2021 -- S 0296

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LC001801

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO TOWNS AND CITIES -- RETIREMENT OF MUNICIPAL EMPLOYEES--

MIDDLETOWN MUNICIPAL EMPLOYEES RETIREMENT

     Introduced By: Senator Louis P. DiPalma

     Date Introduced: February 18, 2021

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-21-8 of the General Laws in Chapter 45-21 entitled "Retirement

of Municipal Employees" is hereby amended to read as follows:

     45-21-8. Membership in system.

     Membership in the retirement system does not begin before the effective date of

participation in the system as provided in § 45-21-4, 45-21.4-2, or 45-21.4-3 and consists of the

following:

     (a) Any employee of a participating municipality as defined in this chapter, who becomes

an employee on and after the effective date of participation, shall, under contract of his or her

employment, become a member of the retirement system; provided, that the employee is not

receiving any pension or retirement allowance from any other pension or retirement system

supported wholly or in part by a participating municipality, and is not a contributor to any other

pension or retirement system of a participating municipality. Any employee who is elected to an

office in the service of a municipality after the effective date and prior to July 1, 2012, has the

option of becoming a member of the system, which option must be exercised within sixty (60) days

following the date the employee assumes the duties of his or her office, otherwise that person is not

entitled to participate under the provisions of this section;

     (b) Any employee or elected official of a participating municipality in service prior to the

effective date of participation, who is not a member of any other pension or retirement system

supported wholly or in part by a participating municipality, and who does not notify the retirement

board in writing before the expiration of sixty (60) days from the effective date of participation that

he or she does not wish to join the system, shall automatically become a member; and

     (c) Any employee of a participating municipality in service prior to the effective date of

participation, who is a member of any other pension or retirement system supported wholly or in

part by a participating municipality on the effective date of participation of their municipality, who

then or thereafter makes written application to join this system, and waives and renounces all

accrued rights and benefits of any other pension or retirement system supported wholly or in part

by a participating municipality, becomes a member of this retirement system and shall not be

required to make contribution under any other pension or retirement system of a participating

municipality, anything to the contrary notwithstanding.

     (d) Notwithstanding the provisions of this section, present firefighters employed by the

town of Johnston shall establish a pension plan separate from the state of Rhode Island retirement

system. If the town of Johnston is thirty (30) days or more late on employer or employee

contributions to the pension plan, the auditor general is authorized to redirect any Johnston funds

to cover the shortfall or to deduct that amount from any moneys due the town from the state for any

purpose other than for education. Disability determinations of present firefighters shall be made by

the state retirement board, subject to the provisions of § 45-21-19, at the town of Johnston's

expense. All new firefighters hired by the town of Johnston shall become members of the state

retirement system.

     (e) Notwithstanding the provisions of this section, any city of Cranston employees who are

presently members of Teamsters Local Union No. 251, hired between the dates of July 1, 2005,

and June 30, 2010, inclusive, and who are currently members of the retirement system established

by this chapter may opt out of said retirement system and choose to enroll in a defined contribution

plan (i.e., a 403(b) plan or equivalent thereof) established by the city of Cranston.

     (f) Notwithstanding the provisions of this section, any city of Cranston employees who are

presently members of the Laborers International Union of North America Local 1322 hired between

the dates of July 1, 2008, and June 30, 2013, inclusive, and who are currently members of the

retirement system established by this chapter may opt out of said retirement system and choose to

enroll in a defined contribution plan (i.e., a 403(b) plan or equivalent thereof) established by the

city of Cranston.

     (g) Notwithstanding the provisions of this section, any city of Cranston employees who

will be members of Teamsters Local Union No. 251, hired after June 30, 2010, shall be enrolled in

a defined contribution plan (i.e., a 403(b) plan or equivalent thereof) established by the city of

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Cranston and shall not be a member of the retirement system established by this chapter.

     (h) Notwithstanding the provisions of this section, any city of Cranston employees who are

presently members of the Laborers International Union of North America Local 1322 hired after

April 23, 2013, shall be enrolled in a defined contribution plan (i.e., 403(b) plan or equivalent

thereof) established by the city of Cranston and shall not be a member of the retirement system

established by this chapter.

