to occur of:
(i)
The date the member’s retirement allowance equals sixty-five percent (65%); or
(ii) The later of the
attainment of age sixty-two (62) or completion of five (5) years of
service; provided however, any current member as of
June 30, 2012 who has not accrued fifty
percent (50%) upon attaining the age of sixty-two (62)
shall retire upon accruing fifty percent
(50%); and upon retirement a member shall receive a
retirement allowance which shall equal:
(A) For members hired
prior to July 1, 2007 the sum of (i), (ii) and (iii)
where
(i)
Is calculated as the member’s years of total service before July 1, 2012
multiplied by
two and one half percent (2.5%) of average
compensation for a member’s first twenty (20) total
years,
(ii) Is calculated as
the member’s years of total service before July 1, 2012 in excess of
twenty (20) years not to exceed twenty-five (25) years
multiplied by three percent (3%) of
average compensation, and
(iii) Is the member’s
years of total service on or after July 1, 2012 multiplied by two
percent (2%) of average compensation as defined in §
36-8-1(5)(a).
(B) For members hired
on or after July 1, 2007, the member’s retirement allowance shall
be calculated as the member’s years of total
contributory service multiplied by two percent (2%)
of average compensation.
(C) Any member of the
state police who is eligible to retire on or prior to June 30, 2012
shall retire with a retirement allowance calculated in
accordance with paragraph (a) and (e) above
except that whole salary shall be defined as final
compensation where compensation for purposes
of this section and section 42-28-22.1 includes base
salary, longevity and holiday pay.
(D) Notwithstanding
the preceding provisions, in no event shall a member’s final
compensation be lower than his or her final
compensation determined as of June 30. 2012.
(2) In no event shall
a member’s original retirement allowance under any provisions of
this section exceed sixty-five percent (65%) of his or
her average compensation.
(3) For each member
who retires on or after July 1, 2012, except as provided in paragraph
(j)(1)(C) above, compensation and average compensation
shall be defined in accordance with §
36-8-1(5)(a) and (8), provided that for a member whose
regular work period exceeds one hundred
forty-seven (147) hours over a twenty-four (24) day
period at any time during the four (4) year
period immediately prior to his/her retirement that
member shall have up to four hundred (400)
hours of his/her pay for regularly scheduled work
earned during this period shall be included as
“compensation” and/or “average compensation” for
purposes of this section and section 42-28-
22.1.
(4)(i) Notwithstanding the prior paragraphs of this section,
and subject to paragraph (4)
(ii) below, for all present and former members, active
and retired members, and beneficiaries
receiving any retirement, disability or death
allowance or benefit of any kind, whether for or on
behalf of a non-contributory member or contributory
member, the annual benefit adjustment
provided in any calendar year under this section shall
be equal to (A) multiplied by (B) where (A)
is equal to the percentage determined by subtracting
five and one-half percent (5.5%) (the
“subtrahend”) from the Five-Year Average Investment
Return of the retirement system
determined as of the last day of the plan year
preceding the calendar year in which the adjustment
is granted, said percentage not to exceed four percent
(4%) and not to be less than zero percent
(0%), and (B) is equal to the lesser of the member’s
retirement allowance or the first twenty-five
thousand dollars ($25,000) of retirement allowance,
such twenty-five thousand dollars ($25,000)
amount to be indexed annually in the same percentage
as determined under (4)(i)(A) above. The
“Five-Year Average Investment Return” shall mean the
average of the investment returns for the
most recent five (5) plan years as determined by the
retirement board. Subject to paragraph (4)(ii)
below, the benefit adjustment provided by this
paragraph shall commence upon the third (3rd)
anniversary of the date of retirement or the date on
which the retiree reaches age fifty-five (55),
whichever is later. In the event the retirement board
adjusts the actuarially assumed rate of return
for the system, either upward or downward, the
subtrahend shall be adjusted either upward or
downward in the same amount.
(ii) Except as
provided in paragraph (4)(iii), the benefit adjustments under this section for
any plan year shall be suspended in their entirety
unless the GASB Funded Ratio of the
Employees’ Retirement System of
State Police Retirement Benefits Trust, calculated by the
system’s actuary on an aggregate basis,
exceeds eighty percent (80%) in which event the
benefit adjustment will be reinstated for all
members for such plan year.
In determining
whether a funding level under this paragraph (4)(ii) has been achieved, the
actuary shall calculate the funding percentage after
taking into account the reinstatement of any
current or future benefit adjustment provided under
this section. “GASB Funded Ratio” shall
mean the ratio of the actuarial value of assets to the
actuarial accrued liability.
(iii) Notwithstanding
paragraph (4)(ii), in each fifth plan year commencing after June 30,
2012 commencing with the plan year ending June 30,
2017, and subsequently at intervals of five (5)
plan years, a benefit adjustment shall be calculated
and made in accordance with paragraph (4)(i)
above until the GASB Funded Ratio of the Employees’
Retirement System of
Judicial Retirement Benefits Trust and the State
Police Retirement Benefits Trust, calculated by
the system’s actuary on an aggregate basis, exceeds
eighty percent (80%).
(iv) The provisions
of this paragraph (j)(4) of section 42-28-22 shall become effective
July 1, 2012 and shall apply to any benefit adjustment
not granted on or prior to June 30, 2012.
(v) The
cost-of-living adjustment as provided in this paragraph (j)(4) shall apply to
and
be in addition to the retirement benefits under the
provisions of section 42-28-5 and to the injury
and death benefits under the provisions of section
42-28-21.
(5) 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 retired in accordance with (j)(1)
above, shall be eligible to retire upon the attainment
of member’s Security retirement age as
defined in 36-8-1(19).
(6) In no event shall
a member’s retirement allowance be less than the member’s
retirement allowance calculated as of June 30, 2012
based on the member’s years of total service
and whole salary as of June 30, 2012.
(j) (k) In
calculating the retirement benefit for any member, the term base salary as used
in subdivision (b)(3) or average compensation as
used in paragraph (j) shall not be affected by a
deferral of salary plan or a reduced salary plan
implemented to avoid shutdowns or layoffs or to
effect cost savings. Basic salary shall remain for
retirement calculation that which it would have
been but for the salary deferral or salary reduction
due to a plan implemented to avoid shutdowns
or layoffs or to effect cost savings.
42-28-22.1. Retirement
contribution. -- (a) Each member of the state police initially
hired after July 1, 1987 shall have deducted from
"compensation" as defined in § 36-8-1(11)(8)
beginning July 1, 1989, an amount equal to a rate
percent of such compensation of eight and three
quarters percent (8.75%) as specified in § 36-10-1 relating to member
contributions to the state
retirement system. The receipts collected from members of the state police shall be
deposited in a
restricted revenue account entitled "state police
retirement benefits". The proceeds deposited in
this account shall be held in trust for the purpose of
paying retirement benefits to participating
members of the state police or their beneficiaries.
The retirement board shall establish rules and
regulations to govern the provisions of this section.
