The bill amends Section 45-10-15 of the General Laws, which pertains to the audit of municipal accounts and compliance with governmental accounting standards. It introduces new requirements for municipalities that contribute materially less than 100% of the actuarially determined contribution (ADC) to their pension and other post-employment benefit (OPEB) plans. Specifically, municipalities must submit their most recent actuarial valuations and management recommendations for planned future contributions to the auditor general and the director of revenue within three months of completing their annual audited financial statements. Additionally, municipalities are required to consult with the auditor general until approved pension and OPEB funding plans are adopted.

Furthermore, the bill amends Section 45-21-65 to allow municipalities to create an OPEB trust agreement if one is not currently in place. This includes provisions for the establishment of OPEB trust funds, which can be funded by both the municipality and its employees. The bill also clarifies that municipalities can engage qualified advisors for the investment of the OPEB trust fund and ratifies any existing OPEB trusts. Overall, the act aims to enhance compliance and accountability in municipal pension and OPEB funding practices.

Statutes affected:
5947: 45-10-15, 45-21-65