2022 -- S 2956

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LC005993

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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 TOWNS AND CITIES -- RETIREMENT OF MUNICIPAL EMPLOYEES

     Introduced By: Senator Louis P. DiPalma

     Date Introduced: May 19, 2022

     Referred To: Senate Finance

     (by request)

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

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

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     (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 subsections (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 who are not at the time of hire active members of the retirement system established by

this chapter and who were never active members of the retirement system established by this

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

dispatchers, hired after June 30, 2012, and who are not at the time of hire active members of the

retirement system established by this chapter and who were never active members of the retirement

system established by this chapter, and any town of Middletown employees who are not affiliated

with any recognized collective bargaining representative or union hired after June 30, 2012, and

who are not at the time of hire active members of the retirement system established by this chapter

and who were never active members of the retirement system established by this chapter, 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. Any town of Middletown employees hired after June 30, 2022,

who are at the time of hire active members of the retirement system established by this chapter or

who were previously active members of the retirement system established by this chapter shall

remain as such active members or shall be re-instated as active members, as the case may be, and

shall not be enrolled in a defined contribution plan (i.e., a 403(b) plan or equivalent thereof)

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established by the town of Middletown. Moreover, any town of Middletown employee who was at

the time of hire an active member of the retirement system established by this chapter or who was

previously an active member of the retirement system established by this chapter, but who was

forced to become or remain an inactive member by virtue of their having been hired by the town

of Middletown at a time when such was required by law, may (by December 31, 2022, and not

thereafter) request in writing to be dis-enrolled from the town of Middletown's defined contribution

plan and to have their contributions refunded to them; to be reinstated as an active member of the

retirement system established by this chapter; and to be allowed to purchase service credit for their

service while participating in Middletown's defined contribution plan (notwithstanding the

preclusion provided above in this subsection), which request, if timely made, shall be allowed. To

be clear, persons reinstated under the terms of this section as active members of the retirement

system established by this chapter shall be reinstated only with such service credits, if any, as they

may have earned or purchased in accordance with the law and are thereafter subject to all laws and

rules otherwise applicable to active members.

     (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, and who are not at the time of hire active members of the

retirement system established by this chapter and who were never active members of the retirement

system established by this chapter, 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 unit and re-

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

45-21-4. Any town of Middletown employees hired after June 30, 2022, who are at the time of hire

active members of the retirement system established by this chapter or who were previously active

members of the retirement system established by this chapter shall remain as such active members

or shall be re-instated as active members, as the case may be, and shall not be enrolled in a defined

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

Moreover, any town of Middletown employee who was at the time of hire an active member of the

retirement system established by this chapter or who was previously an active member of the

retirement system established by this chapter, but who was forced to become or remain an inactive

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member by virtue of their having been hired by the town of Middletown at a time when such was

required by law, may (by December 31, 2022, and not thereafter) request in writing to be

disenrolled from the town of Middletown's defined contribution plan and to have their contributions

refunded to them; to be reinstated as an active member of the retirement system established by this

chapter; and to be allowed to purchase service credit for their service while participating in

Middletown's defined contribution plan (notwithstanding the preclusion provided above in this

subsection), which request, if timely made, shall be allowed. To be clear, persons reinstated under

the terms of this section as active members of the retirement system established by this chapter

shall be reinstated only with such service credits, if any, as they may have earned or purchased in

accordance with the law and are thereafter subject to all laws and rules otherwise applicable to

active members.

     (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 (l) 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)

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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

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     This act would allow town of Middletown employees hired after June 30, 2022, various

options relating to enrollment in the town's defined contribution plan up to and including December

31, 2022.

     This act would take effect upon passage.

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