2025 -- H 5764

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LC002098

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

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

CONTRIBUTIONS AND BENEFITS

     

     Introduced By: Representatives Serpa, and Fellela

     Date Introduced: February 26, 2025

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 36-10-2.1 of the General Laws in Chapter 36-10 entitled "Retirement

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System — Contributions and Benefits" is hereby amended to read as follows:

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     36-10-2.1. Actuarial cost method.

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     (a) To determine the employer contribution rate for the State of Rhode Island for fiscal year

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2002 and for all fiscal years subsequent, the actuary shall compute the costs under chapter 10 of

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title 36 using the entry age normal cost method.

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     (b) The determination of the employer contribution rate for fiscal year 2013 shall include

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a reamortization of the current Unfunded Actuarial Accrued Liability (UAAL) over a closed

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twenty-five (25) year period. After an initial period of five (5) years, future actuarial gains and

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losses occurring within a plan year will be amortized over individual new twenty (20) year closed

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periods.

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     (c) The determination of the employer contribution rate commencing with fiscal year 2017

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shall include a re-amortization of the current unfunded actuarial accrued liability (UAAL)

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attributable to the sixty percent (60%) of contribution responsibility not partitioned to the state in

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§ 16-16-22 over a closed twenty-five (25) year period. This will be accomplished by dividing the

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UAAL as of June 30, 2014 into two (2) separate amortization periods. Future actuarial gains and

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losses occurring within a plan year will be amortized over individual new twenty (20) year closed

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periods and allocated in the forty percent (40%) state / sixty percent (60%) municipal proportion

 

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set forth in § 16-16-22.

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     (d) The determination of the employer contribution rate commencing with fiscal year 2026

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shall include a re-amortization of the state pension fund.

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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 require a reamortization of the state pension fund for 2026.

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     This act would take effect upon passage.

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