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art.007/5/007/4/007/3/007/2

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ARTICLE 7 SUBSTITUTE A AS AMENDED

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RELATING TO PENSIONS

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     SECTION 1. Section 36-8-1 of the General Laws in Chapter 36-8 entitled "Retirement

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System - Administration" is hereby amended to read as follows:

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     36-8-1. Definition of terms. -- The following words and phrases as used in chapters 8 to

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10 of this title unless a different meaning is plainly required by the context, shall have the

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following meanings:

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      (1) "Accumulated contributions" shall mean the sum of all the amounts deducted from

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the compensation of a member and credited to his or her individual account together with regular

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interest thereon.

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      (2) "Actuarial equivalent" shall mean an allowance or benefit of equal value to any other

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allowance or benefit when computed upon the basis of the actuarial tables in use by the system.

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      (3) "Annuity reserve" shall mean the present value of all payments to be made on

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account of any annuity, benefit, or retirement allowance granted under the provisions of chapter

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10 of this title computed upon the basis of such mortality tables as shall be adopted from time to

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time by the retirement board with regular interest.

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      (4) "Average compensation" for members eligible to retire as of September 30, 2009

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shall mean the average of the highest three (3) consecutive years of compensation, within the total

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service when the average compensation was the highest. For members eligible to retire on or after

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October 1, 2009, "Average compensation" shall mean the average of the highest five (5)

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consecutive years of compensation within the total service when the average compensation was

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the highest.

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      (5) "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement

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allowance, or other benefit as provided by chapter 10 of this title.

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      (6) "Casual employee" shall mean those persons hired for an occasional period to

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perform special jobs or functions not necessarily related to the work of regular employees.

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      (7) "Compensation" as used in chapters 8 -- 10 of this title, chapters 16 and 17 of title 16,

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and chapter 21 of title 45 shall mean salary or wages earned and paid for the performance of

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duties for covered employment, including regular longevity or incentive plans approved by the

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board, but shall not include payments made for overtime or reasons other than performance of

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duties or activities, including but not limited to the types of payments listed below:

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      (i) Payments contingent on the employee having terminated or died;

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      (ii) Payments made at termination for unused sick leave, vacation leave, or

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compensatory time;

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      (iii) Payments contingent on the employee terminating employment at a specified time in

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the future to secure voluntary retirement or to secure release of an unexpired contract of

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employment;

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      (iv) Individual salary adjustments which are granted primarily in anticipation of the

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employee's retirement;

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      (v) Additional payments for performing temporary or extra duties beyond the normal or

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regular work day or work year.

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      (8) "Employee" shall mean any officer or employee of the state of Rhode Island whose

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business time is devoted exclusively to the services of the state, but shall not include one whose

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duties are of a casual or seasonal nature. The retirement board shall determine who are employees

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within the meaning of this chapter. The governor of the state, the lieutenant governor, the

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secretary of state, the attorney general, the general treasurer, and the members of the general

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assembly, ex officio, shall not be deemed to be employees within the meaning of that term unless

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and until they elect to become members of the system as provided in section 36-9-6, but in no

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case shall it deem as an employee, for the purposes of this chapter, any individual who devotes

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less than twenty (20) business hours per week to the service of the state, and who receives less

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than the equivalent of minimum wage compensation on an hourly basis for his or her services,

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except as provided in section 36-9-24. Any commissioner of a municipal housing authority or any

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member of a part-time state board, commission, committee or other public authority shall not be

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deemed to be an employee within the meaning of this chapter.

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      (9) "Full actuarial costs" or "full actuarial value" shall mean the lump sum payable by a

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member claiming service credit for certain employment for which that payment is required which

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is determined according to the age of the member and the employee's annual rate of compensation

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at the time he or she applies for service credit and which is expressed as a rate percent of the

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employee's annual rate of compensation to be multiplied by the number of years for which he or

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she claims service credit as prescribed in a schedule adopted by the retirement board from time to

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time on the basis of computation by the actuary. All service credit purchases requested after June

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16, 2009, except military credit as provided by section 36-9-31 and 16-16-7.1, shall be at full

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actuarial value.

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      (10) "Inactive member" shall mean a member who has withdrawn from service as an

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employee but who has not received a refund of contributions.

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      (11) "Members" shall mean any person included in the membership of the retirement

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system as provided in sections 36-9-1 -- 36-9-7.

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      (12) "Prior service" shall mean service as a member rendered before July 1, 1936,

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certified on his or her prior service certificate and allowable as provided in section 36-9-28.

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      (13) "Regular interest" shall mean interest at the rate of two percent (2%) per annum,

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compounded annually, or at such other rate determined from the actual experience of the system

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as may be prescribed from time to time by the board.

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      (14) "Retirement allowance" shall mean annual payments for life made after retirement

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under and in accordance with chapters 8 to 10 of this title. All allowances shall be paid in equal

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monthly installments beginning as of the effective date thereof; provided, that a smaller pro rata

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amount may be paid for part of a month where separation from service occurs during the month

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in which the application was filed, and when the allowance ceases before the last day of the

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month.

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      (15) "Retirement board" shall mean the board provided in section 36-8-3 to administer

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the retirement system.

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      (16) "Retirement system" shall mean the employees' retirement system of the state of

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Rhode Island as defined in section 36-8-2.

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      (17) "Service" shall mean service as an employee of the state of Rhode Island as

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described in subdivision (8) of this section.

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      (18) "Total service" shall mean prior service as defined above, plus service rendered as a

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member on or after July 1, 1936.

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      (19) "Active member" shall mean any employee of the state of Rhode Island as defined

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in this section for whom the retirement system is currently receiving regular contributions

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pursuant to sections 36-10-1 and 36-10-1.1.

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     SECTION 2. Sections 36-9-20, 36-9-20.5, 36-9-25.1, 36-9-26 and 36-9-31.1 of the

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General Laws in Chapter 36-9 entitled "Retirement System-Membership and Service Credits" are

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hereby amended to read as follows:

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     36-9-20. Credit for service as a teacher, municipal employee, or legislator. -- (a) Any

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state employee who shall have rendered service as a teacher as defined under the provisions of

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chapters 16 and 17 of title 16 shall be entitled to credit for that service for the various purposes of

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this system, provided the member shall have been a contributing member of this system for that

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period. Any state employee who shall have been a contributing member of the municipal system

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as defined under the provisions of chapter 21 of title 45 shall be given credit for that service for

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the various purposes of this system, provided the member's contributions are transferred to this

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system. All contributions made by the member shall be transferred into this system for the periods

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of service and the retirement system shall calculate the full actuarial value of the accrued benefit

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with the former employer. If the full actuarial value of the accrued benefit with the former

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employer is greater than the total employee contributions transferred, the retirement system shall

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also transfer the difference between the full actuarial value of the accrued benefit with the former

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employer and the employee's contributions from the account of the former employer to the

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account of the current employer. In any case in which a member shall have received a refund or

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refunds of contributions made to the system, the allowance of the aforesaid credit for service shall

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be conditioned upon the repayment payment of the refund or refunds, including regular interest

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from the date of refund to the date of repayment of the full actuarial cost as defined in subsection

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36-8-1(9). Any service as defined herein for which no contributions were made may be granted

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provided the member pays to the retirement system a the full actuarial cost as defined in section

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36-8-1(9) lump sum amount equal to the amount he or she would have contributed had he or she

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been a member during that period, plus interest as determined by the retirement board. Any state

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employee or teacher as defined under the provisions of chapters 16 and 17 of title 16 who shall

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have been employed by a municipality which did not elect to accept chapter 21 of title 45 as

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provided in section 45-21-4 shall be given credit for that service for the various purposes of this

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system, provided that the employee shall have met the definitional requirements of "employee" as

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stated in section 45-21-2(5) and provided the member pays to the retirement system a an lump

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sum amount equal to the full actuarial value of the credit as certified by the retirement board;

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provided, however, that any state employee who shall have been employed by a municipality

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which did not elect to accept chapter 21 of title 45 as provided in section 45-21-4 shall be given

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credit for that service for the various purposes of this system, to a maximum period of four (4)

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years, provided the member pays to the retirement system the a full actuarial cost as defined in

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subsection 36-8-1(9). lump sum amount equal to ten percent (10%) of his or her entry level salary

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in the state retirement system multiplied by the number of years in which he or she seeks

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membership service credit prior to December 31, 1986. Nothing in this section shall be deemed to

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allow the purchase of four (4) years of service for credit in more than one retirement system.

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      (b) The retirement board shall fix and determine rules and regulations to govern the

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provisions of this section.

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     36-9-20.5. Purchase of service credit -- Inactive status. -- Notwithstanding any general

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or public law to the contrary, any state employee or teacher participating in the employees'

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retirement system who is on workers' compensation may purchase up to four (4) years of service

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credit for time currently permitted to be purchased under law without the necessity of returning to

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active status as an employee. The member shall pay to the system the full actuarial cost as defined

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in subsection 36-8-1(9) in a lump sum the contributions he or she would have paid plus interest

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for the period for which the member seeks membership service credit, except as provided in

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section 36-9-31 for military service credit.

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     36-9-25.1.Leave service credits. -- (a) Notwithstanding any other provisions of the

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retirement law or rulings of the retirement board in accordance with the powers vested therein,

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state employees with at least one year of service who have been granted by their appointing

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authority a leave of absence without pay to further their education in the field of their state

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employment, shall be entitled to credit as service for the various purposes of their retirement

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system, provided the person, upon completion of his or her educational leave, returns to state

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service for at least one year; and provided further that the employee makes arrangements to pay

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into the retirement system on or before the date of retirement and in such manner as the

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retirement board may prescribe an amount equal to the full actuarial cost as defined in subsection

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36-8-1(9) contribution he or she would have made to the retirement system based upon his or her

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expected compensation but for the granting of leave without pay,. the contributions plus regular

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interest compounded annually up to the date of payment.

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      (b) Any state employee who is granted a leave of absence without pay for illness, injury,

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or any other reason may receive credit therefor by making the full actuarial cost as defined in

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subsection 36-8-1(9) contributions to the retirement system an amount equal to the contribution

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he or she would have made to the retirement system based upon his or her expected compensation

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but for the granting of leave without pay, plus regular interest compounded annually to date of

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payment; provided the employee returns to state service for at least one year upon completion of

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the leave. Credit for leaves of absence shall be limited in the aggregate during the total service of

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an employee to a period of four (4) years.

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     36-9-26. Credits for layoffs. -- (a) Members who are laid off for any reason and are not

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on leave without pay may purchase up to one years' credit for retirement purposes; provided the

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member did not withdraw his or her retirement contributions while on layoff, and returns to active

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membership; provided, further, that the member purchases that credit upon his or her return to

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service from the layoff and pays into the retirement system the full actuarial cost as defined in

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subsection 36-8-1(9). in a lump sum the amount he or she would have contributed to the system

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but for the layoff plus regular interest.

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      (b) The retirement board shall fix and determine rules and regulations to govern the

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provisions of this section.

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     36-9-31.1. Peace corps, teacher corps, and volunteers in service to America. -- (a)

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Any active member who served in the peace corps, teacher corps, or in volunteers in service to

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America may purchase credit for that service up to a maximum of four (4) years in the aggregate;

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provided, that any member on an official leave of absence for illness or injury shall be eligible to

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purchase those credits while on the leave of absence.

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      (b) The cost to purchase these credits shall be the full actuarial cost as defined in

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subsection 36-8-1(9) ten percent (10%) of the members first year earnings as a member of the

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retirement system multiplied by the number of years and fraction thereof of that service in the

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peace corps, teacher corps, or VISTA, up to a maximum of four (4) years.

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      (c) There will be no interest charge provided the member makes that purchase during his

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or her first five (5) years of membership in the retirement system, but regular interest will be

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charged to date of purchase from date of enrollment into membership if purchased after

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completing five (5) years of membership; provided, however, any member who was in the

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retirement system prior to July 1, 1980, will not be charged interest whenever he or she purchases

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the credit.

