Senate Bill #274 (2019)

AN ACT RELATING TO PUBLIC OFFICES AND EMPLOYEES -- RETIREMENT

Allows state employees and correctional officers who have served under both pension systems to combine their service time earned from each job.

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Changes since original draft

  • 2019 – S 0274
  • 2019 – S 0274 SUBSTITUTE A
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  • LC001515
  • LC001515/SUB A/4
  • ========
  • S T A T E O F R H O D E I S L A N D
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2019
  • ____________
  • A N A C T
  • RELATING TO PUBLIC OFFICES AND EMPLOYEES – RETIREMENT
  • S TATE OF RHODE IS L AND
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2019
  • ____________
  • A N A C T
  • RELATING TO PUBLIC OFFICES AND EMPLOYEES – RETIREMENT
  • Introduced By: Senators Gallo, and Ciccone
  • Date Introduced: February 13, 2019
  • Referred To: Senate Finance
  • It is enacted by the General Assembly as follows:
  • It is enacted by the GeneralAssembly as follows:
  • SECTION 1. Section 36-9-20 of the General Laws in Chapter 36-9 entitled "Retirement System - Membership and Service Credits" is hereby amended to read as follows:
  • 36-9-20. Credit for service as a teacher, municipal employee, or legislator.
  • (a) Any state employee who shall have rendered service as a teacher as defined under the provisions of chapters 16 and 17 of title 16 shall be entitled to credit for that service for the various purposes of this system, provided the member shall have been a contributing member of this system for that period. Any state employee who shall have been a contributing member of the municipal system as defined under the provisions of chapter 21 of title 45 shall be given credit for that service for the various purposes of this system, provided the member's contributions are transferred to this system. All contributions made by the member shall be transferred in toto to this system for the periods of service and the retirement system shall calculate the full actuarial value of the accrued benefit with the former employer. If the full actuarial value of the accrued benefit with the former employer is greater than the total employee contributions transferred, the retirement system shall also transfer the difference between the full actuarial value of the accrued benefit with the former employer and the employee's contributions from the account of the former employer to the account of the current employer. In any case in which a member shall have received a refund or refunds of contributions made to the system, the allowance of the aforesaid credit for service shall be conditioned upon the payment of the full actuarial cost as defined in subsection 36-8-1(10). Any service as defined herein for which no contributions were made may be granted provided the member pays to the retirement system the full actuarial cost as defined in § 36-8-1(10). Any state employee or teacher as defined under the provisions of chapters 16 and 17 of title 16 who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in § 45-21-4 shall be given credit for that service for the various purposes of this system, provided that the employee shall have met the definitional requirements of "employee" as stated in § 45-21-2(7) and provided the member pays to the retirement system an amount equal to the full actuarial value of the credit as certified by the retirement board; provided, however, that any state employee who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in § 45-21-4 shall be given credit for that service for the various purposes of this system, to a maximum period of four (4) years, provided the member pays to the retirement system the full actuarial cost as defined in subsection 36-8-1(10). Nothing in this section shall be deemed to allow the purchase of four (4) years of service for credit in more than one retirement system.
  • (b) Any member who shall have rendered service both as a state employee under § 36-10- 9, and service as a correctional officer under § 36-10-9.2(a), shall be eligible to elect to combine the member's service as a correctional officer and service as a state employee to determine the member's retirement eligibility date under § 36-10-9. For any member making this election, the member will receive a single benefit equal to the member's accrued benefit as a correctional officer computed under § 36-10-10.2, plus the member's accrued benefit as a state employee computed under § 36-10-10.
  • (b)(c) The retirement board shall fix and determine rules and regulations to govern the provisions of this section.
  • SECTION 2. Section 36-10-9.2 of the General Laws in Chapter 36-10 entitled "Retirement System - Contributions and Benefits" is hereby amended to read as follows:
  • 36-10-9.2. Retirement on service allowance – Correctional officers.
  • (a) This section shall apply to the retirement of members employed as assistant director (adult services), assistant deputy director, chief of inspection, and associate directors, correctional officer, chief of security, work rehabilitation program supervisor, supervisor of custodial records and reports, and classification counselor within the department of corrections.
  • (b) (i) Any member who has attained the age of fifty (50) years may be retired subsequent to the proper execution and filing of a written application; provided, however, that the member shall have completed twenty (20) years of total service within the department of corrections and who retires before October 1, 2009 or is eligible to retire as of September 30, 2009.
  • (ii) For members who become eligible to retire on or after October 1, 2009, benefits are available to members who have attained the age of fifty-five (55) and have completed at least twenty-five (25) years of total contributory service in any classification within the department of corrections. For members in service as of October 1, 2009 who were not eligible to retire as of September 30, 2009 but who are eligible to retire on or prior to June 30, 2012, the minimum retirement age of fifty-five (55) will be adjusted downward in proportion to the amount of service the member has earned as of September 30, 2009. The proportional formula shall work as follows:
  • (1) The formula shall determine the first age of retirement eligibility under the laws in effect on September 30, 2009 which shall then be subtracted from the minimum retirement age of fifty-five (55).
  • (a) Any state employee who shall have renderedservice as a teacher as defined under the provisions of chapters 16 and 17 of title 16 shall be entitled to credit for that service for the various purposes of this system, provided the member shall have been a contributing member of this system for that period. Any state employee who shallhave been a contributing member of the municipal system as defined under the provisions of chapter 21 of title 45 shallbe given credit for that service for the various purposes of this system, provided the member's contributions are transferred to this system. All contributions made by the member shall be transferred in toto to this system for the periods of service and the retirement system shall calculate the full actuarial value of the accrued benefit with the former employer. If the full actuarial value of the accrued benefit with the former employer is greater than the total employee contributions transferred, the retirement system shallalso transfer the difference between the fullactuarialvalue of the accrued benefit with the former employer and the employee's contributions from the account of the former employer to the account of the current employer. In any case in which a member shall have received a refund or refunds of contributions made to the system, the allowance of the aforesaid credit for service shall be conditioned upon the payment of the full actuarial cost as defined in subsection 36-8-1(10). Any service as defined herein for which no contributions were made may be granted provided the member pays to the retirement system the fullactuarialcost as defined in § 36-8-1(10). Any state employee or teacher as defined under the provisions of chapters 16 and 17 of title 16 who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in § 45-21-4 shallbe given credit for that service for the various purposes of this system, provided that the employee shall have met the definitional requirements of "employee" as stated in § 45-21-2(7) and provided the member pays to the retirement system an amount equal to the full actuarial value of the credit as certified by the retirement board; provided, however, that any state employee who shall have been employed by a municipality which did not elect to accept chapter 21 of title 45 as provided in § 45-21-4 shall be given credit for that service for the various purposes of this system, to a maximum period of four (4) years, provided the member pays to the retirement system the fullactuarialcost as defined in subsection 36-8-1(10). Nothing in this section shall be deemed to allow the purchase of four (4) years of service for credit in more than one retirement system.
  • (b) Any member who shall have renderedservice both as a state employee under § 36-10- 9, and service under § 36-10-9.2(a), shall be eligible to elect to combine the member's service under § 36-10-9.2(a) and service under § 36-10-9 to determine the member's retirement eligibility date under § 36-10-9. For any member making this election, the member will receive a single benefit equal to the accrued benefit computed under § 36-10-10.2, plus the accrued benefit computed under § 36-10-10.
  • (b)(c) The retirement board shall fix and determine rules and regulations to govern the provisions of this section.
  • SECTION 2. Sections 36-10-9.2 and 36-10-10.2 of the General Laws in Chapter 36-10 entitled "Retirement System - Contributions and Benefits" are hereby amended to read as follows:
  • 36-10-9.2. Retirement on service allowance – Correctional officers.
  • (a) This section shall apply to the retirement of members employed as assistant director (adult services), assistant deputy director, chief of inspection, and associate directors, correctional officer, chief of security, work rehabilitation program supervisor, supervisor of custodial records and reports, and classification counselor within the department of corrections.
  • (b) (i) Any member who has attained the age of fifty (50) years maybe retired subsequent to the proper execution and filing of a written application; provided, however, that the member shall have completed twenty (20) years of total service within the department of corrections and who retires before October 1, 2009 or is eligible to retire as of September 30, 2009.
  • (ii) For members who become eligible to retire on or after October 1, 2009, benefits are available to members who have attained the age of fifty-five (55) and have completed at least
  • LC001515/SUB A/4 - Page 2of 6 twenty-five (25) years of total contributory service within the department of corrections. For members in service as of October 1, 2009 who were not eligible to retire as of September 30, 2009 but who are eligible to retire on or prior to June 30, 2012, the minimum retirement age of fifty-five (55) will be adjusted downward in proportion to the amount of service the member has earned as of September 30, 2009. The proportional formula shall work as follows:
  • (1) The formula shall determine the first age of retirement eligibility under the laws in effect on September 30, 2009 which shallthen be subtracted from the minimum retirement age of fifty-five (55).
  • (2) The formula shall then take the member's total service credit as of September 30, 2009 as the numerator and the years of service credit determined under (1) as the denominator.
  • (3) The fraction determined in (2) shall then be multiplied by the age difference determined in (1) to apply a reduction in years from age fifty-five (55).
  • (c) Any member with contributory service on or after July 1, 2012, who has completed at least five (5) years of contributory service but who has not completed twenty-five (25) years of contributory service, shall be eligible to retire upon the attainment of the member's Social Security retirement age or, notwithstanding any other provisions, effective July 1, 2015, members in active service shall be eligible to retire upon the earlier of:
  • (1) The attainment of at least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the attainment of at least age sixty-four and the completion on at least thirty-one (31) years of total service, or the attainment of at least age sixty-three and the completion on at least thirty-two (32) years of total service, or the attainment of at least age sixty- two and the completion on at least thirty-three (33) years of total service; or
