Chapter 58 - RETIREMENT AND PENSIONS

Footnotes:

--- (1) --- Cross reference— Administration, ch. 2; rules of benefits and services for retirement, § 54-138.

State Law reference— Retirement for municipal employees, G.L. 1956, § 45-21-1 et seq.

ARTICLE I. - IN GENERAL#

Secs. 58-1—58-20. - Reserved.#

ARTICLE II. - TOWN EMPLOYEES#

Footnotes:

--- (2) --- Cross reference— Officers and employees, § 2-201 et seq.

Sec. 58-21. - Definitions.#

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Actuary means a member of the Society of Actuaries, or an organization employing such a member, appointed and compensated by the pension board to render actuarial service with respect to this plan.

Average final compensation means the average annual base pay (exclusive of longevity pay, incentive pay or holiday pay) of a member during the three consecutive paid years of servicing providing the highest average.

Beneficiary means any person who may be entitled to receive any death benefit which may be payable as provided under this chapter.

Compensation means wages or salary, including temporary increases or decreases thereof.

Contingent annuitant means the person, if any, whom a member shall have designated to receive annuity payments following the death of such member as provided in the contingent annuitant option.

Credited service means the latest period of continuous employment of a member by the town, up to and including such member's actual retirement date or the date of death, discharge or termination of employment if such occurs prior to the actual retirement date. Credit for a full year of service shall be given where absences within the year due to disability and leave of absence do not exceed 30 days in any 12-month period, except as may be specifically provided otherwise by action of the pension board. For the purpose of computations involving credited service, fractional parts of a year shall include all completed months of employment.

Employee means any person employed by the town who is required by position to serve the town continuously for at least five months of a year and for at least 20 hours per week during the town's usual business hours, provided that such term shall not include employees of the school department who have been, are or shall be eligible for membership in the state teachers' retirement system.

Member means an employee who is eligible under the terms of general eligibility. It shall not include in its meaning a retired member or a terminated member.

Municipal employee means any person employed by the town who is required by position to serve the town continuously for at least five months of a year and for at least 20 hours per week during the town's usual business hours, provided that such term shall not include employees of the school department who have been, are, or shall be eligible for membership in the state teachers' retirement system but shall include, unless otherwise specified, employees of the school department who by virtue of a collective bargaining agreement are entitled to be members of this pension plan.

Normal cost means the cost of benefit accruals less expected employee contributions is the net normal cost as a percentage of payroll as found in the annual actuarial valuation. The normal cost will be taken from the last actuarial valuation and used for the entire calculation at time of purchase.

Pension board means the pension board established to administer the provisions of this chapter as provided for in section 58-22.

Pension fund means the fund managed and controlled by the pension board for the purpose of providing benefits pursuant to this article.

Plan means the pension plan set forth in this article and all subsequent amendments thereto.

Regular interest means the annual rate of interest, as determined from time to time by the pension board, to be credited to the accumulated contributions of each member. The interest shall be compounded annually as the pension board shall determine, and such interest refers to employee contributions.

Retired member means a person who has been a member and who is receiving retirement benefits under this article.

Retirement date means the date as of which a member, or a terminated member entitled to a vested interest under this article, actually retired and benefit payments commence to accrue.

Terminated member means a person who has been a member but who is no longer an employee and whose status as an employee has been terminated other than by death, retirement or leave of absence. A terminated member shall have no status whatsoever under this plan except as provided in this article.

(Ch. 523, § 2, 8-20-1984; Code 1986, § 16-1; Ch. 696, § 1, 1-21-1992; Ch. 816, § 16-1, 5-20-2002; Ch. 940, § 1, 3-7-2011; Ch. 1138, § 1, 7-7-2025)

Cross reference— Definitions generally, § 1-2.

Sec. 58-22. - Pension board.#

(a)

Composition. The pension board shall be composed of seven persons with representatives from each of the following categories:

(1)

One representative from the labor organization representing the police department.

(2)

One representative from the labor organization representing the fire department.

(3)

Two persons appointed by the town council.

(4)

One representative from the labor organization representing the municipal employees.

(5)

One representative from the labor organization representing employees of the school department participating in this plan.

(6)

One representative of the nonunion employees participating in this plan.

(7)

One representative from the bargaining unit represented by Public Service Employees Local Union 1033.

