Rhode Island General Laws 36-10-2.1. Actuarial cost method
(a) To determine the employer contribution rate for the State of Rhode Island for fiscal year 2002 and for all fiscal years subsequent, the actuary shall compute the costs under chapter 10 of Title 36 using the entry age normal cost method.
Terms Used In Rhode Island General Laws 36-10-2.1
- Amortization: Paying off a loan by regular installments.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
(b) The determination of the employer contribution rate for fiscal year 2013 shall include a reamortization of the current Unfunded Actuarial Accrued Liability (UAAL) over a closed twenty-five (25) year period. After an initial period of five (5) years, future actuarial gains and losses occurring within a plan year will be amortized over individual new twenty (20) year closed periods.
(c) The determination of the employer contribution rate commencing with fiscal year 2017 shall include a re-amortization of the current unfunded actuarial accrued liability (UAAL) attributable to the sixty percent (60%) of contribution responsibility not partitioned to the state in § 16-16-22 over a closed twenty-five (25) year period. This will be accomplished by dividing the UAAL as of June 30, 2014 into two (2) separate amortization periods. Future actuarial gains and losses occurring within a plan year will be amortized over individual new twenty (20) year closed periods and allocated in the forty percent (40%) state / sixty percent (60%) municipal proportion set forth in § 16-16-22.
History of Section.
P.L. 1982, ch. 201, § 2; P.L. 1989, ch. 126, art. 28, § 1; P.L. 2001, ch. 77, art. 18, § 1; P.L. 2011, ch. 408, § 7; P.L. 2011, ch. 409, § 7; P.L. 2015, ch. 141, art. 21, § 3.