§ 36-8-1. Definition of terms.
The following words and phrases as used in chapters 8 to 10 of this title unless a
different meaning is plainly required by the context, shall have the following meanings:
(1) "Accumulated contributions� shall mean the sum of all the amounts deducted from the
compensation of a member and credited to their individual pension account.
(2) "Active member� shall mean any employee of the state of Rhode Island as defined in
this section for whom the retirement system is currently receiving regular contributions
pursuant to §§ 36-10-1 and 36-10-1.1.
(3) "Actuarial equivalent� shall mean an allowance or benefit of equal value to any other
allowance or benefit when computed upon the basis of the actuarial tables in use by
the system.
(4) "Annuity reserve� shall mean the present value of all payments to be made on account
of any annuity, benefit, or retirement allowance granted under the provisions of chapter
10 of this title computed upon the basis of such mortality tables as shall be adopted
from time to time by the retirement board with regular interest.
(5)(a) "Average compensation� for members eligible to retire as of September 30, 2009, shall
mean the average of the highest three (3) consecutive years of compensation, within
the total service when the average compensation was the highest. For members eligible
to retire on or after October 1, 2009, "Average compensation� shall mean the average
of the highest five (5) consecutive years of compensation within the total service
when the average compensation was the highest.
(b) For members eligible to and who retire on or after July 1, 2024, "average compensation�
means the average of the highest three (3) consecutive years of compensation within
the total service when the average compensation was the highest.
(c) For members who become eligible to retire on or after July 1, 2012, if more than one-half
(½) of the member's total years of service consist of years of service during which
the member devoted less than thirty (30) business hours per week to the service of
the state, but the member's average compensation consists of three (3) or more years
during which the member devoted more than thirty (30) business hours per week to the
service of the state, such member's average compensation shall mean the average of
the highest ten (10) consecutive years of compensation within the total service when
the average compensation was the highest; provided however, effective July 1, 2015,
if such member's average compensation as defined in subsection (a) above is equal
to or less than thirty-five thousand dollars ($35,000), such amount to be indexed
annually in accordance with § 36-10-35(h)(1)(B), such member's average compensation shall mean the greater of: (i) The average of
the highest ten (10) consecutive years of compensation within the total service when
the average compensation was the highest; or (ii) The member's average compensation
as defined in subsection (a) above. To protect a member's accrued benefit on June
30, 2012, under this § 36-8-1(5)(c), in no event shall a member's average compensation be lower than the member's average
compensation determined as of June 30, 2012.
(6) "Beneficiary� shall mean any person in receipt of a pension, an annuity, a retirement
allowance, or other benefit as provided by chapter 10 of this title.
(7) "Casual employee� shall mean those persons hired for a temporary period, a period
of emergency, or an occasional period.
(8) "Compensationâ€� as used in chapters 8 — 10 of this title, chapters 16 and 17 of title
16, and chapter 21 of title 45 shall mean salary or wages earned and paid for the performance of duties for covered
employment, including regular longevity or incentive plans approved by the board,
but shall not include payments made for overtime or any other reason other than performance
of duties, including but not limited to the types of payments listed below:
(i) Payments contingent on the employee having terminated or died;
(ii) Payments made at termination for unused sick leave, vacation leave, or compensatory
time;
(iii) Payments contingent on the employee terminating employment at a specified time in
the future to secure voluntary retirement or to secure release of an unexpired contract
of employment;
(iv) Individual salary adjustments which are granted primarily in anticipation of the employee's
retirement;
(v) Additional payments for performing temporary or extra duties beyond the normal or
regular work day or work year.
(9) "Employee� shall mean any officer or employee of the state of Rhode Island whose business
time is devoted exclusively to the services of the state, but shall not include one
whose duties are of a casual or seasonal nature. The retirement board shall determine
who are employees within the meaning of this chapter. The governor of the state, the
lieutenant governor, the secretary of state, the attorney general, the general treasurer,
and the members of the general assembly, ex officio, shall not be deemed to be employees
within the meaning of that term unless and until they elect to become members of the
system as provided in § 36-9-6, but in no case shall it deem as an employee, for the purposes of this chapter, any
individual who devotes less than twenty (20) business hours per week to the service
of the state, and who receives less than the equivalent of minimum wage compensation
on an hourly basis for their services, except as provided in § 36-9-24. Any commissioner of a municipal housing authority or any member of a part-time state,
municipal, or local board, commission, committee, or other public authority shall
not be deemed to be an employee within the meaning of this chapter.
(10) "Full actuarial costs� or "full actuarial value� shall mean the lump sum payable by
a member claiming service credit for certain employment for which that payment is
required which is determined according to the age of the member and the employee's
annual rate of compensation at the time the member applies for service credit and
which is expressed as a rate percent of the employee's annual rate of compensation
to be multiplied by the number of years for which the member claims service credit
as prescribed in a schedule adopted by the retirement board from time to time on the
basis of computation by the actuary. Except as provided in §§ 16-16-7.1, 36-5-3, 36-9-31, 36-10-10.4, 45-21-53, 36-10-8, 45-21-29, 8-3-16(c), 8-8-10.1(c), 42-28-22.1(d), and 28-30-18.1(c):
(i) All service credit purchases requested after June 16, 2009, and prior to July 1, 2012,
shall be at full actuarial value; and
(ii) All service credit purchases requested after June 30, 2012, shall be at full actuarial
value which shall be determined using the system's assumed investment rate of return
minus one percent (1%).
The rules applicable to a service credit purchase shall be the rules of the retirement
system in effect at the time the purchase application is submitted to the retirement
system.
(11) "Funded ratio� shall mean the ratio of the actuarial value of assets to the actuarial
accrued liability consistent with the funding policy of the retirement board as defined
in § 36-8-4.
(12) "Inactive member� shall mean a member who has withdrawn from service as an employee
but who has not received a refund of contributions.
(13) "Members� shall mean any person included in the membership of the retirement system
as provided in §§ 36-9-1 — 36-9-7.
(14) "Prior service� shall mean service as a member rendered before July 1, 1936, certified
on the member's prior service certificate and allowable as provided in § 36-9-28.
(15) "Regular interest� shall mean interest at the assumed investment rate of return, compounded
annually, as may be prescribed from time to time by the retirement board.
(16) "Retirement allowance� shall mean annual payments for life made after retirement under
and in accordance with chapters 8 to 10 of this title. All allowances shall be paid
in equal monthly installments beginning as of the effective date thereof; provided,
that a smaller pro rata amount may be paid for part of a month where separation from
service occurs during the month in which the application was filed, and when the allowance
ceases before the last day of the month.
(17) "Retirement boardâ€� or "boardâ€� shall mean the board provided in § 36-8-3 to administer the retirement system.
(18) "Retirement system� shall mean the employees' retirement system of the state of Rhode
Island as defined in § 36-8-2.
(19) "Service� shall mean service as an employee of the state of Rhode Island as described
in subdivision (9) of this section.
(20) "Social Security retirement age� shall mean a member's full retirement age as determined
in accordance with the federal Old Age, Survivors and Disability Insurance Act, not
to exceed age sixty-seven (67).
(21) "Total service� shall mean prior service as defined above, plus service rendered as
a member on or after July 1, 1936.
Notes
Severability.
P.L. 1998, ch. 411, §â€‚4 provides that if any provision of that act or the application thereof to any person
or circumstances is held invalid, that invalidity shall not affect other provisions
or applications which can be given effect without the invalid provisions or applications.