Each of the labor unions or other groups designated in subsections (a)(1)—(a)(7) of this section shall submit the name of their proposed representative to the town council for appointment and confirmation of the town council.

(b)

Quorum. Four persons shall be a quorum for the purposes of conducting business, and shall serve on a voluntary basis without pay.

(c)

Legal and actuarial assistance. The town council will ensure that the board is provided with legal and actuarial assistance.

(d)

Meetings. Written notification shall be given to board members of any meeting at least 72 hours prior to the meeting. The board shall meet at least monthly if there is pending business and shall approve each request for retirement benefits and the amounts to be paid or purchase annuity contracts for retirees.

(e)

Terms. The board members shall serve terms of two years, and three of the first appointments will be for one year.

(f)

Administrative expenses. The board shall annually submit a budget request for administrative expenses.

(g)

Secretary. The town treasurer or a representative shall act as secretary to the board. The treasurer shall take minutes; compute annuities, refunds and adjustments; maintain records; and communicate with employees and counsel.

(h)

Chairman. A chairman of the board shall be elected by the board from among its members. The chairman will represent the board at budget hearings.

(i)

Authority. The board shall have authority to adopt rules and regulations governing the implementation of this chapter, provided, however, rules and regulations have been reviewed and approved by the town manager and the town council.

(j)

Duty. The board has the duty to advise each applicant for benefits of all rights and options of the plan.

(Ch. 523, § 3, 8-20-1984; Code 1986, § 16-2; Ch. 657, § 1, 1990; Ch. 816, § 16-2, 5-20-2002)

Cross reference— Boards, commissions and committees, § 2-71 et seq.

Sec. 58-23. - Eligibility.#

(a)

Each employee, including probationary status employees, hired prior to July 1, 1984, occupying a position of a regular or permanent nature whose business time is devoted to the service of the town shall participate in the plan unless such employee filed a notice of nonparticipation within three months after such date.

(b)

The term regular or permanent nature shall mean rendering service to the town at the rate of not less than 20 hours per week and not less than five months per year.

(c)

Each employee hired after July 1984 shall participate in the plan, and such participation shall be a condition of the member's continued employment; provided, however, that with respect to employees whose appointments require advice and consent of the town council under section 2-1-7(l) of the Town Charter, the town council may waive this requirement.

(d)

Eligible employees who fail to become members in accordance with this section shall be barred from receiving any of the benefits provided in this plan from the time.

(e)

All participants shall authorize the town in writing to withhold the required membership contributions as set forth in section 58-24 and complete such forms which may be required as a precondition for plan participation.

(f)

An employee will receive no pension or other benefits for service during any period in which the employee was ineligible to contribute to this plan but failed to do so.

(g)

Any police officer who is separately covered under the terms of the chapter 1666, Pension System approved April 27, 1945, and who has refused the September 1984 offer to join the pension plan shall be excluded from participation under this plan.

(h)

All employees, hired after January 1, 1992, who, as a condition of employment are required to participate in this plan, shall be required to submit to a comprehensive preemployment physical examination to be paid for by the town. The physician conducting the examination and the diagnostic tests to be performed shall be selected by the town.

(i)

An employee who is hired after the employee's 60th birthday may elect not to participate in the plan by signing a waiver of benefits provided in the plan. Once an employee signs a waiver, he or she may only participate in the plan if the pension board approves their request to rescind the waiver and become participants in the plan. As a condition to any such approval by the pension board, the employee shall be obligated to pay in a lump sum an amount equal to what would have been the employee's contributions, the town's contributions and interest for the total time period elapsed between the waiver and request to rescind the waiver.

(j)

Library employees: Effective December 20, 2021 and continuing thereafter, library employees, whose compensation is fixed by the library board of trustees under the authority of R.I.G.L. § 29-4-6, as amended, and who are required by position to serve continuously for at least five months of a year and for at least 20 hours per week, shall be considered municipal employees, for the purpose of eligibility for plan participation. This amendment shall include all current library employees as of the effective date of this subsection. Library employees currently participating in the pension plan are not affected by this effective date. Library employees employed as of the effective date of this subsection who have not been making contributions to the plan shall be eligible for prior service credit under section 58-32 creditable service.

