Rhode Island § 36-10-10.4 § 36-10-10.4. Effect of deferral and/or reduction of salary.

Rhode Island Statutes

§ 36-10-10.4 — § 36-10-10.4. Effect of deferral and/or reduction of salary.

Rhode Island § 36-10-10.4

Title 36Public Officers and Employees

Ch. 36-10Retirement System â€” Contributions and Benefits

This text of Rhode Island § 36-10-10.4 (§ 36-10-10.4. Effect of deferral and/or reduction of salary.) is published on Counsel Stack Legal Research, covering Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

R.I. Gen. Laws § 36-10-10.4 (2026).

Text

§ 36-10-10.4. Effect of deferral and/or reduction of salary.
(a) If subsequent to January 1, 1991, a member sustains a loss of salary due to a deferral
            of salary or a reduction in salary in order to avoid shutdowns, layoffs, or because
            of a retrenchment of state or local finances, then in calculating the service retirement
            allowance of the member, the amount of salary deferred and/or the amount of the reduction
            of salary shall not reduce the amount of annual compensation of the member for the
            purpose of establishing his or her highest three (3) consecutive years of compensation
            for members eligible to retire on or before September 30, 2009, o

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§ 36-10-10.4. Effect of deferral and/or reduction of salary.

(a) If subsequent to January 1, 1991, a member sustains a loss of salary due to a deferral of salary or a reduction in salary in order to avoid shutdowns, layoffs, or because of a retrenchment of state or local finances, then in calculating the service retirement allowance of the member, the amount of salary deferred and/or the amount of the reduction of salary shall not reduce the amount of annual compensation of the member for the purpose of establishing his or her highest three (3) consecutive years of compensation for members eligible to retire on or before September 30, 2009, or his or her highest five (5) consecutive years of compensation for members who are not eligible to retire on or before September 30, 2009. This provision is subject to subsection (c) of this section.

(b)(1) For purposes of subsection (a), reduction of salary shall mean:

(i) The actual dollar amount which represents the difference between the employee's salary prior to the voluntary reduction of salary and the employee's salary after the voluntary reduction of salary; or

(ii) The actual dollar amount which represents the difference between the employee's salary prior to the renegotiation and/or alteration of an existing collective bargaining agreement and the employee's salary after the renegotiation and/or alteration of an existing collective bargaining agreement.

(2) Reduction of salary also means the voluntary or negotiated reduction in the number of hours that an employee works in a pay period and for which he or she is paid.

(c) An employee who has sustained a reduction in salary in accordance with subsection (a) shall pay, prior to retirement, to the retirement board an amount equal to the difference between the amount of contribution the employee would have paid on his or her salary prior to the reduction in salary and the amount that the employee actually contributed plus interest.

Legislative History

P.L. 1991, ch. 129, § 1; P.L. 1991, ch. 174, § 1; P.L. 1994, ch. 139, § 11; P.L. 2008, ch. 9, art. 8, § 1; P.L. 2011, ch. 408, § 7; P.L. 2011, ch. 409, § 7.