2026 -- H 8506

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LC006396

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO TOWNS AND CITIES -- RELATING TO CENTRAL FALLS PENSION

PLAN

     Introduced By: Representatives Giraldo, Alzate, and Voas

     Date Introduced: May 01, 2026

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-21.4-2 of the General Laws in Chapter 45-21.4 entitled "Relating

to Central Falls Pension Plan" is hereby amended to read as follows:

     45-21.4-2. Alternative acceptance by the city of Central Falls of optional retirement

for police and firefighters.

     (a) The provisions of this section shall apply only to locally administered plans within the

city of Central Falls hereinafter referred collectively as the “Central Falls plan.”

     (b) On or after July 16, 2019, Central Falls may accept the provisions of this chapter, by

resolution or an ordinance of its governing body, stating the group or groups of employees to be

included as provided in § 45-21-4; provided that, any and all labor organizations representing active

employees of the municipality to be included have assented to such participation of their respective

memberships through a collective bargaining agreement and ratification of the decision by a

majority vote of those members of any such labor organization present and voting. A copy of the

resolution or ordinance and proof of assent from the applicable labor organization shall be

immediately forwarded to the retirement board for review. A vote of the retirement board to accept

the entry of the group or groups of employees into the system shall be required.

     (c) Effective August 31, 2019, the Central Falls plan shall be closed to new members.

     (d)(1) Prior to July 1, 2026, Members members of the Central Falls plan in active service

as of August 31, 2019, shall continue to be subject to the applicable retirement ages and restrictions,

and accrue benefits on total service at the rates of the Central Falls plan pursuant to the collective

bargaining agreements in effect on August 31, 2019, between Central Falls and the labor

organizations representing members of the Central Falls plan.

     (2) On and after July 1, 2026, members of the Central Falls plan in active service as of

August 31, 2019, shall be subject to the pension plan provisions set forth in the respective collective

bargaining agreements in effect on July 1, 2026, between Central Falls and the labor organizations

representing members of the Central Falls plan.

     (e) Disability determinations shall be made by the retirement board, subject to the

procedures and standards of §§ 45-21.2-7 and 45-21.2-9 as applicable, for members hired prior to

September 1, 2019. If a disability retirement pension is granted, the member shall receive benefits

provided by the Central Falls pension plan pursuant to the collective bargaining agreements in

effect on August 31, 2019.

     (f) Beginning September 1, 2019 July 1, 2026, firefighters and police officers in active

service that are members of the Central Falls plan in active service shall contribute an amount equal

to eleven and seven-tenths percent (11.7%) ten percent (10%) of the salary or compensation earned

or accruing to the member.

     (g) Subject to the provisions of subsection (b) of this section being met, new employees

hired on or after September 1, 2019, shall be subject to all of the provisions of § 45-21.2, including

all applicable disability provisions and benefits provided by §§ 36-10.3-4 and 45-21-52.

     (h) Notwithstanding anything in § 45-21-42.2 to the contrary, the cost to evaluate Central

Falls prospective membership in the retirement system pursuant to this section or § 45-21.4-3, shall

be borne by the retirement board.

     (i) Notwithstanding anything in § 45-21-43.1 to the contrary, determination of the

employer contribution rate of the closed Central Falls pension plan pursuant to this section shall be

computed using an amortization period for the unfunded actuarial accrued liability as determined

by the board, based upon the recommendation of the plan’s actuary. Future actuarial gains and

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

periods consistent with § 45-21-43.1(c).

     (j) Notwithstanding anything in § 45-21-56 to the contrary, if a Central Falls pension plan

pursuant to this section is in critical status as defined in § 45-65-4, and an employee of the Central

Falls pension plan leaves employment and is hired by another participating municipality that is not

in critical status as defined in § 45-65-4, then the retirement system shall transfer the amount of the

member’s total accrued liability with the Central Falls pension plan, multiplied by the funded status

of the Central Falls pension plan, to the account of the current employing municipality.

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     (k) Upon the conditions of subsection (b) of this section being met, the city of Central Falls

shall remain liable to the retirement system for the cost of funding a retirement system for its

employees who are members of the system as provided herein, and the retirement board maintains

the right to enforce payment of any liability as provided in chapter 21 of this title.

     (l) Subject to the provisions of subsection (b) of this section being met, the Central Falls

plan and the provisions of this section shall be administered in the same manner provided in chapter

21 of this title; credits for prior service and collection of contributions are determined through

reference to that chapter; provided, that where the provisions of that chapter conflict with this

chapter, then the provisions of this chapter control. Liability of contributions is enforced in the

same manner as stated in chapter 21 of this title.

     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 -- RELATING TO CENTRAL FALLS PENSION

PLAN

***

     This act would amend the terms of the pension plan set forth in the respective collective

bargaining agreements in effect on July 1, 2026, between Central Falls and the labor organizations

representing members of the Central Falls plan and would reduce the contributions of active

firefighters and police officers from eleven and seven tenths percent (11.7%) to ten percent (10%)

of their salary or compensation.

     This act would take effect upon passage.

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