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art.021/3/023/2/021/2

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     ARTICLE 21

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RELATING TO PENSIONS

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     SECTION 1. Section 36-8-1 of the General Laws in Chapter 36-8 entitled "Retirement

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System - Administration" is hereby amended to read as follows:

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     36-8-1. Definition of terms. -- The following words and phrases as used in chapters 8 to

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10 of this title unless a different meaning is plainly required by the context, shall have the

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following meanings:

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      (1) "Accumulated contributions" shall mean the sum of all the amounts deducted from

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the compensation of a member and credited to his or her individual pension account.

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      (2) "Active member" shall mean any employee of the state of Rhode Island as defined in

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this section for whom the retirement system is currently receiving regular contributions pursuant

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to §§ 36-10-1 and 36-10-1.1.

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      (3) "Actuarial equivalent" shall mean an allowance or benefit of equal value to any other

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allowance or benefit when computed upon the basis of the actuarial tables in use by the system.

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      (4) "Annuity reserve" shall mean the present value of all payments to be made on

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account of any annuity, benefit, or retirement allowance granted under the provisions of chapter

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10 of this title computed upon the basis of such mortality tables as shall be adopted from time to

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time by the retirement board with regular interest.

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      (5) (a) "Average compensation" for members eligible to retire as of September 30, 2009

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shall mean the average of the highest three (3) consecutive years of compensation, within the total

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service when the average compensation was the highest. For members eligible to retire on or after

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October 1, 2009, "Average compensation" shall mean the average of the highest five (5)

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consecutive years of compensation within the total service when the average compensation was

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the highest.

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      (b) For members who become eligible to retire on or after July 1, 2012, if more than one

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half (1/2) of the member's total years of service consist of years of service during which the

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member devoted less than thirty (30) business hours per week to the service of the state, but the

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member's average compensation consists of three (3) or more years during which the member

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devoted more than thirty (30) business hours per week to the service of the state, such member's

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average compensation shall mean the average of the highest ten (10) consecutive years of

 

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compensation within the total service when the average compensation was the highest; provided

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however, effective July 1, 2015, if such member's average compensation as defined in subsection

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(a) Above is equal to or less than thirty-five thousand dollars ($35,000), such amount to be

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indexed annually in accordance with § 36-10-35(h)(1)(B), such member's average compensation

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shall mean the greater of: (i) The average of the highest ten (10) consecutive years of

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compensation within the total service when the average compensation was the highest; or (ii) The

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member's average compensation as defined in subsection (a) above. To protect a member's

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accrued benefit on June 30, 2012 under this § 36-8-1(5)(b), in no event shall a member's average

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compensation be lower than his or her average compensation determined as of June 30, 2012.

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      (6) "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement

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allowance, or other benefit as provided by chapter 10 of this title.

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      (7) "Casual employee" shall mean those persons hired for a temporary period, a period of

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emergency or an occasional period.

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      (8) "Compensation" as used in chapters 8 -- 10 of this title, chapters 16 and 17 of title 16,

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and chapter 21 of title 45 shall mean salary or wages earned and paid for the performance of

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duties for covered employment, including regular longevity or incentive plans approved by the

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board, but shall not include payments made for overtime or any other reason other than

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performance of duties, including but not limited to the types of payments listed below:

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      (i) Payments contingent on the employee having terminated or died;

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      (ii) Payments made at termination for unused sick leave, vacation leave, or

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compensatory time;

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      (iii) Payments contingent on the employee terminating employment at a specified time in

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the future to secure voluntary retirement or to secure release of an unexpired contract of

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employment;

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      (iv) Individual salary adjustments which are granted primarily in anticipation of the

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employee's retirement;

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      (v) Additional payments for performing temporary or extra duties beyond the normal or

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regular work day or work year.

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      (9) "Employee" shall mean any officer or employee of the state of Rhode Island whose

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business time is devoted exclusively to the services of the state, but shall not include one whose

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duties are of a casual or seasonal nature. The retirement board shall determine who are employees

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within the meaning of this chapter. The governor of the state, the lieutenant governor, the

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secretary of state, the attorney general, the general treasurer, and the members of the general

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assembly, ex officio, shall not be deemed to be employees within the meaning of that term unless

 

Art21
RELATING TO PENSIONS
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and until they elect to become members of the system as provided in section 36-9-6, but in no

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case shall it deem as an employee, for the purposes of this chapter, any individual who devotes

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less than twenty (20) business hours per week to the service of the state, and who receives less

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than the equivalent of minimum wage compensation on an hourly basis for his or her services,

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except as provided in section 36-9-24. Any commissioner of a municipal housing authority or any

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member of a part-time state, municipal or local board, commission, committee or other public

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authority shall not be deemed to be an employee within the meaning of this chapter.

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      (10) "Full actuarial costs" or "full actuarial value" shall mean the lump sum payable by a

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member claiming service credit for certain employment for which that payment is required which

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is determined according to the age of the member and the employee's annual rate of compensation

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at the time he or she applies for service credit and which is expressed as a rate percent of the

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employee's annual rate of compensation to be multiplied by the number of years for which he or

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she claims service credit as prescribed in a schedule adopted by the retirement board from time to

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time on the basis of computation by the actuary. Except as provided in §§ 16-16-7.1, 36-5-3, 36-

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9-31, 36-10-10.4, 45-21-53, 36-10-8, 45-21-29, 8-3-16(b), 8-8-10.1(b), 42-28-22.1(b) and 28- 30-

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18.1(b).

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      (i) all service credit purchases requested after June 16, 2009 and prior to July 1, 2012,

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shall be at full actuarial value and

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      (ii) all service credit purchases requested after June 30, 2012 shall be at full actuarial

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value which shall be determined using the system's assumed investment rate of return minus one

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percent (1%).

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     The rules applicable to a service credit purchase shall be the rules of the retirement

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system in effect at the time the purchase application is submitted to the retirement system.

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     (11) "Funded Ratio" shall mean the ratio of the actuarial value of assets to the actuarial

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accrued liability consistent with the funding policy of the retirement board as defined in § 36-8-4.

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      (11)(12) "Inactive member" shall mean a member who has withdrawn from service as an

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employee but who has not received a refund of contributions.

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      (12)(13) "Members" shall mean any person included in the membership of the retirement

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system as provided in §§ 36-9-1 -- 36-9-7.

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      (13)(14) "Prior service" shall mean service as a member rendered before July 1, 1936,

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certified on his or her prior service certificate and allowable as provided in § 36-9-28.

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      (14)(15) "Regular interest" shall mean interest at the assumed investment rate of return,

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compounded annually, as may be prescribed from time to time by the retirement board.

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      (15)(16) "Retirement allowance" shall mean annual payments for life made after

 

Art21
RELATING TO PENSIONS
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retirement under and in accordance with chapters 8 to 10 of this title. All allowances shall be paid

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in equal monthly installments beginning as of the effective date thereof; provided, that a smaller

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pro rata amount may be paid for part of a month where separation from service occurs during the

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month in which the application was filed, and when the allowance ceases before the last day of

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the month.

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      (16)(17) "Retirement board" or "board" shall mean the board provided in § 36-8-3 to

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administer the retirement system.

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      (17)(18) "Retirement system" shall mean the employees' retirement system of the state of

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Rhode Island as defined in § 36-8-2.

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      (18)(19) "Service" shall mean service as an employee of the state of Rhode Island as

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described in subdivision (9) of this section.

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      (19)(20) "Social Security retirement age" shall mean a member's full retirement age as

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determined in accordance with the federal Old Age, Survivors and Disability Insurance Act, not

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to exceed age sixty-seven (67).

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      (20)(21) "Total service" shall mean prior service as defined above, plus service rendered

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as a member on or after July 1, 1936.

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     SECTION 2. Section 36-10-1 of the General Laws in Chapter 36-10 entitled "Retirement

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System-Contributions and Benefits" is hereby amended to read as follows:

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     36-10-1. Member contributions -- Deduction from compensation. -- (a) Prior to July

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1, 2012, each member of the retirement system shall contribute an amount equal to eight and

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three-quarters percent (8.75%) of his or her compensation as his or her share of the cost of

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annuities, benefits, and allowances. Effective July 1, 2012, each member of the retirement system

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shall contribute an amount equal to three and three quarters percent (3.75%) of his or her

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compensation, except for correctional officers as defined in § 36-10-9.2 who shall contribute an

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amount equal to eight and three quarters percent (8.75%) of his or her compensation. Effective

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July 1, 2015, each member of the retirement system, except for correctional officers as defined in

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§ 36-10-9.2, with twenty (20) or more years of total service as of June 30, 2012 shall contribute

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an amount equal to eleven percent (11%) of compensation. The contributions shall be made in the

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form of deductions from compensation.

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      (b) The deductions provided for herein shall be made notwithstanding that the minimum

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compensation provided by law for any member shall be reduced thereby. Every member shall be

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deemed to consent and agree to the deductions made and provided for herein and receipt of his or

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her full compensation and payment of compensation, less the deductions, shall be a full and

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complete discharge and acquittance of all claims and demands whatsoever for the services

 

Art21
RELATING TO PENSIONS
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rendered by the person during the period covered by the payment except as to the benefit

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provided under this chapter.

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     SECTION 3. Section 36-10-2.1 of the General Laws in Chapter 36-10 entitled

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"Retirement System-Contributions and Benefits" is hereby amended to read as follows:

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     36-10-2.1. Actuarial cost method. -- (a) To determine the employer contribution rate for

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the State of Rhode Island for fiscal year 2002 and for all fiscal years subsequent, the actuary shall

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compute the costs under chapter 10 of title 36 using the entry age normal cost method. Effective

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July 1, 2012, the entry age normal cost method shall be as defined in Accounting Standard No. 27

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of the Governmental Accounting Standards Board as in effect from time to time.

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      (b) The determination of the employer contribution rate for fiscal year 2013 shall include

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a reamortization of the current Unfunded Actuarial Accrued Liability (UAAL) over a closed

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twenty-five (25) year period. After an initial period of five (5) years, future actuarial gains and

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losses occurring within a plan year will be amortized over individual new twenty (20) year closed

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periods.

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     (c) The determination of the employer contribution rate commencing with fiscal year

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2017 shall include a re-amortization of the current unfunded actuarial accrued liability (UAAL)

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attributable to the sixty percent (60%) of contribution responsibility not partitioned to the state in

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§ 16-16-22 over a closed twenty-five (25) year period. This will be accomplished by dividing the

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UAAL as of June 30, 2014 into two (2) separate amortization periods. Future actuarial gains and

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losses occurring within a plan year will be amortized over individual new twenty (20) year closed

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periods and allocated in the forty percent (40%) state / sixty percent (60%) municipal proportion

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set forth in § 16-16-22.

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     SECTION 4. Section 36-10-9 of the General Laws in Chapter 36-10 entitled "Retirement

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System-Contributions and Benefits" is hereby amended to read as follows:

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     36-10-9. Retirement on service allowance -- In general. -- Retirement of a member on

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a service retirement allowance shall be made by the retirement board as follows:

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      (1) (a) (i) Any member may retire upon his or her written application to the retirement

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board as of the first day of the calendar month in which the application was filed; provided, the

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member was separated from service prior thereto; and further provided, however, that if

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separation from service occurs during the month in which application is filed, the effective date

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shall be the first day following that separation from service; and provided further that the member

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on his or her retirement date attained the age of sixty (60) and completed at least ten (10) years of

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contributory service on or before July 1, 2005 or who, regardless of age, has completed twenty-

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eight (28) years of total service and has completed at least ten (10) years of contributory service

 

Art21
RELATING TO PENSIONS
(Page 5 of 71)

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on or before July 1, 2005, and who retire before October 1, 2009 or are eligible to retire as of

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September 30, 2009.

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      (ii) For members who become eligible to retire on or after October 1, 2009 and prior to

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July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and

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completed at least ten (10) years of contributory service. For members in service as of October 1,

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2009 who were not eligible to retire as of September 30, 2009 but become eligible to retire prior

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to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in

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proportion to the amount of service the member has earned as of September 30, 2009. The

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proportional formula shall work as follows:

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      (1) The formula shall determine the first age of retirement eligibility under the laws in

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effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

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sixty-two (62).

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      (2) The formula shall then take the member's total service credit as of September 30,

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2009 as the numerator and the years of service credit determined under (1) as the denominator.

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      (3) The fraction determined in (2) shall then be multiplied by the age difference

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determined in (1) to apply a reduction in years from age sixty-two (62).

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      (b) (i) Any member, who has not completed at least ten (10) years of contributory

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service on or before July 1, 2005, may retire upon his or her written application to the retirement

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board as of the first day of the calendar month in which the application was filed; provided, the

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member was separated from service prior thereto; and further provided, however, that if

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separation from service occurs during the month in which application is filed, the effective date

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shall be the first day following that separation from service; provided, the member or his or her

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retirement date had attained the age of fifty-nine (59) and had completed at least twenty-nine (29)

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years of total service or provided that the member on his or her retirement date had attained the

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age of sixty-five (65) and had completed at least ten (10) years of contributory service; or

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provided, that the member on his or her retirement date had attained the age of fifty-five (55) and

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had completed twenty (20) years of total service provided, that the retirement allowance, as

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determined according to the formula in § 36-10-10 is reduced actuarially for each month that the

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age of the member is less than sixty-five (65) years, and who retire before October 1, 2009 or are

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eligible to retire as of September 30, 2009.

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      (ii) For members who become eligible to retire on or after October 1, 2009 and prior to

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July 1, 2012, benefits are available to members who have attained the age of sixty-two (62) and

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completed at least twenty-nine (29) years of total service or have attained the age of sixty-five

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(65) and completed at least ten (10) years of contributory service. For members in service as of

 

Art21
RELATING TO PENSIONS
(Page 6 of 71)

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October 1, 2009 who were not eligible to retire as of September 30, 2009 but become eligible to

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retire prior to July 1, 2012, who have a minimum retirement age of sixty-two (62), the retirement

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age will be adjusted downward in proportion to the amount of service the member has earned as

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of September 30, 2009. The proportional formula shall work as follows:

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      (1) The formula shall determine the first age of retirement eligibility under the laws in

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effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

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sixty-two (62).

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      (2) The formula shall then take the member's total service credit as of September 30,

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2009 as the numerator and the years of service credit determined under (1) as the denominator.

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      (3) The fraction determined in (2) above shall then be multiplied by the age difference

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determined in (1) to apply a reduction in years from age sixty-two (62).

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      (c) Effective July 1, 2012, the following shall apply to all members not eligible to retire

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prior to July 1, 2012:

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      (i) A member with contributory service on or after July 1, 2012, shall be eligible to retire

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upon the completion of at least five (5) years of contributory service and attainment of the

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member's Social Security retirement age.

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      (ii) For members with five (5) or more years of contributory service as of June 30, 2012,

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with contributory service on and after July 1, 2012, who have a retirement age of Social Security

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Retirement Age, the retirement age will be adjusted downward in proportion to the amount of

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service the member has earned as of June 30, 2012, but in no event shall a member's retirement

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age under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the

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member's retirement age determined under the laws in effect on June 30, 2012. The proportional

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formula shall work as follows:

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      (1) The formula shall determine the first age of retirement eligibility under the laws in

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effect on June 30, 2012 which shall then be subtracted from Social Security retirement age;

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      (2) The formula shall then take the member's total service credit as of June 30, 2012 as

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the numerator and the projected service at retirement age in effect on June 30, 2012 as the

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denominator;

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      (3) The fraction determined in (2) shall then be multiplied by the age difference

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determined in (1) to apply a reduction in years from Social Security retirement age.

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      (iii) A Effective July 1, 2015, a member who has completed twenty (20) or more years of

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total service and who has attained an age within five (5) years of the eligible retirement age under

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subparagraphs (c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the

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retirement allowance shall be reduced actuarially for each month that the age of the member is

 

Art21
RELATING TO PENSIONS
(Page 7 of 71)

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less than the eligible retirement age under subparagraphs (c)(i) or (c)(ii) above or subsection (d)

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below in accordance with the following table:

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Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly Reduction

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     For Year 1 9% .75%

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     For Year 2 8% .667%

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     For Year 3 7% .583%

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     For Year 4 7% .583%

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     For Year 5 7% .583%.

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      (iv) Notwithstanding any other provisions of section 36-10-9(c), a member who has

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completed ten (10) or more years of contributory service as of June 30, 2012, may elect to retire

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at his or her eligible retirement date as determined under paragraphs (1)(a) and (1)(b) above

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provided that a member making an election under this paragraph shall receive the member's

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retirement benefit determined and calculated based on the member's service and average

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compensation as of June 30, 2012. This provision shall be interpreted and administered in a

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manner to protect a member's accrued benefit on June 30, 2012.

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     (d) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015,

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members in active service shall be eligible to retire upon the earlier of: (A) The attainment of at

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least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the

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attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of

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total service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-

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two (32) years of total service, or the attainment of at least age sixty-two (62) and the completion

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of at least thirty-three (33) years of total service; or (B) The member's retirement eligibility date

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under subsections (c)(i) or (c)(ii) above.

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      (2) Any faculty employee at a public institution of higher education under the

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jurisdiction of the board of governors for higher education shall not be involuntarily retired upon

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attaining the age of seventy (70) years.

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      (3) (i) Except as specifically provided in § 36-10-9.1, §§ 36-10-12 -- 36-10-15, and §§

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45-21-19 -- 45-21-22, (I) On or prior to June 30, 2012 no member shall be eligible for pension

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benefits under this chapter unless the member shall have been a contributing member of the

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employee's retirement system for at least ten (10) years, or (II) For members in active

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contributory service on or after July 1, 2012, the member shall have been a contributing member

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of the retirement system for at least five (5) years.

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      (ii) Provided, however, a person who has ten (10) years service credit on or before June

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16, 1991, shall be vested.

 

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RELATING TO PENSIONS
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      (iii) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall

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be counted towards vesting.

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      (iv) Any person who becomes a member of the employees' retirement system pursuant to

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§ 45-21-4 shall be considered a contributing member for the purpose of chapter 21 of title 45 and

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this chapter.

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      (v) Notwithstanding any other provision of law, no more than five (5) years of service

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credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

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purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

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of service credits before January 1, 1995, shall be permitted to apply those purchases towards the

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member's service retirement. However, no further purchase will be permitted. Repayment in

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accordance with applicable law and regulation of any contribution previously withdrawn from the

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system shall not be deemed a purchase of service credit.

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      (vi) Notwithstanding any other provision of law, effective July 1, 2012, except for

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purchases under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53, (A) For service

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purchases for time periods prior to a member's initial date of hire, the purchase must be made

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within three (3) years of the member's initial date of hire, (B) For service purchases for time

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periods for official periods of leave as authorized by law, the purchase must be made within three

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(3) years of the time the official leave was concluded by the member. Notwithstanding the

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preceding sentence, service purchases from time periods prior to June 30, 2012 may be made on

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or prior to June 30, 2015.

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      (4) No member of the employees' retirement system shall be permitted to purchase

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service credits for casual, seasonal, or temporary employment, or emergency appointment, for

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employment as a page in the general assembly, or for employment at any state college or

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university while the employee is a student or graduate assistant of the college or university.

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      (5) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not

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receive service credit in this retirement system for any year or portion of it, which counts as

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service credit in any other retirement system in which the member is vested or from which the

28

member is receiving a pension and/or any annual payment for life. This subsection shall not apply

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to any payments received pursuant to the federal Social Security Act or to payments from a

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military pension earned prior to participation in state or municipal employment, or to military

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service credits earned prior to participation in state or municipal employment.

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      (6) A member who seeks to purchase or receive service credit in this retirement system

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shall have the affirmative duty to disclose to the retirement board whether or not he or she is a

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vested member in any other retirement system and/or is receiving a pension, retirement

 

Art21
RELATING TO PENSIONS
(Page 9 of 71)

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allowance, or any annual payment for life. The retirement board shall have the right to investigate

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as to whether or not the member has utilized the same time of service for credit in any other

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retirement system. The member has an affirmative duty to cooperate with the retirement board

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including, by way of illustration and not by way of limitations the duty to furnish or have

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furnished to the retirement board any relevant information which is protected by any privacy act.

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      (7) A member who fails to cooperate with the retirement board shall not have the time of

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service counted toward total service credit until such time as the member cooperates with the

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retirement board and until such time as the retirement board determines the validity of the service

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credit.

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      (8) A member who knowingly makes a false statement to the retirement board regarding

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service time or credit shall not be entitled to a retirement allowance and is entitled only to the

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return of his or her contributions without interest.

