§ 42-28-22.1. Retirement contribution. [Effective until July 1, 2020.] (a) Legislative findings. The general assembly finds that:

(1) A trust was created for retirement purposes for members of the state police who were hired after July 1, 1987; however, as of January 1, 2015, there was an unfunded liability of approximately $200 million attributable to the retirement benefits for members of the state police hired on or before July 1, 1987, and no trust had been created for them.

(2) Unless a trust is established, these members' benefits will continue to be funded on a pay-as-you-go basis and would not be recognized as a liability on the state's financial statements under generally accepted accounting purposes.

(3) An investigation of Google, Inc., conducted by the Rhode Island U.S. attorney's office and the Rhode Island task force of the U.S. food and drug administration's office of criminal investigations, the department of the attorney general, and state and local police netted settlement amounts of approximately $230 million to the state, of which $45.0 million has been allocated for use by the state police.

(4) The allocation of Google settlement monies to the state police presents a unique opportunity to reduce the amount of the unfunded liability attributable to the retirement benefits for members of the state police hired on or before July 1, 1987.

(5) It is in the best interests of the members of the state police and the taxpayers of this state to reduce the amount of the unfunded liability attributable to retirement benefits for these police officers by creating a separate trust and to fund those benefits on an actuarial basis.

(b) Each member of the state police initially hired after July 1, 1987 shall have deducted from "compensation" as defined in § 36-8-1(8) beginning July 1, 1989, an amount equal to a rate percent of such compensation of eight and three quarters percent (8.75%). The receipts collected from members of the state police shall be deposited in a restricted revenue account entitled "state police retirement benefits". The proceeds deposited in this account shall be held in trust for the purpose of paying retirement benefits under this section to participating members of the state police or their beneficiaries. The retirement board shall establish rules and regulations to govern the provisions of this section.

(c) A member of the state police initially hired after July 1, 1987 who withdraws from service or ceases to be a member for any reason other than death or retirement, will, at the member's request, be paid on demand a refund consisting of the accumulated contributions standing to his or her credit in his or her individual account in the state police retirement benefits account. Any member receiving a refund shall thereby forfeit and relinquish all accrued rights as a member of the system together with credits for total service previously granted to the member; provided, however, that if any member who has received a refund shall subsequently reenter the service and again become a member of the system, he or she shall have the privilege of restoring all moneys previously received or disbursed to his or her credit as refund of contributions, plus regular interest for the period from the date of refund to the date of restoration.

(d) Upon the repayment of the refund provided in subsection (c) above, the member shall again receive credit for the amount of total service which he or she had previously forfeited by the acceptance of the refund.

(e) The state shall deposit contributions for members of the state police initially hired on or before July 1, 1987, from time to time (as provided in § 42-28-22.2) to be held in trust. The proceeds of this trust shall pay retirement benefits under this section to participating members of the state police or their beneficiaries. The retirement board shall establish rules and regulations to govern the provisions of this section.

History of Section. (P.L. 1987, ch. 118, art. 15, § 3; P.L. 1988, ch. 129, art. 22, § 6; P.L. 1989, ch. 494, § 5; P.L. 2007, ch. 340, § 27; P.L. 2011, ch. 408, § 13; P.L. 2011, ch. 409, § 13; P.L. 2015, ch. 141, art. 12, § 1.)