(b) A member of the
state police who withdraws from service or ceases to be a member
for any reason other than death or retirement, shall
will, at the member’s request, be paid on
demand a refund consisting of the accumulated
contributions standing to his or her credit in his or
her individual account in the state police retirement
benefits account. Any member receiving a
refund shall thereby forfeit and relinquish all
accrued rights as a member of the system together
with credits for total service previously granted to
the member; provided, however, that if any
member who has received a refund shall subsequently
reenter the service and again become a
member of the system, he or she shall have the
privilege of restoring all moneys previously
received or disbursed to his or her credit as refund
of contributions, plus regular interest for the
period from the date of refund to the date of
restoration.
(c) Upon the repayment
of the refund as herein provided, the member shall again receive
credit for the amount of total service which he or she
had previously forfeited by the acceptance
of the refund.
for the maintaining of the system established by §
42-28-22.1 and providing the annuities,
benefits, and retirement allowances in accordance with
the provisions of this chapter by annually
appropriating an amount which will pay a rate percent
of the compensation paid after July 1, 1989
to members of the state police hired after July 1,
1987. This rate percent shall be computed and
certified in accordance with the procedures set forth
in §§ 36-8-13 and 36-10-2 under rules and
regulations promulgated by the retirement board
pursuant to § 36-8-3. Provided, that the
employer contribution shall be deferred from the
effective date of this act until June 15, 2010.
The amounts that would have been contributed shall be
deposited in a special fund and not used
for any purpose.
42-28-22.3. Separate
plan and trust for retirement program of state police. -- (a) The
retirement program established by § 42-28-22.1 shall
constitute a separate retirement program
known as the "State Police Retirement
Program" which shall be deemed to be a separate plan for
purposes of § 401(a) of the Internal Revenue Code of
1986 [26 U.S.C. § 401(a)], as amended.
The provisions of § 36-8-20(a) – (h)(i) shall be applicable to such program, shall be
administered
and interpreted in a manner consistent with
maintaining the tax qualification of such program,
and shall supercede any
conflicting provision of law.
(b) Any trust
established for the purpose of providing retirement benefits under the state
police retirement program, including the trust
described in § 42-28-22.1, shall be maintained
pursuant to a written document which expressly
provides that it shall be impossible at any time
prior to the satisfaction of all liabilities with
respect to employees and their beneficiaries, for any
part of the corpus or income of the trust to be used
for, or diverted to, purposes other than the
payment of retirement allowances and other pension
benefits to employees and their
beneficiaries. However, this requirement shall not
prohibit: (1) the return of a contribution made
by a mistake of fact within six (6) months, or (2) the
payment of expenses in accordance with
applicable law; nor shall this provision restrict the
collective investment of the funds of such trust
with the funds of the state and municipal retirement
systems or other retirement programs
administered by the retirement board, as determined by
the state investment commission.
42-28-23. Military
credit on retirement. -- Whenever a member of the
state police, other than a civilian member, has been
granted a leave of absence from the state
police to enable him or her to serve in the armed
forces of the
national emergency, the time during which he or she so
serves while on leave of absence shall be
included in his or her computed toward his or her twenty (20) years of
state police service for
retirement as provided in § 42-28-22, except when the
member shall have been dishonorably
discharged from the armed forces.
SECTION
14. Chapter 42-28 of the General Laws entitled "State Police" is
hereby
amended by adding thereto
the following sections:
42-28-50. Severability.--
The holding of any section or sections or parts of this chapter to
be void, ineffective, or unconstitutional for any
cause shall not be deemed to affect any other
section or part hereof.
SECTION
15. Sections 8-3-11, 8-3-15, 8-3-16, 8-3-17 and 8-3-20 of the General Laws in
Chapter 8-3 entitled
"Justices of Supreme,
read as follows:
8-3-11. Allowances
to surviving spouses, domestic partners or minor children of
deceased justices. -- (a)
Whenever any justice of the supreme court, the superior court, the family
court, or the district court who was engaged as a
judge prior to January 1, 2009, dies after
retirement or during active service while eligible for
retirement, or during active service after
having served fifteen (15) years or more in office,
his or her surviving spouse or domestic partner
shall receive annually thereafter, during his or her
lifetime and so long as he or she remains
unmarried or not in a domestic partnership, an amount
equal to one-half (1/2) of the annual
payment that the justice was receiving by way of
salary or retirement pay at the time of his or her
death. Whenever a justice of any of the courts shall
die without having become eligible to retire
either under § 8-3-7 or 8-3-8 and has served seven (7)
years or more in office, his or her surviving
spouse or domestic partner shall receive annually
thereafter, during his or her lifetime and so long
as he or she remains unmarried or not in a domestic
partnership, one-third ( 1/3) of the annual
salary that the justice was receiving at the time of
his or her death. Whenever a justice of the
courts shall die without having become eligible to
retire either under § 8-3-7 or 8-3-8 and has not
served seven (7) years in office, his or her surviving
spouse or domestic partner shall receive
annually thereafter, during his or her lifetime and so
long as he or she remains unmarried or not in
a domestic partnership, one-fourth (1/4) of the annual
salary that the justice was receiving at the
time of his or her death.
(b) Any justice of the
courts who is engaged as a judge on or after January 1, 2009, and
prior to July 1, 2009 may elect to receive retirement
pay that is reduced by an additional ten
percent (10%) of the average of the highest three (3)
consecutive years annual compensation (i.e.,
ninety percent (90%) reduced to eighty percent (80%)
or seventy percent (70) reduced to sixty
percent (60%)), and where such option is exercised by
giving the general treasurer notice in
writing thereof within ninety (90) days after the date
of his or her retirement his or her surviving
spouse or domestic partner or minor children shall
receive annually one-half (1/2) of his or her
retirement pay during his or her lifetime so long as
he or she remains unmarried or not in a
domestic partnership, or the children are under
twenty-one (21) years of age provided, however,
for any justice engaged on or after July 1, 2009 but
prior to July 1, 2012, the reduction shall be
based on the average of the highest five (5)
consecutive years annual compensation.
(c)(1) Any justice of
the courts who is engaged as a judge on or after July 1, 2012 and
who elects to receive a retirement pay that is
reduced, shall receive a lesser retirement allowance
as determined by actuarial calculation, which shall be
payable throughout life with the provision
that:
(i)
Option 1. Upon the justice’s death, the justice’s lesser retirement allowance
shall be
continued throughout the life of and paid to such
person having an insurable interest in the
justice's life, as the justice shall nominate by
written designation duly acknowledged and filed
with the retirement board at the time of his or her
retirement.
(ii) Option 2. Upon
the justice’s death, one-half (1/2) of the justice's lesser retirement
allowance shall be continued throughout the life of
and paid to such person, having an insurable
interest in the justice's life, as the justice shall
nominate by written designation duly
acknowledged and filed with the retirement board at
the time of the beneficiary's retirement.