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     SECTION 5. Section 36-10-10 of the General Laws in Chapter 36-10 entitled

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"Retirement System-Contributions and Benefits" is hereby amended to read as follows:

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     36-10-10. Amount of service retirement allowance. -- (a) (1) (i) For employees eligible

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to retire on or before September 30, 2009, upon retirement for service under section 36-10-9, a

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member whose membership commenced before July 1, 2005 and who has completed at least ten

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(10) years of contributory service on or before July 1, 2005 shall receive a retirement allowance

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which shall be determined in accordance with schedule A below for service prior to July 1, 2012:

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Schedule A

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Years of Service Percentage Allowance

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     1st through 10th inclusive 1.7%

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     11th through 20th inclusive 1.9%

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     21st through 34th inclusive 3.0%

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     35th 2.0%

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      (ii) For employees eligible to retire on or after October 1, 2009, who were not eligible to

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retire on or before September 30, 2009, upon retirement from service under § 36-10-9, a member

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whose membership commenced before July 1, 2005 and who has completed at least ten (10) years

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of contributory service on or before July 1, 2005 shall receive a retirement allowance which shall

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be determined in accordance with schedule A above for service on before September 30, 2009,

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and shall be determined in accordance with schedule B in subsection (a)(2) below for service on

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or after October 1, 2009 and prior to July 1, 2012.

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      (2) Upon retirement for service under section 36-10-9, a member whose membership

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commenced after July 1, 2005, or who has not completed at least ten (10) years of contributory

 

Art21
RELATING TO PENSIONS
(Page 10 of 71)

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service as of July 1, 2005, shall, receive a retirement allowance which shall be determined in

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accordance with Schedule B below for service prior to July 1, 2012:

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Schedule B

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Years of Service Percentage Allowance

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     1st through 10th inclusive 1.60%

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     11th through 20th inclusive 1.80%

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     21st through 25th inclusive 2.0%

8

     26th through 30th inclusive 2.25%

9

     31st through 37th inclusive 2.50%

10

     38th 2.25%

11

     (b) The retirement allowance of any member whose membership commenced before July

12

1, 2005 and who has completed at least ten (10) years of contributory service on or before July 1,

13

2005 shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of his

14

or her average highest three (3) consecutive years of compensation multiplied by the number of

15

years of total service, but in no case to exceed eighty percent (80%) of the compensation payable

16

at completion of thirty-five (35) years of service; provided, however, for employees retiring on or

17

after October 1, 2009 who were not eligible to retire as of September 30, 2009 the calculation

18

shall be based on the average highest five (5) consecutive years of compensation. Any member

19

who has in excess of thirty-five (35) years on or before June 2, 1985, shall not be entitled to any

20

refund, and any member with thirty-five (35) years or more on or after June 2, 1985, shall

21

contribute from July 1, 1985, until his or her retirement.

22

     The retirement allowance of any member whose membership commenced after July 1,

23

2005 or who had not completed at least ten (10) years of contributory service as of July 1, 2005,

24

shall, be in an amount equal to the percentage allowance specified in Schedule B of his or her

25

average highest three (3) consecutive years of compensation multiplied by the number of years of

26

total service, but in no case to exceed seventy-five percent (75%) of the compensation payable at

27

the completion of thirty-eight (38) years of service; provided, however, for employees retiring on

28

or after October 1, 2009 who were not eligible to retire as of September 30, 2009 the calculation

29

shall be based on the average highest five (5) consecutive years of compensation.

30

     (c) Any member with thirty-eight (38) years or more of service prior to December 31,

31

1985, shall not be required to make additional contributions. Contributions made between

32

December 31, 1985, and July 1, 1987, by members with thirty-eight (38) or more years of service

33

prior to December 31, 1985, shall be refunded by the retirement board to the persons, their heirs,

34

administrators, or legal representatives.

 

Art21
RELATING TO PENSIONS
(Page 11 of 71)

1

     (d) For service prior to July 1, 2012, the retirement allowance of a member shall be

2

determined in accordance with subsections (a)(1) and (a)(2) above. For service on and after July

3

1, 2012, a member's retirement allowance shall be equal to:

4

     (i) For members with fewer than twenty (20) years of total service as of June 30, 2012,

5

one percent (1%) of the member's average compensation multiplied by the member's years of

6

total service on and after July 1 2012; and

7

     (ii) For members with twenty (20) or more years of total service as of June 30, 2012, a

8

member's retirement allowance shall be equal to one percent (1%) of the member's average

9

compensation multiplied by the member's years of total service between July 1, 2012 and June

10

30, 2015, and two percent (2%) of the member's average compensation multiplied by the

11

member's years of total service on and after July 1, 2015. For purposes of computing a member's

12

total service under the preceding sentence, service purchases shall be included in total service

13

only with respect to those service purchases approved prior to June 30, 2012 and those

14

applications for service purchases received by the retirement system on or before June 30, 2012.

15

In no event shall a member's retirement allowance exceed the maximum limitations set forth in

16

paragraph (b) above.

17

     SECTION 6. Section 36-10-10.2 of the General Laws in Chapter 36-10 entitled

18

"Retirement System-Contributions and Benefits" is hereby amended to read as follows:

19

     36-10-10.2. Amount of service retirement allowance – Correctional officers. -- (a)

20

Upon retirement for service under § 36-10-9.2, a member with twenty-five (25) or more years of

21

service as of June 30, 2012 shall receive a retirement allowance of an amount determined under

22

(i) below. All other members shall receive a retirement allowance of an amount equal to the sum

23

of (i) below for service prior to July 1, 2012, plus (ii) below for service on and after July 1, 2012.

24

(i) Two percent (2%) of his or her average compensation multiplied by his or her first thirty (30)

25

years of total service within the department of corrections; any and all years of remaining service

26

shall be issued to the member at a retirement allowance of an amount equal to his or her average

27

compensation multiplied by the percentage allowance determined in accordance with Schedule A

28

below:

29

Schedule A

30

     Years of Service Percentage Allowance

31

     1 through 30 inclusive 2%

32

     31st 6%

33

     32nd 5%

34

     33rd 4%

 

Art21
RELATING TO PENSIONS
(Page 12 of 71)

1

     34th 3%

2

     35th 2%

3

      (ii) On and after July 1, 2012, Two two percent (2%) of his or her average compensation

4

multiplied by his or her first thirty (30) years of total service years of service on and after July 1,

5

2012 within the department of corrections, and three percent (3%) of his or her average

6

compensation multiplied by the member's thirty-first (31st) through thirty-fifth (35th) years of

7

service.

8

     (b) In no case shall a retirement percentage allowance exceed the greater of the member's

9

retirement percentage allowance on June 30, 2012 or seventy-five percent (75%). Any member

10

who has in excess of thirty-five (35) years on or before July 1, 1987, shall not be entitled to any

11

refund. Any member with thirty-five (35) years or more on or after July 1, 1987, shall contribute

12

from July 1, 1987, until his or her retirement, provided, however, that any member with thirty-

13

eight (38) years of service prior to July 1, 1987, shall not be required to contribute.

14

     SECTION 7. Section 36-10-35 of the General Laws in Chapter 36-10 entitled

15

"Retirement System-Contributions and Benefits" is hereby amended to read as follows:

16

     36-10-35. Additional benefits payable to retired employees. -- (a) All state employees

17

and all beneficiaries of state employees receiving any service retirement or ordinary or accidental

18

disability retirement allowance pursuant to the provisions of this title on or before December 31,

19

1967, shall receive a cost of living retirement adjustment equal to one and one-half percent

20

(1.5%) per year of the original retirement allowance, not compounded, for each calendar year the

21

retirement allowance has been in effect. For the purposes of computation, credit shall be given for

22

a full calendar year regardless of the effective date of the retirement allowance. This cost of living

23

adjustment shall be added to the amount of the retirement allowance as of January 1, 1968, and an

24

additional one and one-half percent (1.5%) shall be added to the original retirement allowance in

25

each succeeding year during the month of January, and provided further, that this additional cost

26

of living increase shall be three percent (3%) for the year beginning January 1, 1971, and each

27

year thereafter, through December 31, 1980. Notwithstanding any of the above provisions, no

28

employee receiving any service retirement allowance pursuant to the provisions of this title on or

29

before December 31, 1967, or the employee's beneficiary, shall receive any additional benefit

30

hereunder in an amount less than two hundred dollars ($200) per year over the service retirement

31

allowance where the employee retired prior to January 1, 1958.

32

      (b) All state employees and all beneficiaries of state employees retired on or after

33

January 1, 1968, who are receiving any service retirement or ordinary or accidental disability

34

retirement allowance pursuant to the provisions of this title shall, on the first day of January next

 

Art21
RELATING TO PENSIONS
(Page 13 of 71)

1

following the third anniversary date of the retirement, receive a cost of living retirement

2

adjustment, in addition to his or her retirement allowance, in an amount equal to three percent

3

(3%) of the original retirement allowance. In each succeeding year thereafter through December

4

31, 1980, during the month of January, the retirement allowance shall be increased an additional

5

three percent (3%) of the original retirement allowance, not compounded, to be continued during

6

the lifetime of the employee or beneficiary. For the purposes of computation, credit shall be given

7

for a full calendar year regardless of the effective date of the service retirement allowance.

8

      (c) (1) Beginning on January 1, 1981, for all state employees and beneficiaries of the

9

state employees receiving any service retirement and all state employees, and all beneficiaries of

10

state employees, who have completed at least ten (10) years of contributory service on or before

11

July 1, 2005 pursuant to the provisions of this chapter, and for all state employees, and all

12

beneficiaries of state employees who receive a disability retirement allowance pursuant to §§ 36-

13

10-12 -- 36-10-15, the cost of living adjustment shall be computed and paid at the rate of three

14

percent (3%) of the original retirement allowance or the retirement allowance as computed in

15

accordance with § 36-10-35.1, compounded annually from the year for which the cost of living

16

adjustment was determined to be payable by the retirement board pursuant to the provisions of

17

subsection (a) or (b) of this section. Such cost of living adjustments are available to members who

18

retire before October 1, 2009 or are eligible to retire as of September 30, 2009.

19

      (2) The provisions of this subsection shall be deemed to apply prospectively only and no

20

retroactive payment shall be made.

21

      (3) The retirement allowance of all state employees and all beneficiaries of state

22

employees who have not completed at least ten (10) years of contributory service on or before

23

July 1, 2005 or were not eligible to retire as of September 30, 2009, shall, on the month following

24

the third anniversary date of retirement, and on the month following the anniversary date of each

25

succeeding year be adjusted and computed by multiplying the retirement allowance by three

26

percent (3%) or the percentage of increase in the Consumer Price Index for all Urban Consumers

27

(CPI-U) as published by the United States Department of Labor Statistics determined as of

28

September 30 of the prior calendar year, whichever is less; the cost of living adjustment shall be

29

compounded annually from the year for which the cost of living adjustment was determined

30

payable by the retirement board; provided, that no adjustment shall cause any retirement

31

allowance to be decreased from the retirement allowance provided immediately before such

32

adjustment.

33

      (d) For state employees not eligible to retire in accordance with this chapter as of

34

September 30, 2009 and not eligible upon passage of this article, and for their beneficiaries, the

 

Art21
RELATING TO PENSIONS
(Page 14 of 71)

1

cost of living adjustment described in subsection (3) above shall only apply to the first thirty-five

2

thousand dollars ($35,000) of retirement allowance, indexed annually, and shall commence upon

3

the third (3rd) anniversary of the date of retirement or when the retiree reaches age sixty-five

4

(65), whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase annually by

5

the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) as

6

published by the United States Department of Labor Statistics determined as of September 30 of

7

the prior calendar year or three percent (3%), whichever is less. The first thirty-five thousand

8

dollars ($35,000) of retirement allowance, as indexed, shall be multiplied by the percentage of

9

increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the

10

United States Department of Labor Statistics determined as of September 30 of the prior calendar

11

year or three percent (3%), whichever is less, on the month following the anniversary date of each

12

succeeding year. For state employees eligible to retire as of September 30, 2009 or eligible upon

13

passage of this article, and for their beneficiaries, the provisions of this subsection (d) shall not

14

apply.

15

      (e) All legislators and all beneficiaries of legislators who are receiving a retirement

16

allowance pursuant to the provisions of § 36-10-9.1 for a period of three (3) or more years, shall,

17

commencing January 1, 1982, receive a cost of living retirement adjustment, in addition to a

18

retirement allowance, in an amount equal to three percent (3%) of the original retirement

19

allowance. In each succeeding year thereafter during the month of January, the retirement

20

allowance shall be increased an additional three percent (3%) of the original retirement

21

allowance, compounded annually, to be continued during the lifetime of the legislator or

22

beneficiary. For the purposes of computation, credit shall be given for a full calendar year

23

regardless of the effective date of the service retirement allowance.

24

      (f) The provisions of §§ 45-13-7 -- 45-13-10 shall not apply to this section.

25

      (g) This subsection (g) shall be effective for the period July 1, 2012 through June 30,

26

2015.

27

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (g)(2)

28

below, for all present and former employees, active and retired members, and beneficiaries

29

receiving any retirement, disability or death allowance or benefit of any kind, the annual benefit

30

adjustment provided in any calendar year under this section shall be equal to: (A) multiplied by

31

(B) where (A) is equal to the percentage determined by subtracting five and one-half percent

32

(5.5%) (the "subtrahend") from the Five-Year Average Investment Return of the retirement

33

system determined as of the last day of the plan year preceding the calendar year in which the

34

adjustment is granted, said percentage not to exceed four percent (4%) and not to be less than

 

Art21
RELATING TO PENSIONS
(Page 15 of 71)

1

zero percent (0%), and (B) is equal to the lesser of the member's retirement allowance or the first

2

twenty-five thousand dollars ($25,000) of retirement allowance, such twenty-five thousand

3

dollars ($25,000) amount to be indexed annually in the same percentage as determined under

4

(g)(1)(A) above. The "Five-Year Average Investment Return" shall mean the average of the

5

investment returns of the most recent five (5) plan years as determined by the retirement board.

6

Subject to paragraph (g)(2) below, the benefit adjustment provided by this paragraph shall

7

commence upon the third (3rd) anniversary of the date of retirement or the date on which the

8

retiree reaches his or her Social Security retirement age, whichever is later. In the event the

9

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

10

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

11

      (2) Except as provided in paragraph (g)(3), the benefit adjustments under this section for

12

any plan year shall be suspended in their entirety unless the GASB Funded Ratio of the

13

Employees' Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the

14

State Police Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis,

15

exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

16

members for such plan year.

17

      In determining whether a funding level under this paragraph (g)(2) has been achieved,

18

the actuary shall calculate the funding percentage after taking into account the reinstatement of

19

any current or future benefit adjustment provided under this section. "GASB Funded Ratio" shall

20

mean the ratio of the actuarial value of assets to the actuarial accrued liability.

21

      (3) Notwithstanding paragraph (g)(2), in each fifth plan year commencing after June 30,

22

2012 commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

23

plan years, a benefit adjustment shall be calculated and made in accordance with paragraph (g)(1)

24

above until the GASB Funded Ratio of the Employees' Retirement System of Rhode Island, the

25

Judicial Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by

26

the system's actuary on an aggregate basis, exceeds eighty percent (80%).

27

      (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

28

(g) of § 36-10-35 shall become effective July 1, 2012 and shall apply to any benefit adjustment

29

not granted on or prior to June 30, 2012.

30

     (h) This subsection (h) shall become effective July 1, 2015.

31

     (1)(A) As soon as administratively reasonable following the enactment into law of this

32

subsection (h)(1)(A), a one-time benefit adjustment shall be provided to members and/or

33

beneficiaries of members who retired on or before June 30, 2012, in the amount of 2% of the

34

lesser of either the member's retirement allowance or the first twenty-five thousand dollars

 

Art21
RELATING TO PENSIONS
(Page 16 of 71)

1

($25,000) of the member's retirement allowance. This one-time benefit adjustment shall be

2

provided without regard to the retiree's age or number of years since retirement.

3

     (B) Notwithstanding the prior subsections of this section, for all present and former

4

employees, active and retired members, and beneficiaries receiving any retirement, disability or

5

death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar

6

year under this section for adjustments on and after January 1, 2016, and subject to subsection

7

(h)(2) below, shall be equal to (I) multiplied by (II):

8

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

9

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

10

(the "subtrahend") from the five-year average investment return of the retirement system

11

determined as of the last day of the plan year preceding the calendar year in which the adjustment

12

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

13

(0%). The "five-year average investment return" shall mean the average of the investment returns

14

of the most recent five (5) plan years as determined by the retirement board. In the event the

15

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

16

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

17

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

18

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

19

Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of

20

(i) plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%).

21

     (II) Is equal to the lesser of either the member's retirement allowance or the first twenty-

22

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

23

to be indexed annually in the same percentage as determined under subsection (h)(1)(B)(I) above.

24

     The benefit adjustments provided by this subsection (h)(1)(B) shall be provided to all

25

retirees entitled to receive a benefit adjustment as of June 30, 2012 under the law then in effect,

26

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

27

date of retirement or the date on which the retiree reaches his or her Social Security retirement

28

age, whichever is later.

29

     (2) Except as provided in subsection (h)(3) of this section, the benefit adjustments under

30

subsection (h)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio

31

of the employees' retirement system of Rhode Island, the judicial retirement benefits trust and the

32

state police retirement benefits trust, calculated by the system's actuary on an aggregate basis,

33

exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

34

members for such plan year.

 

Art21
RELATING TO PENSIONS
(Page 17 of 71)

1

     In determining whether a funding level under this subsection (h)(2) has been achieved,

2

the actuary shall calculate the funding percentage after taking into account the reinstatement of

3

any current or future benefit adjustment provided under this section.

4

     (3) Notwithstanding subsection (h)(2), in each fourth plan year commencing after June

5

30, 2012 commencing with the plan year ending June 30, 2016, and subsequently at intervals of

6

four plan years:

7

     (i) A benefit adjustment shall be calculated and made in accordance with subsection

8

(h)(1)(B) above; and

9

     (ii) Effective for members and/or beneficiaries of members who retired on or before June

10

30, 2015, the dollar amount in subsection (h)(1)(B)(II) of twenty-five thousand eight hundred and

11

fifty-five dollars ($25,855) shall be replaced with thirty-one thousand and twenty-six dollars

12

($31,026) until the funded ratio of the employees' retirement system of Rhode Island, the judicial

13

retirement benefits trust and the state police retirement benefits trust, calculated by the system's

14

actuary on an aggregate basis, exceeds eighty percent (80%).

15

     (i) Effective for members and or beneficiaries of members who have retired on or before

16

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

17

days following the enactment of the legislation implementing this provision, and a second one-

18

time stipend of five hundred dollars ($500) in the same month of the following year. These

19

stipends shall be payable to all retired members or beneficiaries receiving a benefit as of the

20

applicable payment date and shall not be considered cost of living adjustments under the prior

21

provisions of this § 36-10-3.

22

     SECTION 8. Section 36-10.3-1 of the General Laws in Chapter 36-10.3 entitled "Defined

23

Contribution Retirement Plan" is hereby amended to read as follows:

24

     36-10.3-1. Definitions. -- As used in this chapter, the following terms, unless the context

25

requires a different interpretation, shall have the following meanings:

26

      (1) "Compensation" means compensation as defined in section 36-8-1(8).

27

      (2) "Employee" means an employee as defined in section §§ 36-8-1(9) and 45-21-2(7)

28

and a teacher as defined in § 16-16-1(12), effective July 1, 2012; provided however, effective

29

July 1, 2015, “employee” shall not include any employee with twenty (20) or more years of total

30

service as of June 30, 2012 in the employees retirement system under chapters 8 through 10 of

31

title 36 or chapter 16 of title 16 (ERS), or the municipal employees retirement system under

32

chapter 21 of title 45 (MERS).

33

     (3) "Employer" means the State of Rhode Island or the local municipality which employs

34

a member of the Employees Retirement System under chapters 8 through 10 of title 36 or chapter

 

Art21
RELATING TO PENSIONS
(Page 18 of 71)

1

16 of title 16 (ERS) or the Municipal Employees Retirement System under chapters 21 and 21.2

2

of title 45 (MERS).

3

      (4) "Plan" means the retirement plan established by this chapter.

4

      (5) A "public safety member" shall mean a member of MERS who is a municipal fire

5

fighter or a municipal policeman or policewoman as defined in § 45-21.2-2 who does not

6

participate in Social Security under the Federal Old Age, Survivors, and Disability income

7

program.

8

      (6) "Regular member" means:

9

     (i) An employee who is a member of ERS other than correctional officers as defined in §

10

36-10-9.2; or

11

     (ii) A An employee who is a member of MERS other than a public safety member.

