Rhode Island 2023 Regular Session

Rhode Island House Bill H5008 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 5008
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7	7	LC000130
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TOWNS AN D CITIES - RETIREMENT OF MUNICIPAL EMPLOYE ES -
16	16	REEMPLOYMENT OF POLI CE OFFICERS
17	17	Introduced By: Representatives Noret, Casimiro, Hull, Corvese, Solomon, Vella-
18	18	Wilkinson, Baginski, Dawson, Shallcross Smith, and Shanley
19	19	Date Introduced: January 06, 2023
20	20	Referred To: House Finance
21	21
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23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Section 45-21-2 of the General Laws in Chapter 45-21 entitled "Retirement 1
25	25	of Municipal Employees" is hereby amended to read as follows: 2
26	26	45-21-2. Definitions. 3
27	27	The following words and phrases as used in this chapter have the following meanings 4
28	28	unless a different meaning is plainly required by the context: 5
29	29	(1) “Accumulated contributions” means the sum of all amounts deducted from the 6
30	30	compensation of a member and credited to his or her individual account in the members’ 7
31	31	contribution reserve account. 8
32	32	(2) “Active member” means any employee of a participating municipality as defined in this 9
33	33	section for whom the retirement system is currently receiving regular contributions pursuant to §§ 10
34	34	45-21-41, 45-21-41.1 or 45-21.2-14. 11
35	35	(3) “Actuarial reserve” means the present value of all payments to be made on account of 12
36	36	any annuity, retirement allowance, or benefit, computed upon the basis of mortality tables adopted 13
37	37	by the retirement board with regular interest. 14
38	38	(4) “Beneficiary” means any person in receipt of a retirement allowance, annuity, or other 15
39	39	benefit as provided by this chapter. 16
40	40	(5) For purposes of this chapter, “domestic partner” shall be defined as a person who, prior 17
41	41	to the decedent’s death, was in an exclusive, intimate and committed relationship with the decedent, 18
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45	45	and who certifies by affidavit that their relationship met the following qualifications: 1
46	46	(i) Both partners were at least eighteen (18) years of age and were mentally competent to 2
47	47	contract; 3
48	48	(ii) Neither partner was married to anyone else; 4
49	49	(iii) Partners were not related by blood to a degree which would prohibit marriage in the 5
50	50	state of Rhode Island; 6
51	51	(iv) Partners resided together and had resided together for at least one year at the time of 7
52	52	death; and 8
53	53	(v) Partners were financially interdependent as evidenced by at least two (2) of the 9
54	54	following: 10
55	55	(A) Domestic partnership agreement or relationship contract; 11
56	56	(B) Joint mortgage or joint ownership of primary residence; 12
57	57	(C) Two (2) of: (I) Joint ownership of motor vehicle; (II) Joint checking account; (III) Joint 13
58	58	credit account; (IV) Joint lease; and/or 14
59	59	(D) The domestic partner had been designated as a beneficiary for the decedent’s will, 15
60	60	retirement contract or life insurance. 16
61	61	(6) “Effective date of participation” means the date on which the provisions of this chapter 17
62	62	have become applicable to a municipality accepting the provisions of the chapter in the manner 18
63	63	stated in § 45-21-4. 19
64	64	(7) “Employee” means any regular and permanent employee or officer of any municipality, 20
65	65	whose business time at a minimum of twenty (20) hours a week is devoted to the service of the 21
66	66	municipality, including elective officials and officials and employees of city and town housing 22
67	67	authorities. Notwithstanding the previous sentence, the term “employee,” for the purposes of this 23
68	68	chapter, does not include any person whose duties are of a casual or seasonal nature. The retirement 24
69	69	board shall decide who are employees within the meaning of this chapter, but in no case shall it 25
70	70	deem as an employee any individual who annually devotes less than twenty (20) business hours per 26
71	71	week to the service of the municipality and who receives less than the equivalent of minimum wage 27
72	72	compensation on an hourly basis for his or her services, except as provided in § 45-21-14.1. Casual 28
73	73	employees mean those persons hired for an occasional period or a period of emergency to perform 29
74	74	special jobs or functions not necessarily related to the work of regular employees. Any 30