(2) For purposes of
any election under this section the justice may designate more than
one person to receive benefits after his or her death,
provided that the designation shall specify
the portion of the actuarial equivalent of the
justice's retirement allowance to be paid to each
person, and provided further that the aggregate
actuarial value of the portions shall not exceed the
actuarial equivalent of the justice's retirement
benefit determined in the case of an election under
this section as of the date of the justice's
retirement.
(3) A justice
selecting more than one person to receive benefits under this section may
only select beneficiaries from among his or her
children, adopted children, step-children, and/or
spouse or domestic partner.
(c)(d)
Whenever any justice of the supreme court, the superior court, the family
court, or
the district court who was engaged as a judge on or
after January 1, 2009, dies during active
service while eligible for retirement, or during
active service after having served fifteen (15)
years or more in office, his or her surviving spouse
or domestic partner shall receive annually
thereafter, during his or her lifetime and so long as
he or she remains unmarried or not in a
domestic partnership, an amount equal to one-half
(1/2) of the annual payment that the justice
was receiving by way of salary.
(d)(e)
Whenever a justice of any of the courts who was engaged as a judge on or after
January 1, 2009, shall die without having become
eligible to retire either under § 8-3-7 or 8-3-8
and has served seven (7) years or more in office, his
or her surviving spouse or domestic partner
shall receive annually thereafter, during his or her
lifetime and so long as he or she remains
unmarried or not in a domestic partnership, one-third
(1/3) of the annual salary that the justice
was receiving at the time of his or her death.
(e)(f)
Whenever a justice of the courts who was engaged as a judge on or after January
1,
2009, shall die without having become eligible to
retire either under § 8-3-7 or 8-3-8 and has not
served seven (7) years or more in office, his or her
surviving spouse or domestic partner shall
receive annually thereafter, during his or her
lifetime and so long as he or she remains unmarried
or not in a domestic partnership, one-fourth (1/4) of
the annual salary that the justice was
receiving at the time of his or her death.
(f)(g) In
the event the deceased justice shall have no surviving spouse or domestic
partner, or the surviving spouse or domestic partner
should predecease their minor children, then
the benefits conferred by this section shall be
received in equal shares by the minor children, if
any, until each shall attain the age of twenty-one
(21) years.
8-3-15. Cost
of living allowance. – (a) All justices of the supreme court, superior
court,
family court, or district court, or their surviving
spouses or domestic partners, who retire after
January 1, 1970 and who receive a retirement allowance
pursuant to the provisions of this title
shall, on the first day of January next following the
third anniversary date of retirement, receive a
cost-of-living retirement adjustment in addition to
his or her retirement allowance in an amount
equal to three percent (3%) of the original retirement
allowance. In each succeeding year
thereafter during the month of January, the retirement
allowance shall be increased an additional
three percent (3%) of the original allowance, not
compounded, to be continued during the lifetime
of the justice or his or her surviving spouse or
domestic partner. For the purpose of such
computation, credit shall be given for a full calendar
year regardless of the effective date of the
retirement allowance.
(b) Any justice who
retired prior to January 31, 1977 shall be deemed for the purpose of
this section to have retired on January 1, 1977.
(c) For justices not
eligible to retire as of September 30, 2009 and not eligible upon
passage of this article, and for their beneficiaries,
the cost of living adjustment described in
subsection (3) above shall only apply to the first
thirty-five thousand dollars ($35,000) of
retirement allowance, indexed annually, and shall
commence upon the third (3rd) anniversary of
the date of retirement or when the retiree reaches age
sixty-five (65), whichever is later. The
thirty- five thousand dollar ($35,000) limit shall
increase annually by the percentage increase in
the Consumer Price Index for all Urban Consumer
(CPI-U) as published by the
Department of Labor Statistics determined as of
September 30 of the prior calendar year or three
percent (3%), whichever is less. The first thirty-five
thousand dollars ($35,000), as indexed, of
retirement allowance shall be multiplied by the
percentage of increase in the Consumer Price
Index for all Urban Consumers (CPI-U) as published by
the United States Department of Labor
Statistics determined as of September 30 of the prior
calendar year or three percent (3%),
whichever is less, on the month following the anniversary
date of each succeeding year. For
justices eligible to retire as of September 30, 2009
or eligible upon passage of this article, and for
their beneficiaries, the provisions of this subsection
(c) shall not apply.
(d)(1)
Notwithstanding the prior paragraphs of this section, and subject to paragraph
(d)
(2) below, for all present and former justices, active
and retired justices, and beneficiaries
receiving any retirement, disability or death
allowance or benefit of any kind, whether provided
for or on behalf of justices engaged on or prior to
December 31, 1989 as a non-contributory
justice or engaged after December 31, 1989 as a
contributory justice, the annual benefit
adjustment provided in any calendar year under this
section shall be equal to (A) multiplied by
(B) where (A) is equal to the percentage determined by
subtracting five and one-half percent
(5.5%) (the “subtrahend”) from the Five-Year Average
Investment Return of the retirement
system determined as of the last day of the plan year
preceding the calendar year in which the
adjustment is granted, said percentage not to exceed
four percent (4%) and not to be less than
zero percent (0%), and (B) is equal to the lesser of
the justice’s retirement allowance or the first
twenty-five thousand dollars ($25,000) of retirement
allowance, such twenty-five thousand
dollars ($25,000) amount to be indexed annually in the
same percentage as determined under
(d)(1)(A) above. The “Five-Year Average Investment
Return” shall mean the average of the
investment return of the most recent five (5) plan
years as determined by the retirement board.
Subject to paragraph (d)(2) below, the benefit
adjustment provided by this paragraph shall
commence upon the third (3rd) anniversary of the date
of retirement or the date on which the
retiree reaches his or her Social Security retirement
age, whichever is later. In the event the
retirement board adjusts the actuarially assumed rate
of return for the system, either upward or
downward, the subtrahend shall be adjusted either
upward or downward in the same amount.
(2) Except as
provided in paragraph (d)(3), the benefit adjustments under this section for
any plan year shall be suspended in their entirety
unless the GASB Funded Ratio of the
Employees’ Retirement System of
State Police Retirement Benefits Trust, calculated by
the system’s actuary on an aggregate basis,
exceeds eighty percent (80%) in which event the
benefit adjustment will be reinstated for all
justices for such plan year.
In determining
whether a funding level under this paragraph (d)(2) has been achieved, the
actuary shall calculate the funding percentage after
taking into account the reinstatement of any
current or future benefit adjustment provided under
this section. “GASB Funded Ratio” shall
mean the ratio of the actuarial value of assets to the
actuarial accrued liability.
(3) Notwithstanding
paragraph (d)(2), in each fifth plan year commencing after June 30,
2012 commencing with the plan year ending June 30,
2017, and subsequently at intervals of five
(5) plan years, a benefit adjustment shall be
calculated and made in accordance with paragraph
(d)(1) above until the GASB Funded Ratio of the Employees’
Retirement System of Rhode
Island, the Judicial Retirement Benefits Trust and the
State Police Retirement Benefits Trust,
calculated by the system’s actuary on an aggregate
basis, exceeds eighty percent (80%)
(4) Notwithstanding
any other provision of this chapter, the provisions of this paragraph
(d) of Section 8-3-15 shall become effective July 1,
2012 and shall apply to any benefit
adjustment not granted on or prior to June 30, 2012.
