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H8506
2026 -- H 8506
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LC006396
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TOWNS AND CITIES -- RELATING TO CENTRAL FALLS PENSION
PLAN
Introduced By:
Representatives Giraldo, Alzate, and Voas
Date Introduced:
May 01, 2026
Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 45-21.4-2 of the General Laws in Chapter 45-21.4 entitled "Relating
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to Central Falls Pension Plan" is hereby amended to read as follows:
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45-21.4-2. Alternative acceptance by the city of Central Falls of optional retirement
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for police and firefighters.
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(a) The provisions of this section shall apply only to locally administered plans within the
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city of Central Falls hereinafter referred collectively as the “Central Falls plan.”
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(b) On or after July 16, 2019, Central Falls may accept the provisions of this chapter, by
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resolution or an ordinance of its governing body, stating the group or groups of employees to be
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included as provided in § 45-21-4; provided that, any and all labor organizations representing active
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employees of the municipality to be included have assented to such participation of their respective
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memberships through a collective bargaining agreement and ratification of the decision by a
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majority vote of those members of any such labor organization present and voting. A copy of the
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resolution or ordinance and proof of assent from the applicable labor organization shall be
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immediately forwarded to the retirement board for review. A vote of the retirement board to accept
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the entry of the group or groups of employees into the system shall be required.
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(c) Effective August 31, 2019, the Central Falls plan shall be closed to new members.
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(d)
(1) Prior to July 1, 2026,
Members
members
of the Central Falls plan in active service
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as of August 31, 2019, shall continue to be subject to the applicable retirement ages and restrictions,
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and accrue benefits on total service at the rates of the Central Falls plan pursuant to the collective
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bargaining agreements in effect on August 31, 2019, between Central Falls and the labor
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organizations representing members of the Central Falls plan.
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(2) On and after July 1, 2026, members of the Central Falls plan in active service as of
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August 31, 2019, shall be subject to the pension plan provisions set forth in the respective collective
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bargaining agreements in effect on July 1, 2026, between Central Falls and the labor organizations
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representing members of the Central Falls plan.
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(e) Disability determinations shall be made by the retirement board, subject to the
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procedures and standards of §§ 45-21.2-7 and 45-21.2-9 as applicable, for members hired prior to
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September 1, 2019. If a disability retirement pension is granted, the member shall receive benefits
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provided by the Central Falls pension plan pursuant to the collective bargaining agreements in
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effect on August 31, 2019.
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(f) Beginning
September 1, 2019
July 1, 2026
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firefighters and police officers in active
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service that are
members of the Central Falls plan in active service shall contribute an amount equal
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to
eleven and seven-tenths percent (11.7%)
ten percent (10%)
of the salary or compensation earned
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or accruing to the member.
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(g) Subject to the provisions of subsection (b) of this section being met, new employees
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hired on or after September 1, 2019, shall be subject to all of the provisions of § 45-21.2, including
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all applicable disability provisions and benefits provided by §§ 36-10.3-4 and 45-21-52.
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(h) Notwithstanding anything in § 45-21-42.2 to the contrary, the cost to evaluate Central
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Falls prospective membership in the retirement system pursuant to this section or § 45-21.4-3, shall
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be borne by the retirement board.
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(i) Notwithstanding anything in § 45-21-43.1 to the contrary, determination of the
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employer contribution rate of the closed Central Falls pension plan pursuant to this section shall be
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computed using an amortization period for the unfunded actuarial accrued liability as determined
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by the board, based upon the recommendation of the plan’s actuary. Future actuarial gains and
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losses accruing within a plan year will be amortized over individual new twenty-year (20) closed
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periods consistent with § 45-21-43.1(c).
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(j) Notwithstanding anything in § 45-21-56 to the contrary, if a Central Falls pension plan
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pursuant to this section is in critical status as defined in § 45-65-4, and an employee of the Central
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Falls pension plan leaves employment and is hired by another participating municipality that is not
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in critical status as defined in § 45-65-4, then the retirement system shall transfer the amount of the
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member’s total accrued liability with the Central Falls pension plan, multiplied by the funded status
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of the Central Falls pension plan, to the account of the current employing municipality.
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(k) Upon the conditions of subsection (b) of this section being met, the city of Central Falls
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shall remain liable to the retirement system for the cost of funding a retirement system for its
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employees who are members of the system as provided herein, and the retirement board maintains
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the right to enforce payment of any liability as provided in chapter 21 of this title.
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(l) Subject to the provisions of subsection (b) of this section being met, the Central Falls
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plan and the provisions of this section shall be administered in the same manner provided in chapter
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21 of this title; credits for prior service and collection of contributions are determined through
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reference to that chapter; provided, that where the provisions of that chapter conflict with this
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chapter, then the provisions of this chapter control. Liability of contributions is enforced in the
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same manner as stated in chapter 21 of this title.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TOWNS AND CITIES -- RELATING TO CENTRAL FALLS PENSION
PLAN
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This act would amend the terms of the pension plan set forth in the respective collective
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bargaining agreements in effect on July 1, 2026, between Central Falls and the labor organizations
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representing members of the Central Falls plan and would reduce the contributions of active
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firefighters and police officers from eleven and seven tenths percent (11.7%) to ten percent (10%)
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of their salary or compensation.
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This act would take effect upon passage.
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