Introduced By: Senators Gibbs, Enos, and Breene
Date Introduced : February 5, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Sections 45-21-56 and 45-21-12.1 of the General Laws in Chapter 45-21 entitled "Retirement of Municipal Employees" are hereby amended to read as follows:
45-21-56. Credit for other municipal service. -- (a) Any member who shall have been employed by a municipality, as defined in section 45-21-2, which did not elect to accept this chapter, as provided in section 45-21-4, shall be given credit for that service for the various purposes of this system, provided the member pays to the retirement system a lump sum amount equal to the full actuarial cost of that credit as certified by the retirement board.
(b) The retirement board shall fix and determine rules and regulations to govern the provisions of this section.
{ADD (c) If any member who was employed by a participating municipality is subsequently hired by a different participating municipality, his or her service credits from the former employer shall transfer in toto to the current employer. The retirement system shall transfer all prior employee contributions to the account of the current employing municipality and shall calculate the full actuarial value of the accrued benefit with the former employing municipality. If the full actuarial value of the accrued benefit with the former employer is greater than the total employee contributions transferred, the retirement system shall also transfer the difference between the full actuarial value of the accrued benefit with the former employer and the employee's contributions from the account of the former employing municipality to the account of the current employing municipality. ADD}
45-21-12.1. Credit for service as a teacher or state employee.
-- Any member who shall have rendered service as a teacher,
as defined under the provisions of chapters 16 and 17 of title
16, or as a state employee, as defined by the provisions of chapters
8 to 10, inclusive of title 36, shall be entitled to credit for
that service for the various purposes of this system, provided
the member shall have been a contributing member for that period.
All contributions made by the member for those periods of service
shall be transferred in toto to this system {DEL . DEL} {ADD and
the retirement system shall calculate the full actuarial value
of the accrued benefit with the former employer. If the full
actuarial value of the accrued benefit with the former employer
is greater than the total employee contributions transferred,
the retirement system shall also transfer the difference between
the full actuarial value of the accrued benefit with the former
employer and the employee's contributions from the account of
the former employer to the account of the current employing municipality. ADD}
In any case in which a member shall have received a refund or
refunds of contributions made to the system, the allowance of
the aforesaid credit for service shall be conditioned upon the
repayment of the refund or refunds, including regular interest
from the date of refund to the date of repayment. Any service
as defined herein for which no contributions were made, may be
granted, provided the member pays to the retirement system a lump
sum payment equal to the amount had he or she been a member during
that period, plus interest as defined hereinabove. The retirement
board shall fix and determine such rules and regulations as are
needed to govern the provisions of this section.
SECTION 2. Section 36-9-20 of the General Laws in Chapter 36-9 entitled "Retirement System--Membership and Service Credits" is hereby amended to read as follows:
36-9-20. Credit for service as a teacher, municipal employee, or legislator. -- (a) Any state employee who shall have rendered service as a teacher as defined under the provisions of chapters 16 and 17 of title 16 shall be entitled to credit for that service for the various purposes of this system, provided the member shall have been a contributing member of this system for that period. Any state employee who shall have been a contributing member of the municipal system as defined under the provisions of chapter 21 of title 45 shall be given credit for that service for the various purposes of this system, provided the member's contributions are transferred to this system. All contributions made by the member shall be transferred in to this system for the periods of service: {ADD and the retirement system shall calculate the full actuarial value of the accrued benefit with the former employer. If the full actuarial value of the accrued benefit with the former employer is greater than the total employee contributions transferred, the retirement system shall also transfer the difference between the full actuarial value of the accrued benefit with the former employer and the employee's contributions from the account of the former employer to the account of the current employer. ADD} In any case in which a member shall have received a refund or refunds of contributions made to the system, the allowance of the aforesaid credit for service shall be conditioned upon the repayment of the refund or refunds, including regular interest from the date of refund to the date of repayment. Any service as defined herein for which no contributions were made may be granted provided the member pays to the retirement system a lump sum amount equal to the amount he or she would have contributed had he or she been a member during that period, plus interest as determined by the retirement board. Any state employee or teacher as defined under the provisions of chapters 16 and 17 of title 16 who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in section 45-21-4 shall be given credit for that service for the various purposes of this system, provided that the employee shall have met the definitional requirements of "employee" as stated in section 45-21-2(5) and provided the member pays to the retirement system a lump sum amount equal to the full actuarial value of the credit as certified by the retirement board; provided, however, that any state employee who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in section 45-21-4 shall be given credit for that service for the various purposes of this system, to a maximum period of four (4) years, provided the member pays to the retirement system a lump sum amount equal to ten percent (10%) of his or her entry level salary in the state retirement system multiplied by the number of years in which he or she seeks membership service credit prior to December 31, 1986. Nothing in this section shall be deemed to allow the purchase of four (4) years of service for credit in more than one retirement system.
(b) The retirement board shall fix and determine rules and regulations to govern the provisions of this section.
SECTION 3. Section 16-16-8 of the General Laws in Chapter 16-16 entitled "Teachers' Retirement" is hereby amended to read as follows:
16-16-8. Credit for service as a state or municipal employee. -- Any member who shall have rendered service as a state employee as defined by the provisions of chapter 17 of this title and chapters 8 to 10 of title 36 or who shall have rendered service as an employee of a participating municipality, as defined by chapter 21 of title 45, shall be entitled to credit for his or her service for the various purposes of this system, provided the member shall have been a contributing member for that period. All contributions made by the member shall be transferred in to this system for the periods of service {ADD and the retirement system shall calculate the full actuarial value of the accrued benefit with the former employer. If the full actuarial value of the accrued benefit with the former employee is greater than then total employee contributions transferred, the retirement system shall also transfer the difference between the full actuarial value of the accrued benefit with the former employer and the employee's contributions from the account of the former employer to the account of the current employer ADD}. In any case in which a member shall have received a refund or refunds of contributions made to the system, the allowance of the credit for service shall be conditioned upon the repayment of the refund or refunds, including regular interest from the date of refund to the date of repayment. Any service as defined herein for which no contributions were made may be granted provided the member pays to the retirement system a lump sum payment equal to the amount he or she would have contributed had he or she been a member during the period, plus interest as defined hereinabove. The retirement board shall fix and determine such rules and regulations as are needed to govern the provisions of this section.
SECTION 4. {ADD Severability. If any provision to this act or the application thereof to any person or circumstances is held invalid such invalidity shall not effect other provisions or applications of the act, which can be given effect without the invalid provisions or application, and to this end the provisions of this act are declared to be severable. ADD}
SECTION 5. This act shall take effect upon passage.