(Ch. 523, § 4, 8-20-1984; Code 1986, § 16-3; Ch. 696, § 2, 1-21-1992; Ch. 774, § 1, 9-23-1998; Ch. 816, § 16-3, 5-20-2002; Ch. 865, § 1, 7-18-2005; Ch. 874, § 1, 5-15-2006; Ch. 1089, 12-20-2021)

Sec. 58-24. - Funding.#

(a)

Town contributions. The town council shall appropriate annually to the pension plan the amounts required to fund the benefits set for on this plan as determined by the pension board on the basis of the actuary's reports, which shall be based on sound actuarial funding methods, assumptions and principles.

(b)

Member contributions. Unless otherwise provided for through a collective bargaining agreement, members shall contribute a flat percentage of annual base pay to the plan in accordance with the following established rates:

(1)

Police officers. Nine percent of base pay (exclusive of longevity pay, incentive pay and holiday pay);

(2)

Firefighters. Ten percent of base pay (exclusive of longevity pay, incentive pay and holiday pay);

(3)

Municipal workers. Ten percent of base pay (exclusive of longevity pay, incentive pay and holiday pay).

(c)

Maximum contributions. Contributions from a member shall cease once that member has completed 30 years of credited service.

(Ch. 523, § 5, 8-20-1984; Code 1986, § 16-4; Ch. 669, § 1, 12-17-1990; Ch. 781, § 1, 6-7-1999; Ch. 816, § 16-4, 5-20-2002; Ch. 987, § 1, 7-15-2013)

Sec. 58-25. - Normal retirement benefits.#

A member shall be eligible to retire upon the completion of ten years of credited service, provided that such member has attained the age of 58 or at any age after the completion of 20 years of credited service. The amount of unreduced monthly retirement benefit shall be equal to 2½ percent of the average final compensation multiplied by the member's years of credited service, subject to a maximum benefit equal to 75 percent of the member's average final compensation. All of the above is applicable unless modified by a collective bargaining agreement (CBA).

(Ch. 523, § 6, 8-20-1984; Code 1986, § 16-5; Ch. 669, § 2, 12-17-1990; Ch. 696, § 3, 1-21-1992; Ch. 816, § 16-5, 5-20-2002; Ch. 823, § 1, 8-19-2002; Ch. 1103, § 1, 1-17-2023)

Sec. 58-26. - Compulsory retirement benefits.#

Any police officer or firefighter who remains in the employ of the town after the normal retirement age may commence to receive a monthly retirement benefit as of the date of actual retirement, but no later than the month in which the member attains his 65th birthday. The amount of the member's monthly retirement benefit shall be calculated in the same manner as a normal retirement benefit but shall include credit for service after that date and shall be based on average final compensation at the date of actual retirement.

(Ch. 523, § 7, 8-20-1984; Code 1986, § 16-6; Ch. 816, § 16-6, 5-20-2002)

Sec. 58-27. - Early retirement benefits.#

Any member who has attained his 55th birthday and who has been credited with at least ten years of credited service with the town, or has attained age 50 years and who has been credited with at least 20 years of credited service with the town may elect to retire prior to normal retirement age and receive a monthly retirement benefit equal to the actuarial equivalent of the member's accrued benefit determined as of the normal retirement date.

(Ch. 523, § 8, 8-20-1984; Code 1986, § 16-7; Ch. 816, § 16-7, 5-20-2002)

Sec. 58-28. - Disability retirement benefits.#

(a)

Municipal employees. The disability retirement benefits of any member classified as a municipal employee who becomes disabled as defined in accordance with the provisions of the applicable general laws of the state entitled, "Retirement of Municipal Workers," shall be determined as follows: If a member becomes totally and permanently disabled for nonoccupational causes while employed by the town after completing at least seven years of credited service but prior to attainment of age 58 years, the member shall be eligible to receive a benefit which is equal to 2½ percent of the average final compensation multiplied by the years of credited service but not less than 25 percent or more than 50 percent of final annual compensation.

(b)

Municipal employees, police officers, and firefighters. If a member classified as a municipal employee, police officer or firefighter becomes totally and permanently disabled while employed by the town due to occupational causes, regardless of the age or length of service at the time of disability, the member shall be entitled to receive the benefit equal to 66⅔ percent of the annualized rate of compensation (exclusive of longevity pay, incentive pay and holiday pay) determined as of the date of the disability. The benefit shall be reduced by the monthly value of any payments provided for the member under any worker's compensation law.

