2021 -- S 0953 SUBSTITUTE A | |
======== | |
LC003000/SUB A | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2021 | |
____________ | |
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: | |
1 | SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby |
2 | amended by adding thereto the following chapter: |
3 | CHAPTER 21.5 |
4 | WEST WARWICK PENSION PLAN |
5 | 45-21.5-1. Legislative findings. |
6 | The general assembly finds and declares the following: |
7 | (1) All Rhode Islanders deserve retirement security, including those who have spent their |
8 | careers serving their communities as first responders, school, and municipal employees; |
9 | (2) The town of West Warwick’s pension plans are currently in “critical status” as defined |
10 | in § 45-65-4 which resulted in the town of West Warwick undergoing pension reform in 2014 and |
11 | the submission of a funding improvement plan in accordance with § 45-65-6; |
12 | (3) The town of West Warwick, the West Warwick school department, the labor and other |
13 | organizations representing its employees, first responders, and retirees, and the state of Rhode |
14 | Island are united in their desire to see the town of West Warwick remain on the path of fiscal health, |
15 | and that the predictability and sustainability of the pension system is vital to maintaining fiscal |
16 | health for the town of West Warwick and retirement security for its employees, first responders |
17 | and retirees; and |
18 | (4) The general assembly adopts this chapter to facilitate the assistance of the municipal |
19 | employees' retirement system (MERS) of the state of Rhode Island in administering the local West |
| |
1 | Warwick pension plans. |
2 | 45-21.5-2. Alternative acceptance by the town of West Warwick for West Warwick |
3 | school and municipal employees. |
4 | (a) The provisions of this section shall apply only to the locally-administered plan, |
5 | excluding police and fire within the town of West Warwick, hereinafter referred to as the "West |
6 | Warwick plan, excluding police and fire." |
7 | (b) No later than August 31, 2021, West Warwick and the West Warwick school committee |
8 | may accept the provisions of this chapter, by resolution or an ordinance of its governing body, |
9 | stating the group or groups of employees to be included as provided in § 45-21-4; provided that, |
10 | any and all labor organizations, representing active employees of the municipality and active non- |
11 | certified school employees to be included, have assented to such participation of their respective |
12 | memberships by ratification of amendments to the applicable collective bargaining agreement by a |
13 | majority vote of those members of any such labor organization present and voting; and, provided |
14 | further that, any applicable final and consent judgments are amended. A copy of the resolutions or |
15 | ordinance and proof of assent from the applicable labor organization, and/or amendment to any |
16 | applicable final and consent judgments, shall be immediately forwarded to the retirement board for |
17 | review. A vote of the retirement board to accept the entry of the group or groups into the system |
18 | provided in this section shall be required. |
19 | (c) The West Warwick plan, excluding police and fire, shall be closed to new members on |
20 | August 31, 2021. |
21 | (d) Following acceptance as provided in subsection (b) of this section, members of the |
22 | West Warwick plan, excluding police and fire, in active service on August 31, 2021, shall continue |
23 | to be subject to all plan provisions, as set forth in the 2006 pension plan as modified by any |
24 | collective bargaining agreement, memorandum of agreement, arbitration award, final and consent |
25 | judgment and/or any individual contractual agreement between any nonunion employee and the |
26 | town and/or school committee in effect on August 31, 2021 (hereinafter collectively "the 2006 |
27 | pension plan as modified") . These provisions shall include, but not be limited to, applicable |
28 | retirement ages, plan restrictions, accrual rates, contribution requirements, eligibility requirements, |
29 | benefit calculations and any and all provisions related to postemployment benefits, death benefits, |
30 | cost-of-living adjustments, and rules permitting employment in and pension credit accrual within |
31 | other municipalities or the state which are participants in any other retirement plan administered by |
32 | the state. The intent of this section is that all members of the West Warwick plan, excluding police |
