[Added 2-17-2011 by Ord. No. 2011-1]
The Town of Johnston (hereinafter the "Town") Fire Fighter and
Police Officer Pension Fund (hereinafter the "fund") is hereby established
for the purpose of providing retirement pension benefits, survivors'
benefits and other benefits for firefighters and police officers of
the Town, pursuant to the provisions of the applicable state law and
the Town Charter. The effective date of the fund shall be upon final
passage of this article and shall affect all active employees and
members of the Town retirement system for both the Fire and Police
Departments as such individuals are defined herein, with the exception
of those members currently enrolled in the Rhode Island Municipal
Employees' Retirement System (MERS). Any and all ordinances and
parts thereof inconsistent herewith are hereby repealed.
A.
The fund created by this article shall be construed to be a trust,
separate and distinct from all other entities. The responsibility
for the direction and operation of the fund and for making effective
the provisions thereof is hereby vested in a Retirement Board (hereinafter
the "Board"). The Board shall consist of seven members, who shall
be elected according to the rules of election to be adopted by the
Board, as follows:
(1)
One member representing the Town, who shall be the Director of Finance.
(2)
One police officer who is a member of the IBPO, Local 307, having
at least five years of credited service, and shall be selected by
the IBPO, Local 307.
[Amended 6-14-2011 by Ord. No. 2011-5]
(3)
One firefighter who is a member of the IAFF, AFL-CIO, Local 1950,
having at least five years of credited service, and shall be selected
by the IAFF, AFL-CIO, Local 1950.
[Amended 6-14-2011 by Ord. No. 2011-5]
(4)
Two members shall be designees of the Town Council.
(5)
Two members shall be designees of the Mayor.
B.
Each member of the Board shall serve for two years and shall continue
in office until his/her successor is appointed and qualified. Upon
the initial appointment, one appointee of the Mayor and one appointee
of the Town Council will serve a one-year term, and the second appointee
will serve a two-year term. Any member who is a firefighter or police
officer shall be disqualified to serve in that capacity upon termination
of service with the Town. If a vacancy occurs for a member's
position on the Board, the vacancy shall be filled for the unexpired
term in the same manner as the office was previously filled.
C.
Each member shall take an oath that, so far as it devolves upon him/her,
he/she will diligently and honestly administer the affairs of the
Board and that he/she will not knowingly or willfully permit to be
violated any of the provisions of this article applicable to the fund.
Such oath shall be subscribed by the member making it, certified by
the officer before whom it is taken and immediately filed with the
Town Clerk. A member shall be deemed to have qualified for membership
on the Board when such oath shall have been filed.
D.
Subject to the limitations of the pension plans, the Board shall,
from time to time, establish rules and regulations for the administration
of the fund and to implement the provisions of this article as may
be required. It shall hold regular meetings at least quarterly in
each year and such special meetings as may be necessary. The annual
meeting shall be held in the month of January of each year. All meetings
shall be open to the public, and a record of the proceedings of all
meetings shall be kept by the Board.
E.
Each member shall be entitled to one vote on the Board, and the concurrence
of four members shall be necessary for a decision at any regular or
special meeting.
The Board shall have the following officers, whose duties shall
be prescribed by the bylaws to be adopted by the Board:
A.
A Chair, Vice Chair and Secretary shall be elected from among its
members;
B.
The Director of Finance shall be the Treasurer of the fund and have
custody of its monies and securities; all disbursements by the fund
shall be made by the Director of Finance upon authorization of the
Board;
C.
The Town Solicitor, ex officio, shall be legal counsel to the Board
and shall represent the Board in all litigation affecting the fund
and shall be responsible for conducting any and all investigations
regarding administration of the fund and its members;
D.
A medical director shall be appointed to advise the Board on medical
questions pertaining to claims received by the Board and on any other
matters requiring medical advice that may arise in the administration
of the fund. The medical director shall not be a resident of the Town
of Johnston.
The Board may engage such actuarial, investment, administrative
and other services as may be required or deemed advisable to transact
the business of the fund, subject to the advice and consent of the
Town Council.
Membership of the fund shall include:
A.
All present employees of the Fire Department or the Police Department
of the Town on the effective date having previously been sworn in
as a firefighter or police officer, including those on probationary
status, and all members of the retirement system for the Fire Department
and Police Department.[1]
[1]
Editor's Note: Former Subsection B, concerning temporary absence
on the effective date, and Subsection C, concerning whom membership
would not include, both of which followed this subsection, were repealed
2-10-2014 by Ord. No. 2014-1.
A.
Beginning as of the effective date, each member shall contribute,
as his/her share of the cost of the pension benefits and benefits
prescribed in this article, the amount provided for in the recognized
collective bargaining agreement negotiated between the Town and the
exclusive bargaining agent for the Fire Department, or Police Department
depending on the member's respective employment with the Town.
These contributions shall be made in the form of a deduction from
salary notwithstanding that the salary paid in cash to such member
shall be reduced thereby below the minimum prescribed by law. Each
member shall be deemed to consent to such deductions, and payment
to a member of salary less deductions shall constitute a full and
complete discharge and acquittance of all claims and demands whatsoever
for the services rendered by such member during the period covered
by the payment, except as to the benefits provided in this article.
B.
For service rendered after the effective date, the Town shall make
contributions concurrently with the contributions by the members in
the amount set forth in the recognized collective bargaining agreement
negotiated between the Town and the exclusive bargaining agent for
the Fire Department, or Police Department depending on the member's
respective employment with the Town.
C.
The Board shall make annual recommendations to the Town regarding
contribution rates to the fund by members and the Town.
D.