(c)

Police officer and firefighter. If a member classified as a police officer or firefighter becomes totally and permanently disabled while employed by the town due to nonoccupational causes after completing at least seven years of service but prior to attainment of age 58 years (age 55 years for firefighters) the member shall be entitled to receive a benefit which is equal to 2½ percent of the member's average final compensation multiplied by the years of credited service but not to be less than 25 percent or more than 50 percent of the final annual compensation. The benefit shall be reduced by the monthly value of any payments provided for the member under any worker's compensation law.

(Ch. 523, § 9, 8-20-1984; Ch. 543, § 1, 4-21-1986; Code 1986, § 16-8; Ch. 565, § 2, 11-3-1986; Ch. 781, § 3, 6-7-1999; Ch. 816, § 10-8, 5-20-2002)

Sec. 58-29. - Vesting of benefits.#

A member shall have a right to the accrued benefit derived from town contributions after the completion of ten years of credited service. Such vesting will be granted upon the application to and approval of the town pension board. The member's right to his own contributions shall be fully vested at all times.

(Ch. 523, § 10, 8-20-1984; Code 1986, § 16-9; Ch. 816, § 16-9, 5-20-2002)

Sec. 58-30. - Death benefits.#

(a)

Municipal employees. If a member classified as a municipal employee should die while in the employ of the town prior to the actual retirement date, the elected beneficiary shall be entitled to a death benefit determined as of the date of the member's death in accordance with the following:

(1)

Nonoccupational causes. Upon the death of a member while in service from any cause other than occupational disability, the designated beneficiary shall be entitled to receive a benefit which is the greater of the following:

a.

A refund of the member's contributions with interest plus a lump sum payment equal to $400.00 multiplied by years of credited service, subject to a minimum of $2,000.00 and a maximum of $8,000.00.

b.

For a member who dies after completing ten years of credited service, or whose retirement application has been approved by the pension board and has received approval to discharge vacation time through his or her date of retirement (not to exceed 30 days) a refund of the member's contributions with interest and a monthly benefit equal to 50 percent of the accrued benefit determined as of the date of the member's death, which shall be payable to one of the following:

1.

The surviving spouse.

2.

If there is no spouse or the spouse remarried and minor children under 18 years of age survive the member, to such children in equal proportions.

3.

If no eligible spouse or children exist at the date of death of the member, to the father or mother dependent on the member for support.

(2)

Occupational causes. Upon the death of a member due to occupational causes, regardless of age or length of service, the designated beneficiary shall be entitled to a refund of member contributions with interest plus a benefit equal to 50 percent of compensation, which shall be payable to one of the following:

a.

The surviving spouse;

b.

If there is no spouse or the spouse remarried and minor children under 18 years of age survive the member, to such children in equal proportions;

c.

If no eligible spouse or eligible minor children exist at the date of death of the member, to the father or mother who was dependent upon the member for support, as the pension board may determine.

These benefits are reduced by worker's compensation payments made by the town.

(b)

Police officer and firefighter. Upon the death of a member classified as a police officer or firefighter who dies while in the service of the town after completing ten years of credited service, the member's beneficiary shall be entitled to elect either a refund of the member contributions with interest or a monthly benefit equal to 50 percent of the member's accrued benefit determined as of the date of death. Upon the death of any regular and permanent police officer or firefighter who at the time of death was eligible to retire from service or who had retired from service, the dependent spouse shall be entitled to receive payment of 67½ percent of the benefits which would have been payable to such member or were being paid to such member at the date of the member's death for the spouse's lifetime until the spouse remarries or, if there is no spouse or the spouse remarries, then to the member's dependent children until they attain 18 years of age in equal proportions or, if no eligible spouse or eligible minor children exist at the date of death of the member, to the father or mother for support, as the pension board may determine.

(Ch. 523, § 11, 8-20-1984; Code 1986, § 16-10; Ch. 816, § 16-10, 5-20-2002; Ch. 1013, § 1, 9-8-2015)

Sec. 58-31. - Payment of benefits.#

(a)

A member shall be paid the monthly retirement benefits in the form of monthly installments payable to and during the member's lifetime until the month in which the member dies, with the provision that the beneficiary is entitled to a refund of the excess, if any, of the value of total member contributions over the amount of retirement benefits received.

