2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-21.4 - Relating to Central Falls Pension Plan › Section 45-21.4-2. - Alternative acceptance by the city of Central Falls of optional retirement for police and firefighters.

§ 45-21.4-2. Alternative acceptance by the city of Central Falls of optional retirement for police and firefighters.
(a)
The provisions of this section shall apply only to locally administered plans within the city of Central Falls hereinafter referred collectively as the “Central Falls plan.”
(b)
On or after July 16, 2019, Central Falls may accept the provisions of this chapter, by resolution or an ordinance of its governing body, stating the group or groups of employees to be included as provided in § 45-21-4; provided that, any and all labor organizations representing active employees of the municipality to be included have assented to such participation of their respective memberships through a collective bargaining agreement and ratification of the decision by a majority vote of those members of any such labor organization present and voting. A copy of the resolution or ordinance and proof of assent from the applicable labor organization shall be immediately forwarded to the retirement board for review. A vote of the retirement board to accept the entry of the group or groups of employees into the system shall be required.
(c)
Effective August 31, 2019, the Central Falls plan shall be closed to new members.
(d)
Members of the Central Falls plan in active service as of August 31, 2019, shall continue to be subject to the applicable retirement ages and restrictions, and accrue benefits on total service at the rates of the Central Falls plan pursuant to the collective bargaining agreements in effect on August 31, 2019, between Central Falls and the labor organizations representing members of the Central Falls plan.
(e)
Disability determinations shall be made by the retirement board, subject to the procedures and standards of §§ 45-21.2-7 and 45-21.2-9 as applicable, for members hired prior to September 1, 2019. If a disability retirement pension is granted, the member shall receive benefits provided by the Central Falls pension plan pursuant to the collective bargaining agreements in effect on August 31, 2019.
(f)
Beginning September 1, 2019, members of the Central Falls plan in active service shall contribute an amount equal to eleven and seven-tenths percent (11.7%) of the salary or compensation earned or accruing to the member.
(g)
Subject to the provisions of subsection (b) of this section being met, new employees hired on or after September 1, 2019, shall be subject to all of the provisions of § 45-21.2, including all applicable disability provisions and benefits provided by §§ 36-10.3-4 and 45-21-52.
(h)
Notwithstanding anything in § 45-21-42.2 to the contrary, the cost to evaluate Central Falls prospective membership in the retirement system pursuant to this section or § 45-21.4-3, shall be borne by the retirement board.
(i)
Notwithstanding anything in § 45-21-43.1 to the contrary, determination of the employer contribution rate of the closed Central Falls pension plan pursuant to this section shall be computed using an amortization period for the unfunded actuarial accrued liability as determined by the board, based upon the recommendation of the plan’s actuary. Future actuarial gains and losses accruing within a plan year will be amortized over individual new twenty-year (20) closed periods consistent with § 45-21-43.1(c).
(j)
Notwithstanding anything in § 45-21-56 to the contrary, if a Central Falls pension plan pursuant to this section is in critical status as defined in § 45-65-4, and an employee of the Central Falls pension plan leaves employment and is hired by another participating municipality that is not in critical status as defined in § 45-65-4, then the retirement system shall transfer the amount of the member’s total accrued liability with the Central Falls pension plan, multiplied by the funded status of the Central Falls pension plan, to the account of the current employing municipality.
(k)
Upon the conditions of subsection (b) of this section being met, the city of Central Falls shall remain liable to the retirement system for the cost of funding a retirement system for its employees who are members of the system as provided herein, and the retirement board maintains the right to enforce payment of any liability as provided in chapter 21 of this title.
(l)
Subject to the provisions of subsection (b) of this section being met, the Central Falls plan and the provisions of this section shall be administered in the same manner provided in chapter 21 of this title; credits for prior service and collection of contributions are determined through reference to that chapter; provided, that where the provisions of that chapter conflict with this chapter, then the provisions of this chapter control. Liability of contributions is enforced in the same manner as stated in chapter 21 of this title.
History of Section.
P.L. 2019, ch. 272, § 3; P.L. 2019, ch. 277, § 3.