12

      (7) The "retirement board" or "board" shall mean the retirement board of the Employees

13

Retirement System of Rhode Island as defined in Chapter 36-8. The retirement board shall be the

14

plan administrator and plan trustee and shall administer the plan in accordance with § 36-8-4.1.

15

      (8) "State investment commission" or "commission" means the state investment

16

commission as defined in § 35-10-1.

17

      (9) "Supplemental employer" includes any employer that provides supplemental

18

contributions to the defined contribution retirement plan as provided in § 36-10.3-3.

19

      (10) "Supplemental member" is defined in § 36-10.3-3.

20

     SECTION 9. Section 36-10.3-5 of the General Laws in Chapter 36-10.3 entitled "Defined

21

Contribution Retirement Plan" is hereby amended to read as follows:

22

     36-10.3-5. Employer contributions. -- (1) An employer shall contribute to each regular

23

member's individual account the following amounts:

24

     (i) For members with fewer then ten (10) years of total service as of June 30, 2012, an

25

amount equal to one percent (1%) of the member's compensation at the end of each payroll period

26

from July 1 to the following June 30. ;

27

     (ii) For members with ten (10) or more, but fewer than fifteen (15) years of total service

28

as of June 30, 2012, an amount equal to one percent (1%) of the member's compensation at the

29

end of each payroll period from July 1, 2012 through June 30, 2015, and effective July 1, 2015,

30

an amount equal to one and one-quarter percent (1.25%) of the member's compensation at the end

31

of each payroll period; and

32

     (iii) For members with fifteen (15) or more, but fewer than twenty (20) years of total

33

service as of June 30, 2012, an amount equal to one percent (1%) of the member's compensation

34

at the end of each payroll period from July 1, 2012 through June 30, 2015, and effective July 1,

 

Art21
RELATING TO PENSIONS
(Page 19 of 71)

1

2015, an amount equal to one and one-half percent (1.5%) of the member's compensation at the

2

end of each payroll period from July 1 to the following June 30.

3

      (2) An employer shall contribute to the individual account of each public safety member,

4

not participating in Social Security under the Federal Old Age, Survivors and Disability Income

5

program, an amount equal to three percent (3%) of the member's compensation from July 1 to the

6

following June 30.

7

     (3) Contributions by supplemental employers shall be governed by § 36-10.3-6.

8

     SECTION 10. Chapter 36-10.3 of the General Laws entitled "Defined Contribution

9

Retirement Plan" is hereby amended by adding thereto the following section:

10

     36-10.3-13. Waiver of administrative fees. – Any plan administration fees assessed to

11

members of the plan after July 1, 2015, shall be reimbursed by the state for any member whose

12

annual compensation is thirty-five thousand dollars ($35,000) or less, said dollar amount to be

13

indexed annually in the same percentage determined under § 36-10-35(h)(1)(B).

14

     SECTION 11. Section 16-16-12 of the General Laws in Chapter 16-16 entitled "Teachers'

15

Retirement is hereby amended to read as follows:

16

     16-16-12. Procedure for service retirement. -- Retirement of a member on a service

17

retirement allowance shall be made by the retirement board as follows:

18

      (a) (i) Any member may retire upon his or her written application to the retirement board

19

as of the first day of the calendar month in which the application was filed, provided the member

20

was separated from service prior to filing the application, and further provided however, that if

21

separation from service occurs during the month in which the application is filed, the effective

22

date shall be the first day following the separation from service, and provided further that the

23

member on retirement date has attained the age of sixty (60) years and has completed at least ten

24

(10) years of contributory service on or before July 1, 2005, or regardless of age has completed

25

twenty-eight (28) years of total service and has completed at least ten (10) years of contributory

26

service on or before July 1, 2005, and who retire before October 1, 2009 or are eligible to retire as

27

of September 30, 2009.

28

      (ii) For teachers who become eligible to retire on or after October 1, 2009 and prior to

29

July 1, 2012, benefits are available to teachers who have attained the age of sixty-two (62) and

30

completed at least ten (10) years of contributory service. For teachers in service as of October 1,

31

2009 who were not eligible to retire as of September 30, 2009 but became eligible to retire prior

32

to July 1, 2012, the minimum retirement age of sixty-two (62) will be adjusted downward in

33

proportion to the amount of service the member has earned as of September 30, 2009. The

34

proportional formula shall work as follows:

 

Art21
RELATING TO PENSIONS
(Page 20 of 71)

1

      (A) The formula shall determine the first age of retirement eligibility under the laws in

2

effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

3

sixty-two (62).

4

      (B) The formula shall then take the teacher's total service credit as of September 30,

5

2009 as the numerator and the years of service credit determined under (A) as the denominator.

6

      (C) The fraction determined in (B) shall then be multiplied by the age difference in (1) to

7

apply a reduction in years from age sixty-two (62).

8

      (b) (i) Any member, who has not completed at least ten (10) years of contributory

9

service on or before July 1, 2005, may retire upon his or her written application to the retirement

10

board as of the first day of the calendar month in which the application was filed; provided, the

11

member was separated from service prior thereto; and further provided, however, that if

12

separation from service occurs during the month in which application is filed, the effective date

13

shall be the first day following that separation from service; provided, the member on his or her

14

retirement date had attained the age of fifty-nine (59) and had completed at least twenty-nine (29)

15

years of total service; or provided, that the member on his or her retirement date had attained the

16

age of sixty-five (65) and had completed at least ten (10) years of contributory service; or

17

provided, that the member on his or her retirement date had attained the age of fifty-five (55) and

18

had completed twenty (20) years of total service and provided, that the retirement allowance, as

19

determined according to the formula in § 16-16-13 is reduced actuarially for each month that the

20

age of the member is less than sixty-five (65) years and who retire before October 1, 2009 or are

21

eligible to retire as of September 30, 2009.

22

      (ii) For teachers who become eligible to retire on or after October 1, 2009 and prior to

23

July 1, 2012, benefits are available to teachers who have attained the age of sixty-two (62) and

24

have completed at least twenty-nine (29) years of total service or have attained the age of sixty-

25

five (65) and completed at least ten (10) years of contributory service. For teachers in service as

26

of October 1, 2009 who were not eligible to retire as of September 30, 2009 but become eligible

27

to retire prior to July 1, 2012, who have a minimum retirement age of sixty-two (62), the

28

retirement age will be adjusted downward in proportion to the amount of service the member has

29

earned as of September 30, 2009. The proportional formula shall work as follows:

30

      (A) The formula shall determine the first age of retirement eligibility under the laws in

31

effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

32

sixty-two (62).

33

      (B) The formula shall then take the teacher's total service credit as of September 30,

34

2009 as the numerator and the years of service credit determined under (A) as the denominator.

 

Art21
RELATING TO PENSIONS
(Page 21 of 71)

1

      (C) The fraction determined in (B) shall then be multiplied by the age difference

2

determined in (A) to apply a reduction in years from age sixty-two (62).

3

      (c) Effective July 1, 2012, the following shall apply to all teachers not eligible to retire

4

prior to July 1, 2012:

5

      (i) A teacher with contributory service on or after July 1, 2012, shall be eligible to retire

6

upon the completion of at least five (5) years of contributory service and attainment of the

7

teacher's Social Security retirement age.

8

      (ii) For teachers with five (5) or more years of contributory service as of June 30, 2012,

9

with contributory service on and after July 1, 2012, who have a retirement age of Social Security

10

Retirement Age, the retirement age will be adjusted downward in proportion to the amount of

11

service the teacher has earned as of June 30, 2012, but in no event shall a teacher's retirement age

12

under this subparagraph (ii) be prior to the attainment of age fifty-nine (59) or prior to the

13

teacher's retirement age determined under the laws in effect on June 30, 2012. The proportional

14

formula shall work as follows:

15

      (1) The formula shall determine the first age of retirement eligibility under the laws in

16

effect on June 30, 2012 which shall then be subtracted from Social Security retirement age;

17

      (2) The formula shall then take the teacher's total service credit as of June 30, 2012 as

18

the numerator and the projected service at retirement age in effect on June 30, 2012 as the

19

denominator;

20

      (3) The fraction determined in (2) shall then be multiplied by the age difference

21

determined in (1) to apply a reduction in years from Social Security retirement age.

22

      (iii) A Effective July 1, 2015, a teacher who has completed twenty (20) or more years of

23

total service and who has attained an age within five (5) years of the eligible retirement age under

24

subdivisions (c)(i) or (c)(ii) above or subsection (d) below, may elect to retire provided that the

25

retirement allowance shall be reduced actuarially for each month that the age of the teacher is less

26

than the eligible retirement age under subdivisions (c)(i) or (c)(ii) above or subsection (d) below

27

in accordance with the following table:

28

Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly Reduction

29

For Year 1 9% .75%

30

For Year 2 8% .667%

31

For Year 3 7% .583%

32

For Year 4 7% .583%

33

For Year 5 7% .583%.

34

      (iv) Notwithstanding any other provisions of this section § 16-16-12(c), a teacher who

 

Art21
RELATING TO PENSIONS
(Page 22 of 71)

1

has completed ten (10) or more years of contributory service as of June 30, 2012, may elect to

2

retire at his or her eligible retirement date as determined under subsections (a) and (b) above

3

provided that a teacher making an election under this paragraph shall receive the teacher's

4

retirement benefit determined and calculated based on the teacher's service and average

5

compensation as of June 30, 2012. This provision shall be interpreted and administered in a

6

manner to protect a teacher's accrued benefit on June 30, 2012.

7

     (d) Notwithstanding any other provisions of subsection (c) above, effective July 1, 2015,

8

teachers in active service shall be eligible to retire upon the earlier of:

9

     (A) The attainment of at least age sixty-five (65) and the completion of at least thirty (30)

10

years of total service, or the attainment of at least age sixty-four (64) and the completion of at

11

least thirty-one (31) years of total service, or the attainment of at least age sixty-three (63) and the

12

completion of at least thirty-two (32) years of total service, or the attainment of at least age sixty-

13

two (62) and the completion of at least thirty-three (33) years of total service; or

14

     (B) The teacher's retirement eligibility date under subsections (c)(i) or (c)(ii) above.

15

      (d)(e) Except as specifically provided in §§ 36-10-9.1, 36-10-12 through 36-10-15, and

16

45-21-19 through 45-21-22, no member shall be eligible for pension benefits under this chapter

17

unless

18

      (i) The member shall have been a contributing member of the employees' retirement

19

system for at least ten (10) years; or

20

      (ii) For teachers in active contributory service on or after July 1, 2012, the teacher shall

21

have been a contributing member of the employees' retirement system for at least five (5) years.

22

      (2) Provided, however, a person who has ten (10) years service credit shall be vested;

23

provided that for teachers in active contributory service on or after July 1, 2012, a teacher who

24

has five (5) years of contributory service shall be vested.

25

      (3) Furthermore, any past service credits purchased in accordance with § 36-9-38 shall

26

be counted towards vesting.

27

      (4) Any person who becomes a member of the employees' retirement system pursuant to

28

§ 45-21-8 shall be considered a contributing member for the purpose of chapter 21 of title 45 and

29

this chapter.

30

      (5) Notwithstanding any other provision of law, no more than five (5) years of service

31

credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

32

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

33

of service credit before January 1, 1995, shall be permitted to apply the purchases towards the

34

member's service retirement. However, no further purchase will be permitted.

 

Art21
RELATING TO PENSIONS
(Page 23 of 71)

1

      (6) Notwithstanding any other provision of law, effective July 1, 2012, except for

2

purchases under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53:

3

      (i) For service purchases for time periods prior to a teacher's initial date of hire, the

4

purchase must be made within three (3) years of the teacher's initial date of hire; and

5

      (ii) For service purchases for time periods for official periods of leave as authorized by

6

law, the purchase must be made within three (3) years of the time the official leave was

7

concluded by the teacher. Notwithstanding paragraphs (i) and (ii) above, service purchases from

8

time periods prior to June 30, 2012 may be made on or prior to June 30, 2015.

9

      (e)(f) No member of the teachers' retirement system shall be permitted to purchase

10

service credits for casual or seasonal employment, for employment as a temporary or emergency

11

employee, a page in the general assembly, or for employment at any state college or university

12

while the employee is a student or graduate of the college or university.

13

      (f)(g) Except as specifically provided in §§ 16-16-6.2 and 16-16-6.4, a member shall not

14

receive service credit in this retirement system for any year or portion of a year which counts as

15

service credit in any other retirement system in which the member is vested or from which the

16

member is receiving a pension and/or any annual payment for life. This subsection shall not apply

17

to any payments received pursuant to the federal Social Security Act, 42 U.S.C. § 301 et seq.

18

      (g)(h) A member who seeks to purchase or receive service credit in this retirement

19

system shall have the affirmative duty to disclose to the retirement board whether or not he or she

20

is a vested member in any other retirement system and/or is receiving a pension, retirement

21

allowance, or any annual payment for life. The retirement board shall have the right to investigate

22

as to whether or not the member has utilized the same time of service for credit in any other

23

retirement system. The member has an affirmative duty to cooperate with the retirement board

24

including, by way of illustration and not by way of limitation, the duty to furnish or have

25

furnished to the retirement board any relevant information that is protected by any privacy act.

26

      (h)(i) A member who fails to cooperate with the retirement board shall not have the time

27

of service credit counted toward total service credit until the time the member cooperates with the

28

retirement board and until the time the retirement board determines the validity of the service

29

credit.

30

      (i)(j) A member who knowingly makes a false statement to the retirement board

31

regarding service time or credit shall not be entitled to a retirement allowance and is entitled only

32

to the return of his or her contributions without interest.

33

     SECTION 12. Section 16-16-13 of the General Laws in Chapter 16-16 entitled "Teachers'

34

Retirement is hereby amended to read as follows:

 

Art21
RELATING TO PENSIONS
(Page 24 of 71)

1

     16-16-13. Amount of service retirement allowance. -- (a) (1) (i) For teachers eligible to

2

retire on or before September 30, 2009, upon retirement from service under section 16-16-12 a

3

teacher whose membership commenced before July 1, 2005 and who has completed at least ten

4

(10) years of contributory service on or before July 1, 2005, shall, receive a retirement allowance

5

which shall be determined in accordance with schedule A for service prior to July 1, 2012.

6

SCHEDULE A

7

     YEARS OF SERVICE PERCENTAGE ALLOWANCE

8

     1st through 10th inclusive 1.7%

9

     11th through 20th inclusive 1.9%

10

     21st through 34th inclusive 3.0%

11

     35th 2.0%

12

      (ii) For teachers eligible to retire on or after October 1, 2009 who were not eligible to

13

retire on or before September 30, 2009, upon retirement for service under § 16-16-12, a teacher

14

whose membership commenced before July 1, 2005 and who has completed at least ten (10) years

15

of contributory service on or before July 1, 2005 shall receive a retirement allowance which shall

16

be determined in accordance with schedule A above for service on before September 30, 2009,

17

and shall be determined in accordance with schedule B in subsection (a)(2) below for service on

18

or after October 1, 2009 and prior to July 1, 2012:

19

     (2) Upon retirement from service under section 16-16-12 a teacher whose membership

20

commenced after July 1, 2005 or who has not completed at least ten (10) years of contributory

21

service as of July 1, 2005 shall receive a retirement allowance which shall be determined in

22

accordance with Schedule B for service prior to July 1, 2012.

23

SCHEDULE B

24

     YEARS OF SERVICE PERCENTAGE ALLOWANCE

25

     1st through 10th inclusive 1.60%

26

     11th through 20th inclusive 1.80%

27

     21st through 25th inclusive 2.0%

28

     26th through 30th inclusive 2.25%

29

     31st through 37th inclusive 2.50%

30

     38th 2.25%

31

     (b) The retirement allowance of any teacher whose membership commenced before July

32

1, 2005 and who has completed at least ten (10) years of contributory service on or before July 1,

33

2005 shall be in an amount equal to the percentage allowance specified in subsection (a)(1) of his

34

or her average highest three (3) consecutive years of compensation multiplied by the number of

 

Art21
RELATING TO PENSIONS
(Page 25 of 71)

1

years of total service, but in no case to exceed eighty percent (80%) of the compensation, payable

2

at completion of thirty-five (35) years of service; provided, however, for teachers retiring on or

3

after October 1, 2009 who were not eligible to retire as of September 30, 2009 the calculation

4

shall be based on the average highest five (5) consecutive years of compensation. The retirement

5

allowance of any teacher whose membership commenced after July 1, 2005 or who has not

6

completed at least ten (10) years of contributory service as of July 1, 2005 shall be in an amount

7

equal to the percentage allowance specified in Schedule B of his or her average highest three (3)

8

consecutive years of compensation multiplied by the number of years of total service, but in no

9

case to exceed seventy-five percent (75%) of the compensation, payable at completion of thirty-

10

eight (38) years of service; provided, however, for teachers retiring on or after October 1, 2009

11

who were not eligible to retire as of September 30, 2009 the calculation shall be based on the

12

average highest five (5) consecutive years of compensation. Any teacher who has in excess of

13

thirty-five (35) years on or before June 2, 1985 shall not be entitled to any refund, and any teacher

14

with thirty-five (35) years or more on or after June 2, 1985 shall contribute from July 1, 1985

15

until his or her retirement.

16

     (c) For service prior to July 2012, the retirement allowance of a teacher shall be

17

determined in accordance with subsections (a)(1) and (a)(2) above. For service on and after July

18

1, 2012:

19

     (i) For teachers with fewer than twenty (20) years of total service as of June 30, 2012, a

20

teacher's retirement allowance shall be equal to one percent (1%) of the teacher's average

21

compensation multiplied by the teacher's years of total service on and after July 1, 2012; and

22

     (ii) For teachers with twenty (20) or more years of total service as of June 30, 2012, a

23

teacher's retirement allowance shall be equal to one percent (1%) of the teacher's average

24

compensation multiplied by the teacher's years of total service between July 1, 2012 and June 30,

25

2015, and two percent (2%) of the teacher's average compensation multiplied by the teacher's

26

years of total service on and after July 1, 2015. For purposes of computing a teacher's total

27

service under the preceding sentence, service purchases shall be included in total service only

28

with respect to those service purchases approved prior to June 30, 2012 and those applications for

29

service purchases received by the retirement system on or before June 30, 2012. In no event shall

30

a teacher's retirement allowance exceed the maximum limitations set forth in subsection (b)

31

above.

32

     SECTION 13. Section 16-16-22 of the General Laws in Chapter 16-16 entitled "Teachers'

33

Retirement is hereby amended to read as follows:

34

     16-16-22. Contributions to state system. -- (a) Prior to July 1, 2012, each teacher shall

 

Art21
RELATING TO PENSIONS
(Page 26 of 71)

1

contribute into the system nine and one-half percent (9.5%) of compensation as his or her share of

2

the cost of annuities, benefits, and allowances. Effective July 1, 2012, each teacher shall

3

contribute an amount equal to three and three quarters percent (3.75%) of his or her

4

compensation. Effective July 1, 2015, each teacher with twenty (20) or more years of total service

5

as of June 30, 2012 shall contribute an amount equal to eleven percent (11%) of his or her

6

compensation. The employer contribution on behalf of teacher members of the system shall be in

7

an amount that will pay a rate percent of the compensation paid to the members, according to the

8

method of financing prescribed in the State Retirement Act in chapters 8 -- 10 and 10.3 of title 36.

9

This amount shall be paid forty percent (40%) by the state, and sixty percent (60%) by the city,

10

town, local educational agency, or any formalized commissioner approved cooperative service

11

arrangement by whom the teacher members are employed, with the exception of teachers who

12

work in federally funded projects and further with the exception of any supplemental

13

contributions by a local municipality employer under chapter 36-10.3 which supplemental

14

employer contributions shall be made wholly by the local municipality. Provided, however, that

15

the rate percent paid shall be rounded to the nearest hundredth of one percent (.01%).

16

      (b) The employer contribution on behalf of teacher members of the system who work in

17

fully or partially federally funded programs shall be prorated in accordance with the share of the

18

contribution paid from the funds of the federal, city, town, or local educational agency, or any

19

formalized commissioner approved cooperative service arrangement by whom the teacher

20

members are approved.

21

      (c) In case of the failure of any city, town, or local educational agency, or any formalized

22

commissioner approved cooperative service arrangement to pay to the state retirement system the

23

amounts due from it under this section within the time prescribed, the general treasurer is

24

authorized to deduct the amount from any money due the city, town, or local educational agency

25

from the state.

26

      (d) The employer's contribution shared by the state shall be paid in the amounts

27

prescribed in this section for the city, town, or local educational agency and under the same

28

payment schedule. Notwithstanding any other provisions of this chapter, the city, town, or local

29

educational agency or any formalized commissioner approved cooperative service arrangement

30

shall remit to the general treasurer of the state the local employer's share of the teacher's

31

retirement payments on a monthly basis, payable by the fifteenth (15th) of the following month.

