Chapter 272 |
2019 -- H 6236 SUBSTITUTE A Enacted 07/16/2019 |
A N A C T |
RELATING TO TOWNS AND CITIES - RETIREMENT OF MUNICIPAL EMPLOYEES AND CLOSED MUNICIPAL RETIREMENT PLANS |
Introduced By: Representatives Maldonado, and McLaughlin |
Date Introduced: June 20, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. Sections 45-21-8 and 45-21-16.2 of the General Laws in Chapter 45-21 |
entitled "Retirement of Municipal Employees" are 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 §§§ 45-21-4, 45-21.4-2, or 45-21.4-3 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, anything 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 |
are presently members of the Laborers International Union of North America Local 1322 hired |
between the dates of July 1, 2008, and June 30, 2013, 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. |
(g) 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. |
(h) Notwithstanding the provisions of this section, any city of Cranston employees who |
are presently members of the Laborers International Union of North America Local 1322 hired |
after April 23, 2013, shall be enrolled in a defined contribution plan (i.e., 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. |
(i) 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. |
(j) 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, and any town of Middletown employees who are employed as full-time civilian |
dispatchers, hired after June 30, 2012, and any town of Middletown employees who are not |
affiliated with any recognized collective bargaining representative or union 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 § 45-21-4. |
(k) 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 § 45-21-4. |
(l) Notwithstanding the provisions of this section, any Cranston public school employees |
who will be members of National Association of Government Employees (NAGE), Local RI-153, |
hired after June 30, 2012, shall be enrolled in a defined contribution plan (i.e., a 401(a) plan or |
equivalent thereof) established by the Cranston school department and shall not be a member of |
the retirement system established by this chapter. |
(m) Notwithstanding the provisions of this section, any Cranston public school |
employees defined in subsection (h) 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 |
401(a) plan or equivalent thereof) established by the Cranston public schools should the member |
cease employment with the Cranston public schools or National Association of Government |
Employees (NAGE), Local RI-153 and re-enter the system with another participating employer |
who has accepted the provisions as defined in § 45-21-4. |
(n) Notwithstanding the provisions of this section, the chief of police for the city of |
Cranston who was hired on or about September 2014, shall be enrolled in a defined contribution |
plan (i.e., 401(a) plan or any equivalent thereof) established by the city of Cranston, and shall not |
be a member of the retirement system established by this chapter. |
45-21-16.2. Electronic funds transfer. |
All members of the municipal employees retirement system retiring under the provisions |
of this title on or after July 1, 1998, or joining the system pursuant to § 45-21.4-2 or § 45-21.4-3, |
are required to participate in electronic funds transfer and to supply the municipal employees |
retirement system with a bank routing number to effectuate a monthly transfer of benefits. |
SECTION 2. Section 45-21.2-3 of the General Laws in Chapter 45-21.2 entitled |
"Optional Retirement for Members of Police Force and Fire Fighters" is hereby amended to read |
as follows: |
45-21.2-3. Optional retirement for police and fire fighters firefighters. |
In addition to the retirement system established under the provisions of chapter 21 of this |
title, any municipality may accept this chapter in the manner stated in § 45-21-4. Withdrawal |
from the system is in the same manner as stated in § 45-21-5 subject to the provisions of § 45- |
21.4-3. |
SECTION 3. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby |
amended by adding thereto the following chapter: |
CHAPTER 21.4 |
RELATING TO CENTRAL FALLS PENSION PLAN |
45-21.4-1. Legislative findings. |
The general assembly finds and declares the following: |
(1) All Rhode Islanders deserve retirement security, including those who have spent their |
careers serving their communities as first responders and municipal employees; and |
(2) The city of Central Falls has shown great resilience in emerging from bankruptcy and |
thriving economically and culturally against great odds; and |
(3) The bankruptcy occurred in part because the pension plan in Central Falls had become |
severely underfunded, and as a result many first responders and retirees in the city of Central |
Falls experienced significant hardship in the form of benefit reductions; and |
(4) The city of Central Falls, the labor organizations representing its first responders, and |
the state of Rhode Island are united in their desire to see the city of Central Falls remain on the |