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     SECTION 3. Sections 36-10-9, 36-10-9.2, 36-10-9.3, 36-10-10, 36-10-11, 36-10-14, 36-

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10-15 and 36-10-35 of the General Laws in Chapter 36-10 entitled "Retirement System-

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Contributions and Benefits" are hereby amended to read as follows:

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     36-10-9. Retirement on service allowance -- In general. -- Retirement of a member on

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a service retirement allowance shall be made by the retirement board as follows:

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      (1) (a) (i) Any member may retire upon his or her written application to the retirement

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board as of the first day of the calendar month in which the application was filed; provided, the

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member was separated from service prior thereto; and further provided, however, that if

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separation from service occurs during the month in which application is filed, the effective date

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shall be the first day following that separation from service; and provided further that the member

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on his or her retirement date attained the age of sixty (60) and completed at least ten (10) years of

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contributory service on or before July 1, 2005 or who, regardless of age, has completed twenty-

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eight (28) years of total service and has completed at least ten (10) years of contributory service

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on or before July 1, 2005, and who retire before October 1, 2009 or are eligible to retire as of

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September 30, 2009.

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     (ii) For members who become eligible to retire on or after October 1, 2009, benefits are

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available to members who have attained the age of sixty-two (62) and completed at least ten (10)

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years of contributory service. For members in service as of October 1, 2009 who were not eligible

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to retire as of September 30, 2009, the minimum retirement age of sixty-two (62) will be adjusted

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downward in proportion to the amount of service the member has earned as of September 30,

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2009. The proportional formula shall work as follows:

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     (1) The formula shall determine the first age of retirement eligibility under the laws in

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effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

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sixty-two (62).

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     (2) The formula shall then take the member's total service credit as of September 30,

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2009 as the numerator and the years of service credit determined under (1) as the denominator.

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     (3) The fraction determined in (2) shall then be multiplied by the age difference

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determined in (1) to apply a reduction in years from age sixty-two (62).

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      (b) (i) Any member, who has not completed at least ten (10) years of contributory

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service on or before July 1, 2005, may retire upon his or her written application to the retirement

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board as of the first day of the calendar month in which the application was filed; provided, the

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member was separated from service prior thereto; and further provided, however, that if

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separation from service occurs during the month in which application is filed, the effective date

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shall be the first day following that separation from service; provided, the member or his or her

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retirement date had attained the age of fifty-nine (59) and had completed at least twenty-nine (29)

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years of total service or provided that the member on his or her retirement date had attained the

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age of sixty-five (65) and had completed at least ten (10) years of contributory service; or

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provided, that the member on his or her retirement date had attained the age of fifty-five (55) and

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had completed twenty (20) years of total service provided, that the retirement allowance, as

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determined according to the formula in section 36-10-10 is reduced actuarially for each month

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that the age of the member is less than sixty-five (65) years, and who retire before October 1,

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2009 or are eligible to retire as of September 30, 2009.

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     (ii) For members who become eligible to retire on or after October 1, 2009, benefits are

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available to members who have attained the age of sixty-two (62) and completed at least twenty-

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nine (29) years of total service or have attained the age of sixty-five (65) and completed at least

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ten (10) years of contributory service. For members in service as of October 1, 2009 who were

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not eligible to retire as of September 30, 2009, who have a minimum retirement age of sixty-two

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(62), the retirement age will be adjusted downward in proportion to the amount of service the

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member has earned as of September 30, 2009. The proportional formula shall work as follows:

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     (1) The formula shall determine the first age of retirement eligibility under the laws in

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effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

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sixty-two (62).

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     (2) The formula shall then take the member's total service credit as of September 30,

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2009 as the numerator and the years of service credit determined under (1) as the denominator.

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     (3) The fraction determined in (2) above shall then be multiplied by the age difference

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determined in (1) to apply a reduction in years from age sixty-two (62).

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     (2) Any faculty employee at a public institution of higher education under the jurisdiction

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of the board of governors for higher education shall not be involuntarily retired upon attaining the

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age of seventy (70) years.

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      (3) (i) Except as specifically provided in section 36-10-9.1, sections 36-10-12 -- 36-10-

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15, and sections 45-21-19 -- 45-21-22, no member shall be eligible for pension benefits under this

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chapter unless the member shall have been a contributing member of the employee's retirement

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system for at least ten (10) years.

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      (ii) Provided, however, a person who has ten (10) years service credit on or before June

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16, 1991, shall be vested.

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      (iii) Furthermore, any past service credits purchased in accordance with section 36-9-38

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shall be counted towards vesting.

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      (iv) Any person who becomes a member of the employees' retirement system pursuant to

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section 45-21-4 shall be considered a contributing member for the purpose of chapter 21 of title

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45 and this chapter.

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      (v) Notwithstanding any other provision of law, no more than five (5) years of service

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credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

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purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

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of service credits before January 1, 1995, shall be permitted to apply those purchases towards the

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member's service retirement. However, no further purchase will be permitted. Repayment in

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accordance with applicable law and regulation of any contribution previously withdrawn from the

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system shall not be deemed a purchase of service credit.

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      (4) No member of the employees' retirement system shall be permitted to purchase

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service credits for casual or seasonal employment, for employment as a page in the general

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assembly, or for employment at any state college or university while the employee is a student or

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graduate assistant of the college or university.

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      (5) Except as specifically provided in sections 16-16-6.2 and 16-16-6.4, a member shall

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not receive service credit in this retirement system for any year or portion of it, which counts as

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service credit in any other retirement system in which the member is vested or from which the

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member is receiving a pension and/or any annual payment for life. This subsection shall not apply

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to any payments received pursuant to the federal Social Security Act or to payments from a

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military pension earned prior to participation in state or municipal employment, or to military

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service credits earned prior to participation in state or municipal employment.

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      (6) A member who seeks to purchase or receive service credit in this retirement system

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shall have the affirmative duty to disclose to the retirement board whether or not he or she is a

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vested member in any other retirement system and/or is receiving a pension, retirement

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allowance, or any annual payment for life. The retirement board shall have the right to investigate

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as to whether or not the member has utilized the same time of service for credit in any other

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retirement system. The member has an affirmative duty to cooperate with the retirement board

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including, by way of illustration and not by way of limitations the duty to furnish or have

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furnished to the retirement board any relevant information which is protected by any privacy act.

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      (7) A member who fails to cooperate with the retirement board shall not have the time of

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service counted toward total service credit until such time as the member cooperates with the

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retirement board and until such time as the retirement board determines the validity of the service

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credit.

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      (8) A member who knowingly makes a false statement to the retirement board regarding

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service time or credit shall not be entitled to a retirement allowance and is entitled only to the

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return of his or her contributions without interest.

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     36-10-9.2. Retirement on service allowance -- Correctional officers. -- (a) This section

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shall apply to the retirement of members employed as assistant director (adult services), assistant

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deputy director, chief of inspection, and associate directors, correctional officer, chief of security,

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work rehabilitation program supervisor, supervisor of custodial records and reports, and

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classification counselor within the department of corrections.

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      (b) (i) Any member who has attained the age of fifty (50) years may be retired

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subsequent to the proper execution and filing of a written application; provided, however, that the

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member shall have completed twenty (20) years of total service within the department of

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corrections and who retires before October 1, 2009 or is eligible to retire as of September 30,

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2009.

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     (ii) For members who become eligible to retire on or after October 1, 2009, benefits are

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available to members who have attained the age of fifty-five (55) and have completed at least

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twenty-five (25) years of total service within the department of corrections. For members in

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service as of October 1, 2009 who were not eligible to retire as of September 30, 2009, the

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minimum retirement age of fifty-five (55) will be adjusted downward in proportion to the amount

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of service the member has earned as of September 30, 2009. The proportional formula shall work

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as follows:

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      (1) The formula shall determine the first age of retirement eligibility under the laws in

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effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

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fifty-five (55).

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     (2) The formula shall then take the member's total service credit as of September 30,

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2009 as the numerator and the years of service credit determined under (1) as the denominator.

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     (3) The fraction determined in (2) shall then be multiplied by the age difference

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determined in (1) to apply a reduction in years from age fifty-five (55).

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     36-10-9.3. Retirement on service allowance -- Registered nurses. -- (a) This section

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shall apply to the retirement of members employed as registered nurses within the department of

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mental health, retardation, and hospitals.

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      (b) Any member who has attained the age of fifty (50) years may be retired subsequent

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to the proper execution and filing of written application; provided, however, that the member

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shall have completed twenty-five (25) years of total service within the department of mental

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health, retardation, and hospitals and who retires before October 1, 2009 or is eligible to retire as

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of September 30, 2009.

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     (ii) For members who become eligible to retire on or after October 1, 2009, benefits are

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available to members who have attained the age of fifty-five (55) and have completed at least

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twenty-five (25) years of total service within the department of mental health, retardation and

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hospitals. For members in service as of October 1, 2009 who were not eligible to retire as of

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September 30, 2009, the minimum retirement age of fifty-five (55), the retirement age will be

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adjusted downward in proportion to the amount of service the member has earned as of

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September 30, 2009. The proportional formula shall work as follows:

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      (1) The formula shall determine the first age of retirement eligibility under the laws in

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effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

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fifty-five (55).

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     (2) The formula shall then take the member's total service credit as of September 30,

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2009 as the numerator and the years of service credit determined under (1) as the denominator.

10-27

     (3) The fraction determined in (2) shall then be multiplied by the age difference

10-28

determined in (1) to apply a reduction in years from age fifty-five (55).

10-29

     36-10-10. Amount of service retirement allowance. -- (a) (1) (i) For employees eligible

10-30

to retire on or before September 30, 2009, Upon upon retirement for service under section 36-10-

10-31

9, a member whose membership commenced before July 1, 2005 and who has completed at least

10-32

ten (10) years of contributory service on or before July 1, 2005 shall receive a retirement

10-33

allowance which shall be determined in accordance with schedule A below:

10-34

     Schedule A

11-1

     Years of Service Percentage Allowance

11-2

     1st through 10th inclusive 1.7%

11-3

     11th through 20th inclusive 1.9%

11-4

     21st through 34th inclusive 3.0%

11-5

     35th 2.0%

11-6

     (ii) For employees eligible to retire on or after October 1, 2009, who were not eligible to

11-7

retire on or before September 30, 2009, upon retirement from service under section 36-10-9, a

11-8

member whose membership commenced before July 1, 2005 and who has completed at least ten

11-9

(10) years of contributory service on or before July 1, 2005 shall receive a retirement allowance

11-10

which shall be determined in accordance with schedule A above for service on before September

11-11

30, 2009, and shall be determined in accordance with schedule B in subsection (a)(2) below for

11-12

service on or after October 1, 2009.