32

The amounts that would have been contributed shall be deposited by the state in a special fund

33

and not used for any purpose. The general treasurer, upon receipt of the local employer's share,

34

shall effect transfer of a matching amount of money from the state funds appropriated for this

 

Art21
RELATING TO PENSIONS
(Page 27 of 71)

1

purpose by the general assembly into the retirement fund.

2

      Upon reconciliation of the final amount owed to the retirement fund for the employer

3

share, the state shall ensure that any local education aid reduction assumed for the FY 2010

4

revised budget in excess of the actual savings is restored to the respective local entities.

5

      (e) This section is not subject to §§ 45-13-7 through 45-13-10.

6

     SECTION 14. Section 16-16-40 of the General Laws in Chapter 16-16 entitled "Teachers'

7

Retirement is hereby amended to read as follows:

8

     16-16-40. Additional benefits payable to retired teachers. -- (a) All teachers and all

9

beneficiaries of teachers receiving any service retirement or ordinary or accidental disability

10

retirement allowance pursuant to the provisions of this chapter and chapter 17 of this title, on or

11

before December 31, 1967, shall receive a cost of living retirement adjustment equal to one and

12

one-half percent (1.5%) per year of the original retirement allowance, not compounded, for each

13

year the retirement allowance has been in effect. For purposes of computation credit shall be

14

given for a full calendar year regardless of the effective date of the retirement allowance. This

15

cost of living retirement adjustment shall be added to the amount of the service retirement

16

allowance as of January 1, 1970, and payment shall begin as of July 1, 1970. An additional cost

17

of living retirement adjustment shall be added to the original retirement allowance equal to three

18

percent (3%) of the original retirement allowance on the first day of January, 1971, and each year

19

thereafter through December 31, 1980.

20

      (b) All teachers and beneficiaries of teachers receiving any service retirement or ordinary

21

disability retirement allowance pursuant to the provisions of this title who retired on or after

22

January 1, 1968, shall, on the first day of January, next following the third (3rd) year on

23

retirement, receive a cost of living adjustment, in addition to his or her retirement allowance, an

24

amount equal to three percent (3%) of the original retirement allowance. In each succeeding year

25

thereafter, on the first day of January, the retirement allowance shall be increased an additional

26

three percent (3%) of the original retirement allowance, not compounded, to be continued through

27

December 31, 1980.

28

      (c) (1) Beginning on January 1, 1981, for all teachers and beneficiaries of teachers

29

receiving any service retirement and all teachers and all beneficiaries of teachers who have

30

completed at least ten (10) years of contributory service on or before July 1, 2005, pursuant to the

31

provisions of this chapter, and for all teachers and beneficiaries of teachers who receive a

32

disability retirement allowance pursuant to §§ 16-16-14 -- 16-16-17, the cost of living adjustment

33

shall be computed and paid at the rate of three percent (3%) of the original retirement allowance

34

or the retirement allowance as computed in accordance with § 16-16-40.1, compounded annually

 

Art21
RELATING TO PENSIONS
(Page 28 of 71)

1

from the year for which the cost of living adjustment was determined to be payable by the

2

retirement board pursuant to the provisions of subsection (a) or (b) of this section. Such cost of

3

living adjustments are available to teachers who retire before October 1, 2009 or are eligible to

4

retire as of September 30, 2009.

5

      (2) The provisions of this subsection shall be deemed to apply prospectively only and no

6

retroactive payment shall be made.

7

      (3) The retirement allowance of all teachers and all beneficiaries of teachers who have

8

not completed at least ten (10) years of contributory service on or before July 1, 2005 or were not

9

eligible to retire as of September 30, 2009, shall, on the month following the third anniversary

10

date of the retirement, and on the month following the anniversary date of each succeeding year

11

be adjusted and computed by multiplying the retirement allowance by three percent (3%) or the

12

percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as

13

published by the United States Department of Labor Statistics, determined as of September 30 of

14

the prior calendar year, whichever is less; the cost of living adjustment shall be compounded

15

annually from the year for which the cost of living adjustment was determined payable by the

16

retirement board; provided, that no adjustment shall cause any retirement allowance to be

17

decreased from the retirement allowance provided immediately before such adjustment.

18

      (d) For teachers not eligible to retire in accordance with this chapter as of September 30,

19

2009 and not eligible upon passage of this article, and for their beneficiaries, the cost of living

20

adjustment described in subsection (3) above shall only apply to the first thirty-five thousand

21

dollars ($35,000) of retirement allowance, indexed annually, and shall commence upon the third

22

(3rd) anniversary of the date of retirement or when the retiree reaches age sixty-five (65),

23

whichever is later. The thirty-five thousand dollar ($35,000) limit shall increase annually by the

24

percentage increase in the Consumer Price Index for all Urban Consumer (CPI-U) as published

25

by the United States Department of Labor Statistics determined as of September 30 of the prior

26

calendar year or three percent (3%), whichever is less. The first thirty-five thousand dollars

27

($35,000), as indexed, of retirement allowance shall be multiplied by the percentage of increase

28

in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States

29

Department of Labor Statistics determined as of September 30 of the prior calendar year or three

30

percent (3%), whichever is less, on the month following the anniversary date of each succeeding

31

year. For teachers eligible to retire as of September 30, 2009 or eligible upon passage of this

32

article, and for their beneficiaries, the provisions of this subsection (d) shall not apply.

33

      (e) This subsection (e) shall be effective for the period July 1, 2012 through June 30,

34

2015.

 

Art21
RELATING TO PENSIONS
(Page 29 of 71)

1

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (e)(2)

2

below, for all present and former teachers, active and retired teachers, and beneficiaries receiving

3

any retirement, disability or death allowance or benefit of any kind, the annual benefit adjustment

4

provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A)

5

is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the

6

"subtrahend") from the Five-Year Average Investment Return of the retirement system

7

determined as of the last day of the plan year preceding the calendar year in which the adjustment

8

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

9

(0%), and (B) is equal to the lesser of the teacher's retirement allowance or the first twenty-five

10

thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000)

11

amount to be indexed annually in the same percentage as determined under paragraph (e)(1)(A)

12

above. The "Five-Year Average Investment Return" shall mean the average of the investment

13

returns of the most recent five (5) plan years as determined by the retirement board. Subject to

14

paragraph (e)(2) below, the benefit adjustment provided by this paragraph shall commence upon

15

the third (3rd) anniversary of the date of retirement or the date on which the retiree reaches his or

16

her Social Security retirement age, whichever is later. In the event the retirement board adjusts

17

the actuarially assumed rate of return for the system, either upward or downward, the subtrahend

18

shall be adjusted either upward or downward in the same amount.

19

      (2) Except as provided in paragraph (e)(3), the benefit adjustments under this section for

20

any plan year shall be suspended in their entirety unless the GASB Funded Ratio of the

21

Employees' Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the

22

State Police Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis,

23

exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

24

teachers for such plan year.

25

      In determining whether a funding level under this paragraph (e)(2) has been achieved,

26

the actuary shall calculate the funding percentage after taking into account the reinstatement of

27

any current or future benefit adjustment provided under this section. "GASB Funded Ratio" shall

28

mean the ratio of the actuarial value of assets to the actuarial accrued liability.

29

      (3) Notwithstanding paragraph (e)(2), in each fifth plan year commencing after June 30,

30

2012 commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

31

plan years, a benefit adjustment shall be calculated and made in accordance with paragraph (e)(l)

32

above until the GASB Funded Ratio of the Employees' Retirement System of Rhode Island, the

33

Judicial Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated by

34

the system's actuary on an aggregate basis, exceeds eighty percent (80%).

 

Art21
RELATING TO PENSIONS
(Page 30 of 71)

1

      (4) Notwithstanding any other provisions of this chapter, the provisions of this paragraph

2

(e) of § 16-16-40 shall become effective July 1, 2012, and shall apply to any benefit adjustments

3

not granted on or prior to June 30, 2012.

4

     (f) This subsection (f) shall become effective July 1, 2015.

5

     (1)(A) As soon as administratively reasonable following the enactment into law of this

6

subsection (f)(1)(A), a one-time benefit adjustment shall be provided to teachers and/or

7

beneficiaries of teachers who retired on or before June 30, 2012, in the amount of two percent

8

(2%) of the lesser of either the teacher's retirement allowance or the first twenty-five thousand

9

dollars ($25,000) of the teacher's retirement allowance. This one-time benefit adjustment shall be

10

provided without regard to the retiree's age or number of years since retirement.

11

     (B) Notwithstanding the prior subsections of this section, for all present and former

12

teachers, active and retired teachers, and beneficiaries receiving any retirement, disability or

13

death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar

14

year under this section for adjustments on and after January 1, 2016, and subject to subsection

15

(f)(2) below, shall be equal to (I) multiplied by (II):

16

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

17

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

18

(the "subtrahend") from the five-year average investment return of the retirement system

19

determined as of the last day of the plan year preceding the calendar year in which the adjustment

20

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

21

(0%). The "five-year average investment return" shall mean the average of the investment returns

22

of the most recent five (5) plan years as determined by the retirement board. In the event the

23

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

24

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

25

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

26

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

27

Statistics determined as of September 30 of the prior calendar year.

28

     In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be

29

less than (0%) percent.

30

     (II) is equal to the lesser of either the teacher's retirement allowance or the first twenty-

31

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

32

to be indexed annually in the same percentage as determined under subsection (f)(1)(B)(I) above.

33

     The benefit adjustments provided by this subsection (f)(1)(B) shall be provided to all

34

retirees entitled to receive a benefit adjustment as of June 30, 2012 under the law then in effect,

 

Art21
RELATING TO PENSIONS
(Page 31 of 71)

1

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

2

date of retirement or the date on which the retiree reaches his or her Social Security retirement

3

age, whichever is later.

4

     (2) Except as provided in subsection (f)(3), the benefit adjustments under subsection

5

(f)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

6

employees' retirement system of Rhode Island, the judicial retirement benefits trust and the state

7

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

8

eighty percent (80%) in which event the benefit adjustment will be reinstated for all teachers for

9

such plan year.

10

     In determining whether a funding level under this subsection (f)(2) has been achieved, the

11

actuary shall calculate the funding percentage after taking into account the reinstatement of any

12

current or future benefit adjustment provided under this section.

13

     (3) Notwithstanding subsection (f)(2), in each fourth plan year commencing after June

14

30, 2012 commencing with the plan year ending June 30, 2016, and subsequently at intervals of

15

four plan years: (i) A benefit adjustment shall be calculated and made in accordance with

16

subsection (f)(1)(B) above; and (ii) Effective for teachers and/or beneficiaries of teachers who

17

retired on or before June 30, 2015, the dollar amount in subsection (f)(1)(B)(II) of twenty-five

18

thousand eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand

19

and twenty-six dollars ($31,026)until the funded ratio of the employees' retirement system of

20

Rhode Island, the judicial retirement benefits trust and the state police retirement benefits trust,

21

calculated by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

22

     (4) Effective for teachers and or beneficiaries of teachers who have retired on or before

23

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

24

days following the enactment of the legislation implementing this provision, and a second one-

25

time stipend of five hundred dollars ($500) in the same month of the following year. These

26

stipends shall be payable to all retired teachers or beneficiaries receiving a benefit as of the

27

applicable payment date and shall not be considered cost of living adjustments under the prior

28

provisions of this § 16-16-40.

29

     SECTION 15. Section 45-21-2 of the General Laws in Chapter 45-21 entitled

30

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

31

     45-21-2. Definitions. -- The following words and phrases as used in this chapter have the

32

following meanings unless a different meaning is plainly required by the context:

33

      (1) "Accumulated contributions" means the sum of all amounts deducted from the

34

compensation of a member and credited to his or her individual account in the members'

 

Art21
RELATING TO PENSIONS
(Page 32 of 71)

1

contribution reserve account.

2

      (2) "Active member" means any employee of a participating municipality as defined in

3

this section for whom the retirement system is currently receiving regular contributions pursuant

4

to §§ 45-21-41, 45-21-41.1 or 45-21.2-14.

5

      (3) "Actuarial reserve" means the present value of all payments to be made on account of

6

any annuity, retirement allowance, or benefit, computed upon the basis of mortality tables

7

adopted by the retirement board with regular interest.

8

      (4) "Beneficiary" means any person in receipt of a retirement allowance, annuity, or

9

other benefit as provided by this chapter.

10

      (5) For purposes of this chapter, "domestic partner" shall be defined as a person who,

11

prior to the decedent's death, was in an exclusive, intimate and committed relationship with the

12

decedent, and who certifies by affidavit that their relationship met the following qualifications:

13

      (i) Both partners were at least eighteen (18) years of age and were mentally competent to

14

contract;

15

      (ii) Neither partner was married to anyone else;

16

      (iii) Partners were not related by blood to a degree which would prohibit marriage in the

17

state of Rhode Island;

18

      (iv) Partners resided together and had resided together for at least one year at the time of

19

death; and

20

      (v) Partners were financially interdependent as evidenced by at least two (2) of the

21

following:

22

      (A) Domestic partnership agreement or relationship contract;

23

      (B) Joint mortgage or joint ownership of primary residence;

24

      (C) Two (2) of: (I) Joint ownership of motor vehicle; (II) Joint checking account; (III)

25

Joint credit account; (IV) Joint lease; and/or

26

      (D) The domestic partner had been designated as a beneficiary for the decedent's will,

27

retirement contract or life insurance.

28

      (6) "Effective date of participation" means the date on which the provisions of this

29

chapter have become applicable to a municipality accepting the provisions of the chapter in the

30

manner stated in § 45-21-4.

31

      (7) "Employee" means any regular and permanent employee or officer of any

32

municipality, whose business time at a minimum of twenty (20) hours a week is devoted to the

33

service of the municipality, including elective officials and officials and employees of city and

34

town housing authorities. Notwithstanding the previous sentence, the term "employee", for the

 

Art21
RELATING TO PENSIONS
(Page 33 of 71)

1

purposes of this chapter, does not include any person whose duties are of a casual or seasonal

2

nature. The retirement board shall decide who are employees within the meaning of this chapter,

3

but in no case shall it deem as an employee any individual who annually devotes less than twenty

4

(20) business hours per week to the service of the municipality and who receives less than the

5

equivalent of minimum wage compensation on an hourly basis for his or her services, except as

6

provided in § 45-21-14.1. Casual employees mean those persons hired for an occasional period or

7

a period of emergency to perform special jobs or functions not necessarily related to the work of

8

regular employees. Any commissioner of a municipal housing authority, or any member of a part-

9

time state board commission, committee or other authority is not deemed to be an employee

10

within the meaning of this chapter.

11

      (8)(a) "Final compensation" for members who are eligible to retire on or prior to June

12

30, 2012 shall means the average annual compensation, pay, or salary of a member for services

13

rendered during the period of three (3) consecutive years within the total service of the member

14

when the average was highest, and as the term average annual compensation is further defined in

15

subdivision 36-8-1(5)(a). For members eligible to retire on or after July 1, 2012, "final

16

compensation" means the average of the highest five (5) consecutive years of compensation

17

within the total service when the final compensation was the highest.

18

     (b) For members who become eligible to retire on or after July 1, 2012, if more than one

19

half (1/2) of the member's total years of service consist of years of service during which the

20

member devoted less than thirty (30) business hours per week to the service of the municipality,

21

but the member's average compensation consists of three (3) or more years during which the

22

member devoted more than thirty (30) business hours per week to the service of a municipality,

23

such member's average compensation shall mean the average of the highest ten (10) consecutive

24

years of compensation within the total service when the average compensation was the highest;

25

provided however, effective July 1, 2015, if such member's average compensation as defined in

26

subsection (a) above is equal to or less than thirty-five thousand dollars ($35,000), such amount

27

to be indexed annually in accordance with § 45-21-52(d)(1)(B), such member's average

28

compensation shall mean the greater of: (i) The average of the highest ten (10) consecutive years

29

of compensation within the total service when the average compensation was the highest; or (ii)

30

The member's average compensation as defined in subsection (a) above. To protect a member's

31

accrued benefit on June 30, 2012 under this § 45-21-2(8)(b), in no event shall a member's average

32

compensation be lower than his or her average compensation determined as of June 30, 2012.

33

Notwithstanding the preceding provisions, in no event shall a member's final compensation be

34

lower than his or her final compensation determined as of June 30, 2012.

 

Art21
RELATING TO PENSIONS
(Page 34 of 71)

1

      (9) "Fiscal year" means the period beginning on July 1 in any year and ending on June

2

30 of the next succeeding year.

3

      (10) "Full actuarial costs" or "full actuarial value" mean the lump sum payable by a

4

member claiming service credit for certain employment for which payment is required, which is

5

determined according to the age of the member and his or her annual rate of compensation at the

6

time he or she applies for service credit, and which is expressed as a rate percent of the annual

7

rate of compensation to be multiplied by the number of years for which he or she claims the

8

service credit, as prescribed in a schedule adopted by the retirement board, from time to time, on

9

the basis of computation by the actuary. Except as provided in §§ 16-16-7.1, 36-5-3, 36-9-31, 36-

10

10-10.4, and subdivision 45-21-53: (i) All service credit purchases requested after June 16, 2009

11

and prior to July 1, 2012, shall be at full actuarial value; and (ii) All service credit purchases

12

requested after June 30, 2012 shall be at full actuarial value which shall be determined using the

13

system's assumed investment rate of return minus one percent (1%).

14

      (11) "Governing body" means any and all bodies empowered to appropriate monies for,

15

and administer the operation of, the units as defined in subdivision (1) of this section.

16

      (12) "Member" means any person included in the membership of the retirement system

17

as provided in § 45-21-8.

18

      (13) "Municipality" means any town or city in the state of Rhode Island, any city or town

19

housing authority, fire, water, sewer district, regional school district, public building authority as

20

established by chapter 14 of title 37, or any other municipal financed agency to which the

21

retirement board has approved admission in the retirement system.

22

      (14) "Participating municipality" means any municipality which has accepted this

23

chapter, as provided in § 45-21-4.

24

      (15) "Prior service" means service as a member rendered before the effective date of

25

participation as defined in this section, certified on his or her prior service certificate, and

26

allowable as provided in § 45-21-15.

27

      (16) "Regular interest" means interest at the assumed investment rate of return,

28

compounded annually, as may be prescribed from time to time by the retirement board.

29

      (17) "Retirement allowance" or "annuity" means the amounts paid to any member of the

30

municipal employees' retirement system of the state of Rhode Island, or a survivor of the

31

member, as provided in this chapter. All retirement allowances or annuities shall be paid in equal

32

monthly installments for life, unless otherwise specifically provided.

33

      (18) "Retirement board" or "board" means the state retirement board created by chapter 8

34

of title 36.

 

Art21
RELATING TO PENSIONS
(Page 35 of 71)

1

      (19) "Retirement system" means the "municipal employees' retirement system of the

2

state of Rhode Island" as defined in § 45-21-32.

3

      (20) "Service" means service as an employee of a municipality of the state of Rhode

4

Island as defined in subdivision (7).

5

      (21) "Total service" means prior service as defined in subdivision (15) plus service

6

rendered as a member on or after the effective date of participation.

7

      (22) Any term not specifically defined in this chapter and specifically defined in chapters

8

36-8 through 36-10 shall have the same definition as set forth in chapters 36-8 through 36-10.

9

     SECTION 16. Section 45-21-16 of the General Laws in Chapter 45-21 entitled

10

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

11

     45-21-16. Retirement on service allowance. -- Retirement of a member on a service

12

retirement allowance shall be made by the retirement board as follows:

13

      (1) (i) Any member who is eligible to retire on or before June 30, 2012, may retire upon

14

the member's written application to the retirement board as of the first day of the calendar month

15

in which the application was filed, provided the member was separated from service prior to the

16

application, and provided, further, that if separation from service occurs during the month in

17

which application is filed, the effective date is the first day following the separation from service,

18

provided that the member at the time so specified for the member's retirement has attained the

19

applicable minimum retirement age and has completed at least ten (10) years of total service or

20

who, regardless of age, completed thirty (30) years of total service, and notwithstanding that

21

during the period of notification the member has separated from service. The minimum ages for

22

service retirement (except for employees completing thirty (30) years of service) is fifty-eight

23

(58) years.

24

      (ii) Effective July 1, 2012, the following shall apply to all members not eligible to retire

25

prior to July 1, 2012:

26

      (A) A member with contributory service on or after July 1, 2012, shall be eligible to

27

retire upon the completion of at least five (5) years of contributory service and attainment of the

28

member's Social Security retirement age.

