(a)  Each city or town, pursuant to the provisions of § 414(h)(2) of the United States Internal Revenue Code, 26 U.S.C. § 414(h)(2), may, pursuant to appropriate local action by the city or town, pick up and pay the contributions that would be payable by the employees as teacher members under § 16-16-22. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. Employee contributions picked up pursuant to this section shall be treated and identified as teacher member contributions for all purposes of the retirement system except as specifically provided to the contrary in this section.

Terms Used In Rhode Island General Laws 16-16-22.1

  • compensation: includes any and all salary paid for teaching services regardless of whether any part of the salary or compensation is derived from any state or federal grant or appropriation for teachers' salaries, as the term is defined in §?36-8-1(8). See Rhode Island General Laws 16-16-1
  • Member: means any person included in the membership of the retirement system under the provisions of this chapter. See Rhode Island General Laws 16-16-1
  • system: means the employees' retirement system of the state of Rhode Island created by chapter 8 of Title 36, and "retirement board" means the board established under that chapter. See Rhode Island General Laws 16-16-1
  • Teacher: means a person required to hold a certificate of qualification issued by or under the authority of the board of regents for elementary and secondary education and who is engaged in teaching as his or her principal occupation and is regularly employed as a teacher in the public schools of any city or town in the state, or any formalized, commissioner approved, cooperative service arrangement. See Rhode Island General Laws 16-16-1
  • 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
  • United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8

(b)  Teacher member contributions picked up by a city or town shall be paid from the same source of funds used for the payment of compensation to a teacher member. A deduction shall be made from a teacher member’s compensation equal to the amount of his or her contributions picked up by his or her city or town employer. This deduction, however, shall not reduce his or her compensation for purposes of computing benefits under the retirement system pursuant to this chapter or chapter 10 of Title 36. Picked up contributions shall be transmitted to the retirement system in accordance with the provisions of § 16-16-22 and § 36-10-1 on the date contributions are withheld but no later than three (3) business days following the pay period ending in which contributions were withheld.

(c)  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.

(d)  The liability of an employer who fails to segregate these trust funds, or refuses to deduct and withhold member contributions from its employees, is enforceable by the retirement board through an appropriate action in the superior court. The general treasurer is also authorized to deduct the amount due from any money due the employer from the state.

History of Section.
P.L. 1983, ch. 37, § 3; P.L. 2011, ch. 408, § 10; P.L. 2011, ch. 409, § 10; P.L. 2019, ch. 205, § 4; P.L. 2019, ch. 271, § 4.