75	75	commissioner of a municipal housing authority, or any member of a part-time state board 31
76	76	commission, committee or other authority is not deemed to be an employee within the meaning of 32
77	77	this chapter. 33
78	78	(8)(a) “Final compensation” for members who are eligible to retire on or prior to June 30, 34
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82	82	2012, means the average annual compensation, pay, or salary of a member for services rendered 1
83	83	during the period of three (3) consecutive years within the total service of the member when the 2
84	84	average was highest, and as the term average annual compensation is further defined in § 36-8-3
85	85	1(5)(a). For members eligible to retire on or after July 1, 2012, “final compensation” means the 4
86	86	average of the highest five (5) consecutive years of compensation within the total service when the 5
87	87	final compensation was the highest. 6
88	88	(b) For members who become eligible to retire on or after July 1, 2012, if more than one 7
89	89	half (½) of the member’s total years of service consist of years of service during which the member 8
90	90	devoted less than thirty (30) business hours per week to the service of the municipality, but the 9
91	91	member’s average compensation consists of three (3) or more years during which the member 10
92	92	devoted more than thirty (30) business hours per week to the service of a municipality, such 11
93	93	member’s average compensation shall mean the average of the highest ten (10) consecutive years 12
94	94	of compensation within the total service when the average compensation was the highest; provided 13
95	95	however, effective July 1, 2015, if such member’s average compensation as defined in subsection 14
96	96	(a) above is equal to or less than thirty-five thousand dollars ($35,000), such amount to be indexed 15
97	97	annually in accordance with § 45-21-52(d)(1)(B), such member’s average compensation shall 16
98	98	mean the greater of: (i) The average of the highest ten (10) consecutive years of compensation 17
99	99	within the total service when the average compensation was the highest; or (ii) The member’s 18
100	100	average compensation as defined in subsection (a) above. To protect a member’s accrued benefit 19
101	101	on June 30, 2012, under this subsection (8)(b), in no event shall a member’s average compensation 20
102	102	be lower than his or her average compensation determined as of June 30, 2012. 21
103	103	Notwithstanding the preceding provisions, in no event shall a member’s final compensation 22
104	104	be lower than his or her final compensation determined as of June 30, 2012. 23
105	105	(9) “Fiscal year” means the period beginning on July 1 in any year and ending on June 30 24
106	106	of the next succeeding year. 25
107	107	(10) “Full actuarial costs” or “full actuarial value” mean the lump sum payable by a 26
108	108	member claiming service credit for certain employment for which payment is required, which is 27
109	109	determined according to the age of the member and his or her annual rate of compensation at the 28
110	110	time he or she applies for service credit, and which is expressed as a rate percent of the annual rate 29
111	111	of compensation to be multiplied by the number of years for which he or she claims the service 30
112	112	credit, as prescribed in a schedule adopted by the retirement board, from time to time, on the basis 31
113	113	of computation by the actuary. Except as provided in §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, 32
114	114	and 45-21-53: (i) All service credit purchases requested after June 16, 2009, and prior to July 1, 33
115	115	2012, shall be at full actuarial value; and (ii) All service credit purchases requested after June 30, 34
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119	119	2012, shall be at full actuarial value which shall be determined using the system’s assumed 1
120	120	investment rate of return minus one percent (1%). 2
121	121	(11) “Governing body” means any and all bodies empowered to appropriate monies for, 3
122	122	and administer the operation of, the units as defined in subdivision (1) of this section. 4
123	123	(12) “Member” means any person included in the membership of the retirement system as 5
124	124	provided in § 45-21-8. 6
125	125	(13) “Municipality” means any town or city in the state of Rhode Island, any city or town 7
126	126	housing authority, fire, water, sewer district, regional school district, public building authority as 8
