§ 36-7-33.1. FICA Alternative Retirement Income Security Program.
(a) For FARP eligible employees, the state shall establish the FICA Alternative Retirement Income Security Program. The FARP shall be administered in accordance with the following provisions:
(1) IRC compliance. The FARP shall be administered as a defined contribution plan under section 401(a) of the IRC, and shall provide retirement benefits as required under section 3121(b)(7)(F) of the IRC.
(2) Employee participation in the FARP— One-Time Opt-Out Exception. With the one exception described in (b) below, FARP-eligible employee participation in the FARP shall be mandatory. Each participant shall make mandatory payroll deduction contributions to the FARP equal to a minimum of seven and five tenths percent (7.5%) of the employee’s gross wages for each pay period. Any payroll deduction contributions made pursuant to the FARP shall not be included in the computation of federal income taxes withheld on behalf of any participant. Once implemented, the participants, and the state on behalf of the participants, shall not continue to make FICA contributions. The FARP shall be administered by the financial institution currently administering the 401(a) plan for the state employee retirement plan, as described in Title 36 Chapter 10.3.
(b) An otherwise FARP-eligible employee, who is employed by the state at the time this section takes effect, may opt to not participate in the FARP. An employee who opts to not participate in the FARP will continue to make FICA contributions and the state shall continue to make FICA contributions on behalf of the employee. An employee who opts to not participate in the FARP may subsequently, without penalty, choose to participate in the FARP; provided, however, such employee must continue to participate in the FARP for as long as he or she is a FARP-eligible employee.
(c) Review by state investment commission. The state investment commission shall, from time to time, review and evaluate the reasonableness of the selected financial institution’s fees and the performance of the selected financial institution’s funds.
History of Section.P.L. 2013, ch. 144, art. 4, § 2.
Structure Rhode Island General Laws
Title 36 - Public Officers and Employees
Chapter 36-7 - Federal Old-Age and Survivors’ Insurance
Section 36-7-1. - Purpose of provisions.
Section 36-7-2. - Definitions.
Section 36-7-3. - Agreement with federal government.
Section 36-7-4. - Application to state employees.
Section 36-7-5. - Civilian employees of national guard.
Section 36-7-6. - Subscription to agreement by city, town, or state agency.
Section 36-7-7. - Filing of resolution, ordinance, or vote — Contributions — Effective date.
Section 36-7-9. - Denial of participation to city, town, or agency.
Section 36-7-10. - Retirement system defined.
Section 36-7-11. - Request for referendum of state retirement system members.
Section 36-7-12. - Request for referendum of city, town, or agency retirement system members.
Section 36-7-13. - Commission to conduct referendum.
Section 36-7-14. - Authorization of referendum.
Section 36-7-15. - Notice of referendum — Benefits equal to retirement system.
Section 36-7-16. - Eligibility to vote in referendum.
Section 36-7-18. - Interval between referenda.
Section 36-7-19. - Certification of results of referendum.
Section 36-7-20. - Expense of referendum.
Section 36-7-21. - Intent to preserve retirement system protection.
Section 36-7-22. - Contributions imposed on city, town, and agency employees.
Section 36-7-23. - Deductions by cities, towns, and agencies.
Section 36-7-24. - State contributions.
Section 36-7-25. - Payments by cities, towns, and agencies — Interest on delinquent payments.
Section 36-7-26. - Revolving fund — Payments to federal government.
Section 36-7-27. - Duties of general treasurer.
Section 36-7-28. - Forwarding of contributions and reports by cities, towns, and agencies.
Section 36-7-30. - Assurance of payment of amounts due from state agencies.
Section 36-7-31. - Appropriations.
Section 36-7-32. - Validation of ordinances and resolutions.
Section 36-7-33. - Coverage of employees ineligible for retirement.
Section 36-7-33.1. - FICA Alternative Retirement Income Security Program.
Section 36-7-34. - Positions covered by more than one system.