Pursuant to the provisions of the United States Internal Revenue Code, including but not limited to Section 414(h)(2), the Town shall pick up and pay the contributions which would be payable by the members under Subsection A above. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. Member contributions which are picked up pursuant to this subsection shall be treated and identified as member contributions for all purposes of the system except as specifically provided to the contrary in this subsection. Member contributions made pursuant to this subsection shall be credited to a separate fund within a member's individual account so that the amounts contributed prior to the effective date for the pickup of member contributions may be distinguished from the amount contributed on or after such date.
[1]
Editor's Note: Former § 47-44, Contribution rates,
was repealed 2-10-2014 by Ord. No. 2014-1.
A.
The assets of the fund shall be held for the express purposes set
forth in the provisions of this article subject to the conditions
prescribed in this section. An adequate system of accounts and records
shall be established and maintained that will give effect to the requirements
of this article. All assets of the fund shall be credited to designated
reserve accounts according to the purposes for which they are held,
as follows:
(1)
Members' contribution reserve.
(a)
That portion of the amounts contributed by members to the fund
on or after the effective date, representing the employee contribution
rates set forth in the recognized collective bargaining agreement
negotiated between the Town and the exclusive bargaining agent for
the Fire Department, or Police Department depending on the respective
member's employment with the Town.
(b)
Upon retirement for service or disability, the accumulated contributions
to the credit of the member shall be transferred from this reserve
to the retirement reserve. Refunds of member contributions paid upon
separation or death of a member shall be charged to this reserve.
(c)
Member contributions picked up by the Town shall be paid from
the same source of funds used for the payment of compensation to a
member. A deduction shall be made from a member's compensation
equal to the amount of his/her contributions picked up by the Town.
This deduction, however, shall not reduce his/her compensation for
purposes of computing benefits under the system pursuant to this section.
(2)
Town contribution reserve. All amounts contributed by the Town in
accordance with the provisions hereof, except contributions for administrative
expense, shall be credited to this reserve.
(a)
All income from investments, including gains from investment
transactions, shall be credited to this reserve. All losses on investments
and amounts required for interest on the other reserves shall be charged
hereto.
(b)
Upon the granting of any pension for service, disability or
death, an amount representing the excess of the actuarial value of
the pension over the accumulated contributions of the member shall
be transferred from this reserve to the retirement reserve.
(c)
If at the close of any year it shall be determined by actuarial
valuation that the balance in the retirement reserve is insufficient
to meet the liability for pension benefits chargeable thereto, an
amount equal to such deficiency shall be transferred from this reserve
to the retirement reserve.
(3)
Retirement reserve. Upon the granting of any pension for service,
disability or death, the accumulated contributions of the member in
his/her individual account and an amount representing the actuarial
value of the member over such accumulated contributions shall be transferred
from the members' contribution reserve and Town contribution
reserve, respectively. Hereafter, all payments by the system on account
of any pension shall be charged to this reserve.
(4)
Administrative expense reserve. Amounts contributed by the system
for administrative expense shall be credited to this reserve. All
expenses of administration of the fund shall be charged to this reserve.
The Board shall certify to the Town annually the amount of its requirements
for administrative expenses. To provide for the initial expenses incident
to the organization and establishment of the fund, the Town shall
contribute, upon the adoption of this article, a sum estimated by
the Board as being necessary for that purpose.
(5)
Actuarial studies. An actuarial study of the operating experience
of the fund, as a check of the mortality, turnover, disability, interest
and other actuarial factors assumed in calculations of liabilities
and costs, shall be made at least once every two years by an actuary
engaged by the Board. An annual actuarial valuation shall be completed
as of the close of each fiscal year for the purpose of establishing
the financial condition of the system and as a check on the adequacy
of the reserves of the fund.
B.
Any excess balance in the retirement reserve as determined by actuarial
valuation shall be applied to reduce the Town's contributions
in the succeeding year, and deficiency in the retirement reserve,
which shall be charged to the Town contribution reserve, shall be
removed by an increase in the Town's contribution rate for the
succeeding fiscal year. Such adjustments as may be required in this
or any other reserve shall be made upon recommendation of the actuary.
The Finance Director or a designee of the Mayor shall be custodian
of said pension fund and is hereby authorized and directed, effective
upon final passage of this article, to deduct in weekly installments
from the annual salary paid to each member of the Fire Department
and the Police Department the percentage of his/her salary specified
herein and to put the same in this fund. All of the monies coming
from the various sources which the Town Finance Director is hereby
authorized to receive shall be known as the Town of Johnston Fire
Fighter and Police Officer Pension Fund. Said fund shall be kept separate
and apart from all other monies in his/her care, and he/she shall
pay semimonthly from said fund to the beneficiaries thereof such sums
as are hereinafter provided.
Subject to the approval of the Town Council, the Town Finance
Director shall invest said funds and shall add the interest, dividends
and other income from such investments to said fund. The Finance Director
shall keep accurate books of account of said fund and shall allow
the Mayor, the Town Council and the Board to inspect his/her books
of said fund at any time. The Finance Director shall make an annual
report in writing at the end of each fiscal year to the Mayor, the
Town Council and the Board.
B.
Effective upon final passage of this article, the retirement allowance
for a member retiring under this section will be the percentage set
forth in the recognized collective bargaining agreement negotiated
between the Town and the exclusive bargaining agent for the Fire Department,
or Police Department depending on the respective member's employment
with the Town at the time of his/her application to the Board for
retirement.
A.
At the time of his/her retirement, any member of the Fire Department
or Police Department who is eligible to retire and who had previously
been honorably discharged from service with the armed forces of the
United States will be eligible to buy back up to the number of years'
additional service as provided for in the recognized collective bargaining
agreