2021 -- S 0953

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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 --WEST WARWICK PENSION PLAN

     Introduced By: Senators Burke, and Gallo

     Date Introduced: June 15, 2021

     Referred To: Senate Finance

     (General Treasurer)

It is enacted by the General Assembly as follows:

     SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

amended by adding thereto the following chapter:

CHAPTER 21.5

WEST WARWICK PENSION PLAN

     45-21.5-1. Legislative findings.

     The general assembly finds and declares the following:

     (1) All Rhode Islanders deserve retirement security, including those who have spent their

careers serving their communities as first responders, school, and municipal employees;

     (2) The town of West Warwick’s pension plans are currently in “critical status” as defined

in § 45-65-4 which resulted in the town of West Warwick undergoing pension reform in 2014 and

the submission of a funding improvement plan in accordance with § 45-65-6;

     (3) The town of West Warwick, the West Warwick school department, the labor and other

organizations representing its employees, first responders, and retirees, and the state of Rhode

Island are united in their desire to see the town of West Warwick remain on the path of fiscal health,

and that the predictability and sustainability of the pension system is vital to maintaining fiscal

health for the town of West Warwick and retirement security for its employees, first responders

and retirees; and

     (4) The general assembly adopts this chapter to facilitate the assistance of the municipal

employees' retirement system (MERS) of the state of Rhode Island in administering the local West

Warwick pension plans.

     45-21.5-2. Alternative acceptance by the town of West Warwick for West Warwick

school and municipal employees.

     (a) The provisions of this section shall apply only to the locally-administered plan,

excluding police and fire within the town of West Warwick, hereinafter referred to as the "West

Warwick plan, excluding police and fire."

     (b) No later than August 31, 2021, West Warwick and the West Warwick school committee

may accept the provisions of this chapter, by resolution or an ordinance of its governing body,

stating the group or groups of employees to be included as provided in § 45-21-4; provided that,

any and all labor organizations, representing active employees of the municipality and active non-

certified school employees to be included, have assented to such participation of their respective

memberships by ratification of amendments to the applicable collective bargaining agreement by a

majority vote of those members of any such labor organization present and voting; and, provided

further that, any applicable final and consent judgments are amended. A copy of the resolutions or

ordinance and proof of assent from the applicable labor organization, and/or amendment to any

applicable final and consent judgments, shall be immediately forwarded to the retirement board for

review. A vote of the retirement board to accept the entry of the group or groups into the system

provided in this section shall be required.

     (c) The West Warwick plan, excluding police and fire, shall be closed to new members on

August 31, 2021.

     (d) Following acceptance as provided in subsection (b) of this section, members of the

West Warwick plan, excluding police and fire, in active service on August 31, 2021, shall continue

to be subject to all plan provisions, as set forth in the 2006 pension plan as modified by any

collective bargaining agreement, memorandum of agreement, arbitration award, final and consent

judgment and/or any individual contractual agreement between any nonunion employee and the

town and/or school committee in effect on the day prior to the effective date of participation

(hereinafter collectively "the 2006 pension plan as modified") . These provisions shall include, but

not be limited to, applicable retirement ages, plan restrictions, accrual rates, contribution

requirements, eligibility requirements, benefit calculations and any and all provisions related to

postemployment benefits, death benefits, cost-of-living adjustments, and rules permitting

employment in and pension credit accrual within other municipalities or the state which are

participants in any other retirement plan administered by the state. The intent of this section is that

all members of the West Warwick plan, excluding police and fire, shall continue to enjoy all

benefits and be subject to the same terms of the pension plan in existence prior to the effective date

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of participation and that the municipal employees’ retirement system shall administer, but not

change, the pension plan benefits and terms formerly provided by the town unless expressly

provided otherwise in this section.

     (e) Disability determinations for new applications received on or after the date assets are

transferred pursuant to §45-21.5-6 shall be made by the retirement board, subject to the procedures

and standards of §§ 45-21-19, 45-21-22, 45-21-23 and 45-21-24, for members in active service on

August 31, 2021. If a disability retirement pension, including a partial disability, is granted, the

member shall receive benefits provided by the West Warwick pension plan, excluding police and

fire, pursuant to the 2006 pension plan as modified in effect on August 31, 2021.

