Chapter 3702 of the Public Laws, 1956, entitled
"An act to provide for the retirement of police officers of the Town
of Coventry," as amended, is hereby repealed in its entirety.
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(P.L. 1970, Ch. 229, § 1)
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The following words and phrases as used herein
shall have the following meanings:
1.
"Plan" shall mean the system of providing retirement
benefits incorporated in this act as now written or as hereafter amended.
2.
"Effective date" shall mean the date of enactment
by the general assembly with respect to the plan contained herein.
3.
"Town" shall mean the Town of Coventry, Rhode Island,
a municipality.
4.
"Employee" shall mean a full-time permanent police
officer, chief of police or deputy chief of police appointed by the
Town of Coventry pursuant to the provisions of chapter 2208 of the
Public Laws, 1949. A person is deemed to be a full-time employee only
if he regularly works the required hours for a full workweek during
the entire calendar year and has received his permanent appointment.
5.
"Pension fund" shall mean the property from time to
time held under this plan.
6.
"Pension committee" shall mean the committee provided
for in section 10.
7.
"Member" shall mean an employee who becomes a participant
in the plan, but shall not include any former employee whose service
with the town has terminated.
8.
"Beneficiary" shall mean the person or persons designated
by a member or otherwise entitled to receive any amounts payable hereunder
on account of the death of a member, a retired member, or a terminated
member.
9.
"Annual salary" shall mean a member's annual earnings
each year, including basic salary and overtime payments.
10.
"Highest annual salary" shall mean the highest annual
salary paid to an employee during any twelve-month period in the five
years preceding his retirement.
11.
"Continuous service" will be considered broken under
the following conditions, but no service will be credited for any
purpose of the plan during such periods:
12.
"Anniversary date" shall mean March 1 of any year
after the date of enactment by the general assembly.
13.
"Trustee" shall mean a bank or trust company appointed
at any time to hold the pension fund in trust.
14.
"Plan year" shall mean a continuous period of 12 months
beginning on March 1 of any year after the date of enactment by the
general assembly.
15.
"Act" shall mean any act of the general assembly intended
to implement this plan.
16.
"Authorized military leave of absence" means the required
period of service in the armed forces of the United States, provided
that the employee left the employment of the town in order to enter
into such military service and returned to the employment of the town
within the period entitling him to re-employment rights under federal
laws.
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(P.L. 1970, Ch. 229, § 2)
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1.
Present members. Each employee, as
defined in section 2, who is in the service of the town on December
31, 1969, shall continue to be a member of the plan.
2.
Required membership. Each future
employee, as defined in section 2, will be required, as a condition
of employment, to become a member of the plan on the first day of
the month coinciding with or next following the date of employment.
3.
Eligibility on reemployment. For
the purposes of the plan, a member whose service with the town is
terminated for any reason, and who is thereafter re-employed by the
town, shall be deemed to have been employed by the town only from
the date of his reemployment.
4.
Applications. To become a member,
an eligible employee in the service of the town must sign an enrollment
card accepting the terms of the plan and authorizing the deduction
of his contributions to the plan from his annual salary. Such enrollment
card must be completed and returned to the town treasurer within 30
days after it is presented to the eligible employee, thus authorizing
his contributions from the date he is first eligible to join the plan.
5.
Employees who do not join initially. An employee who had the option of joining the plan prior to December
31, 1969, but who did not join the plan when first eligible to join
at any time thereafter. Such an employee forfeits all the benefits
he would be entitled to receive under the plan.
6.
Military service and other leaves of absence. Any employee who leaves his employment with the town for service
in [the] armed forces of the United States on an authorized military
leave of absence, or who is absent on any other approved leave of
absence, shall not be considered to have terminated his service with
the town, provided that such employee returns to the employ of the
town within 90 days after he first becomes entitled to his release
from the armed forces, or at the termination of his leave of absence.
However, such an employee will not accrue any benefits during absence
nor shall any contributions be made for him with respect to such period
of absence except as provided in subsection 5 of section 4.
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(P.L. 1970, Ch. 229, § 3)
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1.