8-3-16. Retirement
contribution. -- (a) Judges engaged after December 31, 1989 shall
have deducted from total salary beginning December 31,
1989 and ending June 30, 2012 an
amount equal to a rate percent of compensation as
specified in § 36-10-1 relating to member
contributions to the state retirement system. Effective
July 1, 2012, all active judges whether
engaged before or after December 31, 1989 shall have
deducted from compensation as defined in
subsection 36-8-1(8) an amount equal to twelve percent
(12%) of compensation, except active
Supreme Court Judges as of June 30, 2012 who shall
have deducted from compensation as
defined in section 36-8-1(8) an amount equal to the
percent of compensation in effect on June 30,
2012.
Proceeds deposited shall be held in trust for the purpose of paying retirement
benefits to
participating judges or their beneficiaries. The
retirement board shall establish rules and
regulations to govern the provisions of this section.
(b) A member of the
judiciary who withdraws from service or ceases to be a member for
any reason other than retirement, shall be paid on
demand a refund consisting of the accumulated
contributions standing to his or her credit in his or
her individual account in the judicial
retirement benefits account. Any member receiving a
refund shall thereby forfeit and relinquish
all accrued rights as a member of the system together
with credits for total service previously
granted to the member; provided, however, that if any
member who has received a refund shall
subsequently reenter the service and again become a
member of the system, he or she shall have
the privilege of restoring all money previously
received or disbursed to his or her credit as refund
of contributions plus regular interest for the
period from the date of refund to the date of
restoration.
Upon the repayment of the refund as herein provided, the member shall again
receive
credit for the amount of total service which he or she
had previously forfeited by the acceptance
of the refund.
(c) Whenever any judge
dies from any cause before retirement and has no surviving
spouse, domestic partner or minor child(ren), a payment shall be made of the accumulated
contributions standing to his or her credit in his or
her individual account in the judicial
retirement benefits account. The payment of the
accumulated contributions of the judge shall be
made to such person as the judge shall have nominated
by written designation duly executed and
filed with the retirement board, or if the judge has
filed no nomination, or if the person so
nominated has died, then to the estate of the deceased
judge.
8-3-17. State
contributions. -- The state of
the maintaining of the system established by § 8-3-16
and providing the annuities, benefits, and
retirement allowances in accordance with the
provisions of this chapter by annually appropriating
an amount which will pay a rate percent of the
compensation paid after December 31, 1989 to
judges engaged after December 31, 1989. Such rate
percent shall be computed and certified in
accordance with the procedures set forth in §§ 36-8-13
and 36-10-2 under rules and regulations
promulgated by the retirement board pursuant to §
36-8-3. Provided, that the employer
contribution shall be deferred from the effective date
of this act until June 15, 2010. The
amounts
that would have been contributed shall be deposited in
a special fund and not used for any
purpose.
8-3-20. Severability.--
The holding of any section or sections or parts of this chapter to
be void, ineffective, or unconstitutional for any
cause shall not be deemed to affect any other
section or part hereof.
SECTION
16. Section 8-8-10.1 of the General Laws in Chapter 8-8 entitled “District
Court” is hereby amended to
read as follows:
8-8-10.1. Retirement
contribution. -- (a) Judges engaged after December 31, 1989 shall
have deducted from total
salary beginning December 31, 1989 and ending June 30, 2012 an
amount equal to a rate percent
of compensation as specified in § 36-10-1 relating to member
contributions to the state
retirement system. Effective July 1, 2012, all active judges whether
engaged before or after
December 31,1989 shall have deducted from compensation as defined in
subsection 36-8-1(8) an
amount equal to twelve percent (12%) of compensation. The receipts
collected under this
provision shall be deposited in a restricted revenue account entitled
"Judicial
retirement benefits".
Proceeds deposited in this account shall be held in trust for the purpose of
paying retirement benefits
to participating judges or their beneficiaries. The retirement board
shall establish rules and
regulations to govern the provisions of this section.
(b) A member of the
judiciary who withdraws from service or ceases to be a member for
any reason other than retirement shall be paid on
demand a refund consisting of the accumulated
contributions standing to his or her credit in his or
her individual account in the judicial
retirement benefits account. Any member receiving a
refund shall thereby forfeit and relinquish
all accrued rights as a member of the system together
with credits for total service previously
granted to the member; provided, however, that if any
member who has received a refund shall
subsequently reenter the service and again become a
member of the system, the member shall
have the privilege of restoring all money previously
received or disbursed to his or her credit as
refund of contributions plus regular interest for
the period from the date of refund to the date of
restoration.
Upon the repayment of the refund as herein provided, the member shall again
receive
credit for the amount of total service which he or she
had previously forfeited by the acceptance
of the refund.
(c) Whenever any judge
dies from any cause before retirement and has no surviving
spouse, domestic partner or minor child(ren), a payment shall be made of the accumulated
contributions standing to his or her credit in his or
her individual account in the judicial
retirement benefits account. The payment of the
accumulated contributions of the judge shall be
made to such person as the judge shall have nominated
by written designation duly executed and
filed with the retirement board, or if the judge has
filed no nomination, or if the person so
nominated has died, then to the estate of the deceased
judge.
SECTION
17. Chapter 8-8 of the General Laws entitled “District Court” is hereby
amended by adding the
following section:
8-8-33. Severability.--
The holding of any section or sections or parts of this chapter to
be void, ineffective, or unconstitutional for any
cause shall not be deemed to affect any other
section or part hereof.
SECTION
18. Sections 8-8.2-7 and 8-8.2-12 of the General Laws in Chapter 8-8.2
entitled “Traffic Tribunal”
are hereby amended to read as follows:
8-8.2-7. Retirement
contribution. -- (a) Judges of the administrative adjudication court
engaged after December 31,
1989 who are reassigned by this chapter to the traffic tribunal shall
have deducted from their
total salary beginning December 31, 1989 and ending June 30, 2012, an
amount equal to a rate
percent of compensation as specified in § 36-10-1 relating to member
contributions to the state
retirement system. Effective July 1, 2012, all active judges whether
engaged before or after
December 31,1989 shall have deducted from compensation as defined in
36-8-1(8) an amount
equal to twelve percent (12%) of compensation. The receipts collected under
this provision shall be
deposited in a restricted revenue account entitled "administrative
adjudication retirement
benefits". Proceeds deposited in this account shall be used to pay judges'
retirement costs. The
retirement board shall establish rules and regulations to govern the
provisions of this section.