29

      (B) For members with five (5) or more years of contributory service as of June 30, 2012,

30

with contributory service on and after July 1, 2012, who have a retirement age of Social Security

31

Retirement Age, the retirement age will be adjusted downward in proportion to the amount of

32

service the member has earned as of June 30, 2012, but in no event shall a member's retirement

33

age under this subparagraph (B) be prior to the attainment of age fifty-nine (59) or prior to the

34

member's retirement age determined under the laws in effect on June 30, 2012. The proportional

 

Art21
RELATING TO PENSIONS
(Page 36 of 71)

1

formula shall work as follows:

2

      (1) The formula shall determine the first age of retirement eligibility under the laws in

3

effect on June 30, 2012 which shall then be subtracted from Social Security retirement age;

4

      (2) The formula shall then take the member's total service credit as of June 30, 2012 as

5

the numerator and the projected service at retirement age in effect on June 30, 2012 as the

6

denominator;

7

      (3) The fraction determined in (2) shall then be multiplied by the age difference

8

determined in (1) to apply a reduction in years from Social Security retirement age.

9

      (C) A Effective July 1, 2015, a member who has completed twenty (20) or more years of

10

total service and who has attained an age within five (5) years of the eligible retirement age under

11

subparagraphs (ii)(A) or (ii)(B) above or subsection (iii) below, may elect to retire provided that

12

the retirement allowance shall be reduced actuarially for each month that the age of the member is

13

less than the eligible retirement age under subparagraphs (ii)(A) or (ii)(B) above or subsection

14

(iii) below in accordance with the following table:

15

Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly Reduction

16

For Year 1 9% .75%

17

For Year 2 8% .667%

18

For Year 3 7% .583%

19

For Year 4 7% .583%

20

For Year 5 ` 7% .583%.

21

     (D)(1) Notwithstanding any other provisions of section 42-21-16(1)(ii), a member who

22

has completed ten (10) or more years of contributory service as of June 30, 2012, may elect to

23

retire at his or her eligible retirement date as determined under paragraph (i) above provided that

24

a member making an election under this paragraph shall receive the member's retirement benefit

25

determined and calculated based on the member's service and average compensation as of June

26

30, 2012. This provision shall be interpreted and administered in a manner to protect a member's

27

accrued benefit on June 30, 2012.

28

     (iii) Notwithstanding any other provisions of subsection (ii) above, effective July 1, 2015,

29

members in active service shall be eligible to retire upon the earlier of: (I) The attainment of at

30

least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the

31

attainment of at least age sixty-four (64) and the completion of at least thirty-one (31) years of

32

total service, or the attainment of at least age sixty-three (63) and the completion of at least thirty-

33

two (32) years of total service, or the attainment of at least age sixty-two (62) and the completion

34

of at least thirty-three (33) years of total service; or (II) The member's retirement eligibility date

 

Art21
RELATING TO PENSIONS
(Page 37 of 71)

1

under subsections (ii)(A) or (ii)(B) above.

2

      (2) Except as specifically provided in §§ 45-21-19 -- 45-21-22, no member is eligible for

3

pension benefits under this chapter unless:

4

      (I) On or prior to June 30, 2012 the member has been a contributing member of the

5

employees' retirement system for at least ten (10) years; or

6

      (II) For members in active contributory service on or after July 1, 2012, the member

7

shall have been a contributing member of the employees' retirement system for at least five (5)

8

years.

9

      (i) Provided, however, a person who has ten (10) years service credit on or before June

10

16, 1991 is vested.

11

      (ii) Furthermore, any past service credits purchased in accordance with § 45-21-62 are

12

counted towards vesting.

13

      (iii) Any person who becomes a member of the employees' retirement system pursuant to

14

§ 45-21-4 shall be considered a contributing member for the purpose of this chapter.

15

      (iv) Notwithstanding any other provision of law, no more than five (5) years of service

16

credit may be purchased by a member of the System. The five (5)-year limit does not apply to any

17

purchases made prior to the effective date of this provision. A member who has purchased more

18

than five (5) years of service credit maximum, before January 1, 1995, shall be permitted to apply

19

the purchases towards the member's service retirement. However, no further purchase will be

20

permitted. Repayment, in accordance with applicable law and regulation, of any contribution

21

previously withdrawn from the System is not deemed a purchase of service credit.

22

      (v) Notwithstanding any other provision of law, effective July 1, 2012, except for

23

purchases under §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, and 45-21-53:

24

      (I) For service purchases for time periods prior to a member's initial date of hire; the

25

purchase must be made within three (3) years of the member's initial date of hire; and

26

      (II) For service purchases for time periods for official periods of leave as authorized by

27

law, the purchase must be made within three (3) years of the time the official leave was

28

concluded by the member.

29

      Notwithstanding (I) and (II) above, service purchases from time periods prior to June 30,

30

2012 may be made on or prior to June 30, 2015.

31

      (3) No member of the municipal employees' retirement system is permitted to purchase

32

service credits for casual, temporary, emergency or seasonal employment, for employment as a

33

page in the general assembly, or for employment at any state college or university while the

34

employee is a student or graduate assistant of the college or university.

 

Art21
RELATING TO PENSIONS
(Page 38 of 71)

1

      (4) A member does not receive service credit in this retirement system for any year or

2

portion of a year, which counts as service credit in any other retirement system in which the

3

member is vested or from which the member is receiving a pension and/or any annual payment

4

for life. This subsection does not apply to any payments received pursuant to the Federal Social

5

Security Act or to payments from a military pension earned prior to participation in state or

6

municipal employment, or to military service credits earned prior to participation in state or

7

municipal employment.

8

      (5) A member who seeks to purchase or receive service credit in this retirement system

9

has the affirmative duty to disclose to the retirement board whether or not he or she is a vested

10

member in any other retirement system and/or is receiving a pension retirement allowance or any

11

annual payment for life. The retirement board has the right to investigate whether or not the

12

member has utilized the same time of service for credit in any other retirement system. The

13

member has an affirmative duty to cooperate with the retirement board including, by way of

14

illustration and not by way of limitation, the duty to furnish or have furnished to the retirement

15

board any relevant information which is protected by any privacy act.

16

      (6) A member who fails to cooperate with the retirement board shall not have the time of

17

service counted toward total service credit until a time that the member cooperates with the

18

retirement board and until a time that the retirement board determines the validity of the service

19

credit.

20

      (7) A member who knowingly makes a false statement to the retirement board regarding

21

service time or credit is not entitled to a retirement allowance and is entitled only to the return of

22

his or her contributions without interest.

23

     SECTION 17. Section 45-21-17 of the General Laws in Chapter 45-21 entitled

24

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

25

     45-21-17. Service retirement allowance. -- (a) Upon retirement from service after

26

January 1, 1969, a member shall receive a retirement allowance which is a life annuity terminable

27

upon death of the annuitant and is an amount is equal to two percent (2%) of final compensation

28

multiplied by the number of years of total service, not to exceed thirty-seven and one-half (37

29

1/2) years for services on and prior to June 30, 2012. For service on and after July 1, 2012: (i) For

30

members with fewer than twenty (20) years of total service as of June 30, 2012, a member's

31

retirement allowance shall be equal to one percent (1%) of the member's final compensation

32

multiplied by the member's years of total service on and after July 1, 2012; and (ii) For members

33

with twenty (20) or more years of total service as of June 30, 2012, a member's retirement

34

allowance shall be equal to one percent (1%) of the member's average compensation multiplied

 

Art21
RELATING TO PENSIONS
(Page 39 of 71)

1

by the member's years of total service between July 1, 2012 and June 30, 2015, and two percent

2

(2%) of the member's average compensation multiplied by the member's years of total service on

3

and after July 1, 2015. For purposes of computing a member's total service under the preceding

4

sentence, service purchases shall be included in total service only with respect to those service

5

purchases approved prior to June 30, 2012 and those applications for service purchases received

6

by the retirement system on or before June 30, 2012. In no event shall a member's retirement

7

allowance exceed seventy-five percent (75%) of the member's final compensation. Provided,

8

however, that every person elected prior to July 1, 2012 who has served as a part time elected

9

official of the city of Cranston for a period of ten (10) years, is entitled to receive, upon

10

retirement from that part time service, and not being otherwise regularly employed by the city of

11

Cranston in which that person has served, a service retirement allowance equivalent to fifty

12

percent (50%) of the salary received at the time of retirement by that part time elected official;

13

and, provided, further, that if that person retires after a period of service greater than ten (10)

14

years, the person is entitled to receive an additional service retirement allowance equivalent to

15

five percent (5%) of the salary received at the time of retirement for each whole year of service,

16

in excess of ten (10) years up to a maximum additional allowance equivalent to fifty percent

17

(50%) of the salary received.

18

      (b) This section also applies to any former part time elected official of the city of

19

Cranston who is presently receiving retirement benefits from the municipal retirement system.

20

      (c) Every person elected prior to July 1, 2012 who serves or has served at least four (4)

21

years as a part time elected official of the city of Cranston may include that person's years of

22

service as a member of the general assembly, and any other credits acquired while serving as a

23

legislator, when computing the person's period of service to the city of Cranston pursuant to the

24

provisions of this section.

25

     SECTION 18. Section 45-21-41 of the General Laws in Chapter 45-21 entitled

26

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

27

     45-21-41. Members' contributions -- Payroll deductions -- Certification to board. --

28

(a) Prior to July 1, 2012, each member shall contribute an amount equal to six percent (6%) of

29

salary or compensation earned and accruing to the member; provided, that contributions by any

30

member cease when the member has completed the maximum amount of service credit attainable.

31

Special compensation for additional fees shall not be considered as compensation for contribution

32

purposes. Effective July 1, 2012, each member shall contribute an amount equal to one percent

33

(1%) of his or her compensation as his or her share of the cost. Effective July 1, 2015, each

34

member with twenty (20) or more years of total service as of June 30, 2012 shall contribute an

 

Art21
RELATING TO PENSIONS
(Page 40 of 71)

1

amount equal to eight and one-quarter percent (8.25%) of compensation.

2

      (b) Each municipality shall deduct the previously stated rate from the compensation of

3

each member on each and every payroll of the municipality, and the deduction made during the

4

entire time a member is in service subject to termination as stated in the foregoing paragraph.

5

      (c) The deductions provided for in this section shall be made notwithstanding that the

6

minimum compensation provided for by law for any member is reduced by the compensation.

7

Every member is deemed to consent and agree to the deductions made and provided for in this

8

section, and shall receipt for his or her full salary or compensation; and payment of salary or

9

compensation less those deductions are a full and complete discharge and acquittance of all

10

claims and demands for the services rendered by the person during the period covered by the

11

payment except as to the benefits provided under this chapter. Each participating municipality

12

shall certify to the retirement board the amounts deducted from the compensation of members.

13

Each of the amounts, when deducted, shall be credited to an individual account of the member

14

from whose compensation the deduction was made.

15

     SECTION 19. Section 45-21-52 of the General Laws in Chapter 45-21 entitled

16

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

17

     45-21-52. Automatic increase in service retirement allowance. -- (a) The local

18

legislative bodies of the cities and towns may extend to their respective employees automatic

19

adjustment increases in their service retirement allowances, by a resolution accepting any of the

20

plans described in this section:

21

      (1) Plan A. - All employees and beneficiaries of those employees receiving a service

22

retirement or disability retirement allowance under the provisions of this chapter on December 31

23

of the year their city or town accepts this section, receive a cost of living adjustment equal to one

24

and one-half percent (1 1/2%) per year of the original retirement allowance, not compounded, for

25

each calendar year the retirement allowance has been in effect. This cost of living adjustment is

26

added to the amount of the retirement allowance as of January 1 following acceptance of this

27

provision, and an additional one and one-half percent (1 1/2%) is added to the original retirement

28

allowance in each succeeding year during the month of January, and provided, further, that this

29

additional cost of living increase is three percent (3%) for the year beginning January 1 of the

30

year the plan is accepted and each succeeding year.

31

      (2) Plan B. - All employees and beneficiaries of those employees receiving a retirement

32

allowance under the provisions of this chapter on December 31 of the year their municipality

33

accepts this section, receive a cost of living adjustment equal to three percent (3%) of their

34

original retirement allowance. This adjustment is added to the amount of the retirement allowance

 

Art21
RELATING TO PENSIONS
(Page 41 of 71)

1

as of January 1 following acceptance of this provision, and an additional three percent (3%) of the

2

original retirement allowance, not compounded, is payable in each succeeding year in the month

3

of January.

4

      (3) Plan C. - All employees and beneficiaries of those employees who retire on or after

5

January 1 of the year following acceptance of this section, on the first day of January next

6

following the date of the retirement, receive a cost of living adjustment in an amount equal to

7

three percent (3%) of the original retirement allowance.

8

      (b) In each succeeding year in the month of January, the retirement allowance is

9

increased an additional three percent (3%) of the original retirement allowance, not compounded.

10

      (c) This subsection (c) shall be effective for the period July 1, 2012 through June 30,

11

2015.

12

     (1) Notwithstanding any other paragraphs of this section, and subject to paragraph (c)(2)

13

below, for all present and former employees, active and retired members, and beneficiaries

14

receiving any retirement, disability or death allowance or benefit of any kind by reason of

15

adoption of this section by their employer, the annual benefit adjustment provided in any calendar

16

year under this section shall be equal to (A) multiplied by (B) where (A) is equal to the

17

percentage determined by subtracting five and one-half percent (5.5%) (the "subtrahend") from

18

the Five-Year Average Investment Return of the retirement system determined as of the last day

19

of the plan year preceding the calendar year in which the adjustment is granted, said percentage

20

not to exceed four percent (4%) and not to be less than zero percent (0%), and (B) is equal to the

21

lesser of the member's retirement allowance or the first twenty-five thousand dollars ($25,000) of

22

retirement allowance, such twenty-five thousand dollars ($25,000) amount to be indexed annually

23

in the same percentage as determined under (c)(1)(A) above. The "Five-Year Average Investment

24

Return" shall mean the average of the investment returns of the most recent five (5) plan years as

25

determined by the retirement board. Subject to paragraph (c)(2) below, the benefit adjustment

26

provided by this paragraph shall commence upon the third (3rd) anniversary of the date of

27

retirement or the date on which the retiree reaches his or her Social Security retirement age,

28

whichever is later; or for municipal police and fire retiring under the provisions of chapter 45-

29

21.2, the benefit adjustment provided by this paragraph shall commence on the later of the third

30

(3rd) anniversary of the date of retirement or the date on which the retiree reaches age fifty-five

31

(55). In the event the retirement board adjusts the actuarially assumed rate of return for the

32

system, either upward or downward, the subtrahend shall be adjusted either upward or downward

33

in the same amount.

34

      (2) Except as provided in paragraph (c)(3) the benefit adjustments provided under this

 

Art21
RELATING TO PENSIONS
(Page 42 of 71)

1

section for any plan year shall be suspended in their entirety for each municipal plan within the

2

municipal employees retirement system unless the municipal plan is determined to be funded at a

3

GASB Funded Ratio equal to or greater than eighty percent (80%) as of the end of the

4

immediately preceding plan year in accordance with the retirement system's actuarial valuation

5

report as prepared by the system's actuary, in which event the benefit adjustment will be

6

reinstated for all members for such plan year.

7

      In determining whether a funding level under this paragraph (c)(2) has been achieved,

8

the actuary shall calculate the funding percentage after taking into account the reinstatement of

9

any current or future benefit adjustment provided under this section. "GASB Funded Ratio" shall

10

mean the ratio of the actuarial value of assets to the actuarial accrued liability.

11

      (3) Notwithstanding paragraph (c)(2), for each municipal plan that has a GASB Funded

12

Ratio of less than eighty percent (80%) as of June 30, 2012, in each fifth plan year commencing

13

after June 30, 2012 commencing with the plan year ending June 30, 2017, and subsequently at

14

intervals of five (5) plan years, a benefit adjustment shall be calculated and made in accordance

15

with paragraph (c)(1) above until the municipal plan's GASB Funded Ratio exceeds eighty

16

percent (80%).

17

     (d) This subsection (d) shall become effective July 1, 2015.

18

     (1)(A) As soon as administratively reasonable following the enactment into law of this

19

subsection (d)(1)(A), a one-time benefit adjustment shall be provided to members and/or

20

beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent

21

(2%) of the lesser of either the employee's retirement allowance or the first twenty-five thousand

22

dollars ($25,000) of the member's retirement allowance. This one-time benefit adjustment shall

23

be provided without regard to the retiree's age or number of years since retirement.

24

     (B) Notwithstanding the prior subsections of this section, for all present and former

25

employees, active and retired employees, and beneficiaries receiving any retirement, disability or

26

death allowance or benefit of any kind by reason of adoption of this section by their employer, the

27

annual benefit adjustment provided in any calendar year under this section for adjustments on and

28

after January 1, 2016, and subject to paragraph (d)(2) below, shall be equal to (I) multiplied by

29

(II):

30

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

31

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

32

(the "subtrahend") from the five-year average investment return of the retirement system

33

determined as of the last day of the plan year preceding the calendar year in which the adjustment

34

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

 

Art21
RELATING TO PENSIONS
(Page 43 of 71)

1

(0%). The "five-year average investment return" shall mean the average of the investment returns

2

of the most recent five (5) plan years as determined by the retirement board. In the event the

3

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

4

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

5

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

6

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

7

Statistics determined as of September 30 of the prior calendar year.

8

     In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be

9

less than zero percent (0%).

10

     (II) Is equal to the lesser of either the member's retirement allowance or the first twenty-

11

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

12

to be indexed annually in the same percentage as determined under subsection (d)(1)(B)(I) above.

13

     The benefit adjustments provided by this subsection (d)(1)(B) shall be provided to all

14

retirees entitled to receive a benefit adjustment as of June 30, 2012 under the law then in effect,

15

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

16

date of retirement or the date on which the retiree reaches his or her Social Security retirement

17

age, whichever is later; or for municipal police and fire retiring under the provisions of § 45-21.2-

18

5(b)(1)(A), the benefit adjustment provided by this paragraph shall commence on the later of the

19

third anniversary of the date of retirement or the date on which the retiree reaches age fifty-five

20

(55); or for municipal police and fire retiring under the provisions of § 45-21.2-5(b)(1)(B), the

21

benefit adjustment provided by this paragraph shall commence on the later of the third

22

anniversary of the date of retirement or the date on which the retiree reaches age fifty (50).

23

     (2) Except as provided in subsection (d)(3), the benefit adjustments under subsection

24

(d)(1)(B) for any plan year shall be suspended in their entirety for each municipal plan within the

25

municipal employees retirement system unless the municipal plan is determined to be funded at a

26

funded ratio equal to or greater than eighty percent (80%) as of the end of the immediately

27

preceding plan year in accordance with the retirement system's actuarial valuation report as

28

prepared by the system's actuary, in which event the benefit adjustment will be reinstated for all

29

members for such plan year.

30

     In determining whether a funding level under this subsection (d)(2) has been achieved,

31

the actuary shall calculate the funding percentage after taking into account the reinstatement of

32

any current or future benefit adjustment provided under this section.

33

     (3) Notwithstanding subsection (d)(2), in each fourth plan year commencing after June

34

30, 2012 commencing with the plan year ending June 30, 2016, and subsequently at intervals of

 

Art21
RELATING TO PENSIONS
(Page 44 of 71)

1

four plan years: (i) A benefit adjustment shall be calculated and made in accordance with

2

subsection (d)(1)(B) above; and (ii) Effective for members and/or beneficiaries of members who

3

retired on or before June 30, 2015, the dollar amount in subsection (d)(1)(B)(II) of twenty-five

4

thousand eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand

5

and twenty-six dollars ($31,026) until the municipal plan's funded ratio exceeds eighty percent

6

(80%).

7

      (d)(e) Upon acceptance of any of the plans in this section, each employee shall on

8

January 1 next succeeding the acceptance, contribute by means of salary deductions, pursuant to §

9

45-21-41, one percent (1%) of the employee's compensation concurrently with and in addition to

10

contributions otherwise being made to the retirement system.

11

      (e)(f) The city or town shall make any additional contributions to the system, pursuant to

12

the terms of § 45-21-42, for the payment of any benefits provided by this section.

13

      (f)(g) The East Greenwich town council shall be allowed to accept Plan C of § 45-21-

14

52(a)(3) for all employees of the town of East Greenwich who either, pursuant to contract

15

negotiations, bargain for Plan C, or who are non-union employees who are provided with Plan C

16

and who shall all collectively be referred to as the "Municipal-COLA Group" and shall be

17

separate from all other employees of the town and school department, union or non-union, who

18

are in the same pension group but have not been granted Plan C benefits. Upon acceptance by the

19

town council, benefits in accordance with this section shall be available to all such employees

20

who retire on or after January 1, 2003.

