2024 -- S 2329

========

LC003779

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

____________

A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM--

MEMBERSHIP AND SERVICE CREDITS

     

     Introduced By: Senators DiPalma, Ciccone, Felag, Tikoian, Acosta, Britto, and Zurier

     Date Introduced: February 12, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

1

     SECTION 1. Section 36-9-31 of the General Laws in Chapter 36-9 entitled "Retirement

2

System - Membership and Service Credits" is hereby amended to read as follows:

3

     36-9-31. Armed service credit.

4

     (a) Any active member of the retirement system, who served on active duty in the armed

5

service of the United States or in the Merchant Marine service of the United States as defined in

6

P.L. 1946, ch. 1721, § 2 may purchase credit for that service up to a maximum of four (4) years

7

provided that he or she has received an honorable discharge. Provided further that any employee

8

on an official leave of absence for illness or injury shall be eligible to purchase military credits as

9

defined herein while on the leave of absence.

10

     (b) For members of the retirement system, who served in the national guard or reserves,

11

who qualify as a veteran, may purchase creditable service at a ratio of five (5) years of guard or

12

reserve service to one year of creditable service, up to a maximum of four (4) years; provided that,

13

he or she has received an honorable discharge. Provided further, that any employee on an official

14

leave of absence for illness or injury shall be eligible to purchase military credits as defined herein

15

while on the leave of absence.

16

     (b)(c) The cost to purchase these credits shall be ten percent (10%) of the member's first

17

year's earnings as a state employee as defined in chapter 9 of this title, multiplied by the number of

18

years and fraction thereof of the armed service or Merchant Marine service up to a maximum of

 

1

four (4) years.

2

     (c)(d)There will be no interest charge provided the member makes that purchase during his

3

or her first five (5) years of membership in the retirement system, but will be charged regular

4

interest to date of purchase from date of enrollment into membership if purchased after completing

5

five (5) years of membership; provided, however, any member who was in the retirement system

6

prior to July 1, 1980, would not be charged interest whenever he or she purchases the armed

7

services credit.

8

     36-9-31. Armed service credit.

9

     (a) Any active member of the retirement system, who served on active duty in the armed

10

service of the United States or in the Merchant Marine service of the United States as defined in

11

P.L. 1946, ch. 1721, § 2 may purchase credit for that service up to a maximum of four (4) years

12

provided that he or she has received an honorable discharge. Provided further that any employee

13

on an official leave of absence for illness or injury shall be eligible to purchase military credits as

14

defined herein while on the leave of absence.

15

     (b) For members of the retirement system, who served in the national guard or reserves,

16

who qualify as a veteran, may purchase creditable service at a ratio of five (5) years of guard or

17

reserve service to one year of creditable service, up to a maximum of four (4) years; provided that,

18

he or she has received an honorable discharge. Provided further, that any employee on an official

19

leave of absence for illness or injury shall be eligible to purchase military credits, as defined herein

20

while on the leave of absence.

21

     (b)(c) The cost to purchase these credits shall be ten percent (10%) of the member’s first

22

year’s earnings as a state employee as defined in chapter 9 of this title, multiplied by the number

23

of years and fraction thereof of the armed service or Merchant Marine service up to a maximum of

24

four (4) years.

25

     (c)(d) There will be no interest charge provided the member makes that purchase during

26

his or her first five (5) years of membership in the retirement system, but will be charged regular

27

interest to date of purchase from date of enrollment into membership if purchased after completing

28

five (5) years of membership; provided, however, any member who was in the retirement system

29

prior to July 1, 1980, would not be charged interest whenever he or she purchases the armed

30

services credit.

31

     SECTION 2. This act shall take effect upon passage.

========

LC003779

========

 

LC003779 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM--

MEMBERSHIP AND SERVICE CREDITS

***

1

     This act would allow members of the retirement system who served in the national guard

2

or reserves and who qualify as veterans to purchase retirement service credits.

3

     This act would take effect upon passage.

========

LC003779

========

 

LC003779 - Page 3 of 3