The bill amends Section 45-10-15 of the General Laws regarding municipal compliance with governmental accounting standards, specifically focusing on pension funding and other post-employment benefit plans (OPEB). It requires municipalities that contribute materially less than 100% of the actuarially determined contribution (ADC) to their pension and OPEB plans to 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 introduces provisions in Section 45-21-65, allowing municipalities to create an OPEB trust agreement if one is not currently in place. It specifies that OPEB trust funds can only be used for OPEB costs and allows municipalities to seek advice on investments from qualified entities. The bill also ratifies existing OPEB trusts and ensures that these trusts remain subject to the Rhode Island Access to Public Records Act. The act will take effect upon passage.

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