(b)

Upon a member's death 67½ percent of the retirement benefit shall be continued throughout the life of and paid to the dependant spouse until the spouse remarries or, if there is no spouse or if the spouse remarries, then to the dependent children until they attain 18 years of age.

(Ch. 523, § 12, 8-20-1984; Code 1986, § 16-11; Ch. 696, § 5, 1-21-1992; Ch. 781, § 4, 6-7-1999; Ch. 816, § 16-11, 5-20-2002; Ch. 823, § 2, 8-19-2002)

Sec. 58-32. - Creditable service.#

Any employee joining the plan by making the required member contributions pursuant to section 58-24(b) will receive credit for all service rendered to the town following the date of this membership for which such contributions have been made, subject to the following provisions: (1)

Leave of absence. Any member will receive one-half of a month of service credit for each month during which the member is absent during a period of approved leave of absence; provided, however, that the member must make the member's own contributions and the town's contributions as a lump sum in order to receive the service credit. Payment for the service credit must be made no later than one year after the member returns to work. An approved leave of absence for purposes of this section shall not exceed 12 months.

(2)

Credit for service for which contributions have been refunded for prior town service. If a member who has left the service of the town and upon leaving withdrew contributions pursuant to section 58-33 later becomes reemployed by the town, the member may, after having completed one full year of reemployment service, apply for the buyback of prior service time. The member will receive service credit for the period of previous employment upon payment to the town of the total amount previously refunded plus the appropriate amount of interest.

a.

Buyback of prior town service.

1.

The interest rate used for purposes of all calculations shall be the current rate determined by the last actuarial report and shall be compounded annually for the computations. Such rate shall be used for the entire term of the buyback. The member's withdrawn contributions received at the time of separation shall be that total figure previously refunded. Should an employee decide to purchase previously employed service time in one lump sum, all service time bought back will be in effect upon payment to the town. Should an employee decide to purchase previously employed service time over a period of time, not to exceed ten years, the actual amount of service credit available to the employee upon separation shall only be that amount actually paid for upon separation.

2.

The formula for a single payment lump sum buy shall be as follows: the original refunded contribution multiplied by the normal cost multiplied by the number of years since the refunding. The interest shall be compounded and added to the amount due for each year.

3.

The formula for a weekly buyback over a period not to exceed ten years would be as follows:

i.

Determine the figure for a lump sum purchase.

ii.

Determine the normal cost over the term of the buyback based on a declining balance of the base amount.

iii.

Determine the number of pay periods for the buyback (not to exceed 520).

iv.

Add items i and ii and then divide by the number of pay periods.

(3)

Credit for other service performed elsewhere. Any state, local, or federal time (excluding military service) for honorable service that is not being credited to, calculated in, or otherwise in anyway used for the purpose of being vested in or receiving benefits from any other pension shall be eligible to current employees for buyback into the town plan, not to exceed four years. Any employee requesting buyback of this time shall be required to provide proof, satisfactory to the pension board, that the time is not being credited to, calculated in, or otherwise in any way used for the purpose of being vested in or receiving benefits from any other pension plan. Town service time for full-time employment prior to 1984 that has not previously been purchased is also subject to this option (no maximum). At the election of the member and with the approval of the pension board, the cost of purchasing such service may be spread over a period of not more than ten years. All buybacks shall be calculated at 12 percent of the employee's current regular pay rate at the time of application times the number of years to be purchased. If purchased after four years from date of hire, interest will be compounded annually from the date of hire at the normal cost rate at the time of purchase. Purchased time shall not count towards vesting. The employee's probationary period must be completed prior to requesting buyback.

(4)

Service credit for veterans. Members are permitted to purchase up to four years of service credit for active military service with the armed forces. This service credit will not be included for purposes of determining a member's vested interest under this plan. The cost of purchasing such service shall be the normal cost in effect at the time of election for each year of service which the member seeks to purchase. At the election of the member and with the approval of the pension board, the cost of purchasing such service may be spread over a period of not more than ten years.

(5)

Service performed but not subject to the pension plan. Short-term, regular or full-time employment excluded from coverage under this chapter will be included as part of a member's credited service if the member contributes the member's own member contributions, the town's share and normal cost on the total for the period of time from when the employment was performed until the date that the application for the buyback of time is approved. At the election of the member and with the approval of the pension board, the cost of purchasing such service may be spread over a period of not more than ten years.

