The bill amends Section 36-10-2 of the General Laws in Chapter 36-10 entitled "Retirement System — Contributions and Benefits." It outlines the State of Rhode Island's obligations to contribute to the maintenance of the retirement system, including the payment of benefits and the calculation of contributions based on total compensation paid to active members. The actuary is responsible for determining the value of member contributions, investment income, and other income, and for computing the yearly employer contribution to cover the normal cost and amortize the unfunded liability of the system. The state is required to remit contributions for various employee groups on a specified basis and make additional payments to the retirement system under certain conditions outlined in subsections (d) and (e).

The bill introduces a new provision, marked by insertion, which requires the governor to include an appropriation to the retirement system equivalent to the average annual employer contribution for each vacant full-time equivalent position when the vacancies exceed three percent and are filled with contract employees. This is intended to ensure that the pension fund is compensated for the lack of contributions due to vacancies. The bill also includes provisions for supplemental employer contributions to the retirement system, adjustments to the amortization bases by the actuary, and the treatment of supplemental contributions in actuarial valuations. The act would take effect upon passage.

Statutes affected:
997: 36-10-2