(b) A judge of
the administrative adjudication court reassigned by this chapter to the
traffic tribunal who withdraws from service or ceases to
be a member for any reason other than
death or retirement, shall be paid on demand a refund
consisting of the accumulated contributions
standing to his or her credit in his or her individual
account in the administrative adjudication
retirement benefits account. Any member receiving a
refund shall thereby forfeit and relinquish
all accrued right as a member of the system together
with credits for total service previously
granted to the member; provided, however, that if any
member who has received a refund shall
subsequently reenter the service and again become a
member of the system, he or she shall have
the privilege of restoring all moneys previously
received or disbursed to his or her credit as a
refund of contributions plus regular interest for
the period from the date of refund to the date of
restoration.
Upon the repayment of the refund as herein provided, such member shall again
receive credit for the amount of total service which
he or she had previously forfeited by the
acceptance of the refund.
(b)(c)
Whenever any judge of the administrative adjudication court dies from any cause
before retirement and has no surviving spouse or
domestic partner or minor child(ren), a payment
shall be made of the accumulated contributions
standing to his or her credit in his or her
individual account in the administrative adjudication
court judges’ retirement account. The
payment of the accumulated contributions of the judge
shall be made to such person as the judge
shall have nominated by written designation duly
executed and filed with the retirement board, or
if the judge has no filed nomination, or if the person
so nominated has died, then to the estate of
the deceased judge.
8-8.2-12. Additional
benefits payable to retired judges and their surviving spouses
or domestic partners. -- (a) All
judges of the administrative adjudication court and all judges of
the administrative adjudication court who have been
reassigned to the traffic tribunal, or their
surviving spouses or domestic partners, who retire
after January 1, 1970 and who receive a
retirement allowance pursuant to the provisions of
this title, shall, on the first day of January, next
following the third anniversary of the retirement,
receive a cost of living retirement adjustment in
addition to his or her retirement allowance in an
amount equal to three percent (3%) of the
original retirement allowance. In each succeeding year
thereafter during the month of January, the
retirement allowance shall be increased an additional
three percent (3%) of the original
allowance, compounded annually from the year cost of
living adjustment was first payable to be
continued during the lifetime of the judge or his or
her surviving spouse or domestic partner. For
the purpose of such computation, credit shall be given
for a full calendar year regardless of the
effective date of the retirement allowance.
(b) Any judge who
retired prior to January 31, 1980, shall be deemed for the purpose of
this section to have retired on January 1, 1980.
(c) For judges not
eligible to retire as of September 30, 2009 and not eligible upon
passage of this article, and for their beneficiaries,
the cost of living adjustment described in
subsection (a) above shall only apply to the first
thirty-five thousand dollars ($35,000) of
retirement allowance, indexed annually, and shall
commence upon the third (3rd) anniversary of
the date of retirement or when the retiree reaches age
sixty-five (65), whichever is later. The
thirty-five thousand dollar ($35,000) limit shall
increase annually by the percentage increase in
the Consumer Price Index for all Urban Consumer
(CPI-U) as published by the
Department of Labor Statistics determined as of
September 30 of the prior calendar year or three
percent (3%), whichever is less. The first thirty-five
thousand dollars ($35,000), as indexed, of
retirement allowance shall be multiplied by the
percentage of increase in the Consumer Price
Index for all Urban Consumers (CPI-U) as published by
the United States Department of Labor
Statistics determined as of September 30 of the prior
calendar year or three percent (3%),
whichever is less on the month following the
anniversary date of each succeeding year. For
judges eligible to retire as of September 30, 2009 or
eligible upon passage of this article, and for
their beneficiaries, the provisions of this subsection
(c) shall not apply.
(d)(1)
Notwithstanding the prior paragraphs of this section, and subject to paragraph
(d)
(2) below, for all present and former justices, active
and retired justices, and beneficiaries
receiving any retirement, disability or death
allowance or benefit of any kind, whether provided
for or on behalf of justices engaged on or prior to
December 31, 1989 as a non-contributory
justice or engaged after December 31, 1989 as a
contributory justice, the annual benefit
adjustment provided in any calendar year under this
section shall be equal to (A) multiplied by
(B) where (A) is equal to the percentage determined by
subtracting five and one-half percent
(5.5%) (the “subtrahend”) from the Five-Year Average
Investment Return of the retirement
system determined as of the last day of the plan year
preceding the calendar year in which the
adjustment is granted, said percentage not to exceed
four percent (4%) and not to be less than
zero percent (0%), and (B) is equal to the lesser of
the justice’s retirement allowance or the first
twenty-five thousand dollars ($25,000) of retirement
allowance, such twenty-five thousand
dollars ($25,000) amount to be indexed annually in the
same percentage as determined under
(d)(1)(A) above. The “Five-Year Average Investment
Return” shall mean the average of the
investment return of the most recent five (5) plan
years as determined by the retirement board.
Subject to paragraph (d)(2) below, the benefit
adjustment provided by this paragraph shall
commence upon the third (3rd) anniversary of the date
of retirement or the date on which the
retiree reaches his or her Social Security retirement
age, whichever is later. In the event the
retirement board adjusts the actuarially assumed rate
of return for the system, either upward or
downward, the subtrahend shall be adjusted either
upward or downward in the same amount.
(2) Except as
provided in paragraph (d)(3), the benefit adjustments under this section for
any plan year shall be suspended in their entirety
unless the GASB Funded Ratio of the
Employees’ Retirement System of
State Police Retirements Benefits Trust, calculated by
the system’s actuary on an aggregate basis,
exceeds eighty percent (80%) in which even the benefit
adjustment will be reinstated for all
justices for such plan year.
In determining
whether a funding level under this paragraph (d)(2) has been achieved, the
actuary shall calculate the funding percentage after
taking into account the reinstatement of any
current or future benefit adjustment provided under
this section. “GASB Funded Ratio” shall
mean the ratio of the actuarial value of assets to the
actuarial accrued liability.
(3) Notwithstanding
paragraph (d)(2), in each fifth plan year commencing after June 30,
2012 commencing with the plan year ending June 30,
2017, and subsequently at intervals of five
(5) plan years, a benefit adjustment shall be
calculated and made in accordance with paragraph
(d)(1) above until the GASB Funded Ratio of the
Employees’ Retirement System of Rhode
Island, the Judicial Retirement Benefits Trust and the
State Police Retirement Benefits Trust,
calculated by the system’s actuary on an aggregate
basis, exceeds eighty percent (80%).
(4) Notwithstanding
any other provision of this chapter, the provisions of this paragraph
(d) of section 8-8.2-12 shall become effective July 1,
2012 and shall apply to any benefit
adjustment not granted on or prior to June 30, 2012.
SECTION
19. Sections 28-30-17, 28-30-18 and 28-30-18.1 of the General Laws in
Chapter 28-30 entitled
“Workers'
28-30-17. Allowance
to surviving spouses, domestic partners of deceased judges. –
(a) Whenever any judge of the workers' compensation
court who was engaged as a judge prior to
January 1, 2009 dies after retirement or during active
service while eligible for retirement or
during active service after having served fifteen (15)
years or more in office, his or her surviving
spouse or domestic partner shall receive annually
thereafter during his or her lifetime and so long
as he or she remains unmarried or not in a domestic
partnership, an amount equal to one-half (
1/2) of the annual payment that the judge was
receiving by way of salary or retirement pay at the
time of his or her death.