(Ch. 523, § 13, 8-20-1984; Code 1986, § 16-12; Ch. 669, §§ 3, 4, 12-17-1990; Ch. 781, § 5, 6-7-1999; Ch. 806, § 1, 2-26-2001; Ch. 816, § 16-12, 5-20-2002; Ch. 987, § 2, 7-15-2013; Ch. 1138, § 1, 7-7-2025)

Sec. 58-33. - Refunds; vested rights.#

If a member becomes separated from service before becoming vested under the plan, the member is entitled to a lump sum refund of contributions with interest, and, upon such payment, the member's vested interest shall terminate. If a member becomes separated from service after having acquired a vested interest in the plan, the member may elect to leave his contributions in the plan or to receive a lump sum refund of his contributions with interest.

(Ch. 523, § 14, 8-20-1984; Code 1986, § 16-13; Ch. 816, § 16-13, 5-20-2002)

Sec. 58-34. - Employment of annuities; municipal employees, including police officers and firefighters.#

(a)

An annuitant classified as a municipal employee, including police officers and firefighters, who is voluntarily retired, and is reemployed by the town for a period of more than 75 days in any calendar year, not including police special details that are paid by a third party, will continue to receive retirement benefits and will have the salary reduced by the amount of the benefit.

(b)

An annuitant classified as a municipal employee, including police officers and firefighters, who is reemployed by the town for a period of 75 or fewer days in any calendar year shall not receive any reduction in salary or retirement benefits for the period of time.

(Ch. 523, § 15, 8-20-1984; Code 1986, § 16-14; Ch. 816, § 16-14, 5-20-2002; Ch. 827, §§ 1, 2, 1-6-2003; Ch. 1026, § 1, 9-19-2016)

Sec. 58-35. - Application for retirement.#

(a)

Each member desiring to be retired for any reason shall make written application for retirement to the pension board on such forms and in such manner as the pension board shall prescribe.

(b)

Except as provided for in section 58-34, if a retired member shall be reemployed by the town, no retirement benefit payment shall be made during the period of such reemployment.

(Ch. 523, § 16, 8-20-1984; Code 1986, § 16-15; Ch. 816, § 16-15, 5-20-2002)

Sec. 58-36. - Benefits forfeited.#

Any member who, at or after retirement, is found guilty by the pension board of misfeasance or malfeasance during service with the town and who, but for retirement, would have been discharged or removed from such service therefore shall not be entitled to a retirement allowance under this section. Notwithstanding the preceding sentence, such an employee shall not be deprived of the return of any balance of contributions not received as annuity payments, in accordance with section 58-24; neither shall any employee be deprived of any benefits after allocations have been made in accordance with termination of the plan.

(Ch. 523, § 17, 8-20-1984; Code 1986, § 16-16; Ch. 816, § 16-16, 5-20-2002)

Sec. 58-37. - Termination of the plan.#

Although the town hopes to continue the plan and the contributions to the trust indefinitely, the town may, by action of the council, terminate the plan and all further contributions under the plan for any reason and at any time. If the town temporarily discontinues its contributions or suspends them in whole or in part, and if such temporary discontinuance becomes a permanent discontinuance, such permanent discontinuance shall be deemed to constitute termination of the plan as of the date the contributions were first discontinued.

(Ch. 523, § 18, 8-20-1984; Code 1986, § 16-17; Ch. 816, § 16-17, 5-20-2002)

Sec. 58-38. - Allocation upon termination.#

(a)

If the plan is terminated, the pension board shall first allocate an amount of the pension fund to each member, retired member, terminated member with a vested interest, contingent annuitant, beneficiary of a deceased member or beneficiary of a deceased retired member equal to the amount of the contributions accumulated at regular interest standing to the credit of each member as of the plan's termination date, each terminated member with a vested interest in the termination date, each retired member as of retirement date, the beneficiary of a deceased member as of the date of such member's decease and the beneficiary or contingent annuitant of a deceased retired member as of such member's retirement date, less all amounts received from the pension fund by such member, terminated member, retired member, deceased retired member, beneficiary or contingent annuitant.

