It is enacted by the General Assembly as follows:

SECTION 1. Section 36-10-36 of the General Laws in Chapter 36-10 entitled "Retirement System -- Contributions and Benefits" is hereby amended to read as follows:

{ADD 36-10-36. Post retirement employment. -- ADD} {ADD (a) On and after the effective date of this act, no member who has retired under the provisions of titles 16, 36 or 45 may be employed or reemployed by any state agency or department unless any and all retirement benefits to which he or she may be entitled by virtue of the provisions of titles 16, 36 or 45 are suspended for the duration of any such employment or reemployment. No additional service credits shall be granted for any such post-retirement employment or reemployment and no deductions shall be taken from an individual's salary for retirement contributions. Notice of any such post-retirement employment or reemployment shall be sent monthly to the retirement board by the employing agency or department and by the retired member.

(b) ADD} Any member who has retired under the provisions of {DEL any law of this state DEL} {ADD titles 16, 36 or 45 ADD} may be employed or reemployed by any municipality within the state for a period of not more than seventy-five (75) working days or one hundred fifty (150) halfdays with half day pay in any one calendar year without any forfeiture of or reduction of any retirement benefits and allowances the member is receiving or may receive as a retired member. Pension payments shall be suspended whenever this period is exceeded. No additional contributions shall be taken and no additional service credits shall be granted for this service. Notice of employment shall be sent monthly to the retirement board by the employer and by the retired member.

{ADD (c) ADD} {DEL Provided, however, that DEL} {ADD Notwithstanding the provisions of this section ADD} any retired member of the system shall be permitted to serve as an elected city or town council member or school committee member or {ADD unpaid ADD} member of any part-time state board or commission, and shall continue to be eligible for and receive the retirement allowance for service other than that as a council member, school committee member, or member of any state board or commission.

SECTION 2. Section 36-9-6 of the General Laws in Chapter 36-9 entitled "Retirement System--Membership and Service Credits" is hereby amended to read as follows:

{ADD 36-9-6. Election by elected officers or legislative employees to become members. -- ADD} Notwithstanding the fact that their business time may not be devoted exclusively to the services of the state, any member {DEL , clerk, committee clerk or doorkeeper DEL} of the general assembly, or any of the general officers of the state, may elect to participate in the benefits provided by chapters 8 to 10, inclusive, of this title by filing an application with the board on or before December 31, 1948, or within six (6) months from the date upon which that person first qualifies for that office, whichever is later. Notwithstanding any other provision of chapters 8 to 10, inclusive, of this title, upon becoming a member of the system that person shall be entitled to prior service credit covering service rendered prior to the date of becoming a member of the system for service rendered to the state as a state employee, a member, {DEL clerk, committee clerk or doorkeeper DEL} of the general assembly or as a general officer.

SECTION 3. Section 36-8-1 and 36-8-4 of the General Laws in Chapter 36-8 entitled "Retirement System -- Administration" are hereby amended to read as follows:

{ADD 36-8-1. Definition of terms. -- ADD} The following words and phrases as used in chapters 8 to 10, inclusive, of this title unless a different meaning is plainly required by the context, shall have the following meanings:

(1) "Retirement system" shall mean the employees' retirement system of the state of Rhode Island as defined in section 36-8-2.

(2) "Employee" shall mean any officer or employee of the state of Rhode Island whose business time is devoted exclusively to the services of the state, but shall not include one whose duties are of a casual or seasonal nature. The retirement board shall determine who are employees within the meaning of this chapter. The governor of the state, the lieutenant governor, the secretary of state, the attorney-general, the general treasurer, and the members of the general assembly, ex officio, shall not be deemed to be employees within the meaning of that term unless and until they elect to become members of the system as provided in section 36-9-6 {DEL . DEL} {ADD , but in no case shall it deem as an employee, for the purposes of this chapter, any individual who devotes less than twenty (20) business hours per week to the service of the state, and who receives less than the equivalent of minimum wage compensation on an hourly basis for his or her services, except as provided in section 36-9-24. Any commissioner of a municipal housing authority or any member of a part-time state board, commission, committee or other public authority shall not be deemed to be an employee within the meaning of this chapter. ADD}

(3) "Members" shall mean any person included in the membership of the retirement system as provided in sections 36-9-1 -- 36-9-7, inclusive.