path of fiscal health, and that the predictability and sustainability of the pension system is vital to |
maintaining fiscal health for the city of Central Falls and retirement security for its first |
responders and retirees. |
(5) The general assembly adopts this act to facilitate the assistance of the municipal |
employees' retirement system of the state of Rhode Island in administering the local Central Falls |
pension plan. |
45-21.4-2. Alternative acceptance by the city of Central Falls of optional retirement |
for police and fire fighters firefighters. |
(a) The provisions of this section shall apply only to locally administered plans within the |
city of Central Falls hereinafter referred collectively as the "Central Falls plan". |
(b) On or after the effective date of this section, Central Falls may accept the provisions |
of this chapter, by resolution or an ordinance of its governing body, stating the group or groups of |
employees to be included as provided in § 45-21-4; provided that, any and all labor organizations |
representing active employees of the municipality to be included have assented to such |
participation of their respective memberships, through a collective bargaining agreement and |
ratification of the decision by a majority vote of those members of any such labor organization |
present and voting. A copy of the resolution or ordinance and proof of assent from the applicable |
labor organization shall be immediately forwarded to the retirement board for review. A vote of |
the retirement board to accept the entry of the group or groups of employees in to into the system |
shall be required. |
(c) Effective August 31, 2019, the Central Falls plan shall be closed to new members. |
(d) Members of the Central Falls plan in active service as of August 31, 2019, shall |
continue to be subject to the applicable retirement ages and restrictions, and accrue benefits on |
total service at the rates of the Central Falls plan pursuant to the collective bargaining agreements |
in effect on August 31, 2019, between Central Falls and the labor organizations representing |
members of the Central Falls plan. |
(e) Disability determinations shall be made by the retirement board, subject to the |
procedures and standards of §§ 45-21.2-7 and 45-21.2-9 as applicable, for members hired prior to |
September 1, 2019. If a disability retirement pension is granted, the member shall receive benefits |
provided by the Central Falls pension plan pursuant to the collective bargaining agreements in |
effect on August 31, 2019. |
(f) Beginning September 1, 2019, members of the Central Falls plan in active service |
shall contribute an amount equal to eleven and seven-tenths percent (11.7%) of the salary or |
compensation earned or accruing to the member. |
(g) Subject to the provisions of subsection (b) of this section being met, new employees |
hired on or after September 1, 2019, shall be subject to all of the provisions of § 45-21.2, |
including all applicable disability provisions and benefits provided by §§ 36-10.3-4 and 45-21-52. |
(h) Notwithstanding anything in § 45-21-42.2 to the contrary, the cost to evaluate Central |
Falls prospective membership in the retirement system pursuant to this section or § 45-21.4-3, |
shall be borne by the retirement board. |
(i) Notwithstanding anything in § 45-21-43.1 to the contrary, determination of the |
employer contribution rate of the closed Central Falls pension plan pursuant to this section, shall |
be computed using an amortization period for the unfunded actuarial accrued liability as |
determined by the board, based upon the recommendation of the plan's actuary. Future actuarial |
gains and losses accruing within a plan year will be amortized over individual new twenty-(20) |
year (20) closed periods consistent with § 45-21-43.1(c). |
(j) Notwithstanding anything in § 45-21-56 to the contrary, if a Central Falls pension plan |
pursuant to this section is in critical status as defined in § 45-65-4, and an employee of the |
Central Falls pension plan leaves employment and is hired by another participating municipality |
that is not in critical status as defined in § 45-65-4, then the retirement system shall transfer the |
amount of the member's total accrued liability with the Central Falls pension plan, multiplied by |
the funded status of the Central Falls pension plan, to the account of the current employing |
municipality. |
(k) Upon the conditions of subsection (b) of this section being met, the city of Central |
Falls shall remain liable to the retirement system for the cost of funding a retirement system for |
its employees who are members of the system as provided herein, and the retirement board |
maintains the right to enforce payment of any liability as provided in chapter 21 of this title. |
(l) Subject to the provisions of subsection (b) of this section being met, the Central Falls |
plan and the provisions of this section shall be administered in the same manner provided in |
