§ 45-21-43. Accounts and records — Reserve accounts.
(a) An adequate system of accounts and records is established and maintained for the system that fully reflects the requirements of this chapter. All assets of the system are credited according to the purposes for which they are held in the following designated reserve accounts:
(1) Members’ contribution reserve.
(i) The amounts contributed by the members are credited to this reserve. An individual account is maintained for each member. Member contributions made pursuant to § 45-21-41.1 are credited to a separate fund within a member’s individual account so that the amounts contributed prior to the effective date for the pickup of member contributions may be distinguished from the amount contributed on or after the date on which the municipality begins to pick up member contributions.
(ii) Upon the granting of a retirement allowance, the total accumulated contributions of the member concerned are transferred from this reserve to the retirement reserve. Refunds and death benefit payments representing members’ contributions are charged to this reserve.
(2) Employer’s accumulation reserve.
(i) The amounts contributed by the municipalities for the various purposes of this section are credited to this reserve. Upon the granting of a retirement allowance, annuity, or benefit, an amount representing the excess of the actuarial value over the total contributions of the member is transferred from this reserve to the retirement reserve. That portion of the death benefit provided from municipality contributions is charged to this reserve.
(ii) Upon request by a municipality, to transfer monies from this reserve to any one or more of the municipality’s other retirement units within the municipal employee retirement system which has unfunded liability, the retirement board shall request a private letter ruling from the Internal Revenue Service and upon receipt of a favorable ruling, shall transfer the funds consistent with the private letter ruling.
(3) Retirement reserve. Upon the granting of a retirement allowance, the accumulated contributions of the member and an amount representing the excess of the actuarial value of the allowance over the accumulated contributions, are transferred to this reserve from the members’ contribution reserve and the employer’s accumulation reserve, respectively.
(b) All payments on account of any retirement allowance or any benefit to a beneficiary of a member are charged to this reserve.
(c) Any excess amount in this reserve, over the actuarial liabilities of the reserve, as determined by actuarial valuation, is transferred at the close of each year to the employer’s accumulation reserve to be used to reduce the municipality’s contribution upon a rate redetermination as established by the periodic actuarial valuation provided in this section. Any deficiency in this reserve is removed by a transfer from the employer’s accumulation reserve.
(d) All income from investments, including gains from investment transactions, is credited to this reserve. All losses on investments are charged to this reserve.
History of Section.P.L. 1951, ch. 2784, § 14; G.L. 1956, § 45-21-43; R.P.L. 1957, ch. 135, § 5; P.L. 1959, ch. 23, § 7; P.L. 1983, ch. 137, § 5; P.L. 2000, ch. 454, § 1.
Structure Rhode Island General Laws
Chapter 45-21 - Retirement of Municipal Employees
Section 45-21-1. - Purpose of chapter.
Section 45-21-2. - Definitions.
Section 45-21-3. - Effective date of operations.
Section 45-21-4. - Acceptance by municipalities — Effective date.
Section 45-21-5. - Procedure for withdrawal of municipality.
Section 45-21-6. - Settlement on withdrawal from system.
Section 45-21-7. - Liability of municipalities — Enforcement.
Section 45-21-8. - Membership in system.
Section 45-21-8.1. - Exclusion of elected city, town council or other elected members.
Section 45-21-10. - Information furnished as to members — Classification.
Section 45-21-11. - Cessation of membership.
Section 45-21-12. - Statements as to prior service.
Section 45-21-12.1. - Credit for service as a teacher or state employee.
Section 45-21-13. - Verification of prior service.
Section 45-21-14. - Computation of years of service.
Section 45-21-14.1. - Repealed.
Section 45-21-14.2. - Leave of absence credits.
Section 45-21-15. - Prior service certificate.
Section 45-21-16. - Retirement on service allowance.
Section 45-21-16.1. - Repealed.
Section 45-21-16.2. - Electronic funds transfer.
Section 45-21-17. - Service retirement allowance.
Section 45-21-17.2. - Social security supplemental option.
Section 45-21-18. - Deferred allowance on service retirement before minimum age.
Section 45-21-19. - Retirement for ordinary disability.
Section 45-21-20. - Ordinary disability allowance.
Section 45-21-21. - Retirement for accidental disability.
Section 45-21-22. - Accidental disability allowance.
Section 45-21-23. - Periodical examination of disability annuitants — Placement on employment lists.
Section 45-21-25. - Accidental death benefits.
Section 45-21-26. - Ordinary death benefits.
Section 45-21-27. - Benefit on death of retired employee.
Section 45-21-28. - Refund of contributions on cessation of membership.
Section 45-21-29. - Repayment of refunded contributions — Reinstatement of service credit.
Section 45-21-30. - Optional benefits on service retirement.
Section 45-21-31. - Offset of workers’ compensation or personal injury recovery.
Section 45-21-32. - Retirement system established as corporation — Management.
Section 45-21-33. - Information furnished by municipalities.
Section 45-21-34. - Annual report and statement.
Section 45-21-35. - Legal adviser — General treasurer — Executive director — Assistant director.
Section 45-21-36. - Clerical and professional assistance — Appropriations and disbursements.
Section 45-21-37. - Vouchers for payment of benefits.
Section 45-21-38. - Receipt of contributions — Investment of funds.
Section 45-21-39. - Credit of interest.
Section 45-21-40. - Improper interest in investments of board.
Section 45-21-41. - Members’ contributions — Payroll deductions — Certification to board.
Section 45-21-41.1. - Municipality payment of member contributions.
Section 45-21-42. - Contributions by municipalities.
Section 45-21-42.2. - Fiscal impact of proposed legislation impacting the retirement system.
Section 45-21-43. - Accounts and records — Reserve accounts.
Section 45-21-43.1. - Actuarial cost method.
Section 45-21-44. - Guaranties by municipalities — Adjustment of contribution rates.
Section 45-21-45. - Tax exemption.
Section 45-21-46. - Forfeiture for fraudulent claims.
Section 45-21-47. - Reserved power to amend or repeal — Vested rights.
Section 45-21-48 - — 45-21-50. Repealed.
Section 45-21-51.1. - Optional annuity protection — Election of option by member.
Section 45-21-52. - Automatic increase in service retirement allowance.
Section 45-21-53. - Armed service credit.
Section 45-21-54. - Reemployment of retired members.
Section 45-21-55. - Retired members of the town of Warren.
Section 45-21-56. - Credit for other municipal service.
Section 45-21-57. - Life insurance benefits.
Section 45-21-58. - Credits for layoffs.
Section 45-21-59. - Effect of deferral and/or reduction of salary.
Section 45-21-60. - Pensioners and beneficiaries of Plan No. 3023 — Town of North Kingstown.
Section 45-21-61. - Purchase of credit while serving a prison sentence — Prohibited.
Section 45-21-62. - Purchase of credits for continuous municipal service.
Section 45-21-63. - Health insurance coverage of retired municipal employees.
Section 45-21-64. - Purchase of service credits payable by installment.
Section 45-21-65. - Other post-employment benefits — OPEB trusts.
Section 45-21-66. - Severability.
Section 45-21-67. - Central Falls retirees — Settlement agreement.