(4) "Retirement board" shall mean the board provided in section 36-8-3 to administer the retirement system.

(5) "Service" shall mean service as an employee of the state of Rhode Island as described in subdivision (2) of this section.

(6) "Prior service" shall mean service as a member rendered before the first day of July, 1936, certified on his or her prior service certificate and allowable as provided in sections 36-9-24 -- 36-9-28, inclusive.

(7) "Total service" shall mean prior service as defined above, plus service rendered as a member on or after the first day of July, 1936.

(8) "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance or other benefit as provided by chapter 10 of this title.

(9) "Regular interest" shall mean interest at the rate of two per cent (2%) per annum, compounded annually, or at such other rate determined from the actual experience of the system as may be prescribed from time to time by the board.

(10) "Accumulated contributions" shall mean the sum of all the amounts deducted from the compensation of a member and credited to his or her individual account together with regular interest thereon.

(11) "Average compensation" shall mean the average of the highest three (3) consecutive years of compensation, within total service when the average compensation was the highest.

The term "compensation" as used in chapters 8 to 10 of this title, inclusive, chapters 16 and 17 of title 16 and chapter 21 of title 45, shall mean salary or wages earned and paid for the performance of duties for covered employment, including regular longevity or incentive plans approved by the board, but shall not include payments made for overtime or reasons other than performance of duties or activities, including but not limited to the types of payments listed below:

(A) Payments contingent on the employee having terminated or died;

(B) Payments made at termination for unused sick leave, vacation leave, or compensatory time;

(C) Payments contingent on the employee terminating employment, at a specified time in the future to secure voluntary retirement or to secure release of an unexpired contract of employment;

(D) Individual salary adjustments which are granted primarily in anticipation of the employees retirement;

(E) Additional payments for performing temporary or extra duties beyond the normal or regular work day or work year.

(12) "Retirement allowance" shall mean annual payments for life made after retirement under and in accordance with chapters 8 to 10, inclusive at this title. All allowances shall be paid in equal monthly installments beginning as of the effective date thereof, provided, that a smaller pro rata amount may be paid for part of a month where separation from service occurs during the month in which the application was filed, and when the allowance ceases before the last day of the month.

(13) "Annuity reserve" shall mean the present value of all payments to be made on account of any annuity, benefit, or retirement allowance granted under the provisions of chapter 10 of this title computed upon the basis of such mortality tables as shall be adopted from time to time by the retirement board with regular interest.

(14) "Inactive member" shall mean a member who has withdrawn from service as an employee but who has not received a refund of contributions.

(15) The masculine pronoun, wherever used, shall include the feminine pronoun.

(16) "Actuarial equivalent" shall mean an allowance or benefit of equal value to any other allowance or benefit when computed upon the basis of the actuarial tables in use by the system.

(17) "Full actuarial costs" or "full actuarial value" shall mean the lump sum payable by a member claiming service credit for certain employment for which that payment is required which is determined according to the age of the member and the employee's annual rate of compensation at the time he or she applies for service credit and which is expressed as a rate per cent of the employee's annual rate of compensation to be multiplied by the number of years for which he or she claims service credit, as prescribed in a schedule adopted by the retirement board from time to time on the basis of computation by the actuary.

