Chapter 140
2013 -- S 0867
Enacted 06/29/13
A N A C T
RELATING TO THE
CITY OF
Introduced
By: Senators Picard, and
Date Introduced: April 11, 2013
It is enacted by the
General Assembly as follows:
SECTION 1. Section 8 of Chapter 10 of the 2002 Public Laws
entitled "An Act
Authorizing the City of
read to as follows:
SECTION 8. The aggregate principal amount of the bonds
issued by the City under this
act shall not be greater than the amount sufficient to
extinguish the unfunded pension liability and
to pay the costs of issuance of the bonds. For purposes
of this act, "unfunded pension liability"
means the excess, if any, of the actuarial liability of the
City's city-run pension plan for police and
firefighters over the actuarial value of the assets in that
pension plan. The actuarial liability of the
pension plan and the actuarial value of the assets in the
plan shall be determined using the same
actuarial assumptions as are used by the Retirement Board,
created by title 36, chapter 8 of the
General Laws of
municipal contributions under the optional retirement for
members of police force and firefighters
established under chapter 21.2 of title 45 of the general laws.
Prior to the issue of any bonds
hereunder, the City Council shall hold a public hearing on the
proposed pension funding plan.
The plan shall include a
report showing the:
(a)
Actuarial valuation of the assets in the pension plan;
(b)
An actuarial analysis of the methods by which the City proposes to fund the
unfunded
pension liability;
(c)
The amount of the bonds to be issued, including the plan of finance for the
bonds;
(d)
An explanation of the City's investment strategic plan for the pension plan
including,
but not limited to, the investment policy adopted by the
board of investment and an asset
allocation plan;
(e)
The projected investment return for the pension plan; and
(f)
The projected present value savings to the City reasonably expected to be
achieved as
a result of the issuance of such bonds. The city of
bonds prior to nor more than six (6) months, subsequent to
the approval of the voters of the city
of
voters of its intention to issue pension obligation bonds
and provide the voters through public
hearing with updated information and documentation in the
manner and as described above, if
more than six (6) months will elapse between the date of
the voter approval and the proposed date
of issuance of the pension obligation bonds. After the
public hearing and prior to the issuance of
the bonds, the pension funding plan shall be filed with
the public finance management board
established pursuant to chapter 10.1 of title 42 of the Rhode
Island General Laws (the "Public
Finance
Management Board"). The City
Council shall institute proceedings to determine that the
issuance of the pension obligation bonds will result in a
financial benefit to the City. The City
shall submit to the Public Finance Management Board and to
the State Auditor General, on or
before December 1 in each year, an annual report showing the
financial transactions of the
pension plan for the fiscal year preceding that date. The
annual report shall contain, among other
things, a financial balance sheet as of the end of that
year, a statement of income and
expenditures, a valuation balance sheet as prepared by the City's
independent consulting firm, a
detailed statement of investments acquired and disposed of
during the year, and any other
statistical data that are deemed necessary for a proper
interpretation of the condition of the
pension plan and the results of its operations. The State
Auditor General, on the request of the
City or of the Public
Finance Management Board, shall conduct a separate annual performance
audit of the pension plan which shall include a report on
the actuarial valuation of the assets and
liabilities of the pension plan. The auditor general may examine
all records, files and other
documents relating to the pension plan, and evaluate all
policies and procedures for purposes of
conducting the audit. The aforementioned performance audit shall
be in addition to the annual
audit conducted by independent certified public accountants
of the financial statements of the
City. So long as any bonds issued by the City under this
act are outstanding, if an annual report
discloses that the assets of the plan are not sufficient to
fund the City's obligations to the pension
plan, the City shall make annual appropriations over a
period not to exceed five (5) twenty-five
(25) years from the date of the annual
report in order to amortize that liability. So long as any
bonds issued by the City under this act are outstanding,
the City shall not withdraw funds from
the City-run pension plan for police and firefighters for
any purpose other than the payment of
pension and death benefits, return of employee
contributions in appropriate cases, and
administrative expenses of operating the plan., or the
transfer of assets to the municipal employee
retirement system in the event of acceptance into the municipal
employee retirement system.
SECTION 2. This act shall take effect upon passage.
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LC02158
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