11-13

     (2) Upon retirement for service under section 36-10-9, a member whose membership

11-14

commenced after July 1, 2005, or who has not completed at least ten (10) years of contributory

11-15

service as of July 1, 2005, shall, receive a retirement allowance which shall be determined in

11-16

accordance with Schedule B below:

11-17

     Schedule B

11-18

     Years of Service Percentage Allowance

11-19

     1st through 10th inclusive 1.60%

11-20

     11th through 20th inclusive 1.80%

11-21

     21st through 25th inclusive 2.0%

11-22

     26th through 30th inclusive 2.25%

11-23

     31st through 37th inclusive 2.50%

11-24

     38th 2.25%

11-25

     (b) The retirement allowance of any member whose membership commenced before July

11-26

1, 2005 and who has completed at least ten (10) years of contributory service on or before July 1,

11-27

2005 shall be in an amount equal to the percentage allowance specified in schedule A subsection

11-28

(a)(1) of his or her average highest three (3) consecutive years of compensation multiplied by the

11-29

number of years of total service, but in no case to exceed eighty percent (80%) of the

11-30

compensation payable at completion of thirty-five (35) years of service; provided, however, for

11-31

employees retiring on or after October 1, 2009 who were not eligible to retire as of September 30,

11-32

2009 the calculation shall be based on the average highest five (5) consecutive years of

11-33

compensation. Any member who has in excess of thirty-five (35) years on or before June 2,

11-34

1985, shall not be entitled to any refund, and any member with thirty-five (35) years or more on

12-1

or after June 2, 1985, shall contribute from July 1, 1985, until his or her retirement. The

12-2

retirement allowance of any member whose membership commenced after July 1, 2005 or who

12-3

had not completed at least ten (10) years of contributory service as of July 1, 2005, shall, be in an

12-4

amount equal to the percentage allowance specified in Schedule B of his or her average highest

12-5

three (3) consecutive years of compensation multiplied by the number of years of total service,

12-6

but in no case to exceed seventy-five percent (75%) of the compensation payable at the

12-7

completion of thirty-eight (38) years of service; provided, however, for employees retiring on or

12-8

after October 1, 2009 who were not eligible to retire as of September 30, 2009 the calculation

12-9

shall be based on the average highest five (5) consecutive years of compensation.

12-10

     (c) Any member with thirty-eight (38) years or more of service prior to December 31,

12-11

1985, shall not be required to make additional contributions. Contributions made between

12-12

December 31, 1985, and July 1, 1987, by members with thirty-eight (38) or more years of service

12-13

prior to December 31, 1985, shall be refunded by the retirement board to the persons, their heirs,

12-14

administrators, or legal representatives.

12-15

     36-10-11. Service allowance to member withdrawing from service before retirement

12-16

age. -- (a) The right of a service retirement allowance under the provisions of this chapter shall

12-17

vest in a member who shall withdraw from service prior to his or her attainment of the minimum

12-18

age of retirement specified in sections 36-10-9 -- 36-10-9.3 who shall not have received a refund,

12-19

provided the member shall have completed at least ten (10) years of contributory service on or

12-20

before July 1, 2005. The member shall become entitled to a service retirement allowance upon his

12-21

or her attainment of the age of established in section 36-10-9 of sixty (60) years or at his or her

12-22

option at any date subsequent thereto. The rate of service retirement allowance payable in the

12-23

case of any member shall be that provided in section 36-10-10, Schedule A, for the period of total

12-24

service earned and accrued at the date of withdrawal from service of the member.

12-25

      (b) For a member who shall not have completed at least ten (10) years of contributory

12-26

service on or before July 1, 2005, the right of a service retirement allowance under the provisions

12-27

of this chapter shall vest in a member who shall withdraw from service prior to his or her

12-28

attainment of the minimum age of retirement specified in sections 36-10-9 -- 36-10-9.3 who shall

12-29

not have received a refund, provided, the member shall have completed at least ten (10) years of

12-30

contributory service. The member shall become entitled to a service retirement allowance upon

12-31

his or her attainment of the age of sixty-five (65) years or at his or her option at any date

12-32

subsequent thereto. The rate of service retirement allowance payable in the case of any member

12-33

shall be that provided in section 36-10-10, Schedule B, for the period of total service earned and

12-34

accrued at the date of withdrawal from service of the member.

13-1

     36-10-14. Retirement for accidental disability. -- (a) Medical examination of an active

13-2

member for accidental disability and investigation of all statements and certificates by him or her

13-3

or in his or her behalf in connection therewith shall be made upon the application of the head of

13-4

the department in which the member is employed or upon application of the member, or of a

13-5

person acting in his or her behalf, stating that the member is physically or mentally incapacitated

13-6

for the performance of service as a natural and proximate result of an accident while in the

13-7

performance of duty, and certify the definite time, place, and conditions of the duty performed by

13-8

the member resulting in the alleged disability, and that the alleged disability is not the result of

13-9

willful negligence or misconduct on the part of the member, and is not the result of age or length

13-10

of service, and that the member should, therefore, be retired.

13-11

      (b) The application shall be made within five (5) years of the alleged accident from

13-12

which the injury has resulted in the members present disability and shall be accompanied by an

13-13

accident report and a physicians report certifying to the disability; provided that if the member

13-14

was able to return to his or her employment and subsequently reinjures or aggravates the same

13-15

injury, the application shall be made within the later of five (5) years of the alleged accident or

13-16

three (3) years of the reinjury or aggravation. The application may also state the member is

13-17

permanently and totally disabled from any employment.

13-18

      (c) If a medical examination conducted by three (3) physicians engaged by the retirement

13-19

board and such investigation as the retirement board may desire to make shall show that the

13-20

member is physically or mentally incapacitated for the performance of service as a natural and

13-21

proximate result of an accident, while in the performance of duty, and that the disability is not the

13-22

result of willful negligence or misconduct on the part of the member, and is not the result of age

13-23

or length of service, and that the member has not attained the age of sixty-five (65), and that the

13-24

member should be retired, the physicians who conducted the examination shall so certify to the

13-25

retirement board stating the time, place, and conditions of service performed by the member

13-26

resulting in the disability and the retirement board may grant the member an accidental disability

13-27

benefit.

13-28

      (d) The retirement board shall establish uniform eligibility requirements, standards, and

13-29

criteria for accidental disability which shall apply to all members who make application for

13-30

accidental disability benefits.

13-31

     36-10-15. Amount of accidental disability benefit. – (a) For disability applications

13-32

submitted on or before September 30, 2009, Upon upon retirement for accidental disability under

13-33

section 36-10-14, a member shall receive a benefit which shall be equal to sixty-six and two-

13-34

thirds percent (66 2/3%) of his or her annual compensation at the time of his or her retirement,

14-1

subject to the provisions of section 36-10-31.

14-2

     (b) Upon any application for accidental disability submitted on or after October 1, 2009,

14-3

if the member has been found to be permanently and totally disabled from service but has not

14-4

been found by the board to be permanently and totally disabled from any employment as a result

14-5

of his/her accidental disability, a member shall receive a retirement allowance equal to fifty

14-6

percent (50%) of the rate of the member's compensation at the date of the member's retirement,

14-7

subject to the provisions of section 36-10-31. The retiree shall, as a condition of continued receipt

14-8

of a disability retirement allowance, on or before a date fixed by the retirement board, annually

14-9

under penalties of perjury provide the board with such affidavits and accurate evidence of

14-10

earnings, employment and gainful activity as the board may require, including, but not limited,

14-11

joint and/or individual tax returns. Payment of the disability retirement allowance shall continue

14-12

as long as the individual remains disabled, and regardless of service or age.

14-13

     Upon retirement for accidental disability that has been found by the board to be

14-14

permanently and totally disabling from any employment, a member shall receive a retirement

14-15

allowance equal to sixty-six and two-thirds percent (66 2/3%) of the rate of the member's

14-16

compensation at the date of the member's retirement subject to the provisions of section 36-10-31.

14-17

The retirement board shall apply the terms of subsection 28-33-17(b) in determining total

14-18

disability.

14-19

     36-10-35. Additional benefits payable to retired employees. -- (a) All state employees

14-20

and all beneficiaries of state employees receiving any service retirement or ordinary or accidental

14-21

disability retirement allowance pursuant to the provisions of this title on or before December 31,

14-22

1967, shall receive a cost of living retirement adjustment equal to one and one-half percent

14-23

(1.5%) per year of the original retirement allowance, not compounded, for each calendar year the

14-24

retirement allowance has been in effect. For the purposes of computation, credit shall be given for

14-25

a full calendar year regardless of the effective date of the retirement allowance. This cost of living

14-26

adjustment shall be added to the amount of the retirement allowance as of January 1, 1968, and an

14-27

additional one and one-half percent (1.5%) shall be added to the original retirement allowance in

14-28

each succeeding year during the month of January, and provided further, that this additional cost

14-29

of living increase shall be three percent (3%) for the year beginning January 1, 1971, and each

14-30

year thereafter, through December 31, 1980. Notwithstanding any of the above provisions, no

14-31

employee receiving any service retirement allowance pursuant to the provisions of this title on or

14-32

before December 31, 1967, or the employee's beneficiary, shall receive any additional benefit

14-33

hereunder in an amount less than two hundred dollars ($200) per year over the service retirement

14-34

allowance where the employee retired prior to January 1, 1958.

15-1

      (b) All state employees and all beneficiaries of state employees retired on or after

15-2

January 1, 1968, who are receiving any service retirement or ordinary or accidental disability

15-3

retirement allowance pursuant to the provisions of this title shall, on the first day of January next

15-4

following the third anniversary date of the retirement, receive a cost of living retirement

15-5

adjustment, in addition to his or her retirement allowance, in an amount equal to three percent

15-6

(3%) of the original retirement allowance. In each succeeding year thereafter through December

15-7

31, 1980, during the month of January, the retirement allowance shall be increased an additional

15-8

three percent (3%) of the original retirement allowance, not compounded, to be continued during

15-9

the lifetime of the employee or beneficiary. For the purposes of computation, credit shall be given

15-10

for a full calendar year regardless of the effective date of the service retirement allowance.

15-11

      (c) (1) Beginning on January 1, 1981, for all state employees and beneficiaries of the

15-12

state employees receiving any service retirement and all state employees, and all beneficiaries of

15-13

state employees, who have completed at least ten (10) years of contributory service on or before

15-14

July 1, 2005 pursuant to the provisions of this chapter, and for all state employees, and all

15-15

beneficiaries of state employees who receive a disability retirement allowance pursuant to

15-16

sections 36-10-12 -- 36-10-15, the cost of living adjustment shall be computed and paid at the rate

15-17

of three percent (3%) of the original retirement allowance or the retirement allowance as

15-18

computed in accordance with section 36-10-35.1, compounded annually from the year for which

15-19

the cost of living adjustment was determined to be payable by the retirement board pursuant to

15-20

the provisions of subsection (a) or (b) of this section. Such cost of living adjustments are

15-21

available to members who retire before October 1, 2009 or are eligible to retire as of September

15-22

30, 2009.

15-23

      (2) The provisions of this subsection shall be deemed to apply prospectively only and no

15-24

retroactive payment shall be made.

15-25

      (3) The retirement allowance of all state employees and all beneficiaries of state

15-26

employees who have not completed at least ten (10) years of contributory service on or before

15-27

July 1, 2005 or were not eligible to retire as of September 30, 2009, shall, on the month following

15-28

the third anniversary date of retirement, and on the month following the anniversary date of each

15-29

succeeding year be adjusted and computed by multiplying the retirement allowance by three

15-30

percent (3%) or the percentage of increase in the Consumer Price Index for all Urban Consumers

15-31

(CPI-U) as published by the United States Department of Labor Statistics determined as of

15-32

September 30 of the prior calendar year, whichever is less; the cost of living adjustment shall be

15-33

compounded annually from the year for which the cost of living adjustment was determined

15-34

payable by the retirement board; provided, that no adjustment shall cause any retirement

16-1

allowance to be decreased from the retirement allowance provided immediately before such

16-2

adjustment. This section shall not apply to all state employees and all beneficiaries of state

16-3

employees, who receive a disability retirement allowance pursuant to sections 36-10-12 -- 36-10-

16-4

15.

16-5

      (d) (1) All legislators and all beneficiaries of legislators who are receiving a retirement

16-6

allowance pursuant to the provisions of section 36-10-9.1 for a period of three (3) or more years,

16-7

shall, commencing January 1, 1982, receive a cost of living retirement adjustment, in addition to

16-8

a retirement allowance, in an amount equal to three percent (3%) of the original retirement

16-9

allowance. In each succeeding year thereafter during the month of January, the retirement

16-10

allowance shall be increased an additional three percent (3%) of the original retirement

16-11

allowance, compounded annually, to be continued during the lifetime of the legislator or

16-12

beneficiary. For the purposes of computation, credit shall be given for a full calendar year

16-13

regardless of the effective date of the service retirement allowance.

