§ 45-21-65. Other post-employment benefits — OPEB trusts.
(a) Notwithstanding the provisions of any general or special law, or the provisions of any municipality’s home rule charter, to the contrary, for purposes of funding any unfunded liability for other post-employment benefits including, but not limited to, health care and dental care benefits hereinafter referred to as (“OPEB”) in accordance with government accounting standards board statements 43 and 45, a municipality, acting by its treasurer or director of finance, upon an approving resolution of the city or town council or agency board as applicable, may enter into a trust agreement between the municipality and a corporate trustee which shall be a bank or trust company doing business in the state, or a corporation established pursuant to chapter 5 of this title. This trust agreement shall be in any form deemed proper by the treasurer or director of finance of the municipality, and shall be executed by its treasurer or director of finance and countersigned by its mayor or president of the town council. It shall be lawful for any bank, trust company, or entity organized pursuant to § 45-5-20.1 doing business in the state to act as a depository or trustee under this trust agreement, and to furnish indemnification and pledge securities that may be required by any municipality.
(b) OPEB trust funds shall be credited with all amounts appropriated or otherwise made available by the municipality for the purposes of meeting the current and future OPEB costs payable by the municipality. OPEB trust funds shall also be credited with all amounts contributed or otherwise made available by employees of the municipality for the purpose of meeting future OPEB costs payable by the municipality. Amounts in an OPEB trust fund, including any earnings or interest accruing from the investment of these amounts, shall be expended only for the payment of the costs payable by the municipality for OPEB or as otherwise permitted by the terms of the trust and applicable law. The director of finance or treasurer, as applicable, shall invest and reinvest the amounts in the OPEB trust fund not needed for current disbursement in any investment permitted for the municipality’s pension funds consistent with the prudent person rule and investment policies of the municipality, if any.
(c) Municipalities are hereby authorized to enter into agreements, trusts, contracts, and other arrangements with the state and any of its departments, agencies, boards or commissions relating to the execution, management or operation of the OPEB trust funds, including, but not limited to, investments, and the state and its departments, agencies, boards and commissions are hereby authorized to enter into such agreements, contracts and other arrangements with municipalities. Notwithstanding any provisions of any general or special law or principle of equity to the contrary, the state shall have no liability to any municipality for entering into such agreements.
(d) A municipality may employ any qualified bank, trust company, corporation, firm or person to advise it on the investment of the OPEB trust fund and may pay from the OPEB trust fund for this advice and other services. Procurement for these services shall be subject to the procurement procedures and rules governing municipalities in the state.
(e) Municipalities are also hereby authorized to enter into agreements, trusts, contracts, and other arrangements with any corporation established pursuant to chapter 5 of this title relating to the execution management or operations of OPEB trust funds including, but not limited to, investments, and the corporations established pursuant to § 45-5-20.1 are hereby authorized to enter into such agreements, trusts, contracts or other arrangements with municipalities.
(f) Any OPEB trusts that have been created by municipalities and are in effect on the date hereof are hereby ratified and confirmed.
(g) Nothing herein shall be construed to exempt OPEB trusts from the Rhode Island Access to Public Records Act, § 38-2-1 et seq.
History of Section.P.L. 2008, ch. 92, § 1; P.L. 2008, ch. 134, § 1; P.L. 2012, ch. 319, § 1; P.L. 2012, ch. 357, § 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.