RI
Rhode Island Senate Bill S0449

Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0449

Introduced
2/26/25  

Caption

Requires a reamortization of the state pension fund for 2026.

Impact

The reamortization mandated by S0449 is expected to have significant implications on the state's budgeting and financial planning. By updating the amortization schedules for the pension fund, the state aims to enhance the accuracy of its financial forecasts and ensure that adequate funds are available for future retirement payouts. Additionally, this adjustment seeks to stabilize the contribution requirements, thereby potentially alleviating fiscal pressure on both state and municipal budgets in the long term.

Summary

Bill S0449 aims to address the financial sustainability of the state pension fund by requiring a reamortization of the fund for the fiscal year 2026. This act will specifically focus on recalculating the unfunded actuarial accrued liability (UAAL), which will determine the employer contribution rates for the upcoming fiscal periods. The reamortization process is intended to improve the fiscal health of the pension system, allowing for more accurate funding of retirement benefits owed to state employees.

Contention

While the bill aims to strengthen the pension fund, it may also encounter scrutiny regarding the potential impacts on state finances. Critics may argue that changing the amortization period could lead to increased short-term costs for the state as it reallocates resources to meet the new contribution rates. Furthermore, there may be discussions surrounding the fairness of this reamortization for different groups of state employees, especially those nearing retirement who could feel the effects of extended amortization periods on their benefits.

Companion Bills

No companion bills found.

Previously Filed As

RI S2865

Requires any benefit enhancements afforded under the employees' retirement system of Rhode Island or the municipal employees' retirement system to be amortized over individual five (5) year closed periods.

RI S2312

Provides that vacancies in excess of 3% for full time equivalent state employees which are substituted with contract employees shall require an appropriation to the pension fund equal to the average annual employer contribution for each vacant position.

RI S0997

Retirement System - Contributions And Benefits

RI S2580

Allows for a one-time two percent (2%) supplemental cost of living adjustment for plan year 2025 to the public pension benefits administered by the ERSRI, and allows for those benefits to be deducted from the taxpayer's adjusted gross income.

RI H7993

Allows for a one-time two percent (2%) supplemental cost of living adjustment for plan year 2025 to the public pension benefits administered by the ERSRI, and allows for those benefits to be deducted from the taxpayer's adjusted gross income.

RI H7225

MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2025

RI H8282

Awards all members of the pension system a three and one-half percent (3.5%) annual benefit adjustment applied to the first thirty thousand dollars ($30,000) of a member's retirement allowance.

RI S2014

Repeals health services council and expands the health services and amends several provisions relative to the review process of the hospital conversion act pertaining to maintenance of services and required disclosures.

RI H5200

Making Appropriations For The Support Of The State For The Fiscal Year Ending June 30, 2024

RI S2957

Reduces the number of years from five (5) to three (3), when calculating for retirement purposes, the average of the highest consecutive years of compensation, for state and municipal employees.

Similar Bills

No similar bills found.