The bill amends Section 45-10-15 of the General Laws to enhance compliance requirements for municipalities regarding their contributions to pension and other post-employment benefit (OPEB) plans. It mandates that if a municipality contributes materially less than 100% of the actuarially determined contribution (ADC) to its pension or OPEB plans, it must submit its most recent actuarial valuations and management's recommendations for planned future contributions to the auditor general and the director of revenue within three months of completing the annual audited financial statement. Additionally, municipalities may create an OPEB trust agreement if one is not currently in place and must 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 enter into trust agreements for funding unfunded liabilities related to OPEB, including health and dental care benefits, in accordance with Governmental Accounting Standards Board (GASB) requirements. It outlines the process for establishing these trusts, including the roles of municipal treasurers or finance directors and the necessary approvals from city or town councils. The bill clarifies that OPEB trust funds can only be used for OPEB costs and allows municipalities to seek investment advice for these funds. Existing OPEB trusts are ratified, and the bill ensures that these trusts remain subject to the Rhode Island Access to Public Records Act.

Statutes affected:
3127: 45-10-15, 45-21-65