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| 5 | 5 | | 2023 -- H 5519 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001300 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- DEFERRED COMPENSATIO N |
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| 16 | 16 | | PLANS |
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| 17 | 17 | | Introduced By: Representatives Casimiro, and Noret |
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| 18 | 18 | | Date Introduced: February 10, 2023 |
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| 19 | 19 | | Referred To: House Finance |
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| 20 | 20 | | (Dept. of Administration) |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Section 36-13-6 of the General Laws in Chapter 36-13 entitled "Deferred 1 |
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| 24 | 24 | | Compensation Plans" is hereby amended to read as follows: 2 |
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| 25 | 25 | | 36-13-6. Other benefits unaffected. 3 |
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| 26 | 26 | | The deferred compensation program established by this chapter shall exist and serve in 4 |
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| 27 | 27 | | addition to retirement, pension, or benefit systems established by the state, county, city, town, or 5 |
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| 28 | 28 | | other political subdivision, and no deferral of income under the deferred compensation program 6 |
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| 29 | 29 | | shall affect a reduction of any retirement, pension, or other benefit provided by law. However, any 7 |
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| 30 | 30 | | sum deferred under the deferred compensation program shall not be subject to taxation until 8 |
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| 31 | 31 | | distribution is actually made to the employee. 9 |
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| 32 | 32 | | SECTION 2. Chapter 36-13 of the General Laws entitled "Deferred Compensation Plans" 10 |
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| 33 | 33 | | is hereby amended by adding thereto the following section: 11 |
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| 34 | 34 | | 36-13-6.1. Sums subject to taxation. 12 |
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| 35 | 35 | | (a) Except as designated in this section, any sum deferred under the deferred compensation 13 |
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| 36 | 36 | | program shall not be subject to taxation until distribution is actually made to the employee. 14 |
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| 37 | 37 | | (b) Subsection (a) of this section shall not apply where the deferred compensation program 15 |
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| 38 | 38 | | includes a qualified Roth contribution program and the sums have been deferred as a designated 16 |
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| 39 | 39 | | Roth contribution. Where the employee has elected that sums be deferred as a designated Roth 17 |
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| 40 | 40 | | contribution, the sums shall be deferred post tax. 18 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC001300 - Page 2 of 3 |
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| 44 | 44 | | (c) For the purposes of this section, the term "qualified Roth contribution program" means 1 |
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| 45 | 45 | | a program under which an employee may elect to make designated Roth contributions in lieu of all 2 |
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| 46 | 46 | | or a portion of elective deferrals the employee is otherwise eligible to make under the deferred 3 |
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| 47 | 47 | | compensation program. A program shall not be treated as a qualified Roth contribution program 4 |
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| 48 | 48 | | unless the deferred compensation program: 5 |
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| 49 | 49 | | (1) Establishes separate accounts for the designated Roth contributions of each employee 6 |
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| 50 | 50 | | and any earnings properly allocable to the contributions; and 7 |
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| 51 | 51 | | (2) Maintains separate recordkeeping with respect to each account. 8 |
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| 52 | 52 | | (d) For the purposes of this section, the term "designated Roth contribution" means any 9 |
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| 53 | 53 | | elective deferral which is excludable from gross income of an employee with regard to subsection 10 |
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| 54 | 54 | | (a) of this section and the employee designates as not being so excludable. 11 |
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| 55 | 55 | | SECTION 3. This act shall take effect upon passage. 12 |
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| 56 | 56 | | ======== |
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| 57 | 57 | | LC001300 |
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| 58 | 58 | | ======== |
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| 59 | 59 | | |
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| 60 | 60 | | |
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| 61 | 61 | | LC001300 - Page 3 of 3 |
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| 62 | 62 | | EXPLANATION |
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| 63 | 63 | | BY THE LEGISLATIVE COUNCIL |
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| 64 | 64 | | OF |
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| 65 | 65 | | A N A C T |
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| 66 | 66 | | RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- DEFERRED COMPENSATIO N |
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| 67 | 67 | | PLANS |
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| 68 | 68 | | *** |
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| 69 | 69 | | This act would allow state employees the ability to make an after tax contribution to a 1 |
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| 70 | 70 | | qualified Roth contribution program as a part of a deferred compensation plan. 2 |
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| 71 | 71 | | This act would take effect upon passage. 3 |
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| 72 | 72 | | ======== |
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| 73 | 73 | | LC001300 |
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| 74 | 74 | | ======== |
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