  • (c) Any member with contributory service on or after July 1, 2012, who has completed at least five (5) years of contributory service but who has not completed twenty-five (25) years of contributory service, shall be eligible to retire upon the attainment of the member's Social Security retirement age or, notwithstanding any other provisions, effective July 1, 2015, members in active service shallbe eligible to retire upon the earlier of:
  • (1) The attainment of at least age sixty-five (65) and the completion of at least thirty (30) years of total service, or the attainment of at least age sixty-four (64) and the completion on at least thirty-one (31) years of totalservice, or the attainment of at least age sixty-three (63) and the completion on at least thirty-two (32) years of totalservice, or the attainment of at least age sixty- two (62) and the completion on at least thirty-three (33) years of totalservice; or
  • (2) The member's retirement eligibility date under § 36-10-9(c)(ii).
  • (d) Any member who shall have rendered service both as a state employee under § 36-10- 9, and service as a correctional officer under § 36-10-9.2(a), shall be eligible to elect to combine the member's service as a correctional officer and service as a state employee to determine the member's retirement eligibility date under § 36-10-9. For any member making this election, the member will receive a single benefit equal to the member's accrued benefit as a correctional officer computed under § 36-10-10.2, plus the member's accrued benefit as a state employee computed under § 36-10-10.
  • SECTION 3. This act shall take effect upon passage. ======== LC001515 ========
  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • RELATING TO PUBLIC OFFICES AND EMPLOYEES – RETIREMENT
  • ***
  • This act would allow state employees who had also been a correctional officer to elect to combine their service time earned from each job, for the determination of their retirement eligibility date and calculation of retirement benefits.
  • This act would take effect upon passage. ======== LC001515 ========
  • (d) Any member who shall have renderedservice both as a state employee under § 36-10- 9, and service under § 36-10-9.2(a), shall be eligible to elect to combine the member's service under § 36-10-9.2(a) and service under § 36-10-9 to determine the member's retirement eligibility date under § 36-10-9. For any member making this election, the member will receive a single benefit equal to the accrued benefit computed under § 36-10-10.2, plus the accrued benefit computed under § 36-10-10.
  • (e) The provisions of subsection (d) shall also apply to members who have retired on a service retirement allowance on or after July 1, 2012. Any such request for adjustment shallbe in writing to the retirement board and shall apply prospectively from the date the request is received by the retirement board.
  • 36-10-10.2. Amount of service retirement allowance – Correctional officers.
  • LC001515/SUB A/4 - Page 3of 6
  • (a) Upon retirement for service under § 36-10-9.2, a member with twenty-five (25) or more years of service as of June 30, 2012 shall receive a retirement allowance of an amount determined under (i) below. All other members shallreceive a retirement allowance of an amount equal to the sum of (i) below for service prior to July 1, 2012, plus (ii) below for service on and after July 1, 2012.
  • (i) Two percent (2%) of his or her average compensation multiplied by his or her first thirty (30) years of total service within the department of corrections; any and all years of remaining service shall be issued to the member at a retirement allowance of an amount equalto his or her average compensation multiplied by the percentage allowance determined in accordance with Schedule A below:
  • Schedule A
  • Years of Service Percentage Allowance
  • 1 through 30 inclusive 2%
  • 31st 6%
  • nd
  • 32 5%
  • 33rd 4%
  • 34th 3%
  • th
  • 35 2%
  • (ii) On and after July 1, 2012, two percent (2%) of his or her average compensation multiplied by his or her first thirty (30) years of totalservice within the department of corrections, and three percent (3%) of his or her average compensation multiplied by the member's thirty-first (31st) through thirty-fifth (35th) years of service.
  • (b) A member who has rendered service as a state employee under § 36-10-9 shall be eligible to combine the accrued benefit under § 36-10-10 as a state employee with the accrued benefit under this section, provided the member has first obtained eligibility under §§ 36-10- 9.2(a), (b)(i) or (b)(ii). The accrual under § 36-10-10 will be added in the year in which service was rendered consistent with the schedules provided under § 36-10-10.
  • (c) The provisions of subsection (b) shall also apply to members who have retired on a service retirement allowance on or after July 1, 2012. Any such request for adjustment shallbe in writing to the retirement board and will only apply prospectively from the date the request is received by the retirement board.
  • (b)(d) In no case shall a retirement percentage allowance exceed the greater of the member's retirement percentage allowance on June 30, 2012 or seventy-five percent (75%). Any member who has in excess of thirty-five (35) years on or before July 1, 1987, shallnot be entitled
  • LC001515/SUB A/4 - Page 4of 6 to any refund. Any member with thirty-five (35) years or more on or after July 1, 1987, shall contribute from July 1, 1987, until his or her retirement, provided, however, that any member with thirty-eight (38) years of service prior to July 1, 1987, shall not be required to contribute.
  • SECTION 4. This act shalltake effect upon passage. ======== LC001515/SUB A/4 ========
  • LC001515/SUB A/4 - Page 5of 6
  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • RELATING TO PUBLIC OFFICES AND EMPLOYEES – RETIREMENT
  • ***
  • This act would allow state employees and correctional officers to combine their years of service under both pension systems, for the determination of their retirement eligibility date and calculation of retirement benefits.
  • This act would take effect upon passage. ======== LC001515/SUB A/4 ========
  • LC001515/SUB A/4 - Page 6of 6