chapter 21 of this title; credits for prior service and collection of contributions are determined |
through reference to that chapter; provided, that where the provisions of that chapter conflict with |
this chapter, then the provisions of this chapter control. Liability of contributions is enforced in |
the same manner as stated in chapter 21 of this title. |
45-21.4-3. Retiree participation in optional requirement plan. |
(a) The provisions of this section shall apply only to locally administered plans within the |
city of Central Falls. |
(b) Notwithstanding any provision of this chapter to the contrary, on or before August 31, |
2019, Central Falls may accept the provisions of this chapter by an ordinance of its governing |
body stating the group or groups of retired former employees to be included as provided in § 45- |
21-4; provided that, a majority of retired former employees have consented in writing to joining |
the system or any duly constituted retiree organization that represents said retired former |
employees has assented to joining the system. A copy of the ordinance shall be immediately |
forwarded to the retirement board for review. A vote of the retirement board to accept the entry of |
the group or groups of employees in to into the system shall be required. |
For purposes of this section, "retired former employees" means any Central Falls police |
officer or fire fighter firefighter who has retired prior to September 1, 2019, pursuant to the |
provisions of the Central Falls' retirement plan. |
(c) Notwithstanding any other provisions of this section or other applicable law, upon |
acceptance into the system, all "Central Falls retirees," as defined in § 45-21-67(a)(2), and their |
beneficiaries, and also all other retired former employees and their beneficiaries who are entitled |
to benefits under the "settlement agreement" that is identified in § 45-21-67(a)(3), shall retain all |
of the benefits accrued and calculated to them as provided in accordance with such settlement |
agreement (and, for clarification, irrespective of and notwithstanding any possible expiration of |
any "term" in respect to certain provisions of such agreement), including disability and post- |
retirement benefits, and their entitlement to all payments provided under § 45-21-67, and none of |
the foregoing shall be made unavailable or conditioned, nor be diminished or reduced, by virtue |
of entry into the system. Any retired former employee who is not entitled to benefits under the |
"settlement agreement" shall retain all of the benefits accrued and calculated in accordance with, |
and shall be subject to, all of the provisions, limitations, and restrictions contained in the |
collective bargaining agreement at the time of his or her retirement. Retired former employees, |
including any "Central Falls retiree", shall not be entitled to any retirement allowance or benefit |
from the system otherwise available or calculated pursuant to the provisions of §§ 45-21.2-6, 45- |
21.2-13, or 45-21.2-20, 45-21.2-21, or 45-21.2-22. |
(d) Withdrawal of a plan consisting solely of retired former Central Falls police officers |
or fire fighters firefighters, that who had joined the retirement system pursuant to this section, |
shall be as provided in § 45-21-5. |
(e) The cost to evaluate Central Falls' prospective membership in the retirement system, |
and costs related to obtaining consent of retirees to join the system pursuant to this section, shall |
be borne by the retirement board. |
(f) Upon the conditions of subsection (b) of this section being met, the city of Central |
Falls shall remain liable to the retirement system for the cost of funding a retirement system for |
its employees who are members of the system and the retirement board maintains the right to |
enforce payment of any liability as provided in chapter 21 of this title. |
(g) Subject to the provisions of subsection (b) of this section being met, the provisions of |
this section shall be administered in the same manner provided in chapter 21 of this title; |
provided, that where the provisions of that chapter conflict with this chapter, then the provisions |
of this chapter control. Liability of the municipality is enforced in the same manner as stated in |
chapter 21 of this title. |
45-21.4-4. Transfer of assets. |
(a) Subject to the provisions of §§ 45-21.4-2(b) and 45-21.4-3(b) being met, on |
December 31, 2019, the system shall be responsible for administering the Central Falls plan, |
including the administration of any supplemental payments as provided in § 45-21-67, and |
Central Falls shall transfer to the system the accumulated contributions of each member entering |
the system and any other assets of the Central Falls plan. |
(b) Beginning January 1, 2020, all appropriations made pursuant to § 45-21-67 shall be |
appropriated to the system and disbursed by the system in accordance with § 45-21-67. |
SECTION 4. This act shall take effect upon passage. |
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LC002860/SUB A |
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