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2012 -- S 2824 | |
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LC02070 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO TOWNS AND CITIES | |
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Introduced By: Senators DaPonte, and Bates | |
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Date Introduced: March 22, 2012 | |
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Referred To: Senate Finance | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby |
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amended by adding thereto the following chapter: |
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CHAPTER 21.4 |
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MUNICIPAL RETIREMENT PROGRAMS |
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45-21.4-1. Purpose. – It is the intent of this chapter to ensure that towns and cities have |
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the authority to modify retirement benefits for non-vested municipal employees. |
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45-21.4-2. Definitions. – Terms used in this chapter shall have the same meanings as |
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contained in section 45-21-2. |
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45-21.4-3. Limits on retirement benefits. – Notwithstanding any general law or special |
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law of the state of Rhode Island to the contrary no current municipal ordinance, collective |
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bargaining agreement, or interest arbitration award shall require employee retirement benefits that |
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exceed the actuarial value of benefits afforded under state law for those municipal employees |
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who participate in the municipal employees retirement system as authorized by chapters 45-21, |
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45-21.1, and 45-21.2 of the Rhode Island general laws. For employees who have not already |
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reached their vesting date in a pension plan that provides benefits with greater actuarial value |
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under the municipal employees retirement system as authorized by chapters 45-21, 45-21.1, and |
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45-21.2 of the Rhode Island general laws, and except as further limited by this chapter, town and |
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city councils following normal procedures for approval of an ordinance are authorized to amend |
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the retirement benefits for new and non-vested employees and such action shall take precedence |
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over existing collective bargaining agreements for new and non-vested employees. |
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45-21.4-4. Reporting. – Prior to final action on such ordinance, the town or city clerk |
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shall forward to the executive director of the state retirement system an actuarial study by a |
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qualified actuarial firm which shall compute the normal cost of the benefits afforded to new |
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and/or non-vested employees under the proposed ordinance. Such actuarial study shall be a public |
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document and such reports shall be codified by the executive director in an annual report to the |
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retirement board. |
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SECTION 2. This act shall take effect upon passage. |
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LC02070 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO TOWNS AND CITIES | |
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This act would prohibit municipal ordinances, collective bargaining agreements, and |
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interest arbitration awards from providing employee retirement benefits which exceed the |
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actuarial value of benefits afforded under the municipal employees retirement system. This act |
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would also authorize town and city councils to amend retirement benefits for new and non-vested |
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employees. |
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This act would take effect upon passage. |
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LC02070 | |
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