(a)  The cost of the benefits provided in § 16-16-25 — § 16-16-38 shall be two percent (2%) of the member‘s annual salary up to but not exceeding an annual salary of eleven thousand five hundred dollars ($11,500); one-half (½) of the cost shall be contributed by the member by deductions from his or her salary, and the other half (½) shall be contributed and paid by the respective city, town, or school district by which the member is employed. These contributions shall be in addition to the contributions provided in § 16-16-22 and shall be paid into the teachers’ survivors benefit fund created by § 16-16-25 — § 16-16-38 in the same manner as contributions are made under the provisions of § 16-16-22.

Terms Used In Rhode Island General Laws 16-16-35

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • 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
  • 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)  In the event the market value of the teachers’ survivor benefit plan assets shall decrease below one hundred (100%) percent of the teachers’ survivor benefit plan liabilities as reported by a qualified actuary pursuant to § 16-16-37, the retirement board shall determine and fix the amount of contributions necessary to maintain a funding level of not less than one hundred (100%) percent of assets to liabilities ratio. Any adjusted cost of the benefits provided in § 16-16-25 — § 16-16-38 shall be paid for by the member by deduction from his or her salary. These contributions shall be in addition to the contributions provided in § 16-16-22 and shall be paid into the teachers’ survivors benefit fund created by § 16-16-25 — § 16-16-38 in the same manner as contributions are made under the provisions of § 16-16-22; provided, however, that payments to compensate for asset-to-liability ratios less than one hundred (100%) percent shall be amortized over individual ten-year (10) close periods. Notwithstanding anything to the contrary in this chapter or in any other provision of Rhode Island law, no benefit enhancements, beyond the current provisions within § 16-16-25 — § 16-16-38, shall be granted until the market value of the teachers’ survivor benefit plan assets shall increase above one hundred and twenty (120%) percent of the teachers’ survivor benefit plan liabilities as reported by a qualified actuary pursuant to § 16-16-37.

History of Section.
P.L. 1962, ch. 212, § 3; P.L. 1974, ch. 254, § 1; P.L. 1996, ch. 295, § 1; P.L. 2004, ch. 547, § 1; P.L. 2013, ch. 501, § 28; P.L. 2017, ch. 412, § 2; P.L. 2017, ch. 413, § 2.