16-14

      (e) The provisions of sections 45-13-7 -- 45-13-10 shall not apply to this section.

16-15

     SECTION 4. Sections 16-16-5, 16-16-7.2, 16-16-8, 16-16-12, 16-16-13, 16-16-16, 16-

16-16

16-17 and 16-16-40 of the General Laws in Chapter 16-16 entitled "Teachers' Retirement" are

16-17

hereby amended to read as follows:

16-18

     16-16-5. Service creditable. -- (a) In calculating "service", "prior service", or "total

16-19

service" as defined in section 16-16-1, every teacher shall be given credit for a year of service for

16-20

each year in which he or she shall have served as a teacher; provided, that any teacher who

16-21

through illness or leave of absence without pay does not serve a full school year may receive

16-22

credit for a full school year of service by paying the full actuarial cost as defined in section 36-8-

16-23

1(9) making contribution to the system upon his or her return to teaching for at least one year the

16-24

amount he or she would have contributed to the retirement system plus regular interest,

16-25

compounded annually up to the date of payment based upon his or her expected compensation but

16-26

for his or her leave of absence in any case of illness, sabbatical, educational leave, or any other

16-27

reason. Credit for leaves of absence shall be limited, in the aggregate, during the total service of a

16-28

teacher to a period of four (4) years; provided, however, every teacher who had been required to

16-29

resign for maternity reasons may receive credit for maternity reasons by making contribution to

16-30

the system upon her return to teaching the amount she would have contributed to the retirement

16-31

system, with interest, based upon her expected compensation but for her absence due to maternity

16-32

reasons.

16-33

      (b) The retirement board shall fix and determine the time when and the conditions under

16-34

which the payments shall be made.

17-1

      (c) Any teacher who serves or who has served during a school year at least three-quarters

17-2

(3/4) of the number of days that the public schools are required by law to be in session during the

17-3

year shall be given credit for a year of service for that year. In determining the number of days

17-4

served by a substitute teacher the total number of days served in any public school of any city or

17-5

town in the state may be combined for any one school year. Any teacher shall be entitled to "prior

17-6

service" credit for service prior to July 1, 1949, provided the teacher shall have been in service

17-7

during the school year 1949-1950. The teacher shall be entitled to service credit for any year

17-8

subsequent to July 1, 1949, by making contribution to the retirement system the amount he or she

17-9

would have contributed to the retirement system had he or she been a member, plus regular

17-10

interest compounded annually to date of payment, payable at a time or in any manner that may be

17-11

provided by the rules of the retirement board.

17-12

      (d) Any teacher employed in at least a half ( 1/2) program including a job share program

17-13

shall remain a contributing member and shall receive credit for that part-time service.

17-14

      (e) In computing service or in computing compensation, the retirement board shall credit

17-15

no more than one year of service on account of all service in one calendar year.

17-16

      (f) Notwithstanding any other section of law, no member of the retirement system shall

17-17

be permitted to purchase service credit for any portion of a year for which he or she is already

17-18

receiving service credit in this retirement system.

17-19

     16-16-7.2. Peace corps, teacher corps, and volunteers in service to America -- Credit.

17-20

-- (a) Any active teacher who served in the peace corps, teacher corps, or in volunteers in service

17-21

to America may purchase credit for that service, up to a maximum of four (4) years. Any teacher

17-22

on an official leave of absence for illness or injury shall be eligible to purchase the credits while

17-23

on the leave of absence.

17-24

      (b) The cost to purchase these credits shall be the full actuarial cost as defined in section

17-25

36-8-1(9) ten percent (10%) of the member's first year's earnings as a teacher multiplied by the

17-26

number of years and fraction of the years of his or her service in the peace corps, teacher corps, or

17-27

in volunteers in service to America, up to a maximum of four (4) years.

17-28

      (c) There will be no interest charged provided the teacher makes that purchase during his

17-29

or her first five (5) years of membership in the retirement system, but regular interest will be

17-30

charged to the date of purchase from the date of enrollment into membership if purchased after

17-31

completing five (5) years of membership; provided, however, any member who was in the

17-32

retirement system prior to July 1, 1980, will not be charged interest whenever he or she purchases

17-33

the credit.

17-34

     16-16-8. Credit for service as a state or municipal employee. -- Any member who

18-1

shall have rendered service as a state employee as defined by the provisions of chapter 17 of this

18-2

title and chapters 8 -- 10 of title 36 or who shall have rendered service as an employee of a

18-3

participating municipality, as defined by chapter 21 of title 45, shall be entitled to credit for his or

18-4

her service for the various purposes of this system, provided the member shall have been a

18-5

contributing member for that period. All contributions made by the member shall be transferred

18-6

into this system for the periods of service and the retirement system shall calculate the full

18-7

actuarial value of the accrued benefit with the former employer. If the full actuarial value of the

18-8

accrued benefit with the former employer is greater than the total employee contributions

18-9

transferred, the retirement system shall also transfer the difference between full actuarial value of

18-10

the accrued benefit with the former employer and the employee's contributions from the account

18-11

of the former employer to the account of the current employer. In any case in which a member

18-12

shall have received a refund or refunds of contributions made to the system, the allowance of the

18-13

credit for service shall be conditioned upon the repayment of the full actuarial cost as defined in

18-14

section 36-8-1(9) refund or refunds, including regular interest from the date of refund to the date

18-15

of repayment. Any service as defined in this section for which no contributions were made may

18-16

be granted provided the member pays to the retirement system a lump sum payment equal to the

18-17

amount he or she would have contributed had he or she been a member during the period, plus

18-18

interest as previously defined in this section the full actuarial cost as defined in section 36-8-1(9).

18-19

The retirement board shall fix and determine the rules and regulations needed to govern the

18-20

provisions of this section.

18-21

     16-16-12. Procedure for service retirement. -- Retirement of a member on a service

18-22

retirement allowance shall be made by the retirement board as follows:

18-23

      (1)(i) Any member may retire upon his or her written application to the retirement board

18-24

as of the first day of the calendar month in which the application was filed, provided the member

18-25

was separated from service prior to filing the application, and further provided however, that if

18-26

separation from service occurs during the month in which the application is filed, the effective

18-27

date shall be the first day following the separation from service, and provided further that the

18-28

member on retirement date has attained the age of sixty (60) years and has completed at least ten

18-29

(10) years of contributory service on or before July 1, 2005, or regardless of age has completed

18-30

twenty-eight (28) years of total service and has completed at least ten (10) years of contributory

18-31

service on or before July 1, 2005, and who retire before October 1, 2009 or are eligible to retire as

18-32

of September 30, 2009.

18-33

      (ii) For teachers who become eligible to retire on or after October 1, 2009, benefits are

18-34

available to teachers who have attained the age of sixty-two (62) and completed at least ten (10)

19-1

years of contributory service. For teachers in service as of October 1, 2009 who were not eligible

19-2

to retire as of September 30, 2009, the minimum retirement age of sixty-two (62) will be adjusted

19-3

downward in proportion to the amount of service the member has earned as of September 30,

19-4

2009. The proportional formula shall work as follows:

19-5

     (1) The formula shall determine the first age of retirement eligibility under the laws in

19-6

effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

19-7

sixty-two (62).

19-8

     (2) The formula shall then take the teacher’s total service credit as of September 30, 2009

19-9

as the numerator and the years of service credit determined under (1) as the denominator.

19-10

     (3) The fraction determined in (2) shall then be multiplied by the age difference in (1) to

19-11

apply a reduction in years from age sixty-two (62).

19-12

     (b)(i) Any member, who has not completed at least ten (10) years of contributory service

19-13

on or before July 1, 2005, may retire upon his or her written application to the retirement board as

19-14

of the first day of the calendar month in which the application was filed; provided, the member

19-15

was separated from service prior thereto; and further provided, however, that if separation from

19-16

service occurs during the month in which application is filed, the effective date shall be the first

19-17

day following that separation from service; provided, the member on his or her retirement date

19-18

had attained the age of fifty-nine (59) and had completed at least twenty-nine (29) years of total

19-19

service; or provided, that the member on his or her retirement date had attained the age of sixty-

19-20

five (65) and had completed at least ten (10) years of contributory service; or provided, that the

19-21

member on his or her retirement date had attained the age of fifty-five (55) and had completed

19-22

twenty (20) years of total service and provided, that the retirement allowance, as determined

19-23

according to the formula in section 16-16-13 is reduced actuarially for each month that the age of

19-24

the member is less than sixty-five (65) years and who retire before October 1, 2009 or are eligible

19-25

to retire as of September 30, 2009.

19-26

     (ii) For teachers who become eligible to retire on or after October 1, 2009, benefits are

19-27

available to teachers who have attained the age of sixty-two (62) and have completed at least

19-28

twenty-nine (29) years of total service or have attained the age of sixty-five (65) and completed at

19-29

least ten (10) years of contributory service. For teachers in service as of October 1, 2009 who

19-30

were not eligible to retire as of September 30, 2009, who have a minimum retirement age of

19-31

sixty-two (62), the retirement age will be adjusted downward in proportion to the amount of

19-32

service the member has earned as of September 30, 2009. The proportional formula shall work as

19-33

follows:

19-34

     (1) The formula shall determine the first age of retirement eligibility under the laws in

20-1

effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of

20-2

sixty-two (62).

20-3

     (2) The formula shall then take the teacher’s total service credit as of September 30, 2009

20-4

as the numerator and the years of service credit determined under (10 as the denominator.

20-5

     (3) The fraction determined in (2) shall then be multiplied by the age difference

20-6

determined in (1) to apply a reduction in years from age sixty-two (62).

20-7

      (2) Any member also paying into the retirement system under the provisions of chapter 9

20-8

of title 36 shall not be disqualified from receiving benefits provided by that chapter and the

20-9

provisions of this chapter simultaneously.

20-10

      (3) (i) Except as specifically provided in sections 36-10-9.1, 36-10-12 through 36-10-15,

20-11

and 45-21-19 through 45-21-22, no member shall be eligible for pension benefits under this

20-12

chapter unless the member shall have been a contributing member of the employees' retirement

20-13

system for at least ten (10) years.

20-14

      (ii) Provided, however, a person who has ten (10) years service credit shall be vested.

20-15

      (iii) Furthermore, any past service credits purchased in accordance with section 36-9-38

20-16

shall be counted towards vesting.

20-17

      (iv) Any person who becomes a member of the employees' retirement system pursuant to

20-18

section 45-21-8 shall be considered a contributing member for the purpose of chapter 21 of title

20-19

45 and this chapter.

20-20

      (v) Notwithstanding any other provision of law, no more than five (5) years of service

20-21

credit may be purchased by a member of the system. The five (5) year limit shall not apply to any

20-22

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

20-23

of service credit before January 1, 1995, shall be permitted to apply the purchases towards the

20-24

member's service retirement. However, no further purchase will be permitted. Repayment, in

20-25

accordance with applicable law and regulation, of any contribution previously withdrawn from

20-26

the system shall not be deemed a purchase of service credit.

20-27

      (4) No member of the teachers' retirement system shall be permitted to purchase service

20-28

credits for casual or seasonal employment, for employment as a page in the general assembly, or

20-29

for employment at any state college or university while the employee is a student or graduate of

20-30

the college or university.

20-31

      (5) Except as specifically provided in sections 16-16-6.2 and 16-16-6.4, a member shall

20-32

not receive service credit in this retirement system for any year or portion of a year which counts

20-33

as service credit in any other retirement system in which the member is vested or from which the

20-34

member is receiving a pension and/or any annual payment for life. This subsection shall not apply

21-1

to any payments received pursuant to the federal Social Security Act, 42 U.S.C. section 301 et

21-2

seq.

