Rhode Island House Bill H7460

Rhode Island 2024 Regular Session

• Introduced: 2/2/24
• Refer: 2/2/24
• Report Pass: 5/30/24
• Engrossed: 6/5/24
• Refer: 6/7/24
• Report Pass: 6/12/24
• Enrolled: 6/14/24
• Passed: 6/24/24

Caption

Requires municipalities managing their own pension system to submit a statutorily required actuarial experience study to the advisory council to locally administered pension plans, rather than to a since-dissolved study commission.

Impact

The legislation impacts state laws related to municipal pension management, enhancing oversight and accountability for actuarial studies. By formally establishing a requirement for the submission of these studies to the advisory council, the bill promotes better management of pension funds at the local level. Furthermore, it ensures that municipalities have a consistent protocol for reporting their pension status, thereby aiming to improve the overall health of pension plans across the state.

Summary

House Bill 7460 aims to amend the existing 'Retirement Security Act for Locally Administered Pension Funds.' The bill stipulates that municipalities managing their own pension systems must submit annual actuarial experience studies to the advisory council responsible for locally administered pension plans. This change is notable as it redirects the submission process from a study commission that has been dissolved, ensuring the advisory council receives the data necessary for overseeing pension funds effectively.

Contention

While the bill has received support due to its potential for enhancing pension fund oversight, there may be concerns about the additional administrative burdens it could impose on local governments. Municipalities might face challenges in complying with the new submission requirements, particularly regarding the allocated timeframes and costs associated with conducting actuarial studies. The provision of state reimbursement for fifty percent of actuarial study costs may alleviate some fiscal pressures, but the effective administration of these expectations will be critical.

Notable_points

The bill is positioned for immediate effect upon passage, indicating an urgency to reform the pension management process in Rhode Island. The overarching goal is to ensure financial sustainability and transparency in how local pension funds are managed, which is vital for protecting the retirement security of municipal employees.