(b) For those engaged
as a judge on or after January 1, 2009, and prior to July 1, 2009,
the judge may elect to receive retirement pay that is
reduced by an additional ten percent (10%)
of the average of the highest three (3) consecutive
years annual compensation (i.e., ninety percent
(90%) reduced to eighty percent (80%) or seventy
percent (70%) reduced to sixty percent (60%))
and where such option is exercised by giving the
general treasurer notice in writing thereof within
ninety (90) days after the date of his or her
retirement his or her surviving spouse or domestic
partner or minor children shall receive annually
one-half (1/2) of his or her retirement pay during
his or her lifetime so long as he or she remains
unmarried or not in a domestic partnership, or the
children are under twenty-one (21) years of age;
provided, however, for any judge engaged on or
after July 1, 2009, the reduction shall be based upon
the average of the highest five (5) years
consecutive annual compensation.
(c)(1) Any judge of
the courts who is engaged as a judge on or after July 1, 2012 and who
elects to receive a retirement pay that is reduced,
shall receive a lesser retirement allowance as
determined by actuarial calculation, which shall be
payable throughout life with the provision
that:
(i)
Option 1. Upon the justice’s death, the justice’s lesser retirement allowance
shall be
continued throughout the life of and paid to such
person having an insurable interest in the
justice's life, as the judge shall nominate by written
designation duly acknowledged and filed with
the retirement board at the time of his or her
retirement.
(ii) Option 2. Upon
the justice’s death, one-half (1/2) of the judge's lesser retirement
allowance shall be continued throughout the life of
and paid to such person, having an insurable
interest in the judge's life, as the judge shall nominate
by written designation duly acknowledged
and filed with the retirement board at the time of the
beneficiary's retirement.
(2) For purposes of
any election under this section the judge may designate more than
one person to receive benefits after his or her death,
provided that the designation shall specify
the portion of the actuarial equivalent of the judge's
retirement allowance to be paid to each
person, and provided further that the aggregate
actuarial value of the portions shall not exceed the
actuarial equivalent of the judge's retirement benefit
determined in the case of an election under
this section as of the date of the judge's retirement.
(3) A judge selecting
more than one person to receive benefits under this section may
only select beneficiaries from among his or her
children, adopted children, step-children, and/or
spouse or domestic partner.
(c)(d)
Whenever a judge of the workers' compensation court dies without having become
eligible to retire either under § 28-30-15 or 28-30-16
and has served seven (7) years or more in
office, his or her surviving spouse or domestic
partner shall receive annually thereafter during his
or her lifetime and so long as he or she remains
unmarried or not in a domestic partnership one-
third ( 1/3) of the annual salary that the judge was
receiving at the time of his or her death.
(d)(e)
Whenever any judge of the workers' compensation court who was engaged as a
judge on or after January 1, 2009 dies during active
service while eligible for retirement or during
active service after having served fifteen (15) years
or more in office, his or her surviving spouse
or domestic partner shall receive annually thereafter
during his or her lifetime and so long as he
or she remains unmarried or not in a domestic
partnership, an amount equal to one-half (1/2) of
the annual payment that the judge was receiving by way
of salary or retirement pay at the time of
his or her death.
(e)(f)
Whenever a judge of the workers' compensation court dies without having become
eligible to retire either under § 28-30-15 or 28-30-16
and has not served seven (7) years in office,
his or her surviving spouse or domestic partner shall
subsequently receive annually during his or
her lifetime and so long as he or she remains
unmarried or not in a domestic partnership, one
fourth ( 1/4) of the annual salary that the judge was
receiving at the time of his or her death.
(f)(g) In
the event the deceased judge has no surviving spouse or domestic partner or the
surviving spouse or domestic partner predeceases their
minor children, the benefits conferred by
this section shall be received in equal shares by the
minor children, if any, until each attains the
age of twenty-one (21) years.
28-30-18 Additional
benefits payable to retired judges and their surviving spouses
or domestic partners. -- (a) All
judges of the workers' compensation court, or their surviving
spouses or domestic partners, who retire after January
1, 1970 and who receive a retirement
allowance pursuant to the provisions of this title,
shall, on the first day of January next following
the third anniversary date of their retirement,
receive a cost of living retirement adjustment in
addition to his or her retirement allowance in an
amount equal to three percent (3%) of the
original retirement allowance. In each succeeding
subsequent year during the month of January
the retirement allowance shall be increased an
additional three percent (3%) of the original
allowance, compounded annually from the year the cost
of living adjustment was first payable to
be continued during the lifetime of that judge or his
or her surviving spouse or domestic partner.
For the purpose of that computation, credit shall be
given for a full calendar year regardless of the
effective date of the retirement allowance.
(b) Any judge who
retired prior to January 31, 1980, shall be deemed for the purpose of
this section to have retired on January 1, 1980.
(c) For judges not
eligible to retire as of September 30, 2009 and not eligible upon
passage of this article, and for their beneficiaries,
the cost of living adjustment described in
subsection (a) above shall only apply to the first
thirty-five thousand dollars ($35,000) of
retirement allowance, indexed annually, and shall
commence upon the third (3rd) anniversary of
the date of retirement or when the retiree reaches age
sixty-five (65), whichever is later. The
thirty-five thousand dollar ($35,000) limit shall increase
annually by the percentage increase in
the Consumer Price Index for all Urban Consumer
(CPI-U) as published by the
Department of Labor Statistics determined as of
September 30 of the prior calendar year or three
percent (3%), whichever is less. The first thirty-five
thousand dollars ($35,000), as indexed, of
retirement allowance shall be multiplied by the
percentage of increase in the Consumer Price
Index for all Urban Consumers (CPI-U) as published by
the United States Department of Labor
Statistics determined as of September 30 of the prior
calendar year or three percent (3%),
whichever is less on the month following the
anniversary date of each succeeding year. For
judges eligible to retire as of September 30, 2009 or
eligible upon passage of this article, and for
their beneficiaries, the provisions of this subsection
(c) shall not apply.
(d)(1)
Notwithstanding the prior paragraphs of this section, and subject to paragraph
(d)
(2) below, for all present and former justices, active
and retired justices, and beneficiaries
receiving any retirement, disability or death
allowance or benefit of any kind, whether provided
for or on behalf of justices engaged on or prior to
December 31, 1989 as a non-contributory
justice or engaged after December 31, 1989 as a
contributory justice, the annual benefit
adjustment provided in any calendar year under this
section shall be equal to (A) multiplied by
(B) where (A) is equal to the percentage determined by
subtracting five and one-half percent
(5.5%) (the “subtrahend”) from the Five-Year Average
Investment Return of the retirement
system determined as of the last day of the plan year
preceding the calendar year in which the
adjustment is granted, said percentage not to exceed
four percent (4%) and not to be less than
zero percent (0%), and (B) is equal to the lesser of
the justice’s retirement allowance or the first
twenty-five thousand dollars ($25,000) of retirement
allowance, such twenty-five thousand
dollars ($25,000) amount to be indexed annually in the
same percentage as determined under
(d)(1)(A) above. The “Five-Year Average Investment
Return” shall mean the average of the
investment return of the most recent five (5) plan
years as determined by the retirement board.