21-3

      (6) A member who seeks to purchase or receive service credit in this retirement system

21-4

shall have the affirmative duty to disclose to the retirement board whether or not he or she is a

21-5

vested member in any other retirement system and/or is receiving a pension, retirement

21-6

allowance, or any annual payment for life. The retirement board shall have the right to investigate

21-7

as to whether or not the member has utilized the same time of service for credit in any other

21-8

retirement system. The member has an affirmative duty to cooperate with the retirement board

21-9

including, by way of illustration and not by way of limitation, the duty to furnish or have

21-10

furnished to the retirement board any relevant information that is protected by any privacy act.

21-11

      (7) A member who fails to cooperate with the retirement board shall not have the time of

21-12

service credit counted toward total service credit until the time the member cooperates with the

21-13

retirement board and until the time the retirement board determines the validity of the service

21-14

credit.

21-15

      (8) A member who knowingly makes a false statement to the retirement board regarding

21-16

service time or credit shall not be entitled to a retirement allowance and is entitled only to the

21-17

return of his or her contributions without interest.

21-18

     16-16-13. Amount of service retirement allowance. -- (a) (1) (i) For teachers eligible

21-19

to retire on or before September 30, 2009, Upon upon retirement from service under section 16-

21-20

16-12 a teacher whose membership commenced before July 1, 2005 and who has completed at

21-21

least ten (10) years of contributory service on or before July 1, 2005, shall, receive a retirement

21-22

allowance which shall be determined in accordance with schedule A:

21-23

      SCHEDULE A

21-24

     YEARS OF SERVICE PERCENTAGE ALLOWANCE

21-25

     1st through 10th inclusive 1.7%

21-26

     11th through 20th inclusive 1.9%

21-27

     21st through 34th inclusive 3.0%

21-28

     35th 2.0%

21-29

     (ii) For teachers eligible to retire on or after October 1, 2009 who were not eligible to

21-30

retire on or before September 30, 2009, upon retirement for service under section 16-16-12, a

21-31

teacher whose membership commenced before July 1, 2005 and who has completed at least ten

21-32

(10) years of contributory service on or before July 1, 2005 shall receive a retirement allowance

21-33

which shall be determined in accordance with schedule A above for service on before September

21-34

30, 2009, and shall be determined in accordance with schedule B in subsection (a)(2) below for

22-1

service on or after October 1, 2009:

22-2

      (2) Upon retirement from service under section 16-16-12 a teacher whose membership

22-3

commenced after July 1, 2005 or who has not completed at least ten (10) years of contributory

22-4

service as of July 1, 2005 shall receive a retirement allowance which shall be determined in

22-5

accordance with Schedule B.

22-6

     SCHEDULE B

22-7

     YEARS OF SERVICE PERCENTAGE ALLOWANCE

22-8

     1st through 10th inclusive 1.60%

22-9

     11th through 20th inclusive 1.80%

22-10

     21st through 25th inclusive 2.0%

22-11

     26th through 30th inclusive 2.25% 31st through 37th inclusive

22-12

     2.50% 38th 2.25%

22-13

     (b) The retirement allowance of any teacher whose membership commenced before July

22-14

1, 2005 and who has completed at least ten (10) years of contributory service on or before July 1,

22-15

2005 shall be in an amount equal to the percentage allowance specified in subsection (a) (1)

22-16

schedule A of his or her average highest three (3) consecutive years of compensation multiplied

22-17

by the number of years of total service, but in no case to exceed eighty percent (80%) of the

22-18

compensation, payable at completion of thirty-five (35) years of service; provided, however, for

22-19

teachers retiring on or after October 1, 2009 who were not eligible to retire as of September 30,

22-20

2009 the calculation shall be based on the average highest five (5) consecutive years of

22-21

compensation.

22-22

     The retirement allowance of any teacher whose membership commenced after July 1,

22-23

2005 or who has not completed at least ten (10) years of contributory service as of July 1, 2005

22-24

shall be in an amount equal to the percentage allowance specified in Schedule B of his or her

22-25

average highest three (3) consecutive years of compensation multiplied by the number of years of

22-26

total service, but in no case to exceed seventy-five percent (75%) of the compensation, payable at

22-27

completion of thirty-eight (38) years of service; provided, however, for teachers retiring on or

22-28

after October 1, 2009 who were not eligible to retire as of September 30, 2009 the calculation

22-29

shall be based on the average highest five (5) consecutive years of compensation.

22-30

     Any teacher who has in excess of thirty-five (35) years on or before June 2, 1985 shall

22-31

not be entitled to any refund, and any teacher with thirty-five (35) years or more on or after June

22-32

2, 1985 shall contribute from July 1, 1985 until his or her retirement.

22-33

     16-16-16. Retirement for accidental disability. -- (a) Medical examination of an active

22-34

teacher for accidental disability, and investigation of all statements and certificates by him or her

23-1

or in his or her behalf in connection with the accidental disability, shall be made upon the

23-2

application of the head of the department in which the teacher is employed or upon application of

23-3

the teacher, or of a person acting in his or her behalf, stating that the teacher is physically or

23-4

mentally incapacitated for the performance of service as a natural and proximate result of an

23-5

accident, while in the performance of duty, and certify the definite time, place, and conditions of

23-6

the duty performed by the teacher resulting in the alleged disability, and that the alleged disability

23-7

is not the result of willful negligence or misconduct on the part of the teacher, and is not the result

23-8

of age or length of service, and that the teacher should, therefore, be retired.

23-9

      (b) The application shall be made within five (5) years of the alleged accident from

23-10

which the injury has resulted in the teacher's present disability, and shall be accompanied by an

23-11

accident report and a physician's report certifying to the disability; provided, that, if the teacher

23-12

was able to return to his or her employment and subsequently reinjures or aggravates the same

23-13

injury, the application shall be made within the later of five (5) years of the alleged accident or

23-14

three (3) years of the reinjury or aggravation. The application may also state that the teacher is

23-15

permanently and totally disabled from any employment.

23-16

      (c) If a medical examination conducted by three (3) physicians engaged by the retirement

23-17

board, and any investigation that the retirement board may desire to make, shall show that the

23-18

teacher is physically or mentally incapacitated for the performance of service as a natural and

23-19

proximate result of an accident, while in the performance of duty, and that the disability is not the

23-20

result of willful negligence or misconduct on the part of the teacher, and is not the result of age or

23-21

length of service, and that the teacher has not attained the age of sixty-five (65) years, and that the

23-22

teacher should be retired, the physicians who conducted the examination shall so certify to the

23-23

retirement board stating the time, place, and conditions of service performed by the teacher

23-24

resulting in the disability, and the retirement board may grant the teacher an accidental disability

23-25

benefit.

23-26

      (d) The retirement board shall establish uniform eligibility requirements, standards, and

23-27

criteria for accidental disability which shall apply to all members who make application for

23-28

accidental disability benefits.

23-29

     16-16-17. Amount of accidental disability benefit. – (a) For disability applications

23-30

submitted on or before September 30, 2009, Upon upon retirement for accidental disability under

23-31

section 16-16-16 a teacher shall receive a benefit that shall be equal to sixty-six and two-thirds

23-32

percent (66 2/3%) of his or her annual compensation at the time of his or her retirement, subject

23-33

to the provisions of section 16-16-20. (b) Upon any application for accidental disability submitted

23-34

after October 1, 2009, if the teacher has been found to be permanently and totally disabled from

24-1

service but has not been found by the board to be permanently and totally disabled from any

24-2

employment as a result of his/her accidental disability, a teacher shall receive a retirement

24-3

allowance equal to fifty percent (50%) of the rate of the teacher’s compensation at the date of the

24-4

teacher’s retirement subject to the provisions of section 16-16-20. The retiree shall, as a condition

24-5

of continued receipt of a disability retirement allowance, on or before a date fixed by the

24-6

retirement board, annually under penalties of perjury provide the board with such affidavits and

24-7

accurate evidence of earnings, employment and gainful activity as the board may require,

24-8

including, but not limited to, joint and/or individual tax returns. Payment of the disability

24-9

retirement allowance shall continue as long as the individual remains disabled, and regardless of

24-10

service or age. Upon retirement for accidental disability that has been found by the board to be

24-11

permanently and totally disabling from any employment, a teacher shall receive a retirement

24-12

allowance equal to sixty-six and two-thirds percent (66 2/3%) of the rate of the teacher’s

24-13

compensation at the date of the teacher’s retirement subject to the provisions of section 16-16-20.

24-14

The retirement board shall apply the terms of subsection 28-33-17(b) in determining total

24-15

disability.

24-16

     16-16-40. Additional benefits payable to retired teachers. -- (a) All teachers and all

24-17

beneficiaries of teachers receiving any service retirement or ordinary disability retirement

24-18

allowance pursuant to the provisions of this chapter and chapter 17 of this title, on or before

24-19

December 31, 1967, shall receive a cost of living retirement adjustment equal to one and one-half

24-20

percent (1.5%) per year of the original retirement allowance, not compounded, for each year the

24-21

retirement allowance has been in effect. For purposes of computation credit shall be given for a

24-22

full calendar year regardless of the effective date of the retirement allowance. This cost of living

24-23

retirement adjustment shall be added to the amount of the service retirement allowance as of

24-24

January 1, 1970, and payment shall begin as of July 1, 1970. An additional cost of living

24-25

retirement adjustment shall be added to the original retirement allowance equal to three percent

24-26

(3%) of the original retirement allowance on the first day of January, 1971, and each year

24-27

thereafter through December 31, 1980.

24-28

      (b) All teachers and beneficiaries of teachers receiving any service retirement or ordinary

24-29

disability retirement allowance pursuant to the provisions of this title who retired on or after

24-30

January 1, 1968, shall, on the first day of January, next following the third (3rd) year on

24-31

retirement, receive a cost of living adjustment, in addition to his or her retirement allowance, an

24-32

amount equal to three percent (3%) of the original retirement allowance. In each succeeding year

24-33

thereafter, on the first day of January, the retirement allowance shall be increased an additional

24-34

three percent (3%) of the original retirement allowance, not compounded, to be continued through

25-1

December 31, 1980.

25-2

      (c) (1) Beginning on January 1, 1981, for all teachers and beneficiaries of teachers

25-3

receiving any service retirement and all teachers and all beneficiaries of teachers who have

25-4

completed at least ten (10) years of contributory service on or before July 1, 2005, pursuant to the

25-5

provisions of this chapter, and for all teachers and beneficiaries of teachers who receive a

25-6

disability retirement allowance pursuant to sections 16-16-14 -- 16-16-17, the cost of living

25-7

adjustment shall be computed and paid at the rate of three percent (3%) of the original retirement

25-8

allowance or the retirement allowance as computed in accordance with section 16-16-40.1,

25-9

compounded annually from the year for which the cost of living adjustment was determined to be

25-10

payable by the retirement board pursuant to the provisions of subsection (a) or (b) of this section.

25-11

Such cost of living adjustments are available to teachers who retire before October 1, 2009 or are

25-12

eligible to retire as of September 30, 2009.

25-13

      (2) The provisions of this subsection shall be deemed to apply prospectively only and no

25-14

retroactive payment shall be made.

25-15

      (3) The retirement allowance of all teachers and all beneficiaries of teachers who have

25-16

not completed at least ten (10) years of contributory service on or before July 1, 2005 or were not

25-17

eligible to retire as of September 30, 2009, shall, on the month following the third anniversary

25-18

date of the retirement, and on the month following the anniversary date of each succeeding year

25-19

be adjusted and computed by multiplying the retirement allowance by three percent (3%) or the

25-20

percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as

25-21

published by the United States Department of Labor Statistics, determined as of September 30 of

25-22

the prior calendar year, whichever is less; the cost of living adjustment shall be compounded

25-23

annually from the year for which the cost of living adjustment was determined payable by the

25-24

retirement board; provided, that no adjustment shall cause any retirement allowance to be

25-25

decreased from the retirement allowance provided immediately before such adjustment. This

25-26

section shall not apply to all teachers and beneficiaries of teachers who receive a disability

25-27

retirement allowance pursuant to sections 16-16-14 -- 16-16-17.

