2022 -- S 2844

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LC005638

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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: Senators Cano, DiPalma, Murray, and Felag

     Date Introduced: April 05, 2022

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

amended to read as follows:

     16-16-22. Contributions to state system.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

hundredth of one percent (.01%).

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

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

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

formalized commissioner-approved cooperative service arrangement by whom the teacher

members are employed.

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

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

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

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

state.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     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

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

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

     This act would take effect upon passage.

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