{ADD (18) "Casual employee" shall mean those persons hired for an occasional period to perform special jobs or functions not necessarily related to the work of regular employees. ADD}

{ADD 36-8-4. Composition of retirement board. -- ADD} (A) The membership of the retirement board shall consist of the general treasurer, the director of administration or his or her designee; the budget officer or his or her designee; the fiscal advisor to the house finance committee or his or her designee; the president of the league of cities and towns or his or her designee; two (2) active state employee members of the retirement system {ADD or officials from state employee unions ADD} to be elected by active state employees; two (2) active teacher members of the retirement system {ADD or officials from a teachers union ADD} to be elected by active teachers; one active municipal employee member of the retirement system {ADD or an official from a municipal employees union ADD} to be elected by active municipal employees; one retired member of the retirement system to be elected by retired members of the system; the chairperson of the house finance committee or his or her designee; the chairperson of the senate finance committee or his designee; and two (2) public representatives, one of whom shall be a C.L.U. competent in the area of pension benefits, shall be appointed by the governor and whose term shall be for four (4) years, or until their successors are appointed. Meetings shall be open to the public and media except when it is discussing personalities. Further, however, where a discussion may reflect in a harmful manner on the discussed, those persons may choose to have that portion of the meeting open or closed at their discretion.

(b) Meetings shall be held at such place as may be designated in the call of the meeting, provided at no cost to the state, at least monthly at the call of the chairpersons.

(c) The elected members of the retirement board shall be seated by the following procedure: Each candidate for a position on the board must have one hundred (100) signatures of members of their respective group. The term of office for elected members shall be for four (4) years, and election of their successors shall be given by the board prior to the expiration of the terms of the incumbent elected members. By petition for recall of twenty percent (20%) of the respective membership of the various groups a new election shall be ordered by the retirement board.

SECTION 4. Section 36-9-20 of the General Laws in Chapter 36-9 entitled "Retirement System-Membership and Service Credits" is hereby amended to read as follows:

{ADD 36-9-20. Credit for service as a teacher, municipal employee or legislator. -- ADD} (a) Any state employee who shall have rendered service as a teacher as defined under the provisions of chapters 16 and 17 of title 16, shall be entitled to credit for that service for the various purposes of this system, provided the member shall have been a contributing member of this system for that period. Any state employee who shall have been a contributing member of the municipal system as defined under the provisions of chapter 21 of title 45 shall be given credit for the service for the various purposes of this system, provided the member's contributions are transferred to this system. In any case in which a member shall have received a refund or refunds of contributions made to the system, the allowance of the aforesaid credit for service shall be conditioned upon the repayment of the refund or refunds, including regular interest from the date of refund to the date of repayment. Any service as defined herein for which no contributions were made may be granted provided the member pays to the retirement system a lump sum amount equal to the amount he would have contributed had he or she been a member during that period, plus interest as determined by the retirement board. Any state employee or teacher as defined under the provisions of chapters 16 and 17 of title 16 who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in section 45-21-4 shall be given credit for that service for the various purposes of this system, {ADD provided that such employee shall have met the definitional requirements of "employee" as stated in section 45-21-2(5) ADD} provided the member pays to the retirement system a lump sum amount equal to the full actuarial value of the credit as certified by the retirement board; Provided, however, that any state employee who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in section 45-21-4 shall be given credit for that service for the various purposes of this system, to a maximum period of four (4) years, provided the member pays to the retirement system a lump sum amount equal to, ten percent (10%) of his or her entry level salary in the state retirement system multiplied by the number of years in which he or she seeks membership service credit prior to December 31, 1986; provided further, however, that nothing in this section shall be deemed to allow the purchase of four (4) years of service for credit in more than one retirement system.

{DEL (b) Any active legislator serving during the January, 1974, 1975, 1976 and 1977 session, who shall have rendered service as a state employee as defined in chapter 8 and 9 of title 36, or as a teacher as defined in chapters 16 and 17 of title 16, or as a municipal employee as defined in chapter 21 of title 45, or rendered other paid municipal service, or as an employee of a municipality which did not elect to accept the provisions of chapter 21 of title 45, as provided in section 45-21-4 or served as a member of the armed forces of the United States of America and, in addition, any active legislator who shall have rendered state or local service to a municipality as a member of a board or commission shall be given credit for that service for the various purposes of this system, provided the legislator pays to the retirement system a lump sum amount equal to the full actuarial value of the credit as certified by the retirement board. DEL}

{DEL (c) DEL} {ADD (b) ADD} The retirement board shall fix and determine rules and regulations to govern the provisions of this section.