(b)

Such amounts so allocated shall be paid to the respective members, retired members, terminated members with a vested interest, contingent annuitants or beneficiaries unless a written election is made by such person to have the amount to which the member is so entitled held in the pension fund and added to the amount, if any, which shall be set aside for the benefit under the terms of subsection (c) of this section.

(c)

The remaining net assets in the pension fund after the deduction of all termination expenses shall then be allocated by the pension board in an equitable manner among the members, retired members, terminated members with a vested interest, contingent annuitants and beneficiaries in the following order of precedence, and such allocation shall be final:

Order of

precedence Classification at date or termination

Class I Retired members; contingent annuitants; beneficiaries of deceased members or retired members; members eligible for normal retirement under this article

Class II Members eligible for early retirement under this article; terminated members with a vested interest

Class III All other members

(Ch. 523, § 19, 8-20-1984; Code 1986, § 16-18; Ch. 816, § 16-18, 5-20-2002)

Sec. 58-39. - Disposition of assets after allocation.#

The allocation of assets provided for in this article shall be accomplished through either continuance of the pension fund or a new pension fund or purchase of insurance or annuity contracts as the pension board shall determine.

(Ch. 523, § 20, 8-20-1984; Code 1986, § 16-19; Ch. 816, § 16-19, 5-20-2002)

Sec. 58-40. - Town not to benefit.#

This plan has been adopted for the exclusive benefit of certain employees of the town and their beneficiaries. The town shall have no beneficial interest in the pension fund or any part thereof, and no part of the pension fund shall ever revert or be repaid to the town, either directly or indirectly, except for such part of the pension fund, if any, which remains in the fund after satisfaction of all liabilities to persons entitled to benefits under the plan.

(Ch. 523, § 21, 8-20-1984; Code 1986, § 16-20; Ch. 816, § 16-20, 5-20-2002)

Sec. 58-41. - Assignment of benefits prohibited.#

Any assignment by a member or beneficiary of any allowance or benefit payable under the terms of this article shall be null and void. Each such allowance and benefit is for the support of the member or beneficiary entitled thereto and shall be exempt from the claims of creditors of such member and beneficiary, provided that if the provisions of this section shall be contrary to the laws governing a particular set of circumstances, as to that set of circumstances any allowance or benefit payable under the provisions of this article shall be exempt to the maximum extent permitted by law.

(Ch. 523, § 22, 8-20-1984; Code 1986, § 16-21; Ch. 816, § 16-21, 5-20-2002)

Sec. 58-42. - Buyback authorization.#

The town council hereby authorizes the pension board to offer eligible employees a last opportunity to buy back prior town service time. This authorization, and the administration thereof, is subject to section 58-22(i).

(Ch. 523, § 24, 8-20-1984; Code 1986, § 16-22; Ch. 816, § 16-22, 5-20-2002)

Sec. 58-43. - Retirement for accidental disability.#

Any member in active service, regardless of length of service, may be entitled to an accidental disability retirement allowance. Application for the allowance shall be made by the member or on the member's behalf, stating that the member is physically or mentally incapacitated from further service as the result of an injury sustained while in the performance of duty and certifying to the time, place, and conditions of the duty performed by the member which resulted in the alleged disability and that the alleged disability was not the result of the willful negligence or misconduct on the part of the member, and was not the result of age or length of service. The application shall be made within five years of the alleged accident from which the injury has resulted in the member's present disability and shall be accompanied by an accident report and a physician's report certifying to the disability; provided that if the member was able to return to his employment and subsequently reinjures or aggravates the same injury, the application shall be made within the later of five years of the alleged accident or three years of the reinjury or aggravation. If a medical examination made by up to three physicians engaged by the board, and other investigations as the board may make, shall confirm that the member is physically or mentally incapacitated for performance of service as a natural and proximate result of an accident while in the performance of duty and that the disability is not the result of willful negligence or misconduct and is not the result of age or length of service, the board may grant the member an accident disability retirement allowance.

(Code 1986, § 16-23; Ch. 696, § 4, 1-21-1992; Ch. 816, § 16-23, 5-20-2002)

Secs. 58-44—58-80. - Reserved.#

ARTICLE III. - POLICE DEPARTMENT PENSION PLAN#

Footnotes:

--- (3) --- Cross reference— Police department, § 42-21 et seq.

State Law reference— Optional retirement for members of police force G.L. 1956, § 21.2-1 et seq.

