Chapter 222
2012 -- S 2245 SUBSTITUTE B
Enacted 06/13/12
A N A C T
RELATING TO
STATE AFFAIRS AND GOVERNMENT - STATE POLICE
Introduced By: Senator Daniel DaPonte
Date Introduced: January 26, 2012
It is enacted by the
General Assembly as follows:
SECTION 1. Section 42-28-22 of the General Laws in Chapter
42-28 entitled "State
Police" is hereby
amended to read as follows:
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).
(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
section 42-28-5, and to the injury and
death benefits under the provisions of section 42-28-21.
(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
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 section 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) Any member 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
subdivision 36-8-1(10); provided the employee returns to state
service for at least one year upon
completion of the leave.
(4)(5) 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.
(6) 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.
(g) The provisions of
this section shall not apply to civilian employees in the Rhode
Island state police; and, further, from and after
April 28, 1937, chapters 8 -- 10, inclusive, of title
36 shall not be construed to apply to the members of
the
provided by sections 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 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 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) (1) 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 section
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 section 36-8-1(5)(a) and (8), provided that for
a member whose regular work
period exceeds one hundred forty-seven (147) hours over a
twenty-four (24) day period at any
time during the four (4) year period immediately prior to
his/her retirement that member shall
have up to four hundred (400) hours of his/her pay for
regularly scheduled work earned during
this period shall be included as "compensation"
and/or "average compensation" for purposes of
this section and section 42-28-22.1.
(4) (i) Notwithstanding the prior
paragraphs of this section, and subject to paragraph
(4)(ii) below, for all
present and former members, active and retired members, and beneficiaries
receiving any retirement, disability or death allowance or
benefit of any kind, whether for or on
behalf of a non-contributory member or contributory member,
the annual benefit adjustment
provided in any calendar year under this section shall be
equal to (A) multiplied by (B) where (A)
is equal to the percentage determined by subtracting
five and one-half percent (5.5%) (the
"subtrahend") from
the Five-Year Average Investment Return of the retirement system
determined as of the last day of the plan year preceding the
calendar year in which the adjustment
is granted, said percentage not to exceed four percent
(4%) and not to be less than zero percent
(0%), and (B) is equal to the lesser of the member's
retirement allowance or the first twenty-five
thousand dollars ($25,000) of retirement allowance, such
twenty-five thousand dollars ($25,000)
amount to be indexed annually in the same percentage as
determined under (4)(i)(A) above. The
"Five-Year Average Investment Return" shall
mean the average of the investment returns for the
most recent five (5) plan years as determined by the
retirement board. Subject to paragraph (4)(ii)
below, the benefit adjustment provided by this paragraph
shall commence upon the third (3rd)
anniversary of the date of retirement or the date on which the
retiree reaches age fifty-five (55),
whichever is later. In the event the retirement board adjusts
the actuarially assumed rate of return
for the system, either upward or downward, the subtrahend
shall be adjusted either upward or
downward in the same amount.
(ii) Except as provided
in paragraph (4)(iii), the benefit adjustments under
this section
for any plan year shall be suspended in their entirety
unless the GASB Funded Ratio of the
Employees' Retirement System of
State Police Retirement Benefits Trust, calculated by
the system's actuary on an aggregate basis,
exceeds eighty percent (80%) in which event the benefit
adjustment will be reinstated for all
members for such plan year.
In determining whether
a funding level under this paragraph (4)(ii) has been
achieved,
the actuary shall calculate the funding percentage after
taking into account the reinstatement of
any current or future benefit adjustment provided under
this section. "GASB Funded Ratio" shall
mean the ratio of the actuarial value of assets to the
actuarial accrued liability.
(iii) Notwithstanding
paragraph (4)(ii), in each fifth plan year commencing
after June 30,
2012 commencing with the plan year ending June 30,
2017, and subsequently at intervals of five
(5) plan years, a benefit
adjustment shall be calculated and made in accordance with paragraph
(4)(i) above
until the GASB Funded Ratio of the Employees' Retirement System of
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.
(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.
SECTION 2. This act shall take effect upon passage.
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LC00873/SUB B
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