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| 4 | 4 | | |
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| 5 | 5 | | 2025 -- S 0449 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC002099 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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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 -- RETIREMENT SYSTEM -- |
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| 16 | 16 | | CONTRIBUTIONS AND BENEFITS |
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| 17 | 17 | | Introduced By: Senators Burke, Ciccone, Tikoian, McKenney, and Appollonio |
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| 18 | 18 | | Date Introduced: February 26, 2025 |
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| 19 | 19 | | Referred To: Senate Finance |
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| 20 | 20 | | |
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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 36-10-2.1 of the General Laws in Chapter 36-10 entitled "Retirement 1 |
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| 24 | 24 | | System — Contributions and Benefits" is hereby amended to read as follows: 2 |
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| 25 | 25 | | 36-10-2.1. Actuarial cost method. 3 |
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| 26 | 26 | | (a) To determine the employer contribution rate for the State of Rhode Island for fiscal year 4 |
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| 27 | 27 | | 2002 and for all fiscal years subsequent, the actuary shall compute the costs under chapter 10 of 5 |
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| 28 | 28 | | title 36 using the entry age normal cost method. 6 |
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| 29 | 29 | | (b) The determination of the employer contribution rate for fiscal year 2013 shall include 7 |
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| 30 | 30 | | a reamortization of the current Unfunded Actuarial Accrued Liability (UAAL) over a closed 8 |
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| 31 | 31 | | twenty-five (25) year period. After an initial period of five (5) years, future actuarial gains and 9 |
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| 32 | 32 | | losses occurring within a plan year will be amortized over individual new twenty (20) year closed 10 |
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| 33 | 33 | | periods. 11 |
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| 34 | 34 | | (c) The determination of the employer contribution rate commencing with fiscal year 2017 12 |
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| 35 | 35 | | shall include a re-amortization of the current unfunded actuarial accrued liability (UAAL) 13 |
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| 36 | 36 | | attributable to the sixty percent (60%) of contribution responsibility not partitioned to the state in 14 |
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| 37 | 37 | | § 16-16-22 over a closed twenty-five (25) year period. This will be accomplished by dividing the 15 |
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| 38 | 38 | | UAAL as of June 30, 2014 into two (2) separate amortization periods. Future actuarial gains and 16 |
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| 39 | 39 | | losses occurring within a plan year will be amortized over individual new twenty (20) year closed 17 |
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| 40 | 40 | | periods and allocated in the forty percent (40%) state / sixty percent (60%) municipal proportion 18 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC002099 - Page 2 of 3 |
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| 44 | 44 | | set forth in § 16-16-22. 1 |
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| 45 | 45 | | (d) The determination of the employer contribution rate commencing with fiscal year 2026 2 |
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| 46 | 46 | | shall include a re-amortization of the state pension fund. 3 |
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| 47 | 47 | | SECTION 2. This act shall take effect upon passage. 4 |
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| 48 | 48 | | ======== |
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| 49 | 49 | | LC002099 |
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| 52 | 52 | | |
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| 53 | 53 | | LC002099 - Page 3 of 3 |
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| 54 | 54 | | EXPLANATION |
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| 55 | 55 | | BY THE LEGISLATIVE COUNCIL |
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| 56 | 56 | | OF |
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| 57 | 57 | | A N A C T |
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| 58 | 58 | | RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- |
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| 59 | 59 | | CONTRIBUTIONS AND BENEFITS |
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| 60 | 60 | | *** |
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| 61 | 61 | | This act would require a reamortization of the state pension fund for 2026. 1 |
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| 62 | 62 | | This act would take effect upon passage. 2 |
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| 63 | 63 | | ======== |
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| 64 | 64 | | LC002099 |
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| 65 | 65 | | ======== |
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| 66 | 66 | | |
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