Subject to paragraph (d)(2) below, the benefit
adjustment provided by this paragraph shall
commence upon the third (3rd) anniversary of the date
of retirement or the date on which the
retiree reaches his or her Social Security retirement
age, whichever is later. In the event the
retirement board adjusts the actuarially assumed rate
of return for the system, either upward or
downward, the subtrahend shall be adjusted either
upward or downward in the same amount.
(2) Except as provided
in paragraph (d)(3), the benefit adjustments under this section for
any plan year shall be suspended in their entirely
unless the GASB Funded Ratio of the
Employees’ Retirement System of
State Police Retirement Benefits Trust, calculated by
the system’s actuary on an aggregate basis,
exceeds eighty percent (80%) in which event the
benefit adjustment will be reinstated for all
justices for such plan year.
In determining whether
a funding level under this paragraph (d)(2) has been achieved, the
actuary shall calculate the funding percentage after
taking into account the reinstatement of any
current or future benefit adjustment provided under
this section. “GASB Funded Ratio” shall
mean the ratio of the actuarial value of assets to the
actuarial accrued liability.
(3) Notwithstanding
paragraph (d)(2), in each fifth plan year commencing after June 30,
2012 commencing with the plan year ending June 30,
2017, and subsequently at intervals of five (5)
plan years, a benefit adjustment shall be calculated
and made in accordance with paragraph (d)(1)
above until the GASB Funded Ratio of the Employees’
Retirement System of
Judicial Retirement Benefits Trust and the State
Police Retirement Benefits Trust, calculated by
the system’s actuary on an aggregate basis, exceeds
eighty percent (80%).
(4) Notwithstanding
any other provision of this chapter, the provisions of this paragraph
(d) of Section 28-30-18 shall become effective July 1,
2012 and shall apply to any benefit
adjustment not granted on or prior to June 30, 2012.
28-30-18.1. Retirement
contribution. -- (a) Workers' compensation judges engaged
after December 31, 1989, shall have deducted from
total salary beginning December 31, 1989 and
ending on June 30, 2012, an amount equal to a rate percent of compensation as
specified in § 36-
10-1 relating to member contributions to the state
retirement system. Effective July 1, 2012, all
active workers’ compensation judges whether engaged
before or after December 31, 1989, shall
have deducted from compensation as defined in §
36-8-1(8) an amount equal to twelve percent
(12%) of compensation. The receipts collected under this provision shall be
deposited in a
restricted revenue account entitled "workers'
compensation judges' retirement benefits". Proceeds
deposited in this account shall be held in trust for
the purpose of paying retirement benefits to
participating judges or their beneficiaries. The
retirement board shall establish rules and
regulations to govern the provisions of this section.
(b) A judge of the
court who withdraws from service or ceases to be a judge for any
reason other than retirement shall be paid on demand a
refund consisting of the accumulated
contributions standing to his or her credit in his or
her individual account in the workers'
compensation judges' retirement benefits account. Any
judge receiving a refund shall forfeit and
relinquish all accrued rights as a member of the
system together with credits for total service
previously granted to the judge; provided, that if any
judge who has received a refund
subsequently reenters the service and again becomes a
member of the system, he or she shall have
the privilege of restoring all money previously
received or disbursed to his or her credit as refund
of contributions, together with regular interest
for the time period from the date of refund to the
date of restoration. Upon the repayment of the refund, the judge shall again receive
credit for the
amount of total service that he or she had previously
forfeited by the acceptance of the refund.
(c) Whenever any judge
of the workers' compensation court dies from any cause before
retirement and has no surviving spouse, domestic
partner or minor child(ren), a payment shall be
made of the accumulated contributions standing to his
or her credit in his or her individual
account in the workers' compensation judges'
retirement account. The payment of the
accumulated contributions of the judge shall be made
to such person as the judge shall have
nominated by written designation duly executed and
filed with the retirement board, or if the
judge has filed no nomination, or if the person so
nominated has died, then to the estate of the
deceased judge.
SECTION
20. Chapter 28-30 of the General Laws entitled “Workers' Compensation
Court” is hereby amended by
adding the following section:
28-30-25. Severability.--
The holding of any section or sections or parts of this chapter to
be void, ineffective, or unconstitutional for any
cause shall not be deemed to affect any other
section or part hereof.
SECTION
21. Section 23-4-5 of the General Laws in Chapter 23-4 entitled “Office of
State Medical Examiners” is
hereby amended to read as follows:
23-4-5. Chief
medical examiner – Assistants and other staff. -- (a) The office shall
be
under the immediate supervision of a chief, who shall
be known as the "chief medical examiner"
and who shall be a physician licensed under the
provisions of chapter 37 of title 5, and a qualified
pathologist certified by the American Board of
Pathology and who has had forensic training or
experience. He or she shall be appointed by the
director of health as shall the deputy chief
medical examiner with the advice of the medical
examiner's commission. The chief medical
examiner shall be in the unclassified service and the
deputy chief medical examiner shall be in the
classified service.
(b) The chief medical
examiner shall appoint, with the approval of the director of health,
assistant medical examiners and shall hire other staff
as necessary to carry out the provisions of
this chapter.
(c) Persons employed
full time at the time of enactment of this chapter within the
division of medical examiners in the department of the
attorney general shall be transferred to the
office of state medical examiners with their former
rights and privileges of employment. , and
shall be For
members eligible to retire on or before June 30, 2012, such members shall be
eligible
for retirement benefits after the age of fifty (50)
years and service of twenty (20) years, including
service within the division of medical examiners. For
members eligible to retire on or after July 1,
2012, such members shall be eligible for retirement
benefits in accordance with chapters 8
through 10 of title 36.
SECTION
22. Title 45 of the General Laws entitled "TOWNS AND CITIES" is
hereby
amended by adding thereto
the following chapter:
CHAPTER
65
RETIREMENT
SECURITY ACT FOR LOCALLY ADMINISTERED PENSION FUNDS
45-65-1. Short title. -- This chapter
shall be known as and may be cited as the “Pathway
to Retirement Security for Locally Administered
Pension Funds Act.”
45-65-2. Purpose. -- The
purpose of this chapter is to provide retirement security to
current and retired municipal employees by codifying
standards to promote the sustainability and
longevity of pension plans established and
administered by municipalities.
45-65-3. Legislative Findings. -- It
is the intention of the general assembly to begin the
process of ensuring the sustainability of locally
administered pension plans and to advance and
maintain the long-term stability of such plans. The
general assembly finds and declares that:
(1)
municipal pension plans; currently, there are
thirty-six (36) such plans administered by twenty-
four (24) municipalities.