25-28

      (d) The provisions of sections 45-13-7 -- 45-13-10 shall not apply to this section.

25-29

     SECTION 5. Section 8-3-7, 8-3-8 of the General Laws in Chapter 8-3 entitled "Justices

25-30

of Supreme, Superior, and Family Courts" is hereby amended to read as follows:

25-31

     8-3-7. Retirement of justices on reduced pay -- Assignment as associate justices. --(a)

25-32

Whenever any person engaged as a judge: (1) on or before [July 2, 1997] has served as a justice

25-33

of the supreme court, the superior court, the family court, the district court, or any combination

25-34

thereof for twenty (20) years, or has so served for ten (10) years and has reached the age of sixty-

26-1

five (65) years, that justice may retire from active service and thereafter the justice shall receive

26-2

annually during life a sum equal to three-fourths (3/4) of the annual salary that the justice was

26-3

receiving at the time of retirement;

26-4

     (2) Subsequent to July 2, 1997 and prior to January 1, 2009, has served as a justice of the

26-5

supreme court, the superior court, the family court, the district court or any combination thereof,

26-6

for twenty (20) years, or has so served for ten (10) years and has reached the age of sixty-five

26-7

(65) years, said justice may retire from active service and thereafter said justice shall receive

26-8

annually during life a sum equal to three-fourths (3/4) of his or her average highest three (3)

26-9

consecutive years of compensation;

26-10

     (3) On or after January 1, 2009, has served as a justice of the Supreme Court, the superior

26-11

court, the family court, the district court or any combination thereof, for twenty (20) years, or has

26-12

so served for ten (10) years and has reached the age of sixty-five (65) years, said justice may

26-13

retire from active service and thereafter said justice shall receive annually during life a sum equal

26-14

to seventy percent (70%) of his or her average highest three (3) consecutive years of

26-15

compensation.

26-16

     (4) On or after July 1, 2009, shall have served as a justice of the supreme court, the

26-17

superior court, the family court, or any of them for twenty (20) years, or has served for ten (10)

26-18

years, and reached the age of sixty-five (65) years, said justice may retire from regular active

26-19

service and thereafter said justice shall receive annually during his or her life a sum equal to

26-20

sixty-five percent (65%) his or her average highest five (5) consecutive years of compensation.

26-21

     (b) Whenever a justice or magistrate shall be granted a leave of absence without pay,

26-22

such absence shall not be credited towards active service time for the purposes of retirement.

26-23

     (c) Any justice in any of the courts who shall retire in accordance with the provisions

26-24

     of this section or section 36-9-5 may, at his or her own request and at the direction of the

26-25

chief justice of the supreme court, subject to the retiree's physical and mental competence, be

26-26

assigned to perform such services as an associate justice of the superior court, or the family court,

26-27

or the district court as the presiding justice of the superior court, or the chief judge of the family

26-28

court, or the district shall prescribe. When so assigned and performing such service, the justice

26-29

shall have all the powers and authority of an associate justice of the superior court, the family

26-30

court, or the district court but otherwise shall have no powers nor be authorized to perform any

26-31

judicial duties. Such a retired justice shall not be counted in the number of judges provided by

26-32

law for the superior court, the family court, or the district court.

26-33

     (d) Any justice of the supreme court who shall retire in accordance with the provisions of

26-34

this section shall at the direction of the chief justice of the supreme court, subject to the retiree's

27-1

physical and mental competence, be assigned to perform such services as an associate justice of

27-2

the supreme court as the chief justice of the supreme court shall prescribe. When so assigned and

27-3

performing such services, the retiree shall have all the powers and authority of an associate justice

27-4

of the supreme court, but otherwise he or she shall have no powers nor be authorized to perform

27-5

any judicial duties relating to the supreme court, except as authorized under section 8-1-1. Such a

27-6

retired justice shall not be counted in the number of justices provided by law for the Supreme

27-7

Court.

27-8

     8-3-8. Retirement of justices on full pay -- Assignment as associate justices. -- (a)

27-9

Whenever any person engaged as a judge: (1) on or before [July 2, 1997] shall have served as a

27-10

justice of the supreme court, the superior court, the family court, the district court, or any of them

27-11

for twenty (20) years and has reached the age of sixty-five (65) years, or has served for fifteen

27-12

(15) years, and reached the age of seventy (70) years, that justice may retire from regular active

27-13

service and thereafter the justice shall receive annually during his or her life a sum equal to the

27-14

annual salary the justice was receiving at the time of his or her retirement.

27-15

     (2) Subsequent to July 2, 1997 and prior to January 1, 2009, shall have served as a justice

27-16

of the supreme court, the superior court, the family court, the district court, or any of them for

27-17

twenty (20) years and has reached the age of sixty-five (65) years, or has served for fifteen (15)

27-18

years, and reached the age of seventy (70) years, said justice may retire from regular active

27-19

service and thereafter said justice shall receive annually during his or her life a sum equal to his

27-20

or her average highest three (3) consecutive years of compensation.

27-21

     (3) On or after January 1, 2009, shall have served as a justice of the supreme court, the

27-22

superior court, the family court, the district court, or any of them for twenty (20) years and has

27-23

reached the age of sixty-five (65) years, or has served for fifteen (15) years, and reached the age

27-24

of seventy (70) years, said justice may retire from regular active service and thereafter said justice

27-25

shall receive annually during his or her life a sum equal to ninety percent (90%) of his or her

27-26

average highest three consecutive years of compensation.

27-27

     (4) On or after July 1, 2009, shall have served as a justice of the supreme court, the

27-28

superior court, the family court, or any of them for twenty (20) years and has reached the age of

27-29

sixty-five (65) years, or has served for fifteen (15) years, and reached the age of seventy (70)

27-30

years, said justice may retire from regular active service and thereafter said justice shall receive

27-31

annually during his or her life a sum equal to eighty percent (80%) his or her average highest five

27-32

(5) consecutive years of compensation.

27-33

     (b) Whenever a justice or magistrate shall be granted a leave of absence without pay,

27-34

such absence shall not be credited towards active service time for the purposes of retirement.

28-1

     (c) Any justice of any of the courts who shall retire in accordance with the provisions of

28-2

this section shall at the direction of the chief justice of the supreme court, subject to the retiree's

28-3

physical and mental competence, be assigned to perform such services as an associate justice of

28-4

the superior court, or the family court, or the district court as the presiding justice of the superior

28-5

court, or the chief judge of the family court, or the district court shall prescribe. When so assigned

28-6

and performing such service, the retiree shall have all the powers and authority of an associate

28-7

justice of the superior court, the family court, or the district court but otherwise he or she shall

28-8

have no powers nor be authorized to perform any judicial duties. Such a retired justice shall not

28-9

be counted in the number of judges provided by law for the superior court, the family court, or the

28-10

district court.

28-11

     (d) Any justice of the supreme court who shall retire in accordance with the provisions of

28-12

this section shall at the direction of the chief justice of the supreme court, subject to the retiree's

28-13

physical and mental competence, be assigned to perform such services as an associate justice of

28-14

the supreme court as the chief justice of the supreme court shall prescribe. When so assigned and

28-15

performing such services, the retiree shall have all the powers and authority of an associate justice

28-16

of the supreme court, but otherwise he or she shall have no powers nor be authorized to perform

28-17

any judicial duties relating to the supreme court, except as authorized under section 8-1-1. Such a

28-18

retired justice shall not be counted in the number of justices provided by law for the supreme

28-19

court.

28-20

     SECTION 6. Section 8-8-10 of the General Laws in Chapter 8-8 entitled "District Court"

28-21

is hereby repealed.

28-22

     8-8-10. Retirement of judges. – Whenever any person has served as a judge in the court

28-23

for twenty (20) years and has reached the age of sixty-five (65) years or has so served for fifteen

28-24

(15) years and has reached the age of seventy (70) years, he or she may resign his or her office

28-25

and thereafter he or she shall receive annually during his or her life a sum equal to (i) three-

28-26

fourths ( 3/4) of the annual salary that he or she was receiving at the time of resignation or (ii) for

28-27

justices engaged on or after July 1 2009, three-fourths (3/4) of his or her average highest five (5)

28-28

consecutive years annual compensation. For the purposes of eligibility for retirement under this

28-29

section, service as a justice on any predecessor district court prior to September 15, 1969 shall be

28-30

included as if that service had been on the district court created by this chapter.

28-31

     SECTION 7. Sections 28-30-15.1 and 28-30-16.2 of the General Laws in Chapter 28-30

28-32

entitled "Workers' Compensation Court" are hereby amended to read as follows:

28-33

     28-30-15.1. Retirement of judges engaged after July 2, 1997, on reduced pay. --

28-34

Retirement of judges engaged after July 2, 1997. -- (a)

29-1

     Whenever any person first engaged as a judge: (1) subsequent to July 2, 1997 and prior to

29-2

January 1, 2009, has served as a workers' compensation judge for twenty (20) years, or has so

29-3

served for ten (10) years and has reached the age of sixty-five (65) years, he or she may retire

29-4

from active service and subsequently he or she shall receive annually during life a sum equal to

29-5

three-fourths ( 3/4) of his or her average highest three (3) consecutive years of compensation; (2)

29-6

On or after January 1, 2009 and prior to July 1, 2009, has served as a workers' compensation

29-7

judge for twenty (20) years or has so served for ten (10) years and reached the age of sixty-five

29-8

(65) years, he or she may retire from active service and subsequently he or she shall receive

29-9

annually during life a sum equal to seventy percent (70%) of his or her average highest three (3)

29-10

consecutive years or compensation; (3) On or after July 1, 2009, has served as a workers'

29-11

compensation judge for twenty (20) years, or has served for ten (10) years, and reached the age of

29-12

sixty-five (65) years, he or she may retire from regular active service and thereafter said justice

29-13

shall receive annually during his or her life a sum equal to sixty-five (65%) percent his or her

29-14

average highest five (5) consecutive years of compensation.

29-15

     (b) In determining eligibility under this section, any judge who has served as a general

29-16

officer may include that service as if that service had been on the workers' compensation court.

29-17

Whenever a judge or magistrate shall be granted a leave of absence without pay, such absence

29-18

shall not be credited towards active service time for the purposes of retirement.

29-19

     (c) Any judge who retires in accordance with the provisions of this section may at his or

29-20

her own request and at the direction of the chief judge of the court subject to the retiree's physical

29-21

and mental competence, be assigned to perform those services that a judge on the workers'

29-22

compensation court as the chief judge prescribes. When so assigned and performing those

29-23

services, he or she shall have all the powers and authority of a judge. A retired judge shall not be

29-24

counted in the number of judges provided by law for the workers' compensation court.

29-25

     28-30-16.2. Retirement of judges engaged after July 2, 1997, on full pay. -- (a)

29-26

Whenever any person first engaged as a judge: (1) subsequent to July 2, 1997 and prior to January

29-27

1, 2009, has served as a workers' compensation judge for twenty (20) years and has reached the

29-28

age of sixty-five (65) years, or has served for fifteen (15) years and reached the age of seventy

29-29

(70) years, he or she may retire from regular active service and subsequently he or she shall

29-30

receive annually during his or her life a sum equal to his or her average highest three (3)

29-31

consecutive years of compensation; (2) On or after January 1, 2009 and prior to July 1, 2009 has

29-32

served as a workers' compensation judge for twenty (20) years and has reached the age of sixty-

29-33

five (65) years, or has served for fifteen (15) years and reached the age of seventy (70) years, he

29-34

or she may retire from regular active service and subsequently he or she shall receive annually

30-1

during his or her life a sum equal to ninety percent (90%) of his or her average highest three (3)

30-2

consecutive years of compensation; (3) On or after July 1, 2009 has served as a workers'

30-3

compensation judge for twenty (20) years and has reached the age of sixty-five (65) years, or has

30-4

served for fifteen (15) years and reached the age of seventy (70) years, he or she may retire from

30-5

regular active service and subsequently he or she shall receive annually during his or her life a

30-6

sum equal to eighty percent (80%) of his or her average highest five (5) consecutive years of

30-7

compensation.