     (f) Subject to the provisions of subsection (b) of this section being met, new employees

hired on or after September 1, 2021, shall be subject to the provisions of chapters 21 or 21.2 of this

title as applicable, including all applicable disability provisions and benefits provided by §§ 36-

10.3-4 and 45-21-52.

     (g) Members of the West Warwick plan, excluding police and fire, in active service on

August 31, 2021, shall have a one-time irrevocable option to become subject to all of the provisions

of chapters 21 or 21.2 of this title as applicable, including all applicable disability provisions and

benefits provided by §§ 36-10.3-4 and 45-21-52. Such election shall be made on or before

September 30, 2021.

     (h) Notwithstanding any provisions in § 45-21-42.2 to the contrary, the cost to evaluate

West Warwick's prospective participation in the retirement system pursuant to this section or § 45-

21.5-3, shall be borne by the retirement board.

     (i) Notwithstanding any provisions in § 45-21-43.1 to the contrary, determination of the

employer contribution rate of the closed West Warwick pension plan, excluding police and fire,

pursuant to this section shall be computed using an amortization period for the unfunded actuarial

accrued liability as determined by the board, based upon the recommendation of the plan's actuary.

Future actuarial gains and losses accruing within a plan year will be amortized over individual new

twenty (20) year closed periods consistent with § 45-21-43.1(c).

     (j) Notwithstanding any provisions in § 45-21-56 to the contrary, if a West Warwick

pension plan, excluding police and fire, pursuant to this section is in critical status as defined in §

45-65-4, and a member of the West Warwick pension plan, excluding police and fire, leaves

employment and is hired by another participating municipality that is not in critical status as defined

in § 45-65-4, then the retirement system shall transfer the amount of the member’s contributions

and member's total accrued liability with the West Warwick pension plan, excluding, police and

fire, multiplied by the funded status of the West Warwick pension plan, excluding, police and fire,

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to the account of the current employing municipality.

     (k) Upon the conditions of subsection (b) of this section being met, the town of West

Warwick and the West Warwick school committee shall remain liable to the retirement system for

the cost of funding a retirement system for its employees who are participants of the system as

provided herein, and the retirement board maintains the right to enforce payment of any liability as

provided in chapter 21 of this title. Withdrawal of any West Warwick plan that has joined the

retirement system pursuant to this section shall be as provided in § 45-21-5 and subject to §§ 45-

21-6 and 45-21-7. Any such withdrawal shall not relieve West Warwick from the liabilities arising

from its membership as set forth in §§ 45-21-5, 45-21-6 or 45-21-7.

     (l) Subject to the provisions of subsection (b) of this section being met, the West Warwick

plan, excluding police and fire, and the provisions of this section shall be administered in the same

manner provided in chapter 21 of this title; credits for prior service and collection of contributions

are determined through reference to that chapter; provided that, where the provisions of that chapter

conflict with the provisions of this chapter, then the provisions of this chapter shall control. Liability

of contributions is enforced in the same manner as stated in chapter 21 of this title.

     45-21.5-3. Retiree participation in retirement plan for school and municipal

employees.

     (a) The provisions of this section shall apply only to the locally-administered plan,

excluding police and fire, within the town of West Warwick.

     (b)(1) Notwithstanding any provision of this chapter to the contrary, no later than August

31, 2021, West Warwick and the West Warwick school committee may accept the provisions of

this chapter by resolution or an ordinance of its governing body stating the group or groups of

retired former employees to be included as provided in § 45-21-4; provided that, a majority of

retired former employees have consented in writing to joining the system or any duly constituted

retiree organization that represents said retired former employees has assented to joining the

system; and, provided further that, any applicable final and consent judgments are amended. A

copy of the resolutions or ordinance and proof of assent from the applicable retiree organization,

and/or amendment to any applicable final and consent judgments, shall be immediately forwarded

to the retirement board for review. A vote of the retirement board to accept the entry of the group

or groups of retirees into the system shall be required.

     (2) For purposes of this section, "retired former employees" means any West Warwick

municipal or non-certified school employee who has retired prior to September 1, 2021, pursuant

to the provisions of the West Warwick retirement plan, excluding police and fire.

