2022 -- H 8075

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LC005647

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO EDUCATION -- TEACHERS' RETIREMENT

     

     Introduced By: Representative Joseph M. McNamara

     Date Introduced: April 01, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-16-22 of the General Laws in Chapter 16-16 entitled "Teachers'

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Retirement [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby

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amended to read as follows:

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     16-16-22. Contributions to state system.

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     (a) Prior to July 1, 2012, each teacher shall contribute into the system nine and one-half

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percent (9.5%) of compensation as his or her share of the cost of annuities, benefits, and allowances.

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Effective July 1, 2012, each teacher shall contribute an amount equal to three and three quarters

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percent (3.75%) of his or her compensation. Effective July 1, 2015, each teacher with twenty (20)

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or more years of total service as of June 30, 2012, shall contribute an amount equal to eleven percent

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(11%) of his or her compensation. The employer contribution on behalf of teacher members of the

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system shall be in an amount that will pay a rate percent of the compensation paid to the members,

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according to the method of financing prescribed in the state retirement act in chapters 8 -- 10 and

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10.3 of title 36. This amount shall be paid forty percent (40%) by the state and sixty percent (60%)

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by the city, town, local educational agency, or any formalized commissioner-approved cooperative

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service arrangement by whom the teacher members are employed,; provided, however, effective

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July 1, 2022, the amount paid by the state shall be forty-two percent (42%) and fifty-eight percent

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(58%) by the city, town or local educational agency; effective July 1, 2023, the amount paid by the

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state shall be forty-four percent (44%) and fifty-six percent (56%) by the city, town or local

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educational agency; effective July 1, 2024, the amount paid by the state shall be forty-six percent

 

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(46%) and fifty-four percent (54%) by the city, town or local educational agency; effective July 1,

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2025, the amount paid by the state shall be forty-eight percent (48%) and fifty-two percent (52%)

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by the city, town or local educational agency; effective July 1, 2026, the amount paid by the state

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shall be fifty percent (50%) and fifty percent (50%) by the city, town or local educational agency;

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effective July 1, 2027, the amount paid by the state shall be fifty-two percent (52%) and forty-eight

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percent (48%) by the city, town or local educational agency; effective July 1, 2028, the amount

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paid by the state shall be fifty-four percent (54%) and forty-six percent (46%) by the city, town or

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local educational agency; effective July 1, 2029, the amount paid by the state shall be fifty-six

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percent (56%) and forty-four percent (44%) by the city, town or local educational agency; effective

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July 1, 2030, the amount paid by the state shall be fifty-eight percent (58%) and forty-two percent

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(42%) by the city, town or local educational agency; effective July 1, 2031, the amount paid by the

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state shall be sixty percent (60%) and forty percent (40%) by the city, town or local educational

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agency; with the exception of teachers who work in federally funded projects and further with the

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exception of any supplemental contributions by a local municipality employer under chapter 10.3

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of title 36 which supplemental employer contributions shall be made wholly by the local

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municipality. Provided, however, that the rate percent paid shall be rounded to the nearest

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hundredth of one percent (.01%).

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

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

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

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formalized commissioner-approved cooperative service arrangement by whom the teacher

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members are employed.

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

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

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

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

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state.

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

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in this section for the city, town, or local educational agency and under the same payment schedule.

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Notwithstanding any other provisions of this chapter, the city, town, or local educational agency or

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any formalized commissioner-approved cooperative service arrangement shall remit to the general

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treasurer of the state the local employer's share of the teacher's retirement on the date contributions

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are withheld but no later than three (3) business days following the pay period ending in which

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contributions were withheld. The amounts that would have been contributed shall be deposited by

 

LC005647 - Page 2 of 4

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the state in a special fund and not used for any purpose. The general treasurer, upon receipt of the

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local employer's share, shall effect transfer of a matching amount of money from the state funds

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appropriated for this purpose by the general assembly into the retirement fund.

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

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the state shall ensure that any local education aid reduction assumed for the FY 2010 revised budget

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

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

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     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 EDUCATION -- TEACHERS' RETIREMENT

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     This act would, effective July 1, 2022, increase the amount contributed by the state by two

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percent (2%) each year through the fiscal year starting on July 1, 2031. It would also reduce the

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amount contributed by the city, town or local educational agency by the corresponding amount.

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     This act would take effect upon passage.

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