21

     (h) Effective for members and or beneficiaries of members who have retired on or before

22

July 1, 2015, and without regard to whether the retired member or beneficiary is receiving a

23

benefit adjustment under this § 45-21-52, a one-time stipend of five hundred dollars ($500) shall

24

be payable within sixty (60) days following the enactment of the legislation implementing this

25

provision, and a second one-time stipend of five hundred dollars ($500) in the same month of the

26

following year. These stipends shall not be considered cost of living adjustments under the prior

27

provisions of this § 45-21-52.

28

     SECTION 20. Chapter 45-21 of the General Laws entitled "Retirement of Municipal

29

Employees" is hereby amended by adding thereto the following section:

30

     45-21-43.1. Actuarial cost method. – (a) To determine the employer contribution rate

31

for any participating municipality, the actuary shall compute the costs under chapters 21 and 21.2

32

of title 45 using the entry age normal cost method.

33

     (b) The determination of the employer contribution rate for fiscal year 2013 shall include

34

a re-amortization of the unfunded actuarial accrued liability (UAAL) over a closed twenty-five

 

Art21
RELATING TO PENSIONS
(Page 45 of 71)

1

(25) year period. After an initial period of five (5) years, future actuarial gains and losses

2

occurring within a plan year will be amortized over individual new twenty (20) year closed

3

periods.

4

     (c) The determination of the employer contribution rate commencing with fiscal year

5

2017 shall include a re-amortization of the current unfunded actuarial accrued liability as of June

6

30, 2014 over a closed twenty-five (25) year period. Future actuarial gains and losses occurring

7

within a plan year will be amortized over individual new twenty (20) year closed periods.

8

Employers shall have the one-time option before August 1, 2015 to remain under the amortization

9

schedule set forth in subsection (b) above.

10

     SECTION 21. Section 42-28-22 of the General Laws in Chapter 42-28 entitled "State

11

Police" is hereby amended to read as follows:

12

     42-28-22. Retirement of members. -- (a) Whenever any member of the state police

13

hired prior to July 1, 2007 has served for twenty (20) years, he or she may retire therefrom or he

14

or she may be retired by the superintendent with the approval of the governor, and in either event

15

a sum equal to one-half (1/2) of the whole salary for the position from which he or she retired

16

determined on the date he or she receives his or her first retirement payment shall be paid him or

17

her during life.

18

      (b) For purposes of this section, the term "whole salary" means:

19

      (1) For each member who retired prior to July 1, 1966, "whole salary" means the base

20

salary for the position from which he or she retired as the base salary for that position was

21

determined on July 31, 1972;

22

      (2) For each member who retired between July 1, 1966 and June 30, 1973, "whole

23

salary" means the base salary for the position from which he or she retired as the base salary,

24

implemented by the longevity increment, for that position was determined on July 31, 1972 or on

25

the date of his or her retirement, whichever is greater;

26

      (3) For each member who retired or who retires after July 1, 1973 "whole salary" means

27

the base salary, implemented by the longevity increment, holiday pay, and clothing allowance, for

28

the position from which he or she retired or retires.

29

      (c) (1) Any member who retired prior to July 1, 1977 shall receive a benefits payment

30

adjustment equal to three percent (3%) of his or her original retirement, as determined in

31

subsection (b) of this section, in addition to his or her original retirement allowance. In each

32

succeeding year thereafter during the month of January, the retirement allowance shall be

33

increased an additional three percent (3%) of the original retirement allowance, not compounded,

34

to be continued until January 1, 1991. For the purposes of the computation, credit shall be given

 

Art21
RELATING TO PENSIONS
(Page 46 of 71)

1

for a full calendar year regardless of the effective date of the service retirement allowance. For

2

purposes of this subsection, the benefits payment adjustment shall be computed from January 1,

3

1971 or the date of retirement, whichever is later in time.

4

      (2) Any member of the state police who retires pursuant to the provisions of this chapter

5

on or after January 1, 1977, shall on the first day of January, next following the third anniversary

6

date of the retirement receive a benefits payment adjustment, in addition to his or her retirement

7

allowance, in an amount equal to three percent (3%) of the original retirement allowance. In each

8

succeeding year thereafter during the month of January, the retirement allowance shall be

9

increased an additional three percent (3%) of the original retirement allowance, not compounded,

10

to be continued until January 1, 1991. For the purposes of the computation, credit shall be given

11

for a full calendar year regardless of the effective date of the service retirement allowance.

12

      (3) Any retired member of the state police who is receiving a benefit payment

13

adjustment pursuant to subdivisions (1) and (2) of this section shall beginning January 1, 1991

14

and ending June 30, 2012, receive a benefits payment adjustment equal to fifteen hundred dollars

15

($1,500).

16

      (d) The benefits payment adjustment as provided in this section shall apply to and be in

17

addition to the retirement benefits under the provisions of § 42-28-5, and to the injury and death

18

benefits under the provisions of § 42-28-21.

19

      (e) (1) Any member who retires after July 1, 1972 and is eligible to retire prior to July 1,

20

2012 and who has served beyond twenty (20) years shall be allowed an additional amount equal

21

to three percent (3%) for each completed year served after twenty (20) years, but in no event shall

22

the original retirement allowance exceed sixty-five percent (65%) of his or her whole salary as

23

defined in subsection (b) hereof or sixty-five percent (65%) of his or her salary as defined in

24

subsection (b) hereof in his or her twenty-fifth (25th) year whichever is less.

25

      (2) Each member who retired prior to July 1, 1975, shall be entitled to all retirement

26

benefits as set forth above or shall be paid benefits as set forth in subdivision (b)(1) with "whole

27

salary" meaning the base salary for the position from which he or she retired as the base salary for

28

the position was determined on July 1, 1975, whichever is greater.

29

      (f) (1) Any member who retires, has served as a member for twenty (20) years or more,

30

and who served for a period of six (6) months or more of active duty in the armed service of the

31

United States or in the merchant marine service of the United States as defined in § 2 of chapter

32

1721 of the Public Laws, 1946, may purchase credit for such service up to a maximum of two (2)

33

years; provided that any member who has served at least six (6) months or more in any one year

34

shall be allowed to purchase one year for such service and any member who has served a fraction

 

Art21
RELATING TO PENSIONS
(Page 47 of 71)

1

of less than six (6) months in his or her total service shall be allowed to purchase six (6) months'

2

credit for such service.

3

      (2) The cost to purchase these credits shall be ten percent (10%) of the member's first

4

year salary as a state policeman multiplied by the number of years and/or fraction thereof of such

5

armed service up to a maximum of two (2) years. The purchase price shall be paid into the

6

general fund. For members hired on or after July 1, 1989, the purchase price shall be paid into a

7

restricted revenue account entitled "state police retirement benefits" and shall be held in trust.

8

      (3) There will be no interest charge provided the member makes such purchase during

9

his or her twentieth (20th) year or within five (5) years from May 18, 1981, whichever is later,

10

but will be charged regular rate of interest as defined in § 36-8-1 as amended to date of purchase

11

from the date of his or her twentieth (20th) year of state service or five (5) years from May 18,

12

1981, whichever is later.

13

      (4) Any member who is granted a leave of absence without pay for illness, injury or any

14

other reason may receive credit therefor by making the full actuarial cost as defined in

15

subdivision 36-8-1(10); provided the employee returns to state service for at least one year upon

16

completion of the leave.

17

      (5) In no event shall the original retirement allowance exceed sixty-five percent (65%) of

18

his or her whole salary as defined in subsection (b) hereof or sixty-five percent (65%) of his or

19

her salary as defined in subsection (b) hereof in his or her twenty-fifth (25th) year, whichever is

20

less.

21

      (6) Notwithstanding any other provision of law, no more than five (5) years of service

22

credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

23

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

24

of service credits before January 1, 1995, shall be permitted to apply those purchases towards the

25

member's service retirement. However, no further purchase will be permitted. Repayment in

26

accordance with applicable law and regulation of any contribution previously withdrawn from the

27

system shall not be deemed a purchase of service credit.

28

      (g) The provisions of this section shall not apply to civilian employees in the Rhode

29

Island state police; and, further, from and after April 28, 1937, chapters 8 -- 10, inclusive, of title

30

36 shall not be construed to apply to the members of the Rhode Island state police, except as

31

provided by §§ 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)

32

effective July 1, 2012.

33

      (h) Any member of the state police other than the superintendent of state police, who is

34

hired prior to July 1, 2007 and who has served for twenty-five (25) years or who has attained the

 

Art21
RELATING TO PENSIONS
(Page 48 of 71)

1

age of sixty-two (62) years, whichever shall first occur, shall retire therefrom.

2

      (i) (1) Any member of the state police, other than the superintendent, who is hired on or

3

after July 1, 2007 and who has served for twenty-five (25) years, may retire therefrom or he or

4

she may be retired by the superintendent with the approval of the governor, and shall be entitled

5

to a retirement allowance of fifty percent (50%) of his or her "whole salary" as defined in

6

subsection (b) hereof.

7

      (2) Any member of the state police who is hired on or after July 1, 2007 may serve up to

8

a maximum of thirty (30) years, and shall be allowed an additional amount equal to three percent

9

(3.0%) for each completed year served after twenty-five (25) years, but in no event shall the

10

original retirement allowance exceed sixty-five percent (65%) of his or her "whole salary" as

11

defined in subsection (b) hereof.

12

      (j) Effective July 1, 2012, any other provision of this section notwithstanding:

13

      (j) (1) Any member of the state police, other than the superintendent of state police, who

14

is not eligible to retire on or prior to June 30, 2012 may retire at any time subsequent to the date

15

the member's retirement allowance equals or exceeds fifty percent (50%) of average

16

compensation as defined in section 36-8-1(5)(a), provided that a member shall retire upon the

17

first to occur of:

18

      (i) The date the member's retirement allowance equals sixty-five percent (65%); or

19

      (ii) The later of the attainment of age sixty-two (62) or completion of five (5) years of

20

service; provided however, any current member as of June 30, 2012 who has not accrued fifty

21

percent (50%) upon attaining the age of sixty-two (62) shall retire upon accruing fifty percent

22

(50%); and upon retirement a member shall receive a retirement allowance which shall equal:

23

      (A) For members hired prior to July 1, 2007 the sum of (i), (ii) and (iii) where

24

      (i) Is calculated as the member's years of total service before July 1, 2012 multiplied by

25

two and one half percent (2.5%) of average compensation for a member's first twenty (20) total

26

years,

27

      (ii) Is calculated as the member's years of total service before July 1, 2012 in excess of

28

twenty (20) years not to exceed twenty-five (25) years multiplied by three percent (3%) of

29

average compensation, and

30

      (iii) Is the member's years of total service on or after July 1, 2012 multiplied by two

31

percent (2%) of average compensation as defined in § 36-8-1(5)(a).

32

      (B) For members hired on or after July 1, 2007, the member's retirement allowance shall

33

be calculated as the member's years of total contributory service multiplied by two percent (2%)

34

of average compensation.

 

Art21
RELATING TO PENSIONS
(Page 49 of 71)

1

      (C) Any member of the state police who is eligible to retire on or prior to June 30, 2012

2

shall retire with a retirement allowance calculated in accordance with paragraph (a) and (e) above

3

except that whole salary shall be defined as final compensation where compensation for purposes

4

of this section and § 42-28-22.1 includes base salary, longevity and holiday pay.

5

      (D) Notwithstanding the preceding provisions, in no event shall a member's final

6

compensation be lower than his or her final compensation determined as of June 30, 2012.

7

      (2) In no event shall a member's original retirement allowance under any provisions of

8

this section exceed sixty-five percent (65%) of his or her average compensation.

9

      (3) For each member who retires on or after July 1, 2012, except as provided in

10

paragraph (j)(1)(C) above, compensation and average compensation shall be defined in

11

accordance with § 36-8-1(5)(a) and (8), provided that for a member whose regular work period

12

exceeds one hundred forty-seven (147) hours over a twenty-four (24) day period at any time

13

during the four (4) year period immediately prior to his/her retirement that member shall have up

14

to four hundred (400) hours of his/her pay for regularly scheduled work earned during this period

15

shall be included as "compensation" and/or "average compensation" for purposes of this section

16

and § 42-28-22.1.

17

      (4) This subsection (4) shall be effective for the period July 1, 2012 through June 30,

18

2015.

19

      (i) Notwithstanding the prior paragraphs of this section, and subject to paragraph (4)(ii)

20

below, for all present and former members, active and retired members, and beneficiaries

21

receiving any retirement, disability or death allowance or benefit of any kind, whether for or on

22

behalf of a non-contributory member or contributory member, the annual benefit adjustment

23

provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A)

24

is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the

25

"subtrahend") from the Five-Year Average Investment Return of the retirement system

26

determined as of the last day of the plan year preceding the calendar year in which the adjustment

27

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

28

(0%), and (B) is equal to the lesser of the member's retirement allowance or the first twenty-five

29

thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000)

30

amount to be indexed annually in the same percentage as determined under (4)(i)(A) above. The

31

"Five-Year Average Investment Return" shall mean the average of the investment returns for the

32

most recent five (5) plan years as determined by the retirement board. Subject to paragraph (4)(ii)

33

below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

34

anniversary of the date of retirement or the date on which the retiree reaches age fifty-five (55),

 

Art21
RELATING TO PENSIONS
(Page 50 of 71)

1

whichever is later. In the event the retirement board adjusts the actuarially assumed rate of return

2

for the system, either upward or downward, the subtrahend shall be adjusted either upward or

3

downward in the same amount.

4

      (ii) Except as provided in paragraph (4)(iii), the benefit adjustments under this section

5

for any plan year shall be suspended in their entirety unless the GASB Funded Ratio of the

6

Employees' Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the

7

State Police Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis,

8

exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

9

members for such plan year.

10

      In determining whether a funding level under this paragraph (4)(ii) has been achieved,

11

the actuary shall calculate the funding percentage after taking into account the reinstatement of

12

any current or future benefit adjustment provided under this section. "GASB Funded Ratio" shall

13

mean the ratio of the actuarial value of assets to the actuarial accrued liability.

14

      (iii) Notwithstanding paragraph (4)(ii), in each fifth plan year commencing after June 30,

15

2012 commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

16

(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

17

(4)(i) above until the GASB Funded Ratio of the Employees' Retirement System of Rhode Island,

18

the Judicial Retirement Benefits Trust and the State Police Retirement Benefits Trust, calculated

19

by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

20

      (iv) The provisions of this paragraph (j)(4) of § 42-28-22 shall become effective July 1,

21

2012 and shall apply to any benefit adjustment not granted on or prior to June 30, 2012.

22

      (v) The cost-of-living adjustment as provided in this paragraph (j)(4) shall apply to and

23

be in addition to the retirement benefits under the provisions of § 42-28-5 and to the injury and

24

death benefits under the provisions of § 42-28-21.

25

     (5) This subsection (5) shall become effective July 1, 2015.

26

     (i)(A) As soon as administratively reasonable following the enactment into law of this

27

paragraph (5)(i)(A), a one-time benefit adjustment shall be provided to members and/or

28

beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent

29

(2%) of the lesser of either the member's retirement allowance or the first twenty-five thousand

30

dollars ($25,000) of the member's retirement allowance. This one-time benefit adjustment shall

31

be provided without regard to the retiree's age or number of years since retirement.

32

     (B) Notwithstanding the prior subsections of this section, for all present and former

33

members, active and retired members, and beneficiaries receiving any retirement, disability or

34

death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar

 

Art21
RELATING TO PENSIONS
(Page 51 of 71)

1

year under this section for adjustments on and after January 1, 2016, and subject to subsection

2

(5)(ii) below, shall be equal to (I) multiplied by (II):

3

     (I) Shall equal the sum of fifty percent (50%) of (1) plus fifty percent (50%) of (2) where:

4

(1) Is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the

5

"subtrahend") from the five-year average investment return of the retirement system determined

6

as of the last day of the plan year preceding the calendar year in which the adjustment is granted,

7

said percentage not to exceed four percent (4%) and not to be less than zero percent (0%). The

8

"five-year average investment return" shall mean the average of the investment returns of the

9

most recent five (5) plan years as determined by the retirement board. In the event the retirement

10

board adjusts the actuarially assumed rate of return for the system, either upward or downward,

11

the subtrahend shall be adjusted either upward or downward in the same amount.

12

     (2) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

13

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

14

Statistics determined as of September 30 of the prior calendar year.

15

     In no event shall the sum of (1) plus (2) exceed three and one-half percent (3.5%) or be

16

less than zero percent (0%).

17

     (II) Is equal to the lesser of either the member's retirement allowance or the first twenty-

18

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

19

to be indexed annually in the same percentage as determined under subsection (5)(i)(B)(I) above.

20

The benefit adjustments provided by this subsection (5)(i)(B) shall be provided to all retirees

21

entitled to receive a benefit adjustment as of June 30, 2012 under the law then in effect, and for

22

all other retirees the benefit adjustments shall commence upon the third anniversary of the date of

23

retirement or the date on which the retiree reaches his or her Social Security retirement age,

24

whichever is later.

25

     (ii) Except as provided in subsection (5)(iii), the benefit adjustments under subsection

26

(5)(i)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

27

employees' retirement system of Rhode Island, the Judicial retirement benefits trust and the state

28

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

29

eighty percent (80%) in which event the benefit adjustment will be reinstated for all members for

30

such plan year.

31

     In determining whether a funding level under this subsection (5)(ii) has been achieved,

32

the actuary shall calculate the funding percentage after taking into account the reinstatement of

33

any current or future benefit adjustment provided under this section.

34

     (iii) Notwithstanding subsection (5)(ii), in each fourth plan year commencing after June

 

Art21
RELATING TO PENSIONS
(Page 52 of 71)

1

30, 2012 commencing with the plan year ending June 30, 2016, and subsequently at intervals of

2

four plan years: (i) A benefit adjustment shall be calculated and made in accordance with

3

paragraph (5)(i)(B) above; and (ii) Effective for members and/or beneficiaries of members who

4

retired on or before June 30, 2015, the dollar amount in subsection (5)(i)(B)(II) of twenty-five

5

thousand eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand

6

and twenty-six dollars ($31,026) until the funded ratio of the employees' retirement system of

7

Rhode Island, the judicial retirement benefits trust and the state police retirement benefits trust,

8

calculated by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

9

     (iv) Effective for members and or beneficiaries of members who have retired on or before

10

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

11

days following the enactment of the legislation implementing this provision, and a second one-

12

time stipend of five hundred dollars ($500) in the same month of the following year. These

13

stipends shall be payable to all retired members or beneficiaries receiving a benefit as of the

14

applicable payment date and shall not be considered cost of living adjustments under the prior

15

provisions of this § 42-28-22.

16

      (5)(6) Any member with contributory service on or after July 1, 2012, who has

17

completed at least five (5) years of contributory service but who has not retired in accordance

18

with (j)(1) above, shall be eligible to retire upon the attainment of member's Security retirement

19

age as defined in 36-8-1(19).

20

      (6)(7) In no event shall a member's retirement allowance be less than the member's

21

retirement allowance calculated as of June 30, 2012 based on the member's years of total service

22

and whole salary as of June 30, 2012.

23

      (k) In calculating the retirement benefit for any member, the term base salary as used in

24

subdivision (b)(3) or average compensation as used in paragraph (j) shall not be affected by a

25

deferral of salary plan or a reduced salary plan implemented to avoid shutdowns or layoffs or to

26

effect cost savings. Basic salary shall remain for retirement calculation that which it would have

27

been but for the salary deferral or salary reduction due to a plan implemented to avoid shutdowns

28

or layoffs or to effect cost savings.

29

     SECTION 22. Section 8-3-15 of the General Laws in Chapter 8-3 entitled "Justices of

30

Supreme, Superior, and Family Courts" is hereby amended to read as follows:

31

     8-3-15. Cost of living allowance. -- (a) All justices of the supreme court, superior court,

32

family court, or district court, or their surviving spouses or domestic partners, who retire after

33

January 1, 1970 and who receive a retirement allowance pursuant to the provisions of this title

34

shall, on the first day of January next following the third anniversary date of retirement, receive a

 

Art21
RELATING TO PENSIONS
(Page 53 of 71)

1

cost-of-living retirement adjustment in addition to his or her retirement allowance in an amount

2

equal to three percent (3%) of the original retirement allowance. In each succeeding year

3

thereafter during the month of January, the retirement allowance shall be increased an additional

4

three percent (3%) of the original allowance, not compounded, to be continued during the lifetime

5

of the justice or his or her surviving spouse or domestic partner. For the purpose of such

6

computation, credit shall be given for a full calendar year regardless of the effective date of the

7

retirement allowance.