30-8

     (b) Whenever a judge or magistrate shall be granted a leave of absence without pay, such

30-9

absence shall not be credited towards active service time for the purposes of retirement.

30-10

     (c) Any judge who retires in accordance with the provisions of this section shall at the

30-11

direction of the chief judge of the court, subject to the retiree's physical and mental competence

30-12

be assigned to perform those services as a judge that the chief judge prescribes. When so assigned

30-13

and performing that service, the retiree shall have all the powers and authority of a judge. The

30-14

retired judge shall not be counted in the number of judges provided by law for the workers'

30-15

compensation court.

30-16

     SECTION 8. Section 36-10-2 of the General Laws in Chapter 36-10 entitled "Retirement

30-17

System-Contributions and Benefits" is hereby amended to read as follows:

30-18

     36-10-2. State contributions. -- (a) The State of Rhode Island shall make its contribution

30-19

for the maintenance of the system, including the proper and timely payment of benefits in

30-20

accordance with the provisions of this chapter and chapters 8, 16, 28, 31 and 42 of this title, by

30-21

annually appropriating an amount equal to a percentage of the total compensation paid to the

30-22

active membership. The percentage shall be computed by the actuary employed by the retirement

30-23

system and shall be certified by the retirement board to the director of administration on or before

30-24

the fifteenth day of October in each year. In arriving at the yearly employer contribution the

30-25

actuary shall determine the value of:

30-26

      (1) The contributions made by the members;

30-27

      (2) Income on investments; and

30-28

      (3) Other income of the system.

30-29

      (b) The Actuary shall thereupon compute the yearly employer contribution that will:

30-30

      (1) Pay the actuarial estimate of the normal cost for the next succeeding fiscal year;

30-31

      (2) Amortize the unfunded liability of the system as of June 30, 1999 utilizing a time

30-32

period not to exceed thirty (30) years.

30-33

     (3) Provided, that the fiscal year 2009, the employer contribution shall be deferred from

30-34

April 2 until June 30, 2009. The amounts that would have been contributed shall be deposited in a

31-1

special fund and not used for any purpose.

31-2

      (c) The State of Rhode Island shall remit to the general treasurer the employer's share of

31-3

the contribution for state employees, state police, and judges on a payroll frequency basis, and for

31-4

teachers in a manner pursuant to section 16-16-22.

31-5

      (d) (1) In accordance with the intent of section 36-8-20 that the retirement system satisfy

31-6

the requirements of section 401(a) of the Internal Revenue Code of 1986, the state shall pay to the

31-7

retirement system:

31-8

      (i) By June 30, 1995, an amount equal to the sum of the benefits paid to state legislators

31-9

pursuant to section 36-10-10.1 in excess of ten thousand dollars ($10,000) per member (plus

31-10

accrued interest on such amount at eight percent (8%)) for all fiscal years beginning July 1, 1991,

31-11

and ending June 30, 1995, but this amount shall be paid only if section 36-10-10.1(e) becomes

31-12

effective January 1, 1995; and

31-13

      (ii) By December 31, 1994, twenty million seven hundred eighty eight thousand eight

31-14

hundred twelve dollars and nineteen cents ($20,788,812.19) plus accrued interest on that amount

31-15

at eight percent (8%) compounded monthly beginning March 1, 1991, and ending on the date this

31-16

payment is completed (reduced by amortized amounts already repaid to the retirement system

31-17

with respect to the amounts withdrawn by the state during the fiscal year July 1, 1990 -- June 30,

31-18

1991); and

31-19

      (iii) By June 30, 1995, the sum of the amounts paid by the retirement system for retiree

31-20

health benefits described in section 36-12-4 for all fiscal years beginning July 1, 1989, and ending

31-21

June 30, 1994, to the extent that the amounts were not paid from the restricted fund described in

31-22

subsection (c).

31-23

      (2) Any and all amounts paid to the retirement system under this subsection shall not

31-24

increase the amount otherwise payable to the system by the state of Rhode Island under

31-25

subsection (a) for the applicable fiscal year. The actuary shall make such adjustments in the

31-26

amortization bases and other accounts of the retirement system as he or she deems appropriate to

31-27

carry out the provisions and intent of this subsection.

31-28

      (e) In addition to the contributions provided for in subsection (a) through (c) and in order

31-29

to provide supplemental employer contributions to the retirement system, commencing in fiscal

31-30

year 2006, and each year thereafter:

31-31

      (1) For each fiscal year in which the actuarially determined state contribution rate for

31-32

state employees is lower than that for the prior fiscal year, the governor shall include an

31-33

appropriation to that system equivalent to twenty percent (20%) of the rate reduction for the

31-34

state's contribution rate for state employees to be applied to the actuarial accrued liability of the

32-1

state employees' retirement system for state employees for each fiscal year;

32-2

      (2) For each fiscal year in which the actuarially determined state contribution rate for

32-3

teachers is lower than that for the prior fiscal year, the governor shall include an appropriation to

32-4

that system equivalent to twenty percent (20%) of the rate reduction for the state's share of the

32-5

contribution rate for teachers to be applied to the actuarial accrued liability of the state employees'

32-6

retirement system for teachers for each fiscal year;

32-7

      (3) The amounts to be appropriated shall be included in the annual appropriation bill and

32-8

shall be paid by the general treasurer into the retirement system.

32-9

      (f) While the retirement system's actuary shall not adjust the computation of the annual

32-10

required contribution for the year in which supplemental contributions are received, such

32-11

contributions once made may be treated as reducing the actuarial liability remaining for

32-12

amortization in the next following actuarial valuation to be performed.

32-13

     SECTION 9. Section 16-16-22 of the General Laws in Chapter 16-16 entitled "Teachers'

32-14

Retirement" is hereby amended to read as follows:

32-15

     16-16-22. Contributions to state system. -- (a) Each member shall contribute into the

32-16

system nine and one-half percent (9.5%) of compensation as his or her share of the cost of

32-17

annuities, benefits, and allowances. The employer contribution on behalf of teacher members of

32-18

the system shall be in an amount that will pay a rate percent of the compensation paid to the

32-19

members, according to the method of financing prescribed in the State Retirement Act in chapters

32-20

8 -- 10 of title 36. This amount shall be paid by the state, and sixty percent (60%) by the city,

32-21

town, local educational agency, or any formalized commissioner approved cooperative service

32-22

arrangement by whom the teacher members are employed, with the exception of teachers who

32-23

work in federally funded projects. Provided, however, that the rate percent paid shall be rounded

32-24

to the nearest hundredth of one percent (.01%).

32-25

      (b) The employer contribution on behalf of teacher members of the system who work in

32-26

fully or partially federally funded programs shall be prorated in accordance with the share of the

32-27

contribution paid from the funds of the federal, city, town, or local educational agency, or any

32-28

formalized commissioner approved cooperative service arrangement by whom the teacher

32-29

members are approved.

32-30

      (c) In case of the failure of any city, town, or local educational agency, or any formalized

32-31

commissioner approved cooperative service arrangement to pay to the state retirement system the

32-32

amounts due from it under this section within the time prescribed, the general treasurer is

32-33

authorized to deduct the amount from any money due the city, town, or local educational agency

32-34

from the state.

33-1

      (d) The employer's contribution shared by the state shall be paid in the amounts

33-2

prescribed in this section for the city, town, or local educational agency and under the same

33-3

payment schedule. Notwithstanding any other provisions of this chapter, the city, town, or local

33-4

educational agency or any formalized commissioner approved cooperative service arrangement

33-5

shall remit to the general treasurer of the state the local employer's share of the teacher's

33-6

retirement payments on a monthly basis, payable by the fifteenth (15th) of the following month,

33-7

provided that the employer contribution from the effective date of this act shall be deferred until

33-8

June 30, 2009. The amounts that would have been contributed shall be deposited by the state in a

33-9

special fund and not used for any purpose. The general treasurer, upon receipt of the local

33-10

employer's share, shall effect transfer of a matching amount of money from the state funds

33-11

appropriated for this purpose by the general assembly into the retirement fund, provided that for

33-12

the period beginning April 2 to June 30 the general treasurer shall not make such transfer.

33-13

     Upon reconciliation of the final amount owed to the retirement fund for the employer

33-14

share, the state shall ensure that any local education aid reduction assumed for the FY 2009

33-15

revised budget in excess of the actual savings is restored to the respective local entities.

33-16

      (e) This section is not subject to sections 45-13-7 through 45-13-10.

33-17

     SECTION 10. Section 8-3-17 of the General Laws in Chapter 8-3 entitled "Justices of

33-18

Supreme, Superior, and Family Courts" is hereby amended to read as follows:

33-19

     8-3-17. State contributions. -- The state of Rhode Island shall make its contribution for

33-20

the maintaining of the system established by section 8-3-16 and providing the annuities, benefits,

33-21

and retirement allowances in accordance with the provisions of this chapter by annually

33-22

appropriating an amount which will pay a rate percent of the compensation paid after December

33-23

31, 1989 to judges engaged after December 31, 1989. Such rate percent shall be computed and

33-24

certified in accordance with the procedures set forth in sections 36-8-13 and 36-10-2 under rules

33-25

and regulations promulgated by the retirement board pursuant to section 36-8-3. Provided, that

33-26

the employer contribution from the effective date of this act shall be deferred until June 30, 2009.

33-27

The amounts that would have been contributed shall be deposited in a special fund and not used

33-28

for any purpose.

33-29

     SECTION 11. Section 42-28-22.2 of the General Laws in Chapter 42-28 entitled "State

33-30

Police" is hereby amended to read as follows:

33-31

     42-28-22.2. State contributions. -- The state of Rhode Island shall make its contribution

33-32

for the maintaining of the system established by section 42-28-22.1 and providing the annuities,

33-33

benefits, and retirement allowances in accordance with the provisions of this chapter by annually

33-34

appropriating an amount which will pay a rate percent of the compensation paid after July 1, 1989

34-1

to members of the state police hired after July 1, 1987. This rate percent shall be computed and

34-2

certified in accordance with the procedures set forth in sections 36-8-13 and 36-10-2 under rules

34-3

and regulations promulgated by the retirement board pursuant to section 36-8-3. Provided, that

34-4

the employer contribution from the effective date of this act shall be deferred until June 30, 2009.

34-5

The amount that would have been contributed shall be deposited in a special fund and not used

34-6

for any purpose.

