2024 -- S 2428

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LC004997

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

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

CONTRIBUTIONS AND BENEFITS

     

     Introduced By: Senators Ciccone, F. Lombardi, Tikoian, LaMountain, and Burke

     Date Introduced: February 12, 2024

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 36-10 of the General Laws entitled "Retirement System —

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Contributions and Benefits" is hereby amended by adding thereto the following section:

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     36-10-41. Protection of benefits payable upon death or disability of a state or federal

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employee.

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     (a) For purposes of this section the following terms shall have the following meanings:

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     (1) “Benefit” means a payment whether a lump sum or a series of payments. A benefit may

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be due as a death benefit, survivor pension, return of contributions, distribution of an account

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balance, or any other payment due to the death or disability of a participant as defined herein.

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     (2) “Beneficiary” means a person, estate, trust, or other entity entitled to a benefit as the

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result of the death or disability of a participant as that term is defined herein.

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     (3) “Participant” means a person who was or is a state or federal employee eligible to

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participate in one of the following programs:

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     (i) The Federal Employees Retirement System (FERS);

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     (ii) The Civil Service Retirement System (CSRS);

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     (iii) The federal Thrift Savings Program (TSP);

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     (iv) Veterans pension;

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     (v) A retirement benefit pursuant to 28 U.SC. § 371;

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     (vi) A defined benefit plan administered by the Rhode Island retirement board pursuant to

 

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titles 16, 36 or 45;

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     (vii) A defined contribution plan established pursuant § 36-9-10.3; or

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     (viii) A defined benefit plan qualifying under 26 U.S.C. §§ 401(a), 414(d) and 414(k)

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administered by a municipality pursuant to any act of the general assembly or pursuant to title 45.

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     (b) Any benefit due to any beneficiary shall be exempt from lien, attachment, or

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garnishment and shall not be transferable or assignable; provided, however, that any governmental

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agency which may have a claim on money due from one of its employees related to their

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employment in the agency shall have the right to the payment at the time any refund of contributions

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is made to the participant or beneficiary and the provisions of this section shall not act to defeat a

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lien or order for spousal or child support.

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     (c) A beneficiary may disclaim any right to receive all or part of their benefits as follows:

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     (1) If the beneficiary disclaiming all or any part of the benefits is a minor, the parent or

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guardian of the minor shall sign the disclaimer.

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     (2) Notwithstanding the provisions of chapter 3 of title 33, in the event of the death or

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incapacity of a beneficiary, the guardian, executor, executrix, administrator, administratrix or

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personal representative of the beneficiary shall be authorized to execute the disclaimer subject only

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to the limitations in this section.

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     (3) The disclaimer shall expressly state that the beneficiary is disclaiming their right to

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receive all or a specified percentage of the benefit payable from the account or plan of the named

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participant and shall be:

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     (i) Submitted in writing;

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     (ii) Signed or acknowledged in the presence of a notary public, by the beneficiary or the

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legal representative of the beneficiary disclaiming the benefit; and

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     (iii) Received by the plan administrator before payment of the benefit.

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     (4) A disclaimer is invalid if it:

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     (i) Is revocable;

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     (ii) Directs to whom the disclaimed benefit should be paid; or

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     (iii) Specifies which balance or fund, such as traditional, Roth or tax-exempt, is disclaimed.

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     (5) The disclaimed benefit or the disclaimed portion thereof will be paid as though the

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beneficiary predeceased the participant. Any part of the benefit which is not disclaimed will be paid

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to the beneficiary.

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     (6) Insofar as similar language is used, the provisions of subsection (d) of this section shall

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be interpreted in a similar way as the provisions of 5 C.F.R. § 1651.17 to provide uniformity in

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interpretation among the agencies and courts of the federal government and the several states.

 

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     (d) The provisions of subsections (b) and (c) of this section shall be applicable to prevent

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any lien from arising or attaching under chapter 8 of title 40 and/or dissolve and prevent the

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reattachment of any lien in the event a valid disclaimer is made.

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     (e) The provisions of this sections shall be read to provide additional powers to guardians

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and shall not act to limit the provisions of § 33-15-37.1.

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     (f) Any guardianship or estate opened in any probate court to administer the property or

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rights of a decedent that was pending at the time of the passage of this section or that is pending on

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appeal to the superior court or supreme court and qualifies under this section shall be eligible to

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take advantage of the provisions of this section.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

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

CONTRIBUTIONS AND BENEFITS

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     This act would provide that any benefit that a beneficiary is entitled to shall be exempt

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from lien, attachment or garnishment and would not be transferable or assignable and provides

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provisions for disclaiming any such benefit with regard to benefits paid upon the death or disability

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of a state or federal employee.

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     This act would take effect upon passage.

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