8

      (b) Any justice who retired prior to January 31, 1977 shall be deemed for the purpose of

9

this section to have retired on January 1, 1977.

10

      (c) For justices not eligible to retire as of September 30, 2009 and not eligible upon

11

passage of this article, and for their beneficiaries, the cost of living adjustment described in

12

subsection (3) above shall only apply to the first thirty-five thousand dollars ($35,000) of

13

retirement allowance, indexed annually, and shall commence upon the third (3rd) anniversary of

14

the date of retirement or when the retiree reaches age sixty-five (65), whichever is later. The

15

thirty- five thousand dollar ($35,000) limit shall increase annually by the percentage increase in

16

the Consumer Price Index for all Urban Consumer (CPI-U) as published by the United States

17

Department of Labor Statistics determined as of September 30 of the prior calendar year or three

18

percent (3%), whichever is less. The first thirty-five thousand dollars ($35,000), as indexed, of

19

retirement allowance shall be multiplied by the percentage of increase in the Consumer Price

20

Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor

21

Statistics determined as of September 30 of the prior calendar year or three percent (3%),

22

whichever is less, on the month following the anniversary date of each succeeding year. For

23

justices eligible to retire as of September 30, 2009 or eligible upon passage of this article, and for

24

their beneficiaries, the provisions of this subsection (c) shall not apply.

25

      (d) This subsection (d) shall be effective for the period July 1, 2012 through June 30,

26

2015.

27

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (d)(2)

28

below, for all present and former justices, active and retired justices, and beneficiaries receiving

29

any retirement, disability or death allowance or benefit of any kind, whether provided for or on

30

behalf of justices engaged on or prior to December 31, 1989 as a non-contributory justice or

31

engaged after December 31, 1989 as a contributory justice, the annual benefit adjustment

32

provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A)

33

is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the

34

"subtrahend") from the Five-Year Average Investment Return of the retirement system

 

Art21
RELATING TO PENSIONS
(Page 54 of 71)

1

determined as of the last day of the plan year preceding the calendar year in which the adjustment

2

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

3

(0%), and (B) is equal to the lesser of the justice's retirement allowance or the first twenty-five

4

thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000)

5

amount to be indexed annually in the same percentage as determined under (d)(1)(A) above. The

6

"Five-Year Average Investment Return" shall mean the average of the investment return of the

7

most recent five (5) plan years as determined by the retirement board. Subject to paragraph (d)(2)

8

below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

9

anniversary of the date of retirement or the date on which the retiree reaches his or her Social

10

Security retirement age, whichever is later. In the event the retirement board adjusts the

11

actuarially assumed rate of return for the system, either upward or downward, the subtrahend

12

shall be adjusted either upward or downward in the same amount.

13

      (2) Except as provided in paragraph (d)(3), the benefit adjustments under this section for

14

any plan year shall be suspended in their entirety unless the GASB Funded Ratio of the

15

Employees' Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the

16

State Police Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis,

17

exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

18

justices for such plan year.

19

      In determining whether a funding level under this paragraph (d)(2) has been achieved,

20

the actuary shall calculate the funding percentage after taking into account the reinstatement of

21

any current or future benefit adjustment provided under this section. "GASB Funded Ratio" shall

22

mean the ratio of the actuarial value of assets to the actuarial accrued liability.

23

      (3) Notwithstanding paragraph (d)(2), in each fifth plan year commencing after June 30,

24

2012 commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

25

(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

26

(d)(1) above until the GASB Funded Ratio of the Employees' Retirement System of Rhode

27

Island, the Judicial Retirement Benefits Trust and the State Police Retirement Benefits Trust,

28

calculated by the system's actuary on an aggregate basis, exceeds eighty percent (80%)

29

      (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

30

(d) of § 8-3-15 shall become effective July 1, 2012 and shall apply to any benefit adjustment not

31

granted on or prior to June 30, 2012.

32

     (e) This subsection (e) shall become effective July 1, 2015.

33

     (1)(A) As soon as administratively reasonable following the enactment into law of this

34

subsection (e)(1)(A), a one-time benefit adjustment shall be provided to justices and/or

 

Art21
RELATING TO PENSIONS
(Page 55 of 71)

1

beneficiaries of justices who retired on or before June 30, 2012, in the amount of two percent

2

(2%) of the lesser of either the justice's retirement allowance or the first twenty-five thousand

3

dollars ($25,000) of the justice's retirement allowance. This one-time benefit adjustment shall be

4

provided without regard to the retiree's age or number of years since retirement.

5

     (B) Notwithstanding the prior subsections of this section, for all present and former

6

justices, active and retired justices, and beneficiaries receiving any retirement, disability or death

7

allowance or benefit of any kind, whether provided for or on behalf of justices engaged on or

8

prior to December 31, 1989 as a non-contributory justice or engaged after December 31, 1989 as

9

a contributory justice, the annual benefit adjustment provided in any calendar year under this

10

section for adjustments on and after January 1, 2016, and subject to subsection (e)(2) below, shall

11

be equal to (I) multiplied by (II):

12

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

13

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

14

(the "subtrahend") from the five-year average investment return of the retirement system

15

determined as of the last day of the plan year preceding the calendar year in which the adjustment

16

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

17

(0%). The "five-year average investment return" shall mean the average of the investment returns

18

of the most recent five (5) plan years as determined by the retirement board. In the event the

19

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

20

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

21

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

22

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

23

Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of

24

(i) plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%).

25

     (II) Is equal to the lesser of either the justice's retirement allowance or the first twenty-

26

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

27

to be indexed annually in the same percentage as determined under subsection (e)(1)(B)(I) above.

28

     The benefit adjustments provided by this subsection (e)(1)(B) shall be provided to all

29

retirees entitled to receive a benefit adjustment as of June 30, 2012 under the law then in effect,

30

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

31

date of retirement or the date on which the retiree reaches his or her Social Security retirement

32

age, whichever is later.

33

     (2) Except as provided in subsection (e)(3), the benefit adjustments under subsection

34

(e)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

 

Art21
RELATING TO PENSIONS
(Page 56 of 71)

1

employees' retirement system of Rhode Island, the judicial retirement benefits trust and the state

2

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

3

eighty percent (80%) in which event the benefit adjustment will be reinstated for all justices for

4

such plan year.

5

     In determining whether a funding level under this subsection (e)(2) has been achieved,

6

the actuary shall calculate the funding percentage after taking into account the reinstatement of

7

any current or future benefit adjustment provided under this section.

8

     (3) Notwithstanding subsection (e)(2), in each fourth plan year commencing after June

9

30, 2012 commencing with the plan year ending June 30, 2016, and subsequently at intervals of

10

four plan years: (i) A benefit adjustment shall be calculated and made in accordance with

11

paragraph (e)(1)(B) above; and (ii) Effective for members and/or beneficiaries of members who

12

retired on or before June 30, 2015, the dollar amount in subsection (e)(1)(B)(II) of twenty-five

13

thousand eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand

14

and twenty-six dollars ($31,026) until the funded ratio of the employees' retirement system of

15

Rhode Island, the judicial retirement benefits trust and the state police retirement benefits trust,

16

calculated by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

17

     (A) Effective for members and or beneficiaries of members who have retired on or before

18

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

19

days following the enactment of the legislation implementing this provision, and a second one-

20

time stipend of five hundred dollars ($500) in the same month of the following year. These

21

stipends shall be payable to all retired members or beneficiaries receiving a benefit as of the

22

applicable payment date and shall not be considered cost of living adjustments under the prior

23

provisions of this § 8-3-15.

24

     SECTION 23. Section 8-8.2-12 of the General Laws in Chapter 8-8.2 entitled "Traffic

25

tribunal" is hereby amended to read as follows:

26

     8-8.2-12. Additional benefits payable to retired judges and their surviving spouses

27

or domestic partners. -- (a) All judges of the administrative adjudication court and all judges of

28

the administrative adjudication court who have been reassigned to the traffic tribunal, or their

29

surviving spouses or domestic partners, who retire after January 1, 1970 and who receive a

30

retirement allowance pursuant to the provisions of this title, shall, on the first day of January, next

31

following the third anniversary of the retirement, receive a cost of living retirement adjustment in

32

addition to his or her retirement allowance in an amount equal to three percent (3%) of the

33

original retirement allowance. In each succeeding year thereafter during the month of January, the

34

retirement allowance shall be increased an additional three percent (3%) of the original

 

Art21
RELATING TO PENSIONS
(Page 57 of 71)

1

allowance, compounded annually from the year cost of living adjustment was first payable to be

2

continued during the lifetime of the judge or his or her surviving spouse or domestic partner. For

3

the purpose of such computation, credit shall be given for a full calendar year regardless of the

4

effective date of the retirement allowance.

5

      (b) Any judge who retired prior to January 31, 1980, shall be deemed for the purpose of

6

this section to have retired on January 1, 1980.

7

      (c) For judges not eligible to retire as of September 30, 2009 and not eligible upon

8

passage of this article, and for their beneficiaries, the cost of living adjustment described in

9

subsection (a) above shall only apply to the first thirty-five thousand dollars ($35,000) of

10

retirement allowance, indexed annually, and shall commence upon the third (3rd) anniversary of

11

the date of retirement or when the retiree reaches age sixty-five (65), whichever is later. The

12

thirty-five thousand dollar ($35,000) limit shall increase annually by the percentage increase in

13

the Consumer Price Index for all Urban Consumer (CPI-U) as published by the United States

14

Department of Labor Statistics determined as of September 30 of the prior calendar year or three

15

percent (3%), whichever is less. The first thirty-five thousand dollars ($35,000), as indexed, of

16

retirement allowance shall be multiplied by the percentage of increase in the Consumer Price

17

Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor

18

Statistics determined as of September 30 of the prior calendar year or three percent (3%),

19

whichever is less on the month following the anniversary date of each succeeding year. For

20

judges eligible to retire as of September 30, 2009 or eligible upon passage of this article, and for

21

their beneficiaries, the provisions of this subsection (c) shall not apply.

22

      (d) This subsection (d) shall be effective for the period July 1, 2012 through June 30,

23

2015.

24

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (d)(2)

25

below, for all present and former justices, active and retired justices, and beneficiaries receiving

26

any retirement, disability or death allowance or benefit of any kind, whether provided for or on

27

behalf of justices engaged on or prior to December 31, 1989 as a non-contributory justice or

28

engaged after December 31, 1989 as a contributory justice, the annual benefit adjustment

29

provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A)

30

is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the

31

"subtrahend") from the Five-Year Average Investment Return of the retirement system

32

determined as of the last day of the plan year preceding the calendar year in which the adjustment

33

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

34

(0%), and (B) is equal to the lesser of the justice's retirement allowance or the first twenty-five

 

Art21
RELATING TO PENSIONS
(Page 58 of 71)

1

thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000)

2

amount to be indexed annually in the same percentage as determined under (d)(1)(A) above. The

3

"Five-Year Average Investment Return" shall mean the average of the investment return of the

4

most recent five (5) plan years as determined by the retirement board. Subject to paragraph (d)(2)

5

below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

6

anniversary of the date of retirement or the date on which the retiree reaches his or her Social

7

Security retirement age, whichever is later. In the event the retirement board adjusts the

8

actuarially assumed rate of return for the system, either upward or downward, the subtrahend

9

shall be adjusted either upward or downward in the same amount.

10

      (2) Except as provided in paragraph (d)(3), the benefit adjustments under this section for

11

any plan year shall be suspended in their entirety unless the GASB Funded Ratio of the

12

Employees' Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the

13

State Police Retirements Benefits Trust, calculated by the system's actuary on an aggregate basis,

14

exceeds eighty percent (80%) in which even the benefit adjustment will be reinstated for all

15

justices for such plan year.

16

      In determining whether a funding level under this paragraph (d)(2) has been achieved,

17

the actuary shall calculate the funding percentage after taking into account the reinstatement of

18

any current or future benefit adjustment provided under this section. "GASB Funded Ratio" shall

19

mean the ratio of the actuarial value of assets to the actuarial accrued liability.

20

      (3) Notwithstanding paragraph (d)(2), in each fifth plan year commencing after June 30,

21

2012 commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

22

(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

23

(d)(1) above until the GASB Funded Ratio of the Employees' Retirement System of Rhode

24

Island, the Judicial Retirement Benefits Trust and the State Police Retirement Benefits Trust,

25

calculated by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

26

      (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

27

(d) of § 8-8.2-12 shall become effective July 1, 2012 and shall apply to any benefit adjustment

28

not granted on or prior to June 30, 2012.

29

     (e) This subsection (e) shall become effective July 1, 2015.

30

     (1)(A) As soon as administratively reasonable following the enactment into law of this

31

subsection (e)(1)(A), a one-time benefit adjustment shall be provided to justices and/or

32

beneficiaries of justices who retired on or before June 30, 2012, in the amount of two percent

33

(2%) of the lesser of either the justice's retirement allowance or the first twenty-five thousand

34

dollars ($25,000) of the justice's retirement allowance. This one-time benefit adjustment shall be

 

Art21
RELATING TO PENSIONS
(Page 59 of 71)

1

provided without regard to the retiree's age or number of years since retirement.

2

     (B) Notwithstanding the prior subsections of this section, for all present and former

3

justices, active and retired justices, and beneficiaries receiving any retirement, disability or death

4

allowance or benefit of any kind, whether provided for or on behalf of justices engaged on or

5

prior to December 31, 1989 as a non-contributory justice or engaged after December 31, 1989 as

6

a contributory justice, the annual benefit adjustment provided in any calendar year under this

7

section for adjustments on and after January 1, 2016, and subject to subsection (e)(2) below, shall

8

be equal to (I) multiplied by (II):

9

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

10

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

11

(the "subtrahend") from the five-year average investment return of the retirement system

12

determined as of the last day of the plan year preceding the calendar year in which the adjustment

13

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

14

(0%). The "five-year average investment return" shall mean the average of the investment returns

15

of the most recent five (5) plan years as determined by the retirement board. In the event the

16

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

17

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

18

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

19

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

20

Statistics determined as of September 30 of the prior calendar year.

21

     In no event shall the sum of (i) plus (ii) exceed three and one-half percent (3.5%) or be

22

less than zero percent (0%).

23

     (II) Is equal to the lesser of either the justice's retirement allowance or the first twenty-

24

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

25

to be indexed annually in the same percentage as determined under subsection (e)(1)(B)(I) above.

26

     The benefit adjustments provided by this subsection (e)(1)(B) shall be provided to all

27

retirees entitled to receive a benefit adjustment as of June 30, 2012 under the law then in effect,

28

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

29

date of retirement or the date on which the retiree reaches his or her Social Security retirement

30

age, whichever is later.

31

     (2) Except as provided in subsection (e)(3), the benefit adjustments under subsection

32

(e)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

33

employees' retirement system of Rhode Island, the judicial retirement benefits trust and the state

34

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

 

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RELATING TO PENSIONS
(Page 60 of 71)

1

eighty percent (80%) in which event the benefit adjustment will be reinstated for all justices for

2

such plan year.

3

     In determining whether a funding level under this subsection (e)(2) has been achieved,

4

the actuary shall calculate the funding percentage after taking into account the reinstatement of

5

any current or future benefit adjustment provided under this section.

6

     (3) Notwithstanding subsection (e)(2), effective for members and/or beneficiaries of

7

members who retired on or before June 30, 2015, in each fourth plan year commencing after June

8

30, 2012 commencing with the plan year ending June 30, 2016, and subsequently at intervals of

9

four plan years: (i) A benefit adjustment shall be calculated and made in accordance with

10

subsection (e)(1)(B) above; and (ii) The dollar amount in subsection (e)(1)(B)(II) of twenty-five

11

thousand eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand

12

and twenty-six dollars ($31,026) until the funded ratio of the employees' retirement system of

13

Rhode Island, the judicial retirement benefits trust and the state police retirement benefits trust,

14

calculated by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

15

     (A) Effective for members and or beneficiaries of members who have retired on or before

16

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

17

days following the enactment of the legislation implementing this provision, and a second one-

18

time stipend of five hundred dollars ($500) in the same month of the following year. These

19

stipends shall be payable to all retired members or beneficiaries receiving a benefit as of the

20

applicable payment date and shall not be considered cost of living adjustments under the prior

21

provisions of this § 8-8.2-12.

22

     SECTION 24. Section 28-30-18 of the General Laws in Chapter 28-30 entitled "Workers'

23

Compensation Court" is hereby amended to read as follows:

24

     28-30-18. Additional benefits payable to retired judges and their surviving spouses

25

or domestic partners. -- (a) All judges of the workers' compensation court, or their surviving

26

spouses or domestic partners, who retire after January 1, 1970 and who receive a retirement

27

allowance pursuant to the provisions of this title, shall, on the first day of January next following

28

the third anniversary date of their retirement, receive a cost of living retirement adjustment in

29

addition to his or her retirement allowance in an amount equal to three percent (3%) of the

30

original retirement allowance. In each succeeding subsequent year during the month of January

31

the retirement allowance shall be increased an additional three percent (3%) of the original

32

allowance, compounded annually from the year the cost of living adjustment was first payable to

33

be continued during the lifetime of that judge or his or her surviving spouse or domestic partner.

34

For the purpose of that computation, credit shall be given for a full calendar year regardless of the

 

Art21
RELATING TO PENSIONS
(Page 61 of 71)

1

effective date of the retirement allowance.

2

      (b) Any judge who retired prior to January 31, 1980, shall be deemed for the purpose of

3

this section to have retired on January 1, 1980.

4

      (c) For judges not eligible to retire as of September 30, 2009 and not eligible upon

5

passage of this article, and for their beneficiaries, the cost of living adjustment described in

6

subsection (a) above shall only apply to the first thirty-five thousand dollars ($35,000) of

7

retirement allowance, indexed annually, and shall commence upon the third (3rd) anniversary of

8

the date of retirement or when the retiree reaches age sixty-five (65), whichever is later. The

9

thirty-five thousand dollar ($35,000) limit shall increase annually by the percentage increase in

10

the Consumer Price Index for all Urban Consumer (CPI-U) as published by the United States

11

Department of Labor Statistics determined as of September 30 of the prior calendar year or three

12

percent (3%), whichever is less. The first thirty-five thousand dollars ($35,000), as indexed, of

13

retirement allowance shall be multiplied by the percentage of increase in the Consumer Price

14

Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor

15

Statistics determined as of September 30 of the prior calendar year or three percent (3%),

16

whichever is less on the month following the anniversary date of each succeeding year. For

17

judges eligible to retire as of September 30, 2009 or eligible upon passage of this article, and for

18

their beneficiaries, the provisions of this subsection (c) shall not apply.

19

      (d) This subsection (d) shall be effective for the period July 1, 2012 through June 30,

20

2015.

21

     (1) Notwithstanding the prior paragraphs of this section, and subject to paragraph (d)(2)

22

below, for all present and former justices, active and retired justices, and beneficiaries receiving

23

any retirement, disability or death allowance or benefit of any kind, whether provided for or on

24

behalf of justices engaged on or prior to December 31, 1989 as a non-contributory justice or

25

engaged after December 31, 1989 as a contributory justice, the annual benefit adjustment

26

provided in any calendar year under this section shall be equal to (A) multiplied by (B) where (A)

27

is equal to the percentage determined by subtracting five and one-half percent (5.5%) (the

28

"subtrahend") from the Five-Year Average Investment Return of the retirement system

29

determined as of the last day of the plan year preceding the calendar year in which the adjustment

30

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

31

(0%), and (B) is equal to the lesser of the justice's retirement allowance or the first twenty-five

32

thousand dollars ($25,000) of retirement allowance, such twenty-five thousand dollars ($25,000)

33

amount to be indexed annually in the same percentage as determined under (d)(1)(A) above. The

34

"Five-Year Average Investment Return" shall mean the average of the investment return of the

 

Art21
RELATING TO PENSIONS
(Page 62 of 71)

1

most recent five (5) plan years as determined by the retirement board. Subject to paragraph (d)(2)

2

below, the benefit adjustment provided by this paragraph shall commence upon the third (3rd)

3

anniversary of the date of retirement or the date on which the retiree reaches his or her Social

4

Security retirement age, whichever is later. In the event the retirement board adjusts the

5

actuarially assumed rate of return for the system, either upward or downward, the subtrahend

6

shall be adjusted either upward or downward in the same amount.

7

      (2) Except as provided in paragraph (d)(3), the benefit adjustments under this section for

8

any plan year shall be suspended in their entirely unless the GASB Funded Ratio of the

9

Employees' Retirement System of Rhode Island, the Judicial Retirement Benefits Trust and the

10

State Police Retirement Benefits Trust, calculated by the system's actuary on an aggregate basis,

11

exceeds eighty percent (80%) in which event the benefit adjustment will be reinstated for all

12

justices for such plan year.

