Rhode Island General Laws 36-10.3-4. Member contributions
(1) Each regular member shall contribute to the member’s individual account in the plan an amount equal to five percent (5%) of the member’s compensation from July 1 to the following June 30.
Terms Used In Rhode Island General Laws 36-10.3-4
- commission: means the state investment commission as defined in § 35-10-1. See Rhode Island General Laws 36-10.3-1
- Compensation: means compensation as defined in § 36-8-1(8). See Rhode Island General Laws 36-10.3-1
- Employee: means an employee as defined in §§ 36-8-1(9) and 45-21-2(7) and a teacher as defined in § 16-16-1(12), effective July 1, 2012; provided however, effective July 1, 2015, "employee" shall not include any employee with twenty (20) or more years of total service as of June 30, 2012, in the employees retirement system under chapters 8 through 10 of title 36 or chapter 16 of Title 16 (ERS), or the municipal employees retirement system under chapter 21 of Title 45 (MERS). See Rhode Island General Laws 36-10.3-1
- Employer: means the State of Rhode Island or the local municipality which employs a member of the Employees Retirement System under chapters 8 through 10 of title 36 or chapter 16 of Title 16 (ERS) or the Municipal Employees Retirement System under chapters 21 and 21. See Rhode Island General Laws 36-10.3-1
- Plan: means the retirement plan established by this chapter. See Rhode Island General Laws 36-10.3-1
- public safety member: shall mean a member of MERS who is a municipal fire fighter or a municipal policeman or policewoman as defined in § 45-21. See Rhode Island General Laws 36-10.3-1
- Regular member: means :
(i) An employee who is a member of ERS other than correctional officers as defined in § 36-10-9. See Rhode Island General Laws 36-10.3-1
(2) Each public safety member not participating in Social Security under the Federal Old Age, Survivors and Disability Income program, shall contribute to the member’s individual account an amount equal to three percent (3%) of the member’s compensation from July 1 to the following June 30.
(3) Contributions by supplemental members shall be governed by § 36-10.3-6.
(4) The employer shall deduct the contribution from the member’s compensation at the end of each payroll period, and shall remit the contributions on the date contributions are withheld but no later than three (3) business days following the pay period ending in which contributions were withheld, and the contribution shall be credited by the plan to the member’s individual account. The contributions shall be deducted from the member’s compensation before the computation of applicable federal taxes and shall be treated as employer contributions under 26 U.S.C. § 414(h)(2). A member shall not have the option of making the payroll deduction directly in cash instead of having the contribution picked up by the employer.
(5) Contributions of employees shall be made by payroll deductions. Every member shall be considered to consent to payroll deductions. It is of no consequence that a payroll deduction may cause the compensation paid in cash to an employee to be reduced below the minimum required by law. Payment of an employee’s compensation, less payroll deductions, is a full and complete discharge and satisfaction of all claims and demands by the employee relating to remuneration of services during the period covered by the payment, except with respect to the benefits provided under the plan.
(6) Additional voluntary member contributions may be permitted in accordance with this section in such manner as determined in the discretion of the commission.
(7) Every employer is required to deduct and withhold member contributions and to transmit same to the retirement system and is hereby made liable for the contribution. In addition, any amount of employee contributions actually deducted and withheld shall be deemed to be a special fund in trust for the benefit of the member and shall be transmitted to the retirement system as set forth herein.
History of Section.
P.L. 2011, ch. 408, § 9; P.L. 2011, ch. 409, § 9; P.L. 2019, ch. 205, § 7; P.L. 2019, ch. 271, § 7.