Sec. 58-81. - Established.#

There is hereby established by the town council, upon the terms and conditions set forth in this article, a pension plan for those members of the police department who are currently employed as police officers and who are covered by the terms of the pension system enacted pursuant to the Public Laws of 1945, chapter 1666.

(Code 1986, § 16-50; Ch. 708, § 1, 10-5-1992; Ch. 816, § 16-50, 5-20-2002)

Sec. 58-82. - Eligibility.#

The provisions of the pension plan provided for in this article shall only apply to those members of the police department who are employed as police officers as of the effective date of the ordinance from which this article is derived and who are also covered by the terms of the pension system enacted pursuant to the Public Laws of 1945, chapter 1666. This article and the benefits established by it shall not be applicable to any other members of the police department or any retired members of the police department who are receiving or have received benefits pursuant to Public Laws of 1945, chapter 1666.

(Code 1986, § 16-51; Ch. 708, § 1, 10-5-1992; Ch. 816, § 16-51, 5-20-2002)

Sec. 58-83. - Normal retirement.#

Any member of the police department who is eligible to participate in this pension plan and who has served on the police department for a period of 20 years or more may apply to the town council to be placed on the pension list. If the town council shall determine that the member meets the qualifications and requirements of this article, the town council shall place the member on the pension list and the member shall be entitled to the benefits provided for this article.

(Code 1986, § 16-52; Ch. 708, § 1, 10-5-1992; Ch. 816, § 16-52, 5-20-2002)

Sec. 58-84. - Disability retirement.#

The town council shall have the right to place any member of the police department who is eligible to participate in this pension plan on the pension list provided for in this article if the town council finds that the member, as a result of clearly proven physical or mental infirmities, has become unfit to perform active police duty.

(Code 1986, § 16-53; Ch. 708, § 1, 10-5-1992; Ch. 816, § 16-53, 5-20-2002)

Sec. 58-85. - Benefits payable.#

Any member of the police department who is placed on the pension list pursuant to the terms of this article shall receive from the town an annual pension for the rest of the member's natural life in an amount equal to one-half of the member's annual pay for the last year of service on the police department.

(Code 1986, § 16-54; Ch. 708, § 1, 10-5-1992; Ch. 816, § 16-54, 5-20-2002)

Sec. 58-86. - Funding.#

The town council shall appropriate annually the amounts required to fund the benefits set forth in this pension plan.

(Code 1986, § 16-55; Ch. 708, § 1, 10-5-1992; Ch. 816, § 16-55, 5-20-2002)

Sec. 58-87. - Conditions to establishment of pension plan.#

All of the provisions of this article shall be subject to and shall not take effect until the following terms and conditions have been complied with: (1)

All members of the police department eligible for participation in this pension plan shall submit to the town a statement terminating and waiving any rights the member may have pursuant to the Public Laws of 1945, chapter 1666.

(2)

All members of the police department eligible for participation in this pension plan shall agree in writing to waive the allotment due to them pursuant to section XXVI, subparagraph (E) of the Collective Bargaining Agreement entered into between the Town of Narragansett and Local 303, International Brotherhood of Police Officers and, further, agree and consent to an amendment to the Collective Bargaining Agreement deleting section XXVI, subparagraph (E).

(Code 1986, § 16-56; Ch. 708, § 1, 10-5-1992; Ch. 816, § 16-56, 5-20-2002)

Sec. 58-88. - Cost of living adjustment.#

All employees who are members of the pension plans provided for in this chapter and who retire on or after July 1, 2002, shall, subject to the terms and conditions set forth in this section, receive a cost of living allowance (COLA). The COLA shall be a three percent compounded COLA applied to the pension benefit, and it shall be added as of July 1 of each applicable year. (1)

All municipal employees, except employees of the school department, shall receive an annual three percent compounded COLA beginning on July 1 of the year that the employee turns 58 years old.

(2)

All firefighters shall receive an annual three percent compounded COLA beginning on July 1 of the year that the firefighter turns 52 years old.

(3)

All police officers shall receive an annual three percent compounded COLA beginning on July 1 of the year that the employee turns 52 years old or July 1 of the year that is the fifth anniversary of the police officer's retirement, whichever occurs first.

(Ch. 816, § 16-57, 5-20-2002)