(a)  Each municipality shall make contributions to the system to provide for the remainder of the obligation for retirement allowances, annuities, and other benefits provided in this chapter, after applying the accumulated contributions of the members, interest income on investments of the system, and other income accruing to the system. These contributions shall, in any event, be sufficient to establish and maintain a reserve equal to the sum of:

(1)  The full credits for accumulated contributions in the “members’ contribution reserve” described in § 45-21-43;

(2)  The present value, determined in accordance with the actuarial tables in use by the system, of the retirement allowances, disability allowances, accidental death benefits, and other benefits in force, chargeable to the “retirement reserve” described in § 45-21-43; and

(3)  The present value of deferred annuities to members who have acquired a vested right under the provisions of § 45-21-18.

Terms Used In Rhode Island General Laws 45-21-42

  • Accumulated contributions: means the sum of all amounts deducted from the compensation of a member and credited to his or her individual account in the members' contribution reserve account. See Rhode Island General Laws 45-21-2
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • board: means the state retirement board created by chapter 8 of Title 36. See Rhode Island General Laws 45-21-2
  • Employee: means any regular and permanent employee or officer of any municipality, whose business time at a minimum of twenty (20) hours a week is devoted to the service of the municipality, including elective officials and officials and employees of city and town housing authorities. See Rhode Island General Laws 45-21-2
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Municipality: means any town or city in the state of Rhode Island, any city or town housing authority, fire, water, sewer district, regional school district, public building authority as established by chapter 14 of Title 37, or any other municipal financed agency to which the retirement board has approved admission in the retirement system. See Rhode Island General Laws 45-21-2
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Service: means service as an employee of a municipality of the state of Rhode Island as defined in subdivision (7). See Rhode Island General Laws 45-21-2
  • town: may be construed to include city; the words "town council" include city council; the words "town clerk" include city clerk; the words "ward clerk" include clerk of election district; the words "town treasurer" include city treasurer; and the words "town sergeant" include city sergeant. See Rhode Island General Laws 43-3-9

(b)  The rate of contribution on the part of each municipality, to meet its obligations under this chapter, is the rate certified by the retirement board at the date of participation of the municipality. The rate is redetermined at least once every five (5) years and certified by the retirement board, upon recommendation of the actuary, following an evaluation and analysis of the operating experience of the system and of the assets, liabilities, and reserves of the system. Nothing contained in this chapter is deemed to impose any obligation upon any municipality for service which may have been rendered by an employee of one municipality in behalf of another municipality.

(c)  In case of failure of any city or town to pay to the state the amounts due from it under this title within the time prescribed, the general treasurer is hereby authorized to deduct that amount from any moneys due the city or town from the state for any purpose other than for education.

(d)  Notwithstanding any other provisions of the general laws, the payment of the contributions for the employers’ share shall be remitted to the retirement board on the date contributions are withheld but no later than three (3) business days following the pay period ending in which contributions were withheld.

(e)  This section is not subject to § 45-13-7 — § 45-13-10, as amended.

History of Section.
P.L. 1951, ch. 2784, § 13; G.L. 1956, § 45-21-42; R.P.L. 1957, ch. 135, § 4; P.L. 1959, ch. 23, § 7; P.L. 1965, ch. 236, § 1; P.L. 1981, ch. 337, § 1; P.L. 1988, ch. 509, § 3; P.L. 2019, ch. 205, § 9; P.L. 2019, ch. 271, § 9.