33 | and fire, shall continue to enjoy all benefits and be subject to the same terms of the pension plan in |
34 | existence on August 31, 2021 and that the municipal employees’ retirement system shall |
| LC003000/SUB A - Page 2 of 10 |
1 | administer, but not change, the pension plan benefits and terms formerly provided by the town |
2 | unless expressly provided otherwise in this section. |
3 | (e) Disability determinations for new applications received on or after the date assets are |
4 | transferred pursuant to §45-21.5-6 shall be made by the retirement board, subject to the procedures |
5 | and standards of §§ 45-21-19, 45-21-22, 45-21-23 and 45-21-24, for members in active service on |
6 | August 31, 2021. If a disability retirement pension, including a partial disability, is granted, the |
7 | member shall receive benefits provided by the West Warwick pension plan, excluding police and |
8 | fire, pursuant to the 2006 pension plan as modified in effect on August 31, 2021. |
9 | (f) Subject to the provisions of subsection (b) of this section being met, new employees |
10 | hired on or after September 1, 2021, shall be subject to the provisions of chapters 21 or 21.2 of this |
11 | title as applicable, including all applicable disability provisions and benefits provided by §§ 36- |
12 | 10.3-4 and 45-21-52. |
13 | (g) Members of the West Warwick plan, excluding police and fire, in active service on |
14 | August 31, 2021, shall have a one-time irrevocable option to become subject to all of the provisions |
15 | of chapters 21 or 21.2 of this title as applicable, including all applicable disability provisions and |
16 | benefits provided by §§ 36-10.3-4 and 45-21-52. Such election shall be made on or before |
17 | September 30, 2021. |
18 | (h) Notwithstanding any provisions in § 45-21-42.2 to the contrary, the cost to evaluate |
19 | West Warwick's prospective participation in the retirement system pursuant to this section or § 45- |
20 | 21.5-3, shall be borne by the retirement board. |
21 | (i) Notwithstanding any provisions in § 45-21-43.1 to the contrary, determination of the |
22 | employer contribution rate of the closed West Warwick pension plan, excluding police and fire, |
23 | pursuant to this section shall be computed using an amortization period for the unfunded actuarial |
24 | accrued liability as determined by the board, based upon the recommendation of the plan's actuary. |
25 | Future actuarial gains and losses accruing within a plan year will be amortized over individual new |
26 | twenty (20) year closed periods consistent with § 45-21-43.1(c). |
27 | (j) Notwithstanding any provisions in § 45-21-56 to the contrary, if a West Warwick |
28 | pension plan, excluding police and fire, pursuant to this section is in critical status as defined in § |
29 | 45-65-4, and a member of the West Warwick pension plan, excluding police and fire, leaves |
30 | employment and is hired by another participating municipality that is not in critical status as defined |
31 | in § 45-65-4, then the retirement system shall transfer the amount of the member’s contributions |
32 | and member's total accrued liability with the West Warwick pension plan, excluding, police and |
33 | fire, multiplied by the funded status of the West Warwick pension plan, excluding, police and fire, |
34 | to the account of the current employing municipality. |
| LC003000/SUB A - Page 3 of 10 |
1 | (k) Upon the conditions of subsection (b) of this section being met, the town of West |
2 | Warwick and the West Warwick school committee shall remain liable to the retirement system for |
3 | the cost of funding a retirement system for its employees who are participants of the system as |
4 | provided herein, and the retirement board maintains the right to enforce payment of any liability as |
5 | provided in chapter 21 of this title. |
6 | (l) Subject to the provisions of subsection (b) of this section being met, the West Warwick |
7 | plan, excluding police and fire, and the provisions of this section shall be administered in the same |
8 | manner provided in chapter 21 of this title; credits for prior service and collection of contributions |
9 | are determined through reference to that chapter; provided that, where the provisions of that chapter |
10 | conflict with the provisions of this chapter, then the provisions of this chapter shall control. Liability |
11 | of contributions is enforced in the same manner as stated in chapter 21 of this title. |
12 | 45-21.5-3. Retiree participation in retirement plan for school and municipal |
