(a)  To determine the employer contribution rate for any participating municipality, the actuary shall compute the costs under chapters 21 and 21.2 of title 45 using the entry age normal cost method.

Terms Used In Rhode Island General Laws 45-21-43.1

  • Amortization: Paying off a loan by regular installments.
  • Fiscal year: means the period beginning on July 1 in any year and ending on June 30 of the next succeeding year. See Rhode Island General Laws 45-21-2
  • 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.
  • 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

(b)  The determination of the employer contribution rate for fiscal year 2013 shall include a re-amortization of the 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 as of June 30, 2014, over a closed twenty-five (25) year period. Future actuarial gains and losses occurring within a plan year will be amortized over individual new twenty (20) year closed periods. Employers shall have the one-time option before August 1, 2015, to remain under the amortization schedule set forth in subsection (b) above.

History of Section.
P.L. 2015, ch. 141, art. 21, § 20.