Chapter 437

2012 -- S 2970

Enacted 06/25/12

 

A N A C T

RELATING TO TOWNS AND CITIES -- RETIREMENT OF MUNICIPAL EMPLOYEES

          

     Introduced By: Senator Louis P. DiPalma

     Date Introduced: May 17, 2012

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Section 45-21-8 of the General Laws in Chapter 45-21 entitled "Retirement

of Municipal Employees" is hereby amended to read as follows:

 

     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 section 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 section 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 section 45-

21-4.

     (h) Notwithstanding the provisions of this section, any town of Middletown employees,

who will be members of the Teamsters Local Union No. 251 bargaining unit, hired after June 30,

2012, shall be enrolled in a defined contribution plan (i.e., a 403(b) plan or equivalent thereof)

established by the town of Middletown and shall not be members of the retirement system

established by this chapter. Said town of Middletown employees defined herein shall be

precluded from the purchase of service credit for time served on or after July 1, 2012 while

participating in the defined contribution plan (i.e., a 403(b) plan or equivalent thereof) established

by the town of Middletown should the member cease employment with the town of Middletown

or in the Teamsters Local Union No. 251 bargaining unit and re-enter the system with any

participating employer who has accepted the provisions, as defined in section 45-21-4.

     (i) Notwithstanding the provisions of this section, any town of Middletown employees,

who will be members of the Middletown Municipal Employees Association NEARI Local 869

bargaining unit, hired after June 30, 2012, shall be enrolled in a defined contribution plan (i.e., a

403(b) plan or equivalent thereof) established by the town of Middletown and shall not be

members of the retirement system established by this chapter. Said town of Middletown

employees defined herein shall be precluded from the purchase of service credit for time served

on or after July 1, 2012 while participating in the defined contribution plan (i.e., a 403(b) plan or

equivalent thereof) established by the town of Middletown should the member cease employment

with the town of Middletown or in the Middletown Municipal Employees Association NEARI

Local 869 bargaining unit and re-enter the system with any participating employer who has

accepted the provisions, as defined in section 45-21-4.

 

     SECTION 2. This act shall take effect upon passage.

     

=======

LC02628

=======