13 | employees. |
14 | (a) The provisions of this section shall apply only to the locally-administered plan, |
15 | excluding police and fire, within the town of West Warwick. |
16 | (b)(1) Notwithstanding any provision of this chapter to the contrary, no later than August |
17 | 31, 2021, West Warwick and the West Warwick school committee may accept the provisions of |
18 | this chapter by resolution or an ordinance of its governing body stating the group or groups of |
19 | retired former employees to be included as provided in § 45-21-4; provided that, a majority of |
20 | retired former employees have consented in writing to joining the system or any duly constituted |
21 | retiree organization that represents said retired former employees has assented to joining the |
22 | system; and, provided further that, any applicable final and consent judgments are amended. A |
23 | copy of the resolutions or ordinance and proof of assent from the applicable retiree organization, |
24 | and/or amendment to any applicable final and consent judgments, shall be immediately forwarded |
25 | to the retirement board for review. A vote of the retirement board to accept the entry of the group |
26 | or groups of retirees into the system shall be required. |
27 | (2) For purposes of this section, "retired former employees" means any member of the West |
28 | Warwick pension plan, excluding police and fire, who has retired prior to September 1, 2021. |
29 | (c)(1)Notwithstanding any other provisions of this section or other applicable law, upon |
30 | acceptance into the system, all retired former employees and their beneficiaries shall continue to |
31 | be subject to all plan provisions, as set forth by the plan, collective bargaining agreement, |
32 | memorandum of agreement, arbitration award, final and consent judgment and/or any individual |
33 | contractual agreement between any nonunion employee and the town and/or school committee in |
34 | effect upon the retired former employee’s date of retirement. These provisions shall include, but |
| LC003000/SUB A - Page 4 of 10 |
1 | are not limited to, applicable retirement ages, plan restrictions, accrual rates, contribution |
2 | requirements, eligibility requirements, benefit calculations and any and all provisions related to |
3 | postemployment benefits, death benefits, cost-of-living adjustments, and rules permitting |
4 | employment in and pension credit accrual within other municipalities or the state which are |
5 | participants in any other retirement plan administered by the state. The intent of this section is that |
6 | all retired former employees of the West Warwick plan, excluding police and fire, shall continue |
7 | to enjoy all benefits and be subject to the same terms of the pension plan in existence upon his or |
8 | her date of retirement and that the municipal employees' retirement system shall administer, but not |
9 | change, the pension plan benefits and terms formerly provided by the town unless expressly |
10 | provided otherwise in this section. |
11 | (2) Retired former employees under this section shall not be entitled to any retirement |
12 | allowance or benefit from the system otherwise available or calculated pursuant to the provisions |
13 | of §§ 45-21-16, 45-21-27, 45-21-51, or 45-21-51.1 with regard to his or her West Warwick pension |
14 | benefit. |
15 | (d) The cost to evaluate West Warwick’s prospective membership in the retirement system, |
16 | and costs related to obtaining consent of retirees to join the system pursuant to this section, shall |
17 | be borne by the retirement board. |
18 | (e) Upon the conditions of subsection (b) of this section being met, the town of West |
19 | Warwick and the West Warwick school committee shall remain liable to the retirement system for |
20 | the cost of funding a retirement system for its retired employees who are members of the system as |
21 | provided herein, and the retirement board maintains the right to enforce payment of any liability as |
22 | provided in chapter 21 of this title. |
23 | (f) Subject to the provisions of subsection (b) of this section being met, the provisions of |
24 | this section shall be administered in the same manner provided in chapter 21 of this title; provided |
25 | that, where the provisions of that chapter conflict with the provisions of this chapter, then the |
26 | provisions of this chapter shall control. Liability of the municipality is enforced in the same manner |
27 | as stated in chapter 21 of this title. |