     (c)(1)Notwithstanding any other provisions of this section or other applicable law, upon

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acceptance into the system, all retired former employees and their beneficiaries shall continue to

be subject to all plan provisions, as set forth by the plan, collective bargaining agreement,

memorandum of agreement, arbitration award, final and consent judgment and/or any individual

contractual agreement between any nonunion employee and the town and/or school committee in

effect upon the retired former employee’s date of retirement. These provisions shall include, but

are not limited to, applicable retirement ages, plan restrictions, accrual rates, contribution

requirements, eligibility requirements, benefit calculations and any and all provisions related to

postemployment benefits, death benefits, cost-of-living adjustments, and rules permitting

employment in and pension credit accrual within other municipalities or the state which are

participants in any other retirement plan administered by the state. The intent of this section is that

all retired former employees of the West Warwick plan, excluding police and fire, shall continue

to enjoy all benefits and be subject to the same terms of the pension plan in existence upon his or

her date of retirement and prior to the effective date of participation and that the municipal

employees' retirement system shall administer, but not change, the pension plan benefits and terms

formerly provided by the town unless expressly provided otherwise in this section.

     (2) Retired former employees under this section shall not be entitled to any retirement

allowance or benefit from the system otherwise available or calculated pursuant to the provisions

of §§ 45-21-16, 45-21-27, 45-21-51, or 45-21-51.1 with regard to his or her West Warwick pension

benefit.

     (d) The cost to evaluate West Warwick’s prospective membership in the retirement system,

and costs related to obtaining consent of retirees to join the system pursuant to this section, shall

be borne by the retirement board.

     (e) Upon the conditions of subsection (b) of this section being met, the town of West

Warwick and the West Warwick school committee shall remain liable to the retirement system for

the cost of funding a retirement system for its retired employees who are members of the system as

provided herein, and the retirement board maintains the right to enforce payment of any liability as

provided in chapter 21 of this title.

     (f) Subject to the provisions of subsection (b) of this section being met, the provisions of

this section shall be administered in the same manner provided in chapter 21 of this title; provided

that, where the provisions of that chapter conflict with the provisions of this chapter, then the

provisions of this chapter shall control. Liability of the municipality is enforced in the same manner

as stated in chapter 21 of this title.

     45-21.5-4. Alternative acceptance by the town of West Warwick of optional

retirement for police and firefighters.

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     (a) The provisions of this section shall apply only to the locally-administered plan for

police and fire within the town of West Warwick hereinafter referred to as the "West Warwick plan

for police and fire."

     (b) No later than August 31, 2021, West Warwick may accept the provisions of this chapter,

by resolution or an ordinance of its governing body, stating the group or groups of public safety

employees to be included as provided in § 45-21-4; provided that, any and all labor organizations,

representing active police and fire of the municipality to be included, have assented to such

participation of their respective memberships by ratification of amendments to the applicable

collective bargaining agreement by a majority vote of those members of any such labor

organization present and voting; and, provided further that, any applicable final and consent

judgments are amended. A copy of the resolution or ordinance and proof of assent from the

applicable labor organization, and/or amendment to any applicable final and consent judgments,

shall be immediately forwarded to the retirement board for review. A vote of the retirement board

to accept the entry of the group or groups into the system as provided in this section shall be

required.

     (c) The West Warwick plan for police and fire shall be closed to new members on August

31, 2021.

     (d) Following acceptance as provided in subsection (b) of this section, members of the

West Warwick plan for police and fire in active service on August 31, 2021, shall continue to be

subject to all of the provisions, as set forth in the 2006 pension plan as modified by any collective

bargaining agreement, memorandum of agreement, arbitration award, final and consent judgment

and/or any individual contractual agreement between any non-union employee and the town in

effect on the day prior to the effective date of participation (hereinafter collectively “the 2006

pension plan as modified”). These provisions shall include, but not be limited to, applicable

retirement ages, plan restrictions, accrual rates, contribution requirements, eligibility requirements,

benefit calculations and any and all provisions related to post-employment benefits, death benefits,

cost-of-living adjustments, and rules permitting employment in and pension credit accrual within

other municipalities or the state which are participants in any other retirement plan administered by

the state. The intent of this section is that all members of the West Warwick plan for police and fire

shall continue to enjoy all benefits and be subject to the same terms of the pension plan in existence

prior to the effective date of participation and that the municipal employees’ retirement system

shall administer, but not change, the pension benefits and terms formerly provided by the town

unless expressly provided otherwise in this section.