34-7

     SECTION 12. Section 35-6-1 of the General Laws in Chapter 35-6 entitled "Accounts

34-8

and Control" is hereby amended to read as follows:

34-9

     35-6-1. Controller -- Duties in general. -- (a) Within the department of administration

34-10

there shall be a controller who shall be appointed by the director of administration pursuant to

34-11

chapter 4 of title 36. The controller shall be responsible for accounting and expenditure control

34-12

and shall be required to:

34-13

      (1) Administer a comprehensive accounting and recording system which will classify the

34-14

transactions of the state departments and agencies in accordance with the budget plan;

34-15

      (2) Maintain control accounts for all supplies, materials, and equipment for all

34-16

departments and agencies except as otherwise provided by law;

34-17

      (3) Prescribe a financial, accounting, and cost accounting system for state departments

34-18

and agencies;

34-19

      (4) Preaudit all state receipts and expenditures;

34-20

      (5) Prepare financial statements required by the several departments and agencies, by the

34-21

governor, or by the general assembly;

34-22

      (6) Approve the orders drawn on the general treasurer; provided, that the preaudit of all

34-23

expenditures under authority of the legislative department and the judicial department by the state

34-24

controller shall be purely ministerial, concerned only with the legality of the expenditure and

34-25

availability of the funds, and in no event shall the state controller interpose his or her judgment

34-26

regarding the wisdom or expediency of any item or items of expenditure;

34-27

      (7) Prepare and timely file, on behalf of the state, any and all reports required by the

34-28

United States, including, but not limited to, the internal revenue service, or required by any

34-29

department or agency of the state, with respect to the state payroll; and

34-30

      (8) Prepare a preliminary closing statement for each fiscal year. The controller shall

34-31

forward the statement to the chairpersons of the house finance committee and the senate finance

34-32

committee, with copies to the house fiscal advisor and the senate fiscal and policy advisor, by

34-33

September 1 following the fiscal year ending the prior June 30 or thirty (30) days after enactment

34-34

of the appropriations act, whichever is later. The report shall include but is not limited to:

35-1

      (i) A report of all revenues received by the state in the completed fiscal year, together

35-2

with the estimates adopted for that year as contained in the final enacted budget, and together

35-3

with all deviations between estimated revenues and actual collections. The report shall also

35-4

include cash collections and accrual adjustments;

35-5

      (ii) A comparison of actual expenditures with each of the actual appropriations,

35-6

including supplemental appropriations and other adjustments provided for in the Rhode Island

35-7

General Laws;

35-8

      (iii) A statement of the opening and closing surplus in the general revenue account; and

35-9

      (iv) A statement of the opening surplus, activity, and closing surplus in the state budget

35-10

reserve and cash stabilization account and the state bond capital fund.

35-11

      (b) The controller shall provide supporting information on revenues, expenditures,

35-12

capital projects, and debt service upon request of the house finance committee chairperson, senate

35-13

finance committee chairperson, house fiscal advisor, or senate fiscal and policy advisor.

35-14

      (c) Upon issuance of the audited annual financial statement, the controller shall provide a

35-15

report of the differences between the preliminary financial report and the final report as contained

35-16

in the audited annual financial statement.

35-17

      (d) Upon issuance of the audited financial statement, the controller shall transfer all

35-18

general revenues received in the completed fiscal year net of transfer to the state budget reserve

35-19

and cash stabilization account as required by section 35-3-20 in excess of those estimates adopted

35-20

for that year as contained in the final enacted budget to the employees' retirement system of the

35-21

state of Rhode Island as defined in section 36-8-2.

35-22

     (9) The controller shall create a special fund not part of the general fund and shall deposit

35-23

amounts equivalent to all deferred contributions under this act into that fund. Any amounts

35-24

remaining in the fund on June 30 shall be transferred to the general treasurer who shall transfer

35-25

such amounts into the retirement fund as appropriate. From the special funds for deferred

35-26

contributions to the retirement system, the controller shall transfer the amounts due to the

35-27

retirement system to the general treasurer who shall transfer such amounts into the retirement

35-28

fund as appropriate.

35-29

     SECTION 13. Section 8-3-11 of the General Laws in Chapter 8-3 entitled "Justices of

35-30

Supreme, Superior, and Family Courts" is hereby amended to read as follows:

35-31

     8-3-11. Allowances to surviving spouses, domestic partners or minor children of

35-32

deceased justices. -- (a) Whenever any justice of the supreme court, the superior court, the family

35-33

court, or the district court who was engaged as a judge prior to January 1, 2009, dies after

35-34

retirement or during active service while eligible for retirement, or during active service after

36-1

having served fifteen (15) years or more in office, his or her surviving spouse or domestic partner

36-2

shall receive annually thereafter, during his or her lifetime and so long as he or she remains

36-3

unmarried or not in a domestic partnership, an amount equal to one-half (1/2) of the annual

36-4

payment that the justice was receiving by way of salary or retirement pay at the time of his or her

36-5

death. Whenever a justice of any of the courts shall die without having become eligible to retire

36-6

either under section 8-3-7 or 8-3-8 and has served seven (7) years or more in office, his or her

36-7

surviving spouse or domestic partner shall receive annually thereafter, during his or her lifetime

36-8

and so long as he or she remains unmarried or not in a domestic partnership, one-third ( 1/3) of

36-9

the annual salary that the justice was receiving at the time of his or her death. Whenever a justice

36-10

of the courts shall die without having become eligible to retire either under section 8-3-7 or 8-3-8

36-11

and has not served seven (7) years in office, his or her surviving spouse or domestic partner shall

36-12

receive annually thereafter, during his or her lifetime and so long as he or she remains unmarried

36-13

or not in a domestic partnership, one-fourth (1/4) of the annual salary that the justice was

36-14

receiving at the time of his or her death.

36-15

      (b) Any justice of the courts who is engaged as a judge on or after January 1, 2009, and

36-16

prior to July 1, 2009 may elect to receive retirement pay that is reduced by an additional ten

36-17

percent (10%) of the average of the highest three (3) consecutive years annual compensation (i.e.,

36-18

ninety percent (90%) reduced to eighty percent (80%) or seventy percent (70) reduced to sixty

36-19

percent (60%)), and where such option is exercised by giving the general treasurer notice in

36-20

writing thereof within ninety (90) days after the date of his or her retirement his or her surviving

36-21

spouse or domestic partner or minor children shall receive annually one-half (1/2) of his or her

36-22

retirement pay during his or her lifetime so long as he or she remains unmarried or not in a

36-23

domestic partnership, or the children are under twenty-one (21) years of age provided, however,

36-24

for any justice engaged on or after July 1, 2009, the reduction shall be based on the average of the

36-25

highest five (5) consecutive years annual compensation.

36-26

     (c) Whenever any justice of the supreme court, the superior court, the family court, or the

36-27

district court who was engaged as a judge on or after January 1, 2009, dies during active service

36-28

while eligible for retirement, or during active service after having served fifteen (15) years or

36-29

more in office, his or her surviving spouse or domestic partner shall receive annually thereafter,

36-30

during his or her lifetime and so long as he or she remains unmarried or not in a domestic

36-31

partnership, an amount equal to one-half (1/2) of the annual payment that the justice was

36-32

receiving by way of salary.

36-33

     (d) Whenever a justice of any of the courts who was engaged as a judge on or after

36-34

January 1, 2009, shall die without having become eligible to retire either under sections 8-3-7 or

37-1

8-3-8 and has served seven (7) years or more in office, his or her surviving spouse or domestic

37-2

partner shall receive annually thereafter, during his or her lifetime and so long as he or she

37-3

remains unmarried or not in a domestic partnership, one-third (1/3) of the annual salary that the

37-4

justice was receiving at the time of his or her death.

37-5

     (e) Whenever a justice of the courts who was engaged as a judge on or after January 1,

37-6

2009, shall die without having become eligible to retire either under sections 8-3-7 or 8-3-8 and

37-7

has not served seven (7) years or more in office, his or her surviving spouse or domestic partner

37-8

shall receive annually thereafter, during his or her lifetime and so long as he or she remains

37-9

unmarried or not in a domestic partnership, one-fourth (1/4) of the annual salary that the justice

37-10

was receiving at the time of his or her death.

37-11

     (c)(f) In the event the deceased justice shall have no surviving spouse or domestic

37-12

partner, or the surviving spouse or domestic partner should predecease their minor children, then

37-13

the benefits conferred by this section shall be received in equal shares by the minor children, if

37-14

any, until each shall attain the age of twenty-one (21) years. Any justice of the courts who retires

37-15

under the provisions of section 8-3-7, 8-3-8, or 8-3-12 may at his or her option elect to receive

37-16

three-fourths (3/4) of his or her retirement pay, and where such option is exercised by giving the

37-17

general treasurer notice in writing thereof within two (2) years after the date of his or her

37-18

retirement, his or her surviving spouse or domestic partner or minor children shall receive

37-19

annually one-half (1/2) of his or her retirement pay during his or her lifetime so long as he or she

37-20

remains unmarried or not in a domestic partnerhip, or the children are under twenty-one (21)

37-21

years of age.

37-22

     SECTION 14. Section 28-30-17 of the General Laws in Chapter 28-30 entitled "Workers'

37-23

Compensation Court" is hereby amended to read as follows:

37-24

     28-30-17. Allowance to surviving spouses and domestic partners of deceased judges.

37-25

-- (a) Whenever any judge of the workers' compensation court who was engaged as a judge prior

37-26

to January 1, 2009 dies after retirement or during active service while eligible for retirement or

37-27

during active service after having served fifteen (15) years or more in office, his or her surviving

37-28

spouse or domestic partner shall receive annually thereafter during his or her lifetime and so long

37-29

as he or she remains unmarried or not in a domestic partnership, an amount equal to one-half (

37-30

1/2) of the annual payment that the judge was receiving by way of salary or retirement pay at the

37-31

time of his or her death.

37-32

      (b) For those engaged as a judge on or after January 1, 2009,and prior to July 1, 2009,

37-33

the judge may elect to receive retirement pay that is reduced by an additional ten percent (10%)

37-34

of the average of the highest three (3) consecutive years annual compensation (i.e., ninety percent

38-1

(90%) reduced to eighty percent (80%) or seventy percent (70%) reduced to sixty percent (60%))

38-2

and where such option is exercised by giving the general treasurer notice in writing thereof within

38-3

ninety (90) days after the date of his or her retirement his or her surviving spouse or domestic

38-4

partner or minor children shall receive annually one-half (1/2) of his or her retirement pay during

38-5

his or her lifetime so long as he or she remains unmarried or not in a domestic partnership, or the

38-6

children are under twenty-one (21) years of age; provided, however, for any judge engaged on or

38-7

after July 1, 2009, the reduction shall be based upon the average of the highest five (5) years

38-8

consecutive annual compensation .

38-9

      (c) Whenever a judge of the workers' compensation court dies without having become

38-10

eligible to retire either under section 28-30-15 or 28-30-16 and has served seven (7) years or more

38-11

in office, his or her surviving spouse or domestic partner shall receive annually thereafter during

38-12

his or her lifetime and so long as he or she remains unmarried or not in a domestic partnership

38-13

one-third ( 1/3) of the annual salary that the judge was receiving at the time of his or her death.

38-14

      (d) Any judge who retires under the provisions of section 28-30-15 or 28-30-16 may at

38-15

his or her option elect to receive three-fourths ( 3/4) of his or her retirement pay, and where that

38-16

option is exercised by giving the general treasurer notice in writing within two (2) years after the

38-17

date of his or her retirement, his or her surviving spouse or domestic partner or minor children

38-18

shall receive annually one-half ( 1/2) of his or her retirement pay during his or her lifetime so

38-19

long as he or she remains unmarried or not in a domestic partnership or the children are under

38-20

twenty-one (21) years of age.

38-21

     (d) Whenever any judge of the workers' compensation court who was engaged as a judge

38-22

on or after January 1, 2009 dies during active service while eligible for retirement or during

38-23

active service after having served fifteen (15) years or more in office, his or her surviving spouse

38-24

or domestic partner shall receive annually thereafter during his or her lifetime and so long as he

38-25

or she remains unmarried or not in a domestic partnership, an amount equal to one-half (1/2) of

38-26

the annual payment that the judge was receiving by way of salary or retirement pay at the time of

38-27

his or her death.

38-28

      (e) Whenever a judge of the workers' compensation court dies without having become

38-29

eligible to retire either under section 28-30-15 or 28-30-16 and has not served seven (7) years in

38-30

office, his or her surviving spouse or domestic partner shall subsequently receive annually during

38-31

his or her lifetime and so long as he or she remains unmarried or not in a domestic partnership,

38-32

one fourth ( 1/4) of the annual salary that the judge was receiving at the time of his or her death.

38-33

      (f) In the event the deceased judge has no surviving spouse or domestic partner or the

38-34

surviving spouse or domestic partner predeceases their minor children, the benefits conferred by

39-1

this section shall be received in equal shares by the minor children, if any, until each attains the

39-2

age of twenty-one (21) years.

39-3

     SECTION 15. This article shall take effect upon passage.