Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0997 Compare Versions

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

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5	5	2023 -- S 0997
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7	7	LC002826
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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	____________
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14	14	A N A C T
15	15	RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -
16	16	CONTRIBUTIONS AND BE NEFITS
17	17	Introduced By: Senators Ciccone, DiPalma, Lombardo, F. Lombardi, and Lawson
18	18	Date Introduced: May 15, 2023
19	19	Referred To: Senate Finance
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22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 36-10-2 of the General Laws in Chapter 36-10 entitled "Retirement 1
24	24	System — Contributions and Benefits" is hereby amended to read as follows: 2
25	25	36-10-2. State contributions. 3
26	26	(a) The State of Rhode Island shall make its contribution for the maintenance of the system, 4
27	27	including the proper and timely payment of benefits in accordance with the provisions of this 5
28	28	chapter and chapters 8, 16, 28, 31 and 42 of this title, by annually appropriating an amount equal 6
29	29	to a percentage of the total compensation paid to the active membership. The percentage shall be 7
30	30	computed by the actuary employed by the retirement system and shall be certified by the retirement 8
31	31	board to the director of administration on or before the fifteenth day of October in each year. In 9
32	32	arriving at the yearly employer contribution the actuary shall determine the value of: 10
33	33	(1) The contributions made by the members; 11
34	34	(2) Income on investments; and 12
35	35	(3) Other income of the system. 13
36	36	(b) The actuary shall thereupon compute the yearly employer contribution that will: 14
37	37	(1) Pay the actuarial estimate of the normal cost for the next succeeding fiscal year; and 15
38	38	(2) Amortize the unfunded liability of the system in accordance with § 36-10-2.1(b). 16
39	39	(c) The State of Rhode Island shall remit to the general treasurer the employer’s share of 17
40	40	the contribution for state employees, state police, and judges on a payroll frequency basis on the 18
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44	44	date contributions are withheld but no later than three (3) business days following the pay period 1
45	45	ending in which contributions were withheld, and for teachers in a manner pursuant to § 16-16-22. 2
46	46	(d)(1) In accordance with the intent of § 36-8-20 that the retirement system satisfy the 3
47	47	requirements of § 401(a) of the Internal Revenue Code of 1986, the state shall pay to the retirement 4
48	48	system: 5
49	49	(i) By June 30, 1995, an amount equal to the sum of the benefits paid to state legislators 6
50	50	pursuant to § 36-10-10.1 in excess of ten thousand dollars ($10,000) per member (plus accrued 7
51	51	interest on such amount at eight percent (8%)) for all fiscal years beginning July 1, 1991, and ending 8
52	52	June 30, 1995, but this amount shall be paid only if § 36-10-10.1(e) becomes effective January 1, 9
53	53	1995; and 10
54	54	(ii) By December 31, 1994, twenty million seven hundred eighty eight thousand eight 11
55	55	hundred twelve dollars and nineteen cents ($20,788,812.19) plus accrued interest on that amount 12
56	56	at eight percent (8%) compounded monthly beginning March 1, 1991, and ending on the date this 13
57	57	payment is completed (reduced by amortized amounts already repaid to the retirement system with 14
58	58	respect to the amounts withdrawn by the state during the fiscal year July 1, 1990 — June 30, 1991); 15
59	59	and 16
60	60	(iii) By June 30, 1995, the sum of the amounts paid by the retirement system for retiree 17
61	61	health benefits described in § 36-12-4 for all fiscal years beginning July 1, 1989, and ending June 18
62	62	30, 1994, to the extent that the amounts were not paid from the restricted fund described in 19
63	63	subsection (c). 20
64	64	(2) Any and all amounts paid to the retirement system under this subsection shall not 21
65	65	increase the amount otherwise payable to the system by the state of Rhode Island under subsection 22
66	66	(a) for the applicable fiscal year. The actuary shall make such adjustments in the amortization bases 23
67	67	and other accounts of the retirement system as he or she deems appropriate to carry out the 24
68	68	provisions and intent of this subsection. 25
69	69	(e) In addition to the contributions provided for in subsections (a) through (c) and in order 26
70	70	to provide supplemental employer contributions to the retirement system, commencing in fiscal 27
71	71	year 2006, and each year thereafter: 28
72	72	(1) Except for fiscal year 2009, fiscal year 2010, and fiscal year 2011, for each fiscal year 29
73	73	in which the actuarially determined state contribution rate for state employees, including state 30
74	74	contributions under chapter 10.3 of this title, is lower than that for the prior fiscal year, the governor 31
75	75	shall include an appropriation to that system equivalent to twenty percent (20%) of the rate 32
76	76	reduction for the state’s contribution rate for state employees to be applied to the actuarial accrued 33
77	77	liability of the state employees’ retirement system for state employees for each fiscal year; 34
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81	81	(2) Except for fiscal year 2009, fiscal year 2010, and fiscal year 2011, for each fiscal year 1
82	82	in which the actuarially determined state contribution rate for teachers, including state contributions 2
83	83	under chapter 10.3 of this title, is lower than that for the prior fiscal year, the governor shall include 3
84	84	an appropriation to that system equivalent to twenty percent (20%) of the rate reduction for the 4
85	85	state’s share of the contribution rate for teachers to be applied to the actuarial accrued liability of 5
86	86	the state employees’ retirement system for teachers for each fiscal year; 6
87	87	(3) For each fiscal year in which the vacancies for authorized and appropriated full-time 7
88	88	equivalent positions for state employees exceeds three (3%) percent, and those positions are 8
89	89	substituted with contract employees, the governor shall include an appropriation to that system 9
90	90	equivalent to the average annual employer contribution for each vacant position. 10
91	91	(3)(4) The amounts to be appropriated shall be included in the annual appropriation bill 11
92	92	and shall be paid by the general treasurer into the retirement system. 12
93	93	(4)(5) Assessments pursuant to § 42-149-3.1 shall be included in the annual appropriation 13
94	94	bill and shall be paid by the general treasurer into the retirement system beginning FY2013. 14
95	95	(f) While the retirement system’s actuary shall not adjust the computation of the annual 15
96	96	required contribution for the year in which supplemental contributions are received, the 16
97	97	contributions once made may be treated as reducing the actuarial liability remaining for 17
98	98	amortization in the next following actuarial valuation to be performed. 18
99	99	SECTION 2. This act shall take effect upon passage. 19
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106	106	EXPLANATION
107	107	BY THE LEGISLATIVE COUNCIL
108	108	OF
109	109	A N A C T
110	110	RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -
111	111	CONTRIBUTIONS AND BE NEFITS
112	112	***
113	113	This act would provide that vacancies in excess of three percent (3%) for full-time 1
114	114	equivalent state employees which are substituted with contract employees shall require an 2
115	115	appropriation to the pension fund equal to the average annual employer contribution for each vacant 3
116	116	position. 4
117	117	This act would take effect upon passage. 5
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