SECTION 5. Section 45-21-2 of the General Laws in Chapter 45-21 entitled "Retirement of Municipal Employees" is hereby amended to read as follows:

{ADD 45-21-2. Definitions. -- ADD} The following words and phrases as used in this chapter shall have the following meanings unless a different meaning is plainly required by the context:

(1) "Accumulated contributions" shall mean the sum of all amounts deducted from the compensation of a member and credited to his or her individual account in the members' contribution reserve account.

(2) "Actuarial reserve" shall mean the present value of all payments to be made on account of any annuity, retirement allowance, or benefit, computed upon the basis of such mortality tables as shall be adopted by the retirement board with regular interest.

(3) "Beneficiary" shall mean any person in receipt of a retirement allowance, annuity, or other benefit as provided by this chapter.

(4) "Effective date of participation" shall mean the date on which the provisions of this chapter have become applicable to a municipality accepting the provisions of the chapter in the manner set forth in section 45-21-4.

(5) "Employee" shall mean any regular and permanent employee or officer of any municipality, whose business time {ADD at a minimum of twenty (20) hours a week ADD} is devoted to the service of the municipality, including elective officials and officials and employees of city and town housing authorities {ADD . Notwithstanding the foregoing, the term "employee", for the purposes of this chapter, shall not include any person ADD} {DEL , provided, however, that the commissioners of city or town housing authorities shall not be deemed to be employees within the meaning of this section ; and further provided that no person shall be considered an "employee" DEL} whose duties are of a casual or seasonal nature. The retirement board shall decide who are employees within the meaning of this chapter {DEL . DEL} {ADD , but in no case shall it deem as an employee any individual who annually devotes less than twenty (20) business hours per week to the service of the municipality and who receives less than the equivalent of minimum wage compensation on an hourly basis for his or her services, except as provided in section 45-21-14.1. A casual employee shall mean those persons hired for an occasional period to perform special jobs or functions not necessarily related to the work of regular employees. Any commissioner of a municipal housing authority, or any member of a part-time state board commission, committee or other authority shall not be deemed to be an employee within the meaning of this chapter. ADD}

(6) "Final compensation" shall mean the average annual compensation, pay, or salary of a member for services rendered during the period of three (3) consecutive years within the total service of the member when such average was highest, and as the term, average annual compensation is further defined in section 36-8-1 (11).

(7) "Fiscal year" shall mean the period beginning on July 1 in any year and ending on June 30 of the next succeeding year.

(8) "Full actuarial costs" or "full actuarial value" shall mean the lump sum payable by a member claiming service credit for certain employment for which payment is required, which is determined according to the age of the member and his or her annual rate of compensation at the time he or she applies for service credit, and which is expressed as a rate percent of the annual rate of compensation to be multiplied by the number of years for which he or she claims the service credit, as prescribed in a schedule adopted by the retirement board from time to time, on the basis of computation by the actuary.

(9) "Governing body" shall mean any and all bodies so empowered to appropriate monies for, and administer the operation of the units as defined in subdivision (1) of this section.

(10) "Member" shall mean any person included in the membership of the retirement system as provided in section 45-21-8.

(11) "Municipality" shall mean any town or city in the state of Rhode Island, any city or town housing authority, fire, water, sewer district, regional school district, public building authority as established by chapter 14 of title 37, or any other municipal financed agency to which the retirement board has approved admission in the retirement system.

(12) "Participating municipality" shall mean any municipality which has accepted this chapter, as provided in section 45-21-4.

(13) "Prior service" shall mean service as a member rendered before the effective date of participation as defined above, certified on his or her prior service certificate, and allowable as provided in section 45-21-15.