Town contributions. The town shall
contribute and pay to the pension fund such amounts as are deemed
necessary on the basis of actuarial computations, in addition to the
member's contributions, and in addition to the contributions set forth
in subsection 3 of this section, to provide the retirement benefits
accrued under the plan for its employees, determined as follows: the
town's contributions each year, when added to amounts already in the
pension fund, shall be at least sufficient to cover the normal cost
of the plan each year and to find the liability for the past service
liability, as of December 31, 1969, over a period of time not exceeding
40 years. Such contributions shall be made on a monthly basis.
2.
Member's contributions. Each member
shall contribute a specified percentage of his annual salary to the
pension fund each year until his normal retirement date as described
in subsection 1 of section 5. Such percentage shall be 3% until such
time as it is increased by the town council. The town council may
increase the specified percentage to an amount up to and including
12%.
3.
Payment of member's contributions. Such contributions shall be deducted from the compensation of the
member in installments and shall be paid over to the pension fund
on a monthly basis.
4.
Other contributions. In addition
to the contributions of the town and the members, the pension fund
shall consist of any amounts paid to it, including the gifts and amounts
authorized under the act as follows:
5.
Military service. If a member is
absent on an authorized military leave of absence, the town will make
both the contributions required from the member and the town during
such absence up to a maximum of two years of such absence. During
any other period of absence from the employment of the town to serve
in the armed forces of the United States, the member may continue
membership in the plan by making both the contributions required from
the member and the town, but only during the period while he retains
reemployment rights under federal laws with respect to military service.
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(P.L. 1970, Ch. 229, § 4)
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1.
Normal retirement date. A member's
normal retirement date shall be the first day of the month coinciding
with or next following the date he has:
(a)
Reached his fifty-fifth birthday; and
(b)
Completed 20 years of continuous service.
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Notwithstanding the foregoing, the town council
may permit the chief of police to retire on a normal retirement pension
at any age after he has completed 15 years of continuous service as
chief of police in the Town of Coventry.
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2.
Compulsory retirement date. Each
member who has not already elected to retire shall be retired when
he reaches his sixtieth birthday.
3.
Disability retirement date. In the
event that a member becomes disabled because of injury or illness
after April 1, 1970, and such disability did not arise as a natural
and proximate result of accident occurring after April 1, 1970, while
in the performance of duty, and such disability is not the result
of willful negligence or misconduct on the part of the member, if
a disabled member has completed 10 years of continuous service and
has made the required contributions under the plan, he shall be entitled
to retire because of disability. A member shall be considered disabled
for purposes of this section if he is unable to perform the duties
of his position and an examination by three physicians engaged by
the pension committee shows that the member is physically or mentally
disabled for the performance of further duty and ought to be retired.
4.
Examinations. Once each year the
pension committee may require any disability pensioner who is under
the minimum age to receive a normal retirement pension to undergo
a physical examination by a physician engaged by the pension committee.
If such an examination indicates that the said disability pensioner
is able to engage in a gainful occupation, or if he is offered service
with the town, the pension committee shall adjust, and from time to
time readjust his retirement benefits to an amount which when combined
with his earnings shall not exceed his annual salary when he became
disabled. Should any disability pensioner under the age for a normal
retirement pension refuse to submit to a medical examination in any
year, by a physician engaged by the pension committee, his disability
pension may be discontinued by the pension committee until he submits
to such an examination.
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(P.L. 1970, Ch. 229, § 5)
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1.
Form of pension. The normal retirement
pension under the plan shall consist of a life annuity, payable monthly,
commencing on the member's normal retirement date or on the date he
terminates service, if later, and terminating with the payment preceding
his death.
2.
Amount of normal retirement pension. The annual normal retirement pension commencing with the member's
retirement from the service of the town, on or after normal retirement
date, and payable to each member who made the required contributions
under the plan shall be an amount equal to one-half of the member's
highest annual salary, as defined.
3.
Amount of a disability pension. The
annual disability pension payable to a member who becomes entitled
hereto shall be an amount equal to 25% of the member's highest annual
salary, as defined. Such amount shall be paid during the period of
disability. In the event that a member recovers from his disability
and returns to his former employment, he will be reinstated as a member.