     (e) Disability determinations shall be made by the retirement board, subject to the

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procedures and standards of §§ 45-21.2-7 and 45-21.2-9 (except for the eligible service

requirements) as applicable, for members hired prior to September 1, 2021. If a disability retirement

pension is granted, the member shall receive benefits provided by the West Warwick pension plan

pursuant to the 2006 pension plan as modified in effect on August 31, 2021. If the retirement board

denies the application for an accidental disability pension, the member may submit an appeal to the

Rhode Island workers’ compensation court pursuant to §§ 45-21.2-9(f) through (j).

     (f) Subject to the provisions of subsection (b) of this section being met, new employees

hired on or after September 1, 2021, shall be subject to all of the provisions of chapter 21.2 of this

title as applicable, including all applicable disability provisions and benefits provided by §§ 36-

10.3-4 and 45-21-52.

     (g) Members of the West Warwick plan for police and fire in active service as of August

31, 2021, shall have a one-time irrevocable option to become subject to the provisions of chapters

21 or 21.2 of this title as applicable, including all applicable disability provisions and benefits

provided by §§ 36-10.3-4 and 45-21-52. Such election shall be made on or before September 30,

2021.

     (h) Notwithstanding any provision in § 45-21-42.2 to the contrary, the cost to evaluate

West Warwick prospective participation in the retirement system pursuant to this section or § 45-

21.5-3, shall be borne by the retirement board.

     (i) Notwithstanding any provision in § 45-21-43.1 to the contrary, determination of the

employer contribution rate of the closed West Warwick pension plan for police and fire pursuant

to this section shall be computed using an amortization period for the unfunded actuarial accrued

liability as determined by the board, based upon the recommendation of the plan's actuary. Future

actuarial gains and losses accruing within a plan year will be amortized over individual new twenty

(20) year closed periods consistent with § 45-21-43.1(c).

     (j) Notwithstanding any provision in § 45-21-56 to the contrary, if a West Warwick pension

plan for police and fire pursuant to this section is in critical status as defined in § 45-65-4, and a

member of the West Warwick pension plan for police and fire leaves employment and is hired by

another participating municipality that is not in critical status as defined in § 45-65-4, then the

retirement system shall transfer the amount of the member’s contributions and member's total

accrued liability with the West Warwick pension plan for police and fire, multiplied by the funded

status of the West Warwick pension plan for police and fire, to the account of the current employing

municipality.

     (k) Upon the conditions of subsection (b) of this section being met, the town of West

Warwick shall remain liable to the retirement system for the cost of funding a retirement system

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for its employees who are members of the system as provided herein, and the retirement board

maintains the right to enforce payment of any liability as provided in chapter 21 of this title.

     (l) Subject to the provisions of subsection (b) of this section being met, the West Warwick

plan for police and fire and the provisions of this section shall be administered in the same manner

provided in chapter 21 of this title; credits for prior service and collection of contributions are

determined through reference to that chapter; provided that, where the provisions of that chapter

conflict with the provisions of this chapter, then the provisions of this chapter shall control. Liability

of contributions is enforced in the same manner as stated in chapter 21 of this title.

     45-21.5-5. Retiree participation in optional retirement plan for police and fire.

     (a) The provisions of this section shall apply only to the locally-administered plan for

police and fire within the town of West Warwick.

     (b)(1) Notwithstanding any provision of this chapter to the contrary, no later than August

31, 2021, West Warwick may accept the provisions of this chapter by resolution or an ordinance

of its governing body stating the group or groups of retired former public safety employees to be

included as provided in § 45-21-4; provided that, a majority of retired former police and fire

employees have consented in writing to joining the system or any duly constituted retiree

organization that represents said retired former public safety employees has assented to joining the

system; and, provided further that, any applicable final and consent judgments are amended. A

copy of the resolution or ordinance and proof of assent from the applicable retiree organization,

and/or amendment to any final and consent judgments, shall be immediately forwarded to the

retirement board for review. A vote of the retirement board to accept the entry of the group or

groups of retirees into the system shall be required.

     (2) For purposes of this section, "retired former employees" means any West Warwick

police officer or firefighter who has retired prior to September 1, 2021, pursuant to the provisions

of the West Warwick retirement plan for police and fire.

     (c)(1) Notwithstanding any other provisions of this section or other applicable law, upon

acceptance into the system, all retired former public safety employees and their beneficiaries shall

continue to be subject to all plan provisions, as set forth by the plan, collective bargaining

agreement, memorandum of agreement, arbitration award, final and consent judgment and/or any

individual contractual agreement between any nonunion employee and the town in effect upon the

retired former employee’s date of retirement. These provisions shall include, but are not limited to,

applicable retirement ages, plan restrictions, accrual rates, contribution requirements, eligibility

requirements, benefit calculations and any and all provisions related to postemployment benefits,

death benefits, cost-of-living adjustments, and rules permitting employment in and pension credit

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accrual within other municipalities or the state which are participants in any other retirement plan

administered by the state. The intent of this section is that all retired former employees of the West

Warwick plan, including police and fire, shall continue to enjoy all benefits and be subject to the

same terms of the pension plan in existence upon his or her date of retirement and prior to the

effective date of participation and that the municipal employees’ retirement system shall

administer, but not change, the pension plan benefits and terms formerly provided by the town

unless expressly provided otherwise in this section.

     (2) Retired former employees under this section, shall not be entitled to any retirement

allowance or benefit from the system otherwise available or calculated pursuant to the provisions

of §§ 45-21.2-6, 45-21.2-13, 45-21.2-20, 45-21.2-21, or 45-21.2-22 with regard to his or her West

Warwick pension benefit.

     (d) The cost to evaluate West Warwick’s prospective membership in the retirement system,

and costs related to obtaining consent of retirees to join the system pursuant to this section, shall

be borne by the retirement board.

     (e) Upon the conditions of subsection (b) of this section being met, the town of West

Warwick shall remain liable to the retirement system for the cost of funding a retirement system

for its retired public safety employees who are members of the system as provided herein, and the

retirement board maintains the right to enforce payment of any liability as provided in chapter 21

of this title.

     (f) Subject to the provisions of subsection (b) of this section being met, the provisions of

this section shall be administered in the same manner provided in chapter 21 of this title; provided

that, where the provisions of that chapter conflict with the provisions of this chapter, then the

provisions of this chapter shall control. Liability of the municipality is enforced in the same manner

as stated in chapter 21 of this title.

     45-21.5-6. Transfer of assets.

     Subject to the provisions of §§ 45-21.5-2(b) and 45-21.5-3(b) being met, no later than July

1, 2022, the system shall be responsible for administering the West Warwick plans and West

Warwick shall transfer to the system the accumulated contributions of each member entering the

system, the assets related to the actuarial accrued liability of those transferred employees and any

other assets of the West Warwick plans.

     45-21.5-7. Funding improvement period.

     Subject to the provisions of §§ 45-21.5-2(b), 45-21.5-3(b), 45-21.5-4(b) and 45-21.5-5(b)

being met, the funding improvement plan submitted by the town of West Warwick on March 29,

2014 shall have a funding improvement period of twenty (20) years for purposes of § 36-10.2-8.

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     45-21.5-8. Withdrawal from the municipal employees' retirement system.

     Withdrawal of any West Warwick plan that has joined the municipal employee retirement

system pursuant to this chapter shall be as provided in § 45-21-5 and subject to §§ 45-21-6 and 45-

21-7. Any such withdrawal shall not relieve West Warwick from the liabilities arising from its

membership as set forth §§ 45-21-5, 45-21-6 or 45-21-7.

     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 --WEST WARWICK PENSION PLAN

***

     This act would authorize the town of West Warwick to join the State Employees'

Retirement System of Rhode Island.

     This act would take effect upon passage.

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