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 Rhode Island

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 Rhode Island has one of the lowest funded and most vulnerable statewide

pension systems in the country.

     (2) The State of Rhode Island has suffered deeply through the recent recession and

continues to endure some of the highest unemployment and foreclosure rates in the United States.

     (3) The current condition of Rhode Island’s critically underfunded pension system,

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 Rhode Island citizens and taxpayers.

     (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

Rhode Island can provide secure pension benefits to our public employees.

     (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 Rhode Island’s debt

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 Rhode Island’s

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 Rhode Island communities filing for bankruptcy protection which has

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 Rhode Island

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 Rhode Island creates

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 Rhode Island and its municipalities, the general assembly further finds

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 Rhode Island’s publicly financed pension systems has reached an

emergency stage and must be addressed without delay and the enactment of the Rhode Island

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 Rhode Island as defined in

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 Rhode Island whose

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

Rhode Island as defined in section 36-8-2.

     (18) "Service" shall mean service as an employee of the State of Rhode Island as

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 Rhode Island. In addition, the

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 Rhode Island, except as provided in chapter 10.3 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

Rhode Island state police shall be exempt from the provisions of chapters 8 – 10 of this title;

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 America. --

     (a) Any active member who served in the peace corps, teacher corps, or in Volunteers in

service to America may purchase credit for that service up to a maximum of four (4) years in the

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 VISTA, up to a

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 Rhode Island shall remit to the general treasurer the employer's share 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 Rhode Island under

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 Rhode Island for fiscal year 2002 and for all fiscal years subsequent, the actuary shall

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 Rhode Island for the purpose of retirement of 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 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 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%) 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 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

(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

Island Pension Protection Act".

 

     36-10.2-2. Purpose. – The purpose of the Rhode Island Pension Protection Act is to

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 Rhode Island as defined in Chapter 36-8.

     (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 Rhode Island (ERS); the Municipal

Employees’ Retirement System of Rhode Island (MERS); the Rhode Island State Police

Retirement Benefits Trust (SPRBT); and the Rhode Island Judicial Retirement Benefits Trust

(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 Rhode Island or the local municipality which employs

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 Rhode Island as defined in Chapter 36-8. The retirement board shall be the

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 Rhode Island (ERS) and the Municipal

Employees’ Retirement System of Rhode Island (MERS).

     (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 Rhode Island created by chapter 8 of title 36, and "retirement board" means the board

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 Rhode Island;

     (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 United States, or in any territory or possession of the

United States, including the Philippine Islands, or in any school under the jurisdiction of the

United States government.

     (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 America – Credit.

(a) Any active teacher who served in the peace corps, teacher corps, or in volunteers in service

to America may purchase credit for that service, up to a maximum of four (4) years. Any teacher

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.

 

     16-16-22.1. City or town payment of teacher member contributions. -- (a) Each city

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 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 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 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%) 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 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 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 Rhode Island;

        (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 Rhode Island, any city or

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 Rhode Island, or a survivor of the

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 Rhode Island" as defined in § 45-21-32.

      (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 Johnston shall establish a pension plan separate from the state of Rhode Island retirement

system. If the town of Johnston is thirty (30) days or more late on employer or employee

contributions to the pension plan, the auditor general is authorized to redirect any Johnston funds

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

Johnston's expense. All new firefighters hired by the town of Johnston shall become members of

the state retirement system.

      (e) Notwithstanding the provisions of this section, any City of Cranston employees, who

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

Cranston.

      (f) Notwithstanding the provisions of this section, any City of Cranston employees, who

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

Cranston and shall not be a member of the retirement system established by this chapter.

      (g) Notwithstanding the provisions of this section, any City of Cranston employees

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 Cranston should the member cease

employment with the City of Cranston or Teamsters Local Union No. 251 and re-enter the system

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 Cranston for a period often (10) years, is

entitled to receive, upon retirement from that part time service, and not being otherwise regularly

employed by the city of Cranston in which that person has served, a service retirement allowance

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

Cranston who is presently receiving retirement benefits from the municipal retirement system.

     (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 Cranston may include that person's years 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 Cranston pursuant to the

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 East Greenwich town council shall be allowed to accept Plan C of § 45-21-

52(a)(3) for all employees of the town of East Greenwich who either, pursuant to contract

negotiations, bargain for Plan C, or who are non-union employees who are provided with Plan C

and who shall all collectively be referred to as the "Municipal-COLA Group" and shall be

separate from all other employees of the town and school department, union or non-union, who

are in the same pension group but have not been granted Plan C benefits. Upon acceptance by the

town council, benefits in accordance with this section shall be available to all such employees

who retire on or after January 1, 2003.

 

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

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

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

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

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

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

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

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

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

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

notwithstanding that the member may have separated from service.

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

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

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

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

provided, that the service retirement allowance, as determined according to the formula provided

in § 45-21.2-6, is reduced one-half of one percent ( 1/2%) for each month that the age of the

member is less than fifty-five (55) years.