4.
Pension offset by workmen's compensation and
insurance. Any amounts paid or payable under the provisions
of any workmen's compensation law or any insurance policy or contract
provided by the town in the event of illness or accident shall be
offset against and payable in lieu of a corresponding amount of pension
under this plan.
5.
Only one benefit from town. No benefits
shall be paid under this plan to any person otherwise entitled thereto
while he is receiving compensation from the town except to the extent
that such benefit under the plan exceeds his compensation from the
town.
6.
Minimum payments. If any amount payable
under this plan shall be less than $10 a month if paid on a monthly
basis, the pension committee may authorize the payment of the actuarial
equivalent of this amount on a quarterly, semiannual or lump-sum basis.
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(P.L. 1970, Ch. 229, § 6)
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1.
Application for benefits. Each member,
former member, retired member or beneficiary entitled to benefits
must make application in writing on a form provided by the pension
committee. In the event that the member or beneficiary is incapacitated
so that he is unable to make application on his own behalf, application
shall be made by his attorney or guardian, whichever is applicable.
2.
Current address of member. It shall
be the duty of every member, former member, retired member or beneficiary
entitled to benefits hereunder or his attorney or guardian to furnish
the pension committee with his current address, from time to time,
and the pension committee shall not be required to make any inquiry
to ascertain the correct address of any person entitled to benefits.
3.
Dishonesty. Notwithstanding any other
provisions of the plan, if a member leaves the employ of the town,
or is discharged from the service of the town, or is discovered to
have been involved in an act stated to involve dishonesty, fraud or
criminal action on the part of such member in connection with his
position, and if the member signs a written confession admitting such
dishonesty, fraud or criminal action, or if the member is convicted
by a court of competent jurisdiction for such act, such member shall
forfeit any and all benefits under the plan, except a return of contributions,
whether or not vested under any provisions of this plan. No interest
on such contributions shall be payable.
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(P.L. 1970, Ch. 229, § 7)
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1.
Death of member prior to retirement. If a member dies while he is in the active service of the town, a
death benefit shall be paid to his beneficiary equal to the contributions
the member has made under the plan. No interest on such contributions
shall be payable.
2.
Designation of beneficiary. Each
member who joins the plan shall designate a beneficiary or beneficiaries
to receive any death benefits which may come due under the plan. Such
beneficiary shall be designated, in writing, on a form provided by
the pension committee and filed with the pension committee. The member
may change his designation from time to time in the same manner as
provided in the preceding sentence. In the event that no designated
beneficiary survives to receive any payments which come due, the pension
committee shall make payment to any one or more of the following and
in such proportions as it may determine in its sole discretion: the
member's spouse, child, parent, brother or sister, executor or administrator.
Neither the town nor the pension committee shall have any liability
with respect to the member's designation of a beneficiary to receive
any death benefits which become due under the plan.
3.
Death after retirement. If a retired
member dies after retirement under the plan and he is survived by
a widow or minor child, a survivor's pension will be payable as provided
below.
4.
Survivor's pension to widow. If a
retired member as described in subsection 3 of this section is survived
by a widow who is not more than five years younger than the retired
member, she will be entitled to a pension payable for life equal to
the amount of pension the retired member was receiving. Such a survivor's
pension will be payable monthly until the earlier of:
(a)
The widow's remarriage; or
(b)
The widow's death.
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For purposes of this section, a widow is a person
who became the wife of a member prior to the date the member retired
under the plan.
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If the widow is more than five years younger
than the member, the survivor's pension payable to her will be reduced
by 2% for each year that she was more than five years younger than
the retired member.
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5.
Survivor's pension to minor child. If a retired member, as described in subsection 3 of this section,
is not survived by a widow, but is survived by a minor child, or if
a retired member is survived by a widow who dies while the member's
children are still minors, a survivor's pension will be payable to
the guardian of such children on behalf of all such children equal
to the amount of pension the retired member was receiving.
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For purposes of this section, a person will
be considered a minor only while he meets all the following conditions:
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6.