(2) According to a
report by the Office of the Auditor General entitled Pension and
OPEB Plans Administered by Rhode Island Municipalities
(September 2011): “Many municipal
pension plans are severely underfunded which presents
the risk that sufficient funds will not be
available to meet promised benefits to retirees. It
also undermines the overall fiscal health of the
plan’s sponsor.”
(3) It is in the best
interests of individual employees, taxpayers, municipalities and the
state itself to maintain viable and sustainable
municipal public pension plans. These interests
include:
Preserving a level of
pension benefits that is, over the long term, reasonable for current
and retired municipal employees and affordable for
taxpayers;
Avoiding significant
and unanticipated retirement benefit reductions, which could cause
an increase in poverty among retired municipal
employees and a resulting strain on state social
services;
Maintaining
investments in infrastructure and education on the state and local levels in
lieu of diverting critical resources to satisfy
pension obligations;
Preventing the financial
downgrade of municipalities by rating agencies as a result of
unfunded pension obligations, which would make it more
difficult to access the capital markets
and increase the costs of borrowing;
Encouraging rating
agencies, in recognition of the state’s proactive approach toward
financial discipline, to take positive credit actions
on
Creating a more
stable and well-managed environment in
businesses and maintain and expand existing
businesses, which will diminish the uncertainty and
fiscal instability that accompany uncontrolled pension
obligations.
(4) The first step in
ensuring the viability and sustainability of local pension plans is to
get an accurate analysis of the current condition and
fiscal health of the individual plans.
45-65-4. Definitions. -- As
used in this chapter the following terms shall have the
following meanings:
(1) “Actuarial
experience study” means a report provided by an actuary that includes a
recent discussion of plan experience, recommendations
for actuarial assumptions and methods,
and information about the actuarial impact of these
recommendations on the liabilities and other
key actuarial measures.
(2) “Annual actuarial
valuation study” means a valuation of a locally administered plan
completed by an actuary, and a certification based on
that valuation indicating whether such plan
is or is not in critical status, on an annual basis.
(3) “Critical status”
means that, as determined by its actuary, as of the beginning of the
plan year, a plan’s funded percentage for such plan
year is less than sixty percent (60%).
(4) “Locally
administered plan” or “plan” means any defined benefit pension plan
established by a municipality for its employees, other
than: (a) A plan that is part of the
Employees’ Retirement System of
Employees’ Retirement System of
established by a municipality that has filed for
bankruptcy protection pursuant to chapter 9 of title
11 of the
appointed pursuant to chapter 45-9 or a plan
established by a municipality for which a fiscal
overseer has been appointed pursuant to chapter 45-9.
(5) “Municipality”
means any town or city in the State of
housing authority, fire, water, sewer district,
regional school district or public building authority
as established by chapter 14 of title 37.
45-65-5. Actuarial valuation methodology.
-- Actuarial methods used by the actuary in
preparing an actuarial experience study or annual
actuarial valuation shall be in compliance with
accepted actuarial standards and applicable public
pension accounting laws, rules and regulations.
The actuary shall not, year to year, change actuarial
methods for the sole purpose of achieving a
more favorable funding or fiscal result. Any actuarial
study shall be made by the actuary in good
faith and in accordance with accepted actuarial
standards.
45-65-6. Certification and notice
requirements. -- (1) Every municipality that
maintains a locally administered plan shall submit its
initial annual actuarial valuation study to
the study commission created herein under section
45-64-8 on or before April 1, 2012, and for
each plan year ending on or after December 31, 2012,
within six (6) months of completing such
plan year. The initial actuarial experience study
shall be submitted to the study commission on or
before April 1, 2012, and subsequent actuarial
experience studies must be submitted to the study
commission no less frequently than once every three
(3) years.
(2) In any case in
which an actuary certifies that a locally administered plan is in
critical
status for a plan year, the municipality administering
such a plan shall, not later than thirty (30)
business days following the certification, provide
notification of the critical status to the
participants and beneficiaries of the plan and to the
general assembly, the governor, the general
treasurer, the director of revenue, and the auditor general.
The notification shall also be posted
electronically on the general treasurer’s website.
Within one hundred eighty (180) days of
sending the critical status notice, the municipality
shall submit to the study commission a
reasonable alternative funding improvement plan to
emerge from critical status.
(3) The state shall
reimburse every municipality for fifty percent (50%) of the cost of
undertaking its annual actuarial valuation study.
(4) Notwithstanding any
other law to the contrary, the funding improvement plans and
actuarial valuation studies submitted pursuant to this
section shall be public records.
45-65-7. Failure to comply. -- (1)
With respect to any municipality that fails to comply
with the requirements of this chapter within the
prescribed time, the general treasurer is
authorized to withhold moneys due to the municipality
from the state for any purpose other than
education, including, but not limited to, municipal
aid and other aid provided under sections 45-
13-5.1, 45-13-12, 44-34.1-2, 44-13-13, 44-18-18.1,
44-18-36.1(b) and 42-63.1-3.
45-65-8. Study commission. -- A
study commission for locally administered plans shall
be established to review existing legislation and
pension plan administrative practices and to
make recommendations for the improved security and
funding of locally administered plans and
other post-retirement benefit obligations of cities
and towns. The commission shall consist of
fourteen (14) members: the director of the department
of revenue, or his or her designee; who
shall be the chair, the auditor general, one member
each representing the department of
administration, the general treasurer, the League of
Cities and Towns and the
Expenditures Council, and three (3) members appointed
by the governor representing municipal
police, fire and non-public safety employees. In
addition, the Speaker of the House and President
of the State Senate shall each appoint one member to
the commission and then shall jointly select
and appoint one elected mayor from a city or town with
a population greater than 50,000, one
elected mayor from a city or town with a population
less than 50,000 and one appointed town
administrator.
45-65-9. Severability; Indispensable
Party. -- The holding of any section or sections or
parts hereof to be void, ineffective, or
unconstitutional for any cause shall not be deemed to affect
any other section or part hereof. The state shall be
an indispensable party in any action contesting
the validity of this chapter.
SECTION
23. Chapter 42-149 of the General Laws entitled "State Expenditures for
Non-
State Employee
Services" is hereby amended by adding thereto the following section:
42-149-3.1. Assessment
on state expenditures for non-state employee services. –
Whenever a department, commission, board, council,
agency or public corporation incurs
expenditures through contracts or agreements by which
a nongovernmental person or entity
agrees to provide services which are substantially
similar to and in lieu of services hereto fore
provided, in whole or in part, by regular employees of
the department, commission, board,
council, agency or public corporation covered by
chapter 36-8, those expenditures shall be
subject to an assessment equal to five and one-half
percent (5.5%) of the cost of the service. That
assessment shall be paid to the retirement system on a
quarterly basis in accordance with
subsection 36-10-2(e).
SECTION
24. This act shall take effect upon passage.
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LC03022/SUB A/2
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