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

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

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

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

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

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

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

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

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

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

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

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

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

twenty (20) years service; final compensation for Cranston fire department members is based on

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

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

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

continuing on an annual basis on that date; further, any illness or injury not covered in title 45 of

the general laws relating to the presumption of disability is governed by the collective bargaining

agreement between the City of Cranston and members of the Cranston fire department.

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

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

1995, may retire pursuant to this subdivision upon written application to the board stating at what

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

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

twenty (20) years service; final compensation for Cranston police department members is based

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

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

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

continuing on an annual basis on that date; further, any illness or injury not covered in title 45 of

the general laws relating to the presumption of disability is governed by the collective bargaining

agreement between the City of Cranston and members of the Cranston police department.

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

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

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

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

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

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

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

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

continuing on an annual basis on that date.

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

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

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

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

years' service 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. South Kingstown police department – Retirement allowance. -- Upon

retirement from service pursuant to subdivision (1), (2), or (5) of § 45-21.2-5, a member of the

South Kingstown 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 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. Johnston police department retirement allowance. -- Upon retirement

from service pursuant to subdivision (1), (2), or (6) of § 45-21.2-5, a member of the Johnston

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. Richmond police department – Retirement allowance. -- Upon retirement

from service pursuant to chapter 45-21.2-5, a member of the Richmond police department shall

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 South Kingstown police department, beginning July 1,

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 South Kingstown police department shall make

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

Cranston fire department hired after July 1, 1995, beginning July 1, 1995, contribute an amount

equal to ten percent (10%) of their weekly salary; and those members of the City of Cranston fire

department with five (5) years or less of service effective July 1, 1995, have the option to either

remain in the City of Cranston pension plan to which they belonged prior to the adoption of local

ordinance by the Cranston city council as stated in § 45-21.2-22 or contribute to the State of

Rhode Island optional twenty (20) year retirement on service allowance an amount equal to ten

percent (10%) of their weekly salary commencing July 1, 1995. The City of Cranston may

request and the retirement board may authorize additional members of the City of Cranston fire

department hired after July 1, 1987, the option to either remain in the City of Cranston pension

plan to which they belonged prior to the adoption of local ordinance by the Cranston city council

as stated in § 45-21.2-22 or contribute to the State of Rhode Island optional twenty (20) 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 Cranston fire department shall make contributions in accordance with

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 Cranston police department hired after July 1, 1995, beginning July 1, 1995, contribute an

amount equal to ten percent (10%) of their weekly salary; and those members of the City of

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

option to either remain in the City of Cranston pension plan to which they belonged prior to the

adoption of local ordinance by the Cranston city council as stated in § 45-21.2-22 or contribute to

the State of Rhode Island optional twenty (20) year retirement on service allowance an amount

equal to ten percent (10%) of their weekly salary commencing July 1, 1995. The City of Cranston

may request and the retirement board may authorize additional members of the City of Cranston

police department hired after July 1, 1987, the option to either remain in the City of Cranston

pension plan to which they belonged prior to the adoption of local ordinance by the Cranston city

council as stated in § 45-21.2-22 or contribute to the State of Rhode Island optional twenty (20)

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 Cranston police department shall make contributions in accordance with

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 - North Providence fire department. -- Any person

who, from January 1, 1960 and thereafter, was a member of the call system of the North

Providence fire department, is entitled to credit as service for the various purposes of the

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 - North Kingstown fire department. -- Any person

who, from January 1, 1950 and thereafter, was a member of the call system of the North

Kingstown fire department, is entitled to credit as service for the various purposes of the

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 – East Greenwich fire district. --

Any person who, from January 1, 1943 and thereafter, was a volunteer member and/or a member

of the call system of the East Greenwich fire district, is entitled to credit as service for the various

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 Burrillville, 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 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 Rhode Island

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 Rhode Island;

     (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 United States as defined in § 2 of chapter

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 Rhode Island state police, except as

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 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%) 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 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%).

     (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.

 

     42-28-22.2. State contributions. -- The state of Rhode Island shall make its contribution

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 Rhode Island

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 United States in time of war or

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, Superior and Family Courts" are hereby amended to

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 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 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 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%) 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 Rhode Island shall make its contribution for

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 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 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 Rhode Island, the Judicial Retirement Benefits Trust and the

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' Compensation Court” are hereby amended to read as follows:

 

     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 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 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 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%) 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 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) Rhode Island law authorizes and empowers municipalities to administer their own

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 Rhode Island municipal bonds; and

     Creating a more stable and well-managed environment in Rhode Island to attract new

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 Rhode Island as defined in chapter 36‑8 or the Municipal

Employees’ Retirement System of Rhode Island as defined in chapter 45-21; or (b) A plan

established by a municipality that has filed for bankruptcy protection pursuant to chapter 9 of title

11 of the United States Code, a plan established by a municipality for which a receiver has been

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 Rhode Island, any city or town

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 Rhode Island Public

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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