2012 -- S 2970

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LC02628

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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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 17, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 45-21-8 of the General Laws in Chapter 45-21 entitled "Retirement

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of Municipal Employees" is hereby amended to read as follows:

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     45-21-8. Membership in system. -- Membership in the retirement system does not begin

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before the effective date of participation in the system as provided in section 45-21-4, and

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consists of the following:

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      (a) Any employee of a participating municipality as defined in this chapter, who

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becomes an employee on and after the effective date of participation, shall, under contract of his

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or her employment, become a member of the retirement system; provided, that the employee is

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not receiving any pension or retirement allowance from any other pension or retirement system

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supported wholly or in part by a participating municipality, and is not a contributor to any other

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pension or retirement system of a participating municipality. Any employee who is elected to an

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office in the service of a municipality after the effective date and prior to July 1, 2012, has the

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option of becoming a member of the system, which option must be exercised within sixty (60)

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days following the date the employee assumes the duties of his or her office, otherwise that

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person is not entitled to participate under the provisions of this section;

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      (b) Any employee or elected official of a participating municipality in service prior to

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the effective date of participation, who is not a member of any other pension or retirement system

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supported wholly or in part by a participating municipality, and who does not notify the

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retirement board in writing before the expiration of sixty (60) days from the effective date of

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participation that he or she does not wish to join the system, shall automatically become a

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member; and

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      (c) Any employee of a participating municipality in service prior to the effective date of

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participation, who is a member of any other pension or retirement system supported wholly or in

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part by a participating municipality on the effective date of participation of their municipality,

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who then or thereafter makes written application to join this system, and waives and renounces all

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accrued rights and benefits of any other pension or retirement system supported wholly or in part

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by a participating municipality, becomes a member of this retirement system and shall not be

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required to make contribution under any other pension or retirement system of a participating

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municipality, any thing to the contrary notwithstanding.

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      (d) Notwithstanding the provisions of this section, present firefighters employed by the

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town of Johnston shall establish a pension plan separate from the state of Rhode Island retirement

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system. If the town of Johnston is thirty (30) days or more late on employer or employee

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contributions to the pension plan, the auditor general is authorized to redirect any Johnston funds

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to cover the shortfall or to deduct that amount from any moneys due the town from the state for

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any purpose other than for education. Disability determinations of present firefighters shall be

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made by the state retirement board, subject to the provisions of section 45-21-19 at the town of

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Johnston's expense. All new firefighters hired by the town of Johnston shall become members of

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the state retirement system.

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      (e) Notwithstanding the provisions of this section, any City of Cranston employees, who

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are presently members of Teamsters Local Union No. 251, hired between the dates of July 1,

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2005 and June 30, 2010 inclusive and who are currently members of the retirement system

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established by this chapter, may opt out of said retirement system and choose to enroll in a

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

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Cranston.

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      (f) Notwithstanding the provisions of this section, any City of Cranston employees, who

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will be members of Teamsters Local Union No. 251, hired after June 30, 2010 shall be enrolled in

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

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

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      (g) Notwithstanding the provisions of this section, any City of Cranston employees

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defined in (e) and (f) of this section shall be precluded from purchase of service credit for time

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served on or after July 1, 2010 while participating in the defined contribution plan (i.e., a 403 (b)

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plan or equivalent thereof) established by the City of Cranston should the member cease

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employment with the City of Cranston or Teamsters Local Union No. 251 and re-enter the system

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with another participating employer who has accepted the provisions, as defined, in section 45-

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21-4.

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     (h) Notwithstanding the provisions of this section, any town of Middletown employees,

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who will be members of the Teamsters Local Union No. 251 bargaining unit, hired after June 30,

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2012, shall 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 and shall not be members of the retirement system

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established by this chapter. Said town of Middletown employees defined herein shall be

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precluded from the purchase of service credit for time served on or after July 1, 2012 while

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participating in the defined contribution plan (i.e., a 403(b) plan or equivalent thereof) established

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by the town of Middletown should the member cease employment with the town of Middletown

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or in the Teamsters Local Union No. 251 bargaining unit and re-enter the system with any

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participating employer who has accepted the provisions, as defined in section 45-21-4.

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     (i) Notwithstanding the provisions of this section, any town of Middletown employees,

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who will be members of the Middletown Municipal Employees Association NEARI Local 869

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bargaining unit, hired after June 30, 2012, shall be enrolled in a defined contribution plan (i.e., a

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403(b) plan or equivalent thereof) established by the town of Middletown and shall not be

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members of the retirement system established by this chapter. Said town of Middletown

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employees defined herein shall be precluded from the purchase of service credit for time served

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on or after July 1, 2012 while participating in the defined contribution plan (i.e., a 403(b) plan or

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equivalent thereof) established by the town of Middletown should the member cease employment

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with the town of Middletown or in the Middletown Municipal Employees Association NEARI

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Local 869 bargaining unit and re-enter the system with any participating employer who has

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accepted the provisions, as defined in section 45-21-4.

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     SECTION 2. This act shall take effect upon passage.

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LC02628

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EXPLANATION

OF

A N A C T

RELATING TO TOWNS AND CITIES -- RETIREMENT OF MUNICIPAL EMPLOYEES

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     This act would require that all town of Middletown employees hired after June 30, 2012,

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who will be members of the Teamsters Local Union No. 251 bargaining unit or the Middletown

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Municipal Employees Association NEARI Local 869 bargaining unit would be enrolled in a

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defined contribution plan (i.e., 403(b) plan or equivalent thereof) in lieu of the state municipal

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employees retirement plan. Also, Middletown employees, if participating in a 403(b) plan, would

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be precluded from purchase of service credit for time served after July 1, 2012.

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     This act would take effect upon passage.

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LC02628

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