Provisions concerning payment of survivor's
pension. Only one survivor's pension shall be paid with respect
to any deceased, retired member; such pension to be apportioned equally
among such member's minor children if no widow survives to receive
all payments.
7.
Payments to other than surviving widow or
minor child. No payments are made after a retired member
dies unless he is survived by a widow or a minor child, except that
there shall be a guarantee of the member's contributions without interest.
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(P.L. 1970, Ch. 229, § 8)
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1.
Return of contributions. If a member's
service with the town is terminated for any reason other than death
or retirement, whether by resignation or discharge after a proper
hearing or any other reason, the member shall be entitled to a payment
equal to his own contributions. No other payment shall be made and
no interest shall be paid.
2.
Effect of return of contributions. A member or former member who receives a return of his contributions
will not be entitled to any other benefits under the plan.
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(P.L. 1970, Ch. 229, § 9)
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1.
Members of pension committee. The
general administration and the responsibility for the proper operation
of the plan is vested in a pension committee of three persons appointed
by the town council.
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The initial appointments shall consist of one
person whose appointment is to expire in one year; one person whose
appointment is to expire in two years; and one person whose appointment
is to expire in three years; thereafter, all appointments shall be
for a period of three years.
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2.
Qualifications of committee. The
fact that any member of the committee is a member of the plan shall
not disqualify him from doing any act or thing which this plan authorizes
or requires him to do as such committee member, provided that he shall
not act on any matter relating to himself exclusively.
3.
Rules and regulations. The pension
committee shall from time to time establish rules and regulations
of the administration of the plan by vote of a majority of the committee.
The pension committee shall perform such other functions as are required
in administering the said plan.
4.
Compensation. The members of the
pension committee shall serve without compensation as such committee
members.
5.
Decisions of the committee. The committee
may decide any questions hereunder and may take or approve the taking
of any action hereunder by vote of a majority of the committee at
a meeting and recorded in the records of the meeting.
6.
Interpretation by committee. The
committee shall have full power to determine the meaning of any provision
of this plan and to determine the application of the provisions of
this plan to any particular situation. In exercising their powers
of construction hereunder, the committee shall pursue uniform policies
and shall not discriminate in favor of or against any member or group
of members. The acts or determinations of the committee within the
powers conferred by this plan shall be valid and final and conclusive
for all of the purposes of this plan upon the parties hereto and the
members and their beneficiaries.
7.
Reports. Each year the pension committee
shall make an annual report to the town council setting forth their
actions during the preceding year, the status of the pension fund,
and their recommendations.
8.
Power to delegate. The pension committee
may, by a majority vote, appoint agents to act on their behalf and
to sign forms of a purely administrative nature.
9.
Exculpatory clause. The members of
the pension committee shall be protected with respect to any action
taken or suffered by them in good faith and shall be responsible only
for loss resulting from gross negligence or willful or wanton acts.
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(P.L. 1970, Ch. 229, § 10)
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1.
Pension fund. This plan shall be funded by contributions
made by the town and the members which are paid into a fund, hereinafter
referred to as the pension fund. Unless a corporate trustee is appointed
by a majority vote of the town council to hold the pension fund in
trust, the pension fund will be held in the name of the town by a
bank with fiduciary powers acting as investment agent on behalf of
the town. As of the effective date of the plan, the investment agent
is Industrial National Bank of Rhode Island. The town council may
change such designation from time to time by majority vote of the
council. If the town council shall appoint a trustee in the future,
the duties and obligations of the trustee will be set forth in a separate
agreement between the town and such trustee.
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(P.L. 1970, Ch. 229, § 11)
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1.
Amendment or termination. Although
this is intended to be a permanent plan for the exclusive benefit
of the members covered by the plan and their beneficiaries, the town
reserves the right at any time to terminate this plan or to modify
or amend this plan and agreement in any respect whatsoever, whether
prospectively or retroactively, provided that, except for such changes,
if any, as in the judgment of the town council may be necessary or
advisable to permit the plan to meet the requirements of any state
or federal legislation, no such modification or amendment shall reduce
the amount in which a member, former member or beneficiary has a vested
interest under the plan immediately prior to such modification or
amendment, without the consent of such member, former member or beneficiary.
