Chapter 010
2010 -- S 2818
Enacted 05/01/10
A N A C T
RELATING TO
STATE RETIREMENT SYSTEM
Introduced By: Senator Daniel DaPonte
Date Introduced: April 28, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. Section 36-10-2 of the General Laws in Chapter
36-10 entitled "Retirement
System-Contributions and
Benefits" is hereby amended to read as follows:
36-10-2.
State contributions. -- (a) The State of Rhode
Island shall make its contribution
for the maintenance of the system, including the proper
and timely payment of benefits in
accordance with the provisions of this chapter and chapters 8,
16, 28, 31 and 42 of this title, by
annually appropriating an amount equal to a percentage of the
total compensation paid to the
active membership. The percentage shall be computed by the
actuary employed by the retirement
system and shall be certified by the retirement board to the
director of administration on or before
the fifteenth day of October in each year. In arriving at
the yearly employer contribution the
actuary shall determine the value of:
(1) The contributions
made by the members;
(2) Income on
investments; and
(3) Other income of the
system.
(b) The Actuary shall
thereupon compute the yearly employer contribution that will:
(1) Pay the actuarial
estimate of the normal cost for the next succeeding fiscal year;
(2) Amortize the
unfunded liability of the system as of June 30, 1999 utilizing a time
period not to exceed thirty (30) years.
(3) Provided, that
the employer contribution shall be deferred from the effective date of
this act until June 15, 2010. The amounts that would have
been contributed shall be deposited in a
special fund and not used for any purpose.
(c) The State of
the contribution for state employees, state police, and
judges on a payroll frequency basis, and for
teachers in a manner pursuant to section 16-16-22.
(d) (1) In accordance
with the intent of section 36-8-20 that the retirement system satisfy
the requirements of section 401(a) of the Internal
Revenue Code of 1986, the state shall pay to the
retirement system:
(i)
By June 30, 1995, an amount equal to the sum of the benefits paid to state
legislators
pursuant to section 36-10-10.1 in excess of ten thousand
dollars ($10,000) per member (plus
accrued interest on such amount at eight percent (8%)) for
all fiscal years beginning July 1, 1991,
and ending June 30, 1995, but this amount shall be paid
only if section 36-10-10.1(e) becomes
effective January 1, 1995; and
(ii) By December 31,
1994, twenty million seven hundred eighty eight thousand eight
hundred twelve dollars and nineteen cents ($20,788,812.19)
plus accrued interest on that amount
at eight percent (8%) compounded monthly beginning March
1, 1991, and ending on the date this
payment is completed (reduced by amortized amounts already
repaid to the retirement system
with respect to the amounts withdrawn by the state during
the fiscal year July 1, 1990 -- June 30,
1991); and
(iii) By June 30, 1995,
the sum of the amounts paid by the retirement system for retiree
health benefits described in section 36-12-4 for all fiscal
years beginning July 1, 1989, and ending
June 30, 1994, to the extent that the amounts were not
paid from the restricted fund described in
subsection (c).
(2) Any and all amounts
paid to the retirement system under this subsection shall not
increase the amount otherwise payable to the system by the
state of
subsection (a) for the applicable fiscal year. The actuary shall
make such adjustments in the
amortization bases and other accounts of the retirement system as he
or she deems appropriate to
carry out the provisions and intent of this subsection.
(e) In addition to the
contributions provided for in subsection (a) through (c) and in order
to provide supplemental employer contributions to the
retirement system, commencing in fiscal
year 2006, and each year thereafter:
(1) For each fiscal
year in which the actuarially determined state contribution rate for
state employees is lower than that for the prior fiscal
year, the governor shall include an
appropriation to that system equivalent to twenty percent (20%) of
the rate reduction for the
state's contribution rate for state employees to be applied
to the actuarial accrued liability of the
state employees' retirement system for state employees for
each fiscal year;
(2) For each fiscal
year in which the actuarially determined state contribution rate for
teachers is lower than that for the prior fiscal year, the
governor shall include an appropriation to
that system equivalent to twenty percent (20%) of the rate
reduction for the state's share of the
contribution rate for teachers to be applied to the actuarial
accrued liability of the state employees'
retirement system for teachers for each fiscal year;
(3) The amounts to be
appropriated shall be included in the annual appropriation bill and
shall be paid by the general treasurer into the retirement
system.
(f) While the
retirement system's actuary shall not adjust the computation of the annual
required contribution for the year in which supplemental
contributions are received, such
contributions once made may be treated as reducing the actuarial
liability remaining for
amortization in the next following actuarial valuation to be
performed.
SECTION 2. Section 16-16-22 of the General Laws in Chapter
16-16 entitled "Teachers'
Retirement" is hereby
amended to read as follows:
16-16-22.
Contributions to state system. -- (a) Each member 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. 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 of title 36. This amount shall be paid 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, with the
exception of teachers who
work in federally funded projects. 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 approved.
(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 payments on a monthly basis, payable by the fifteenth
(15th) of the following month,
provided that the employer contribution shall be deferred from
the effective date of this act until
June 15, 2010.
The amounts that would have been contributed shall be deposited by 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, provided that for
the period from the effective date of this act until June
15, 2010, the general treasurer shall not
make such transfer.
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 sections 45-13-7 through 45-13-10.