28 | 45-21.5-4. Alternative acceptance by the town of West Warwick of optional |
29 | retirement for police and firefighters. |
30 | (a) The provisions of this section shall apply only to the locally-administered plan for |
31 | police and fire within the town of West Warwick hereinafter referred to as the "West Warwick plan |
32 | for police and fire." |
33 | (b) No later than August 31, 2021, West Warwick may accept the provisions of this chapter, |
34 | by resolution or an ordinance of its governing body, stating the group or groups of public safety |
| LC003000/SUB A - Page 5 of 10 |
1 | employees to be included as provided in § 45-21-4; provided that, any and all labor organizations, |
2 | representing active police and fire of the municipality to be included, have assented to such |
3 | participation of their respective memberships by ratification of amendments to the applicable |
4 | collective bargaining agreement by a majority vote of those members of any such labor |
5 | organization present and voting; and, provided further that, any applicable final and consent |
6 | judgments are amended. A copy of the resolution or ordinance and proof of assent from the |
7 | applicable labor organization, and/or amendment to any applicable final and consent judgments, |
8 | shall be immediately forwarded to the retirement board for review. A vote of the retirement board |
9 | to accept the entry of the group or groups into the system as provided in this section shall be |
10 | required. |
11 | (c) The West Warwick plan for police and fire shall be closed to new members on August |
12 | 31, 2021. |
13 | (d) Following acceptance as provided in subsection (b) of this section, members of the |
14 | West Warwick plan for police and fire in active service on August 31, 2021, shall continue to be |
15 | subject to all of the provisions, as set forth in the 2006 pension plan as modified by any collective |
16 | bargaining agreement, memorandum of agreement, arbitration award, final and consent judgment |
17 | and/or any individual contractual agreement between any non-union employee and the town in |
18 | effect on August 31, 2021 (hereinafter collectively “the 2006 pension plan as modified”). These |
19 | provisions shall include, but not be limited to, applicable retirement ages, plan restrictions, accrual |
20 | rates, contribution requirements, eligibility requirements, benefit calculations and any and all |
21 | provisions related to post-employment benefits, death benefits, cost-of-living adjustments, and |
22 | rules permitting employment in and pension credit accrual within other municipalities or the state |
23 | which are participants in any other retirement plan administered by the state. The intent of this |
24 | section is that all members of the West Warwick plan for police and fire shall continue to enjoy all |
25 | benefits and be subject to the same terms of the pension plan in existence on August 31, 2021 and |
26 | that the municipal employees’ retirement system shall administer, but not change, the pension |
27 | benefits and terms formerly provided by the town unless expressly provided otherwise in this |
28 | section. |
29 | (e) Disability determinations shall be made by the retirement board, subject to the |
30 | procedures and standards of §§ 45-21.2-7 (except for the eligible service requirements) and 45- |
31 | 21.2-9 as applicable, for members hired prior to September 1, 2021. If a disability retirement |
32 | pension is granted, the member shall receive benefits provided by the West Warwick pension plan |
33 | pursuant to the 2006 pension plan as modified in effect on August 31, 2021. If the retirement board |
34 | denies the application for an accidental disability pension, the member may submit an appeal to the |
| LC003000/SUB A - Page 6 of 10 |
1 | Rhode Island workers’ compensation court pursuant to §§ 45-21.2-9(f) through (j). |
2 | (f) Subject to the provisions of subsection (b) of this section being met, new employees |
3 | hired on or after September 1, 2021, shall be subject to all of the provisions of chapter 21.2 of this |
4 | title as applicable, including all applicable disability provisions and benefits provided by §§ 36- |
5 | 10.3-4 and 45-21-52. |
6 | (g) Members of the West Warwick plan for police and fire in active service as of August |
7 | 31, 2021, and civilian employees of the West Warwick Fire Department as of August 31, 2021, |
8 | who are part of the firefighters' bargaining unit but are members of the West Warwick plan |
