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, which relates to other post-employment benefits (OPEB) trusts, by allowing municipalities to create OPEB trust agreements if they are not currently in place. The bill 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 the financial accountability and planning of municipalities regarding their pension and OPEB obligations.

Statutes affected:
7369: 45-10-15, 45-21-65