2020 -- H 7690 | |
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LC004639 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM-- | |
CONTRIBUTIONS AND BENEFITS | |
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Introduced By: Representative Arthur Handy | |
Date Introduced: February 26, 2020 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 36-10-2 of the General Laws in Chapter 36-10 entitled "Retirement |
2 | System - Contributions and Benefits" is hereby amended to read as follows: |
3 | 36-10-2. State contributions. |
4 | (a) The State of Rhode Island shall make its contribution for the maintenance of the system, |
5 | including the proper and timely payment of benefits in accordance with the provisions of this |
6 | chapter and chapters 8, 16, 28, 31 and 42 of this title, by annually appropriating an amount equal |
7 | to a percentage of the total compensation paid to the active membership. The percentage shall be |
8 | computed by the actuary employed by the retirement system and shall be certified by the retirement |
9 | board to the director of administration on or before the fifteenth day of October in each year. In |
10 | arriving at the yearly employer contribution the actuary shall determine the value of: |
11 | (1) The contributions made by the members; |
12 | (2) Income on investments; and |
13 | (3) Other income of the system. |
14 | (b) The Actuary shall thereupon compute the yearly employer contribution that will: |
15 | (1) Pay the actuarial estimate of the normal cost for the next succeeding fiscal year; |
16 | (2) Amortize the unfunded liability of the system in accordance with section 36-10-2.1(b). |
17 | (c) The State of Rhode Island shall remit to the general treasurer the employer's share of |
18 | the contribution for state employees, state police, and judges on a payroll frequency basis, and for |
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1 | teachers in a manner pursuant to § 16-16-22. |
2 | (d) (1) In accordance with the intent of § 36-8-20 that the retirement system satisfy the |
3 | requirements of § 401(a) of the Internal Revenue Code of 1986, the state shall pay to the retirement |
4 | system: |
5 | (i) By June 30, 1995, an amount equal to the sum of the benefits paid to state legislators |
6 | pursuant to § 36-10-10.1 in excess of ten thousand dollars ($10,000) per member (plus accrued |
7 | interest on such amount at eight percent (8%)) for all fiscal years beginning July 1, 1991, and ending |
8 | June 30, 1995, but this amount shall be paid only if § 36-10-10.1(e) becomes effective January 1, |
9 | 1995; and |
10 | (ii) By December 31, 1994, twenty million seven hundred eighty eight thousand eight |
11 | hundred twelve dollars and nineteen cents ($20,788,812.19) plus accrued interest on that amount |
12 | at eight percent (8%) compounded monthly beginning March 1, 1991, and ending on the date this |
13 | payment is completed (reduced by amortized amounts already repaid to the retirement system with |
14 | respect to the amounts withdrawn by the state during the fiscal year July 1, 1990 -- June 30, 1991); |
15 | and |
16 | (iii) By June 30, 1995, the sum of the amounts paid by the retirement system for retiree |
17 | health benefits described in § 36-12-4 for all fiscal years beginning July 1, 1989, and ending June |
18 | 30, 1994, to the extent that the amounts were not paid from the restricted fund described in |
19 | subsection (c). |
20 | (2) Any and all amounts paid to the retirement system under this subsection shall not |
21 | increase the amount otherwise payable to the system by the state of Rhode Island under subsection |
22 | (a) for the applicable fiscal year. The actuary shall make such adjustments in the amortization bases |
23 | and other accounts of the retirement system as he or she deems appropriate to carry out the |
24 | provisions and intent of this subsection. |
25 | (e) In addition to the contributions provided for in subsection (a) through (c) and in order |
26 | to provide supplemental employer contributions to the retirement system, commencing in fiscal |
27 | year 2006, and each year thereafter: |
28 | (1) Except for fiscal year 2009, fiscal year 2010 and fiscal year 2011, for each fiscal year |
29 | in which the actuarially determined state contribution rate for state employees, including state |
30 | contributions under chapter 36-10.3, is lower than that for the prior fiscal year, the governor shall |
31 | include an appropriation to that system equivalent to twenty percent (20%) of the rate reduction for |
32 | the state's contribution rate for state employees to be applied to the actuarial accrued liability of the |
33 | state employees' retirement system for state employees for each fiscal year; |
34 | (2) Except for fiscal year 2009, fiscal year 2010 and fiscal year 2011, for each fiscal year |
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1 | in which the actuarially determined state contribution rate for teachers, including state contributions |
2 | under chapter 36-10.3, is lower than that for the prior fiscal year, the governor shall include an |
3 | appropriation to that system equivalent to twenty percent (20%) of the rate reduction for the state's |
4 | share of the contribution rate for teachers to be applied to the actuarial accrued liability of the state |
5 | employees' retirement system for teachers for each fiscal year; |
6 | (3) The amounts to be appropriated shall be included in the annual appropriation bill and |
7 | shall be paid by the general treasurer into the retirement system. |
8 | (4) Assessments pursuant to § 42-149-3.1 shall be included in the annual appropriation bill |
9 | and shall be paid by the general treasurer into the retirement system beginning FY2013. |
10 | (f) While the retirement system's actuary shall not adjust the computation of the annual |
11 | required contribution for the year in which supplemental contributions are received, such |
12 | contributions once made may be treated as reducing the actuarial liability remaining for |
13 | amortization in the next following actuarial valuation to be performed. |
14 | (g) In no event shall the state contribution to the retirement system be a lesser amount than |
15 | that made the previous year until such time as the fund ratio meets or exceeds eighty percent (80%). |
16 | SECTION 2. This act shall take effect upon passage. |
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LC004639 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM-- | |
CONTRIBUTIONS AND BENEFITS | |
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1 | This act would require the yearly state contribution to the pension system not be reduced |
2 | until the fund ratio meets or exceeds eighty percent (80%). |
3 | This act would take effect upon passage. |
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LC004639 | |
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