9 | excluding police and fire, shall have a one-time irrevocable option to become subject to the |
10 | provisions of chapters 21 or 21.2 of this title as applicable, including all applicable disability |
11 | provisions and benefits provided by §§ 36-10.3-4 and 45-21-52. Such election shall be made on or |
12 | before September 30, 2021. |
13 | (h) Notwithstanding any provision in § 45-21-42.2 to the contrary, the cost to evaluate |
14 | West Warwick prospective participation in the retirement system pursuant to this section or § 45- |
15 | 21.5-3, shall be borne by the retirement board. |
16 | (i) Notwithstanding any provision in § 45-21-43.1 to the contrary, determination of the |
17 | employer contribution rate of the closed West Warwick pension plan for police and fire pursuant |
18 | to this section shall be computed using an amortization period for the unfunded actuarial accrued |
19 | liability as determined by the board, based upon the recommendation of the plan's actuary. Future |
20 | actuarial gains and losses accruing within a plan year will be amortized over individual new twenty |
21 | (20) year closed periods consistent with § 45-21-43.1(c). |
22 | (j) Notwithstanding any provision in § 45-21-56 to the contrary, if a West Warwick pension |
23 | plan for police and fire pursuant to this section is in critical status as defined in § 45-65-4, and a |
24 | member of the West Warwick pension plan for police and fire leaves employment and is hired by |
25 | another participating municipality that is not in critical status as defined in § 45-65-4, then the |
26 | retirement system shall transfer the amount of the member’s contributions and member's total |
27 | accrued liability with the West Warwick pension plan for police and fire, multiplied by the funded |
28 | status of the West Warwick pension plan for police and fire, to the account of the current employing |
29 | municipality. |
30 | (k) Upon the conditions of subsection (b) of this section being met, the town of West |
31 | Warwick shall remain liable to the retirement system for the cost of funding a retirement system |
32 | for its employees who are members of the system as provided herein, and the retirement board |
33 | maintains the right to enforce payment of any liability as provided in chapter 21 of this title. |
34 | (l) Subject to the provisions of subsection (b) of this section being met, the West Warwick |
| LC003000/SUB A - Page 7 of 10 |
1 | plan for police and fire and the provisions of this section shall be administered in the same manner |
2 | provided in chapter 21 of this title; credits for prior service and collection of contributions are |
3 | determined through reference to that chapter; provided that, where the provisions of that chapter |
4 | conflict with the provisions of this chapter, then the provisions of this chapter shall control. Liability |
5 | of contributions is enforced in the same manner as stated in chapter 21 of this title. |
6 | 45-21.5-5. Retiree participation in optional retirement plan for police and fire. |
7 | (a) The provisions of this section shall apply only to the locally-administered plan for |
8 | police and fire within the town of West Warwick. |
9 | (b)(1) Notwithstanding any provision of this chapter to the contrary, no later than August |
10 | 31, 2021, West Warwick may accept the provisions of this chapter by resolution or an ordinance |
11 | of its governing body stating the group or groups of retired former employees to be included as |
12 | provided in § 45-21-4; provided that, a majority of retired former employees have consented in |
13 | writing to joining the system or any duly constituted retiree organization that represents said retired |
14 | former employees has assented to joining the system; and, provided further that, any applicable |
15 | final and consent judgments are amended. A copy of the resolution or ordinance and proof of assent |
16 | from the applicable retiree organization, and/or amendment to any final and consent judgments, |
17 | shall be immediately forwarded to the retirement board for review. A vote of the retirement board |
18 | to accept the entry of the group or groups of retirees into the system shall be required. |
19 | (2) For purposes of this section, "retired former employees" means any member of the West |
20 | Warwick plan for police and fire who has retired prior to September 1, 2021. |
21 | (c)(1) Notwithstanding any other provisions of this section or other applicable law, upon |
22 | acceptance into the system, all retired former employees and their beneficiaries shall continue to |