2.
Distribution of assets on termination. In the event the plan is terminated, and no substitute plan is adopted,
the rights of all members and retired members to benefits shall become
nonforfeitable to the extent then funded, and all such assets shall
be allocated as provided hereafter.
3.
Valuation of fund. If the plan is
terminated and no substitute plan is adopted to provide pensions for
the members, and a separate trust fund has been established, the assets
comprising the pension shall be revalued at market.
4.
Return of employee contributions. The pension committee shall then allocate to each member and retired
member (including his beneficiary) a benefit of an amount actuarially
equivalent to the total of his contributions, less any retirement
benefits theretofore received by him or his widow or minor child.
5.
Order of precedence. If any balance
of the pension fund shall remain, it shall then be allocated in the
following manner:
(a)
First, for the benefit of members who have retired
under the plan and are receiving retirement benefits, or if the retired
members were deceased at the date of termination of the plan, for
their widows or minor children, in each case upon the basis of each
member's retirement benefits, less the amount received under subsection
4 of this section; and
(b)
Second, as to any balance remaining, for the benefit
of members who have reached normal retirement date and are entitled
to retire but have not yet commenced receiving retirement benefits,
in each case upon the basis of their accrued retirement benefits at
the date of such termination, less the amount received under subsection
4 of this section; and
(c)
Third, as to any balance remaining, for the benefit
of all members who have reached their fifty-fifth birthday and have
completed 20 years of continuous service, in each case upon the basis
of their accrued retirement benefits at the date of such termination,
less the amount received under subsection 4 of this section; and
(d)
Fourth, as to any balance remaining, for the benefit
of all other members who have completed 10 years of continuous service,
in each case upon the basis of their accrued retirement benefits at
the date of such termination, less the amount received under subsection
4 of this section; and
(e)
Fifth, as to any balance remaining, for the benefit
of all other members.
6.
Apportionment. Any apportionment
within each group, in the order stated, shall be proportionate to
but not in excess of the actuarially determined present values at
the date of the termination of the plan of their respective retirement
benefits and accrued retirement benefits.
7.
Method of distribution. Distribution
of benefits in accordance with the foregoing allocation shall be made
at the discretion of the pension committee by continuing the pension
fund for the payment of retirement benefits, by the purchase of annuity
contracts, by cash, or any combination of the foregoing.
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(P.L. 1970, Ch. 229, § 12)
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1.
Nonduplication of benefits. Notwithstanding
anything to the contrary above, members will not be entitled to benefits
under more than one retirement or pension plan of the town covering
any period of continuous service, and the pension committee shall
have authority to make rules to coordinate a member's benefits under
this plan with his benefits under any other retirement or pension
of the town.
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(P.L. 1970, Ch. 229, § 13)
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1.
Spendthrift provisions. To the extent
permitted by applicable law, none of the benefits, payments, proceeds,
claims or rights of any member, former member, beneficiary, widow
or child hereunder shall be subject to any claim of any creditor of
such member, former member, beneficiary, widow or child and in particular,
the same shall not be subject to attachment or other legal process
by any creditor of any such person, nor shall any such person have
any right to anticipate, alienate, sell, transfer, assign, pledge,
encumber, commute or charge any of the benefits, payments or proceeds
which such person may expect to receive contingently or otherwise
under this plan.
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(P.L. 1970, Ch. 229, § 14)
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1.
No right to employment. The establishment
of the plan shall not be held or construed to confer upon any member
any legal right to be continued as an employee and the town expressly
reserves the right to terminate any employee's service.
2.
Town to provide information. The
town shall make available to the pension committee all the information
reasonably necessary in connection with the administration of the
plan.
3.
Interpretation of headings. The headings
and subheadings in this plan are for convenience of reference only,
and this plan is not to be construed according to such headings.
4.
Rhode Island law controlling. The
provisions of the plan shall be construed, administered and enforced
according to the laws of the State of Rhode Island.
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(P.L. 1970, Ch. 229, § 15)
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