SECTION 3. Section 8-3-17 of the General Laws in Chapter 8-3
entitled "Justices of
Supreme,
8-3-17.
State contributions. -- The state of
the maintaining of the system established by section
8-3-16 and providing the annuities, benefits,
and retirement allowances in accordance with the
provisions of this chapter by annually
appropriating an amount which will pay a rate percent of the
compensation paid after December
31, 1989 to judges engaged after December 31, 1989.
Such rate percent shall be computed and
certified in accordance with the procedures set forth in
sections 36-8-13 and 36-10-2 under rules
and regulations promulgated by the retirement board
pursuant to section 36-8-3. Provided, that
the employer contribution shall be deferred from the
effective date of this act until June 15, 2010.
The amounts that would have been contributed shall be
deposited in a special fund and not used
for any purpose.
SECTION 4. Section 42-28-22.2 of the General Laws in Chapter
42-28 entitled "State
Police" is hereby
amended to read as follows:
for the maintaining of the system established by section
42-28-22.1 and providing the annuities,
benefits, and retirement allowances in accordance with the
provisions of this chapter by annually
appropriating an amount which will pay a rate percent of the
compensation paid after July 1, 1989
to members of the state police hired after July 1, 1987.
This rate percent shall be computed and
certified in accordance with the procedures set forth in
sections 36-8-13 and 36-10-2 under rules
and regulations promulgated by the retirement board
pursuant to section 36-8-3. Provided, that
the employer contribution shall be deferred from the
effective date of this act until June 15, 2010.
The amounts that would have been contributed shall be
deposited in a special fund and not used
for any purpose.
SECTION 5. Section 35-6-1 of the General Laws in Chapter
35-6 entitled "Accounts and
Control" is hereby amended
to read as follows:
35-6-1.
Controller -- Duties in general. -- (a) Within the department of administration
there shall be a controller who shall be appointed by the
director of administration pursuant to
chapter 4 of title 36. The controller shall be responsible
for accounting and expenditure control
and shall be required to:
(1) Administer a
comprehensive accounting and recording system which will classify the
transactions of the state departments and agencies in accordance
with the budget plan;
(2) Maintain control
accounts for all supplies, materials, and equipment for all
departments and agencies except as otherwise provided by law;
(3) Prescribe a
financial, accounting, and cost accounting system for state departments
and agencies;
(4) Preaudit
all state receipts and expenditures;
(5) Prepare financial
statements required by the several departments and agencies, by the
governor, or by the general assembly;
(6) Approve the orders
drawn on the general treasurer; provided, that the preaudit
of all
expenditures under authority of the legislative department and the
judicial department by the state
controller shall be purely ministerial, concerned only with the
legality of the expenditure and
availability of the funds, and in no event shall the state
controller interpose his or her judgment
regarding the wisdom or expediency of any item or items of
expenditure;
(7) Prepare and timely file,
on behalf of the state, any and all reports required by the
department or agency of the state, with respect to the state
payroll; and
(8) Prepare a
preliminary closing statement for each fiscal year. The controller shall
forward the statement to the chairpersons of the house
finance committee and the senate finance
committee, with copies to the house fiscal advisor and the
senate fiscal and policy advisor, by
September 1 following the fiscal year ending the prior
June 30 or thirty (30) days after enactment
of the appropriations act, whichever is later. The
report shall include but is not limited to:
(i)
A report of all revenues received by the state in the completed fiscal year,
together
with the estimates adopted for that year as contained in
the final enacted budget, and together
with all deviations between estimated revenues and actual
collections. The report shall also
include cash collections and accrual adjustments;
(ii) A comparison of
actual expenditures with each of the actual appropriations,
including supplemental appropriations and other adjustments
provided for in the
General Laws;
(iii) A statement of
the opening and closing surplus in the general revenue account; and
(iv)
A statement of the opening surplus, activity, and closing surplus in the
state budget
reserve and cash stabilization account and the state bond
capital fund.
(b) The controller
shall provide supporting information on revenues, expenditures,
capital projects, and debt service upon request of the house
finance committee chairperson, senate
finance committee chairperson, house fiscal advisor, or
senate fiscal and policy advisor.
(c) Upon issuance of
the audited annual financial statement, the controller shall provide a
report of the differences between the preliminary financial
report and the final report as contained
in the audited annual financial statement.
(d) Upon issuance of
the audited financial statement, the controller shall transfer all
general revenues received in the completed fiscal year net of
transfer to the state budget reserve
and cash stabilization account as required by section
35-3-20 in excess of those estimates adopted
for that year as contained in the final enacted budget to
the employees' retirement system of the
state of
(e) The controller shall
create a special fund not part of the general fund and shall deposit
amounts equivalent to all deferred contributions under this
act into that fund. From the special
funds for deferred contributions to the retirement system,
the controller shall transfer the amounts
due to the retirement system to the general treasurer who
shall transfer such amounts into the
retirement fund as appropriate.
(e) The controller
shall create a special fund not part of the general fund and shall deposit
amounts equivalent to all deferred contributions under this
act into that fund. Any amounts
remaining in the fund on June 15, 2010, shall be transferred to
the general treasurer who shall
transfer such amounts into the retirement system as
appropriate.
SECTION 6. This act shall take effect upon passage.
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LC02517
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