§ 36-10-2. State contributions. [Effective July 1, 2020.]
(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; and
(2) Amortize the unfunded liability of the system in accordance with § 36-10-2.1(b).
(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 on the date contributions are withheld but no later than three (3) business days following the pay period ending in which contributions were withheld, and for teachers in a manner pursuant to § 16-16-22.
(d)(1) In accordance with the intent of § 36-8-20 that the retirement system satisfy the requirements of § 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 § 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 § 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payment is completed (reduced by amortized amounts already repaid to the retirement system with respect to the amounts withdrawn by the state during the fiscal year July 1, 1990 – June 30, 1991); and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 § 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 subsections (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 10.3 of this title, 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 10.3 of this title, 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 § 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, the contributions once made may be treated as reducing the actuarial liability remaining for amortization in the next following actuarial valuation to be performed.
(P.L. 1936, ch. 2334, § 5; G.L. 1938, ch. 18, § 5; P.L. 1947, ch. 1971, § 3; P.L. 1951, ch. 2830, § 2; G.L. 1956, § 36-10-2; P.L. 1966, ch. 232, § 1; P.L. 1967, ch. 127, § 1; P.L. 1976, ch. 289, § 3; P.L. 1978, ch. 154, § 1; P.L. 1979, ch. 174, art. 6, § 1; P.L. 1980, ch. 175, § 2; P.L. 1981, ch. 191, § 1; P.L. 1982, ch. 201, § 1; P.L. 1989, ch. 126, art. 28, § 1; P.L. 1990, ch. 360, § 1; P.L. 1994, ch. 70, art. 16, § 2; P.L. 1994, ch. 87, § 4; P.L. 2001, ch. 77, art. 18, § 1; P.L. 2005, ch. 117, art. 7, § 2; P.L. 2008, ch. 9, art. 4, § 1; P.L. 2009, ch. 5, art. 10, § 2; P.L. 2009, ch. 68, art. 7, § 8; P.L. 2010, ch. 9, § 1; P.L. 2010, ch. 10, § 1; P.L. 2010, ch. 23, art. 16, § 1; P.L. 2011, ch. 408, § 7; P.L. 2011, ch. 409, § 7; P.L. 2019, ch. 205, § 6; P.L. 2019, ch. 271, § 6.)