2024 -- S 2756

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LC004941

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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 TOWNS AND CITIES -- RETIREMENT SECURITY ACT FOR LOCALLY

ADMINISTERED PENSION FUNDS

     Introduced By: Senators Felag, Tikoian, Ciccone, DiPalma, and F. Lombardi

     Date Introduced: March 08, 2024

     Referred To: Senate Finance

     (General Treasurer)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-65-6 of the General Laws in Chapter 45-65 entitled "Retirement

Security Act for Locally Administered Pension Funds" is hereby amended to read as follows:

     45-65-6. Certification and notice requirements.

     (1) Every municipality that maintains a locally administered plan shall submit its initial

annual actuarial valuation study to the study commission created herein under § 45-64-8 on or

before April 1, 2012, and for each plan year ending on or after December 31, 2012, within six (6)

months of completing such plan year. The initial actuarial experience study shall be submitted to

the study commission on or before April 1, 2012, and subsequent actuarial experience studies must

be submitted to the study commission advisory council no less frequently than once every three (3)

years, with the first actuarial experience study to be submitted no later than January 1, 2025.

     (2) In any case in which an actuary certifies that a locally administered plan is in critical

status for a plan year, the municipality administering such a plan shall, not later than thirty (30)

business days following the certification, provide notification of the critical status to the

participants and beneficiaries of the plan and to the general assembly, the governor, the general

treasurer, the director of revenue, and the auditor general. The notification shall also be posted

electronically on the general treasurer’s website. Within one hundred eighty (180) days of sending

the critical status notice, the municipality shall submit to the study commission a reasonable

alternative funding improvement plan to emerge from critical status.

     (3) The state shall reimburse every municipality for fifty percent (50%) of the cost of

undertaking its annual actuarial valuation study, which is due on April 1, 2012.

     (4) Notwithstanding any other law to the contrary, the funding improvement plans and

actuarial valuation studies submitted pursuant to this section shall be public records.

     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 TOWNS AND CITIES -- RETIREMENT SECURITY ACT FOR LOCALLY

ADMINISTERED PENSION FUNDS

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     This act would require municipalities managing their own pension system to submit a

statutorily required actuarial experience study to the advisory council to locally administered

pension plans, rather than to a since-dissolved study commission.

     This act would take effect upon passage.

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