Votes

NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the House or Senate Journal from the day of the vote.

Floor vote for Passage

June 25, 2019 at 5:35pm
Yeas: 35 / Nays: 3 / Not voting: 0 / Recused: 0
Legislator Vote
Sen. Algiere Y
Sen. Archambault Y
Sen. Bell Y
Sen. Cano Y
Sen. Ciccone Y
Sen. Conley Y
Sen. Coyne Y
Sen. Crowley Y
Sen. Cruz N
Sen. DiPalma Y
Sen. Euer Y
Sen. Felag Y
Sen. Gallo Y
Sen. Goldin Y
Sen. Goodwin Y
Sen. Lawson Y
Sen. Lombardi Y
Sen. Lombardo Y
Sen. Lynch Prata Y
Sen. McCaffrey Y
Sen. McKenney Y
Sen. Metts Y
Sen. Miller Y
Sen. Morgan N
Sen. Murray Y
Sen. Nesselbush Y
Sen. Paolino Y
Sen. Pearson Y
Sen. Picard Y
Sen. Quezada Y
Sen. Raptakis Y
Sen. Rogers N
Sen. Ruggerio Y
Sen. Satchell Y
Sen. Seveney Y
Sen. Sheehan Y
Sen. Sosnowski Y
Sen. Valverde Y