127	127	established by chapter 14 of title 37, or any other municipal financed agency to which the retirement 9
128	128	board has approved admission in the retirement system. 10
129	129	(14) “Participating municipality” means any municipality which has accepted this chapter, 11
130	130	as provided in § 45-21-4. 12
131	131	(15) "Police officer" means a full-time police officer from the rank of patrolman up to and 13
132	132	including the rank of chief, including policewomen, of any particular police department in any city 14
133	133	or town within the state. For the purpose of § 45-21-54, this definition shall include municipal 15
134	134	police academy graduates who hold or held a certification. 16
135	135	(15)(16) “Prior service” means service as a member rendered before the effective date of 17
136	136	participation as defined in this section, certified on his or her prior service certificate, and allowable 18
137	137	as provided in § 45-21-15. 19
138	138	(16)(17) “Regular interest” means interest at the assumed investment rate of return, 20
139	139	compounded annually, as may be prescribed from time to time by the retirement board. 21
140	140	(17)(18) “Retirement allowance” or “annuity” means the amounts paid to any member of 22
141	141	the municipal employees’ retirement system of the state of Rhode Island, or a survivor of the 23
142	142	member, as provided in this chapter. All retirement allowances or annuities shall be paid in equal 24
143	143	monthly installments for life, unless otherwise specifically provided. 25
144	144	(18)(19) “Retirement board” or “board” means the state retirement board created by 26
145	145	chapter 8 of title 36. 27
146	146	(19)(20) “Retirement system” means the “municipal employees’ retirement system of the 28
147	147	state of Rhode Island” as defined in § 45-21-32. 29
148	148	(20)(21) “Service” means service as an employee of a municipality of the state of Rhode 30
149	149	Island as defined in subdivision (7). 31
150	150	(21)(22) “Total service” means prior service as defined in subdivision (15) plus service 32
151	151	rendered as a member on or after the effective date of participation. 33
152	152	(22)(23) Any term not specifically defined in this chapter and specifically defined in 34
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156	156	chapters 8 through 10 of title 36 shall have the same definition as set forth in chapters 8 through 10 1
157	157	of title 36. 2
158	158	SECTION 2. Section 45-21-54 of the General Laws in Chapter 45-21 entitled "Retirement 3
159	159	of Municipal Employees" is hereby amended to read as follows: 4
160	160	45-21-54. Reemployment of retired members. 5
161	161	Any retired member of the system is permitted to reenter the service of the system for not 6
162	162	more than seventy-five (75) working days in a calendar year without interruption of pension 7
163	163	benefits. Pension payments, however, are suspended when that period is exceeded. This seventy-8
164	164	five-day (75) rule shall not apply to police officers, as defined in § 28-9.2-3 45-21-2, for the 9
165	165	purposes of their working private details, paid for by a nongovernmental entity. If the retired 10
166	166	member continues in service beyond the seventy-five-day (75) period (with his or her annuity 11
167	167	temporarily suspended) the member is not eligible for pension credit for the additional service, nor 12
168	168	is the member required to make pension contributions for this service; provided, that any retired 13
169	169	member of the system is permitted to serve as an elected city or town council member or school 14
170	170	committee member and continues to be eligible for and receive the retirement allowance for service 15
171	171	other than that as a council member or school committee member. 16
172	172	SECTION 3. This act shall take effect upon passage. 17
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179	179	EXPLANATION
180	180	BY THE LEGISLATIVE COUNCIL
181	181	OF
182	182	A N A C T
183	183	RELATING TO TOWNS AN D CITIES - RETIREMENT OF MUNICIPAL EMPLOYEES -
184	184	REEMPLOYMENT OF POLI CE OFFICERS
185	185	***
186	186	This act would exempt retired police officers from the seventy-five (75) day rule which 1
187	187	restricts employment for retirement purposes, when they work private details for a 2
188	188	nongovernmental entity. This act would expand the definition of police officer as it relates to the 3
189	189	reemployment of retired municipal employees. 4
190	190	This act would take effect upon passage. 5
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