     (i) Notwithstanding the provisions of this section, any city of Cranston employees defined

in (e) and (f) of this section shall be precluded from purchase of service credit for time served on

or after July 1, 2010, while participating in the defined contribution plan (i.e., a 403(b) plan or

equivalent thereof) established by the city of Cranston should the member cease employment with

the city of Cranston or Teamsters Local Union No. 251 and re-enter the system with another

participating employer who has accepted the provisions as defined, in § 45-21-4.

     (j) Notwithstanding the provisions of this section, any town of Middletown employees,

who will be members of the Teamsters Local Union No. 251 bargaining unit, hired after June 30,

2012, and any town of Middletown employees who are employed as full-time civilian dispatchers,

hired after June 30, 2012, and any town of Middletown employees who are not affiliated with any

recognized collective bargaining representative or union hired after June 30, 2012, shall be enrolled

in a defined contribution plan (i.e., a 403(b) plan or equivalent thereof) established by the town of

Middletown and shall not be members of the retirement system established by this chapter. Said

town of Middletown employees defined herein shall be precluded from the purchase of service

credit for time served on or after July 1, 2012, while participating in the defined contribution plan

(i.e., a 403(b) plan or equivalent thereof) established by the town of Middletown should the member

cease employment with the town of Middletown or in the Teamsters Local Union No. 251

bargaining unit and re-enter the system with any participating employer who has accepted the

provisions as defined in § 45-21-4.

     (k) Notwithstanding the provisions of this section, any town of Middletown employees,

who will be members of the Middletown Municipal Employees Association NEARI Local 869

bargaining unit hired after June 30, 2012, shall be enrolled in a defined contribution plan (i.e., a

403(b) plan or equivalent thereof) established by the town of Middletown and shall not be members

of the retirement system established by this chapter. Said town of Middletown employees defined

herein shall be precluded from the purchase of service credit for time served on or after July 1,

2012, while participating in the defined contribution plan (i.e., a 403(b) plan or equivalent thereof)

established by the town of Middletown should the member cease employment with the town of

Middletown or in the Middletown Municipal Employees Association NEARI Local 869 bargaining

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unit and re-enter the system with any participating employer who has accepted the provisions as

defined in § 45-21-4.

     (l) Notwithstanding the provisions of this section, any Cranston public school employees

who will be members of National Association of Government Employees (NAGE), Local RI-153,

hired after June 30, 2012, shall be enrolled in a defined contribution plan (i.e., a 401(a) plan or

equivalent thereof) established by the Cranston school department and shall not be a member of

the retirement system established by this chapter.

     (m) Notwithstanding the provisions of this section, any Cranston public school employees

defined in subsection (h) shall be precluded from the purchase of service credit for time served on

or after July 1, 2012, while participating in the defined contribution plan (i.e., a 401(a) plan or

equivalent thereof) established by the Cranston public schools should the member cease

employment with the Cranston public schools or National Association of Government Employees

(NAGE), Local RI-153 and re-enter the system with another participating employer who has

accepted the provisions as defined in § 45-21-4.

     (n) Notwithstanding the provisions of this section, the chief of police for the city of

Cranston who was hired on or about September 2014, shall be enrolled in a defined contribution

plan (i.e., 401(a) plan or any equivalent thereof) established by the city of Cranston, and shall not

be a member of the retirement system established by this chapter.

     (o) Notwithstanding the provisions of this section, any town of Middletown employees,

who will be members of the Middletown Fraternal Order of Police, Lodge #21, and hired as full-

time police officers after June 30, 2021, shall be enrolled in a defined contribution plan (i.e., a

401(a) plan or equivalent thereof) established by the town of Middletown and shall not be members

of the retirement system established by this chapter. Said town of Middletown employees defined

herein shall be precluded from the purchase of service credit for time served on or after July 1,

2021, while participating in the defined contribution plan (i.e., a 401(a) plan or equivalent thereof)

established by the town of Middletown, should the member cease employment with the town of

Middletown or in the Middletown Fraternal Order of Police, Lodge #21 bargaining unit and re-

enter the system with any participating employer who has accepted the provisions as defined in §

45-21-4.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- RETIREMENT OF MUNICIPAL EMPLOYEES--

MIDDLETOWN MUNICIPAL EMPLOYEES RETIREMENT

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     This act would allow the town of Middletown to enroll its full-time police officers hired

on or after July 1, 2021, in a defined contribution plan established by the town and would prevent

newly hired police officers from becoming members of the retirement system.

     This act would take effect upon passage.

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LC001801

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