(14) "Regular interest" shall mean interest compounded annually as shall be determined by the retirement board based upon the experience of the system.

(15) "Retirement allowance" or "annuity" shall mean the amounts paid to any member of the municipal employees' retirement system of the state of Rhode Island, or a survivor of the member, as provided in this chapter. All such retirement allowances or annuities shall be paid in equal monthly installments for life, unless otherwise specifically provided.

(16) "Retirement board" shall mean the state retirement board created by chapter 8 of title 36.

(17) "Retirement system" shall mean the "municipal employees' retirement system of the state of Rhode Island" as defined in section 45-21-32.

(18) "Service" shall mean service as an employee of a municipality of the state of Rhode Island as defined in subdivision (5) of this section.

(19) "Total service" shall mean prior service as defined above plus service rendered as a member on or after the effective date of participation.

SECTION 6. Section 36-10-38 in Chapter 36-10 of the General Laws entitled "Retirement System -- Contribution and Benefits" is hereby amended to read as follows:

{ADD 36-10-38. Combined service credits of general state officers. -- ADD} When a person has combined and transferred service credits, earned as a member of the Rhode Island municipal retirement system, to the state retirement system, and the service amounts to not less than twenty (20) years in the aggregate as a general state officer and/or as an elected officer of a town or city, {ADD as defined in section 45-21-2 of the general laws, ADD} the service credits of the person may be deemed to be consecutive service to the state as provided by this chapter.

SECTION 7. Section 16-16-5 of the General Laws in Chapter 16-16 entitled "Teachers Retirement" is hereby amended to read as follows:

{ADD 16-16-5. Service creditable -- Periods of illness or leaves of absence -- Substitute teachers. -- ADD} (a) In calculating "service", "prior service", or "total service" as defined in section 16-16-1, every teacher shall be given credit for a year of service for each year in which he or she shall have served as a teacher; provided, that any teacher who through illness or leave of absence without pay does not serve a full school year may receive credit therefor by making contribution to the system upon his or her return to teaching, immediately upon completion of the leave of absence, the amount he or she would have contributed to the retirement system plus regular interest, based upon his or her expected compensation but for his leave of absence in any case of illness, sabbatical, educational leave, or any other reason. Credit for leaves of absence shall be limited, in the aggregate, during the total service of a teacher to a period of four (4) years; provided, however, every teacher who had been required to resign for maternity reasons may receive credit therefor by making contribution to the system upon her return to teaching, the amount she would have contributed to the retirement system, with interest, based upon her expected compensation but for her absence due to maternity reasons. Credit for such absence shall be limited, in the aggregate, during the total service of a teacher to a period of four (4) years; provided, however, that the credit is purchased on or before December 31, 1990.

(b) The retirement board shall fix and determine the time when and the conditions under which the payments shall be made.

(c) Any teacher who serves or who has served during a school year at least three-quarters (3/4) of the number of days that the public schools are required by law to be in session during the year shall be given credit for a year of service for that year. In determining the number of days served by a substitute teacher the total number of days served in any public school of any city or town in the state may be combined for any one school year. Any such teacher shall be entitled to "prior service" credit for service prior to July 1, 1949, provided the teacher shall have been in service during the school year 1949-1950. The teacher shall be entitled to service credit for any year subsequent to July 1, 1949, by making contribution to the retirement system the amount he would have contributed to the retirement system, had he or she been a member, plus regular interest compounded annually to date of payment, payable at a time or in such manner as may be provided by the rules of the retirement board.

{ADD (d) Any teacher employed in at least a half (1/2) program including a job share program shall remain a contributing member and shall receive credit for that part-time service. ADD}

SECTION 8. {ADD Severability. -- ADD} If any provision of this act or the application thereof shall for any reason be judged invalid such a judgment shall not affect, impair or invalidate the remainder of the law, but shall be confined in its effect to the provisions or application directly involved in the controversy giving rise to the judgment.

SECTION 9. This act shall take effect upon passage.