13

      In determining whether a funding level under this paragraph (d)(2) has been achieved,

14

the actuary shall calculate the funding percentage after taking into account the reinstatement of

15

any current or future benefit adjustment provided under this section. "GASB Funded Ratio" shall

16

mean the ratio of the actuarial value of assets to the actuarial accrued liability.

17

      (3) Notwithstanding paragraph (d)(2), in each fifth plan year commencing after June 30,

18

2012 commencing with the plan year ending June 30, 2017, and subsequently at intervals of five

19

(5) plan years, a benefit adjustment shall be calculated and made in accordance with paragraph

20

(d)(1) above until the GASB Funded Ratio of the Employees' Retirement System of Rhode

21

Island, the Judicial Retirement Benefits Trust and the State Police Retirement Benefits Trust,

22

calculated by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

23

      (4) Notwithstanding any other provision of this chapter, the provisions of this paragraph

24

(d) of § 28-30-18 shall become effective July 1, 2012 and shall apply to any benefit adjustment

25

not granted on or prior to June 30, 2012.

26

     (e) This subsection (e) shall become effective July 1, 2015.

27

     (1)(A) As soon as administratively reasonable following the enactment into law of this

28

subsections (e)(1)(A), a one-time benefit adjustment shall be provided to justices and/or

29

beneficiaries of justices who retired on or before June 30, 2012, in the amount of two percent

30

(2%) of the lesser of either the justice's retirement allowance or the first twenty-five thousand

31

dollars ($25,000) of the justice's retirement allowance. This one-time benefit adjustment shall be

32

provided without regard to the retiree's age or number of years since retirement.

33

     (B) Notwithstanding the prior subsections of this section, for all present and former

34

justices, active and retired justices, and beneficiaries receiving any retirement, disability or death

 

Art21
RELATING TO PENSIONS
(Page 63 of 71)

1

allowance or benefit of any kind, whether provided for or on behalf of justices engaged on or

2

prior to December 31, 1989 as a non-contributory justice or engaged after December 31, 1989 as

3

a contributory justice, the annual benefit adjustment provided in any calendar year under this

4

section for adjustments on and after January 1, 2016, and subject to subsection (e)(2) below, shall

5

be equal to (I) multiplied by (II):

6

     (I) Shall equal the sum of fifty percent (50%) of (i) plus fifty percent (50%) of (ii) where:

7

     (i) Is equal to the percentage determined by subtracting five and one-half percent (5.5%)

8

(the "subtrahend") from the five-year average investment return of the retirement system

9

determined as of the last day of the plan year preceding the calendar year in which the adjustment

10

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

11

(0%). The "five-year average investment return" shall mean the average of the investment returns

12

of the most recent five (5) plan years as determined by the retirement board. In the event the

13

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

14

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

15

     (ii) Is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

16

Price Index for all Urban Consumers (CPI-U) as published by the U.S. Department of Labor

17

Statistics determined as of September 30 of the prior calendar year. In no event shall the sum of

18

(i) plus (ii) exceed three and one-half percent (3.5%) or be less than zero percent (0%).

19

     (II) Is equal to the lesser of either the justice's retirement allowance or the first twenty-

20

five thousand eight hundred and fifty-five dollars ($25,855) of retirement allowance, such amount

21

to be indexed annually in the same percentage as determined under subsection (e)(1)(B)(I) above.

22

     The benefit adjustments provided by this subsection (e)(1)(B) shall be provided to all

23

retirees entitled to receive a benefit adjustment as of June 30, 2012 under the law then in effect,

24

and for all other retirees the benefit adjustments shall commence upon the third anniversary of the

25

date of retirement or the date on which the retiree reaches his or her Social Security retirement

26

age, whichever is later.

27

     (2) Except as provided in subsection (e)(3), the benefit adjustments under subsection

28

(e)(1)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

29

employees' retirement system of Rhode Island, the judicial retirement benefits trust and the state

30

police retirement benefits trust, calculated by the system's actuary on an aggregate basis, exceeds

31

eighty percent (80%) in which event the benefit adjustment will be reinstated for all justices for

32

such plan year.

33

     In determining whether a funding level under this subsection (e)(2) has been achieved,

34

the actuary shall calculate the funding percentage after taking into account the reinstatement of

 

Art21
RELATING TO PENSIONS
(Page 64 of 71)

1

any current or future benefit adjustment provided under this section.

2

     (3) Notwithstanding subsection (e)(2), in each fourth plan year commencing after June

3

30, 2012 commencing with the plan year ending June 30, 2016, and subsequently at intervals of

4

four plan years: (i) A benefit adjustment shall be calculated and made in accordance with

5

subsection (e)(1)(B) above; and (ii) Effective for members and/or beneficiaries of members who

6

retired on or before June 30, 2015, the dollar amount in subsection (e)(1)(B)(II) of twenty-five

7

thousand eight hundred and fifty-five dollars ($25,855) shall be replaced with thirty-one thousand

8

and twenty-six dollars ($31,026) until the funded ratio of the employees' retirement system of

9

Rhode Island, the judicial retirement benefits trust and the state police retirement benefits trust,

10

calculated by the system's actuary on an aggregate basis, exceeds eighty percent (80%).

11

     (4) Effective for members and or beneficiaries of members who have retired on or before

12

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

13

days following the enactment of the legislation implementing this provision, and a second one-

14

time stipend of five hundred dollars ($500) in the same month of the following year. These

15

stipends shall be payable to all retired members or beneficiaries receiving a benefit as of the

16

applicable payment date and shall not be considered cost of living adjustments under the prior

17

provisions of this § 8-8.2-12.

18

     SECTION 25. Section 45-21.2-5 of the General Laws in Chapter 45-21.2 entitled

19

"Optional Retirement for Members of Police Force and Fire Fighters" is hereby amended to read

20

as follows:

21

     45-21.2-5. Retirement on service allowance. -- (a) Retirement of a member on a service

22

retirement allowance for members eligible to retire on or before June 30, 2012 shall be made,

23

subject to paragraph (a)(11) below, by the retirement board as follows:

24

      (1) Any member who has attained or attains age seventy (70) shall be retired as stated in

25

§ 45-21-16 subject to the discretions contained in that section; provided, that any member who is

26

a member of the Woonsocket fire department who has attained or attains an age of sixty-five (65)

27

years shall be retired. Retirement occurs on the first day of the next succeeding calendar month in

28

which the member has attained the age of sixty-five (65) years.

29

      (2) Any member may retire pursuant to this subdivision upon written application to the

30

board stating at what time the member desires to retire; provided, that the member at the specified

31

time for retirement has attained an age of fifty-five (55) years and has completed at least ten (10)

32

years of total service, and notwithstanding that the member may have separated from service.

33

      (3) Any member may retire pursuant to this subdivision upon written application to the

34

board stating at what time the member desires to retire; provided, that the member at the specified

 

Art21
RELATING TO PENSIONS
(Page 65 of 71)

1

time for retirement has completed at least twenty-five (25) years of total service, and

2

notwithstanding that the member may have separated from service.

3

      (4) Any member may retire pursuant to this subdivision upon written application to the

4

board stating at what time the member desires to retire; provided, that the member at the specified

5

time for retirement has attained an age of fifty (50) years and has completed at least twenty (20)

6

years of total service, notwithstanding that the member may have separated from service;

7

provided, that the service retirement allowance, as determined according to the formula provided

8

in § 45-21.2-6, is reduced one-half of one percent ( 1/2%) for each month that the age of the

9

member is less than fifty-five (55) years.

10

      (5) Any member of the South Kingstown police department may retire pursuant to this

11

subdivision upon written application to the board stating at what time the member desires to

12

retire; provided, that the member at the specified time for retirement has earned a service

13

retirement allowance of fifty percent (50%) of final compensation pursuant to § 45-21.2-6.1.

14

      (6) Any member of the Johnston police department may retire pursuant to this

15

subdivision upon written application to the board stating at what time the member desires to

16

retire; provided, that the member at the specified time for retirement has earned a service

17

retirement allowance of fifty percent (50%) of final compensation pursuant to § 45-21.2-6.2.

18

      (7) Any member of the Cranston fire department hired after July 1, 1995, or any member

19

of the Cranston fire department with five (5) years or less of service effective July 1, 1995, may

20

retire pursuant to this subdivision upon written application to the board stating at what time the

21

member desires to retire; provided, that the member at the specified time for retirement has

22

earned a service retirement allowance of fifty percent (50%) of final compensation for at least

23

twenty (20) years service; final compensation for Cranston fire department members is based on

24

the compensation components of weekly salary, longevity and holidays with longevity of the

25

members highest year of earnings and members shall receive a three percent (3%) escalation of

26

their pension payment compounded each year on January 1st following the year of retirement and

27

continuing on an annual basis on that date; further, any illness or injury not covered in title 45 of

28

the general laws relating to the presumption of disability is governed by the collective bargaining

29

agreement between the City of Cranston and members of the Cranston fire department.

30

      (8) Any member of the Cranston police department hired after July 1, 1995, or any

31

member of the Cranston police department with five (5) years or less of service effective July 1,

32

1995, may retire pursuant to this subdivision upon written application to the board stating at what

33

time the member desires to retire; provided, that the member at the specified time for retirement

34

has earned a service retirement allowance of fifty percent (50%) of final compensation for at least

 

Art21
RELATING TO PENSIONS
(Page 66 of 71)

1

twenty (20) years service; final compensation for Cranston police department members is based

2

on the compensation components of weekly salary, longevity and holidays with longevity of the

3

members highest year of earnings and members shall receive a three percent (3%) escalation of

4

their pension payment compounded each year on January 1st following the year of retirement and

5

continuing on an annual basis on that date; further, any illness or injury not covered in title 45 of

6

the general laws relating to the presumption of disability is governed by the collective bargaining

7

agreement between the City of Cranston and members of the Cranston police department.

8

      (9) Any member of the Hopkinton police department may retire pursuant to this

9

subdivision upon written application to the board stating at what time the member desires to

10

retire; provided, that the member at the specified time for retirement has earned a service

11

retirement allowance of fifty percent (50%) of final compensation for at least twenty (20) years

12

service; final compensation for Hopkinton police department members is based on the

13

compensation components of weekly salary, longevity and holidays with longevity of the

14

members highest year of earnings and members shall receive a three percent (3%) escalation of

15

their pension payment compounded each year on January 1st following the year of retirement and

16

continuing on an annual basis on that date.

17

      (10) Any member of the Richmond police department may retire pursuant to this

18

subdivision upon written application to the board stating at what time the member desires to

19

retire; provided, that the member at the specified time for retirement has earned a service

20

retirement allowance of fifty percent (50%) of final compensation for at least twenty-two (22)

21

years' service pursuant to § 45-21.2-6.3.

22

      (11) Notwithstanding any provision in this section to the contrary, for any service on or

23

after July 1, 2012, final compensation shall be defined in accordance with § 45-21.2-2, and no

24

benefit adjustments shall be provided except as set forth in subsection 45-21-52(c).

25

      (12) Notwithstanding any provisions of this section to the contrary, with respect to police

26

officers employed by the town of Johnston, only those police officers hired on or after July 1,

27

2010 shall be eligible to be members of the Municipal Employees' Retirement System of the state

28

of Rhode Island in accordance with this chapter.

29

      (b) Retirement of a member on a service retirement allowance eligible to retire on and

30

after July 1, 2012 shall be made by the retirement board as follows:

31

      (1) Any member may retire pursuant to this subdivision upon written application to the

32

board stating at what time the member desires to retire; provided, that the member at the specified

33

time for retirement attained the age of at least fifty-five (55) years and has completed at least

34

twenty-five (25) years of total service, and notwithstanding that the member may have separated

 

Art21
RELATING TO PENSIONS
(Page 67 of 71)

1

from service; or

2

     (2) Effective July 1, 2015, the member makes contributions to the plan effective July 1,

3

2015 in accordance with § 45-21.2-14, and (i) The member at the specified time for retirement

4

attained the age of at least fifty (50) years and has completed at least twenty-five (25) years of

5

total service; or (ii) The member has completed at least twenty-seven (27) years of total service

6

regardless of the member's attained age, and notwithstanding that the member may have

7

separated from service.

8

      (2)(3) Any member with contributory service on or after July 1, 2012, who has

9

completed at least five (5) years of contributory service but who has not completed twenty-five

10

(25) years of service, shall be eligible to retire upon the attainment of the member's Social

11

Security retirement age.

12

      (3)(4) If a member had ten (10) or more years of contributory service and attained age

13

forty-five (45) prior to July 1, 2012 and would have been eligible to retire at or prior to age fifty-

14

two (52) in accordance with the rules in effect prior to July 1, 2012, the member may retire upon

15

attainment of age fifty-two (52).

16

      (4)(5) Effective July 1, 2015, a A member who has completed twenty (20) or more years

17

of total service who has attained an age within five (5) years of the eligible retirement age under

18

subparagraphs (b)(1) or (b)(2) or (b)(3) or (b)(4) above, may elect to retire provided that the

19

retirement allowance shall be reduced actuarially for each month that the age of the member is

20

less than the eligible retirement age under subparagraphs (b)(1) or (b)(2) or (b)(3) or (b)(4) above

21

in accordance with the following table:

22

Year Preceding Retirement Cumulative Annual Reduction Cumulative Monthly Reduction

23

For Year 1 9% .75%

24

For Year 2 8% .667%

25

For Year 3 7% .583%

26

For Year 4 7% .583%

27

For Year 5 7% .583%.

28

      (5)(6) Notwithstanding any other provisions of this section, a member on June 30, 2012,

29

may elect to retire at his or her eligible retirement date as determined under the rules in effect on

30

June 30, 2012 provided that a member making an election under this paragraph shall receive the

31

member's retirement benefit determined and calculated based on the member's service and final

32

compensation as of June 30, 2012. This provision shall be interpreted and administered in a

33

manner to protect a member's accrued benefit on June 30, 2012.

34

     SECTION 26. Section 45-21.2-6 of the General Laws in Chapter 45-21.2 entitled

 

Art21
RELATING TO PENSIONS
(Page 68 of 71)

1

"Optional Retirement for Members of Police Force and Fire Fighters" is hereby amended to read

2

as follows:

3

     45-21.2-6. Service retirement allowance. -- (a) Upon retirement from service pursuant

4

to § 45-21.2-5, a member receives a retirement allowance which is a life annuity terminable at the

5

death of the annuitant and shall be an amount equal to two percent (2%) of final compensation

6

multiplied by the years of total service, provided that a member who retires upon the attainment

7

of age of fifty-seven (57) years and has completed at least thirty (30) years of total service shall

8

receive a retirement allowance which is a life annuity terminable at the death of the annuitant and

9

shall be an amount equal to the greater of: (i) Two and one quarter percent (2.25%) of final

10

compensation multiplied by total years of service; or (ii) The member's accrued benefit

11

determined as of June 30, 2012 plus two and one quarter percent (2.25%) of final compensation

12

multiplied by member's years of service after June 30, 2012; provided further that the life annuity

13

under this subsection (a) shall not but not to exceed seventy-five percent (75%) of final

14

compensation.

15

      (b) Upon retirement, the member may elect to receive the actuarial equivalent of his or

16

her retirement allowance in a lesser retirement allowance as determined by actuarial calculation,

17

which is payable throughout life with the provision that:

18

      (1) Option 1. - A reduced retirement allowance payable during the member's life with the

19

provisions that after his or her death it shall continue during the life of and be paid to the person

20

that he or she nominated by written designation duly acknowledged and filed with the retirement

21

board at the time of retirement; or

22

      (2) Option 2. - A reduced retirement allowance payable during the member's life with the

23

provision that after his or her death an allowance equal to one-half ( 1/2) of his or her reduced

24

allowance shall continue during the life of and be paid to the person that he or she nominated by

25

written designation duly acknowledged and filed with the board at the time of retirement.

26

      (c) If prior to July 1, 2012, a member elected an optional form of benefit other than a life

27

annuity in accordance with paragraph (b)(1) or (2) above, the member may elect to change his or

28

her form of benefit to a life annuity by filing an election with the retirement board on or before

29

June 30, 2013 provided that the member's beneficiary is still alive at the time the election is filed.

30

     SECTION 27. Section 45-21.2-14 of the General Laws in Chapter 45-21.2 entitled

31

"Optional Retirement for Members of Police Force and Fire Fighters" is hereby amended to read

32

as follows:

33

     45-21.2-14. Contributions. -- (a) Each member shall contribute an amount equal to

34

seven percent (7%) of the salary or compensation earned or accruing to the member provided that

 

Art21
RELATING TO PENSIONS
(Page 69 of 71)

1

effective July 1, 2015 each member shall contribute an amount equal to nine percent (9%) of the

2

salary or compensation earned or accruing to the member. Special compensation or additional

3

fees shall not be considered as compensation for contribution purposes.

4

      (b) Deductions are made in accordance with § 45-21-14 and credited in accordance with

5

§ 45-21-43.

6

      (c) Each municipality shall make contributions to the system to provide the remainder of

7

the obligation for retirement allowances, annuities, and other benefits provided in this section,

8

after applying the accumulated contribution of members, interest income on investments, and

9

other accrued income. The contribution shall be compiled in accordance with §§ 45-21-42 -- 45-

10

21-44, except that contributions for the first five (5) years of the system shall likewise be

11

determined by the board.

12

      (d) Provided, that members of the South Kingstown police department, beginning July 1,

13

1985 and until June 30, 2012, contribute an amount equal to eight percent (8%) of salary or

14

compensation or additional fees are not considered as compensation for retirement purposes. For

15

service on and after July 1, 2012, a member of the South Kingstown police department shall make

16

contributions in accordance with paragraph (a) above.

17

      (e) Provided, further, that for service on or prior to June 30, 2012, members of the City

18

of Cranston fire department hired after July 1, 1995, beginning July 1, 1995, contribute an

19

amount equal to ten percent (10%) of their weekly salary; and those members of the City of

20

Cranston fire department with five (5) years or less of service effective July 1, 1995, have the

21

option to either remain in the City of Cranston pension plan to which they belonged prior to the

22

adoption of local ordinance by the Cranston city council as stated in § 45-21.2-22 or contribute to

23

the State of Rhode Island optional twenty (20) year retirement on service allowance an amount

24

equal to ten percent (10%) of their weekly salary commencing July 1, 1995. The City of Cranston

25

may request and the retirement board may authorize additional members of the City of Cranston

26

fire department hired after July 1, 1987, the option to either remain in the City of Cranston

27

pension plan to which they belonged prior to the adoption of local ordinance by the Cranston city

28

council as stated in § 45-21.2-22 or contribute to the State of Rhode Island optional twenty (20)

29

year retirement on service allowance an amount equal to ten percent (10%) of their weekly salary

30

beginning on a date specified by the retirement board. For service on and after July 1, 2012, a

31

member of the City of Cranston fire department shall make contributions in accordance with

32

paragraph (a) above and a member's benefit shall be calculated in accordance with subsection 45-

33

21.2-22(b).

34

      (f) Further, provided, that for service on and prior to June 30, 2012, members of the City

 

Art21
RELATING TO PENSIONS
(Page 70 of 71)

1

of Cranston police department hired after July 1, 1995, beginning July 1, 1995, contribute an

2

amount equal to ten percent (10%) of their weekly salary; and those members of the City of

3

Cranston police department with five (5) years or less of service effective July 1, 1995, have the

4

option to either remain in the City of Cranston pension plan to which they belonged prior to the

5

adoption of local ordinance by the Cranston city council as stated in § 45-21.2-22 or contribute to

6

the State of Rhode Island optional twenty (20) year retirement on service allowance an amount

7

equal to ten percent (10%) of their weekly salary commencing July 1, 1995. The City of Cranston

8

may request and the retirement board may authorize additional members of the City of Cranston

9

police department hired after July 1, 1987, the option to either remain in the City of Cranston

10

pension plan to which they belonged prior to the adoption of local ordinance by the Cranston city

11

council as stated in § 45-21.2-22 or contribute to the State of Rhode Island optional twenty (20)

12

year retirement on service allowance an amount equal to ten percent (10%) of their weekly salary

13

beginning on a date specified by the retirement board. For service on and after July 1, 2012, a

14

member of the City of Cranston police department shall make contributions in accordance with

15

paragraph (a) above and a member's benefit shall be calculated in accordance with subsection 45-

16

21.2-22(b).

17

     SECTION 28. This article shall take effect upon passage.

 

Art21
RELATING TO PENSIONS
(Page 71 of 71)