23 | be subject to all plan provisions, as set forth by the plan, collective bargaining agreement, |
24 | memorandum of agreement, arbitration award, final and consent judgment and/or any individual |
25 | contractual agreement between any nonunion employee and the town in effect upon the retired |
26 | former employee’s date of retirement. These provisions shall include, but are not limited to, |
27 | applicable retirement ages, plan restrictions, accrual rates, contribution requirements, eligibility |
28 | requirements, benefit calculations and any and all provisions related to postemployment benefits, |
29 | death benefits, cost-of-living adjustments, and rules permitting employment in and pension credit |
30 | accrual within other municipalities or the state which are participants in any other retirement plan |
31 | administered by the state. The intent of this section is that all retired former employees of the West |
32 | Warwick plan, including police and fire, shall continue to enjoy all benefits and be subject to the |
33 | same terms of the pension plan in existence upon his or her date of retirement and that the municipal |
34 | employees’ retirement system shall administer, but not change, the pension plan benefits and terms |
| LC003000/SUB A - Page 8 of 10 |
1 | formerly provided by the town unless expressly provided otherwise in this section. |
2 | (2) Retired former employees under this section, shall not be entitled to any retirement |
3 | allowance or benefit from the system otherwise available or calculated pursuant to the provisions |
4 | 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 |
5 | Warwick pension benefit. |
6 | (d) The cost to evaluate West Warwick’s prospective membership in the retirement system, |
7 | and costs related to obtaining consent of retirees to join the system pursuant to this section, shall |
8 | be borne by the retirement board. |
9 | (e) Upon the conditions of subsection (b) of this section being met, the town of West |
10 | Warwick shall remain liable to the retirement system for the cost of funding a retirement system |
11 | for its retired public safety employees who are members of the system as provided herein, and the |
12 | retirement board maintains the right to enforce payment of any liability as provided in chapter 21 |
13 | of this title. |
14 | (f) Subject to the provisions of subsection (b) of this section being met, the provisions of |
15 | this section shall be administered in the same manner provided in chapter 21 of this title; provided |
16 | that, where the provisions of that chapter conflict with the provisions of this chapter, then the |
17 | provisions of this chapter shall control. Liability of the municipality is enforced in the same manner |
18 | as stated in chapter 21 of this title. |
19 | 45-21.5-6. Transfer of assets. |
20 | Subject to the provisions of §§ 45-21.5-2(b) and 45-21.5-3(b) being met, no later than July |
21 | 1, 2022, the system shall be responsible for administering the West Warwick plans and West |
22 | Warwick shall transfer to the system the accumulated contributions of each member entering the |
23 | system, the assets related to the actuarial accrued liability of those transferred employees and any |
24 | other assets of the West Warwick plans. |
25 | 45-21.5-7. Funding improvement period. |
26 | 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) |
27 | being met, the funding improvement plan submitted by the town of West Warwick on March 29, |
28 | 2014 shall have a funding improvement period of twenty (20) years for purposes of § 36-10.2-8. |
29 | 45-21.5-8. Withdrawal from the municipal employees' retirement system. |
30 | Withdrawal of any West Warwick plan that has joined the municipal employee retirement |
31 | system pursuant to this chapter shall be as provided in § 45-21-5 and subject to §§ 45-21-6 and 45- |
32 | 21-7. Any such withdrawal shall not relieve West Warwick from the liabilities arising from its |
33 | membership as set forth §§ 45-21-5, 45-21-6 or 45-21-7. |
34 | SECTION 2. This act shall take effect upon passage. |
| LC003000/SUB A - Page 9 of 10 |
======== | |
LC003000/SUB A | |
======== | |
| LC003000/SUB A - Page 10 of 10 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TOWNS AND CITIES --WEST WARWICK PENSION PLAN | |
*** | |
1 | This act would authorize the town of West Warwick to join the State Employees' |
2 | Retirement System of Rhode Island. |
3 | This act would take effect upon passage. |
======== | |
LC003000/SUB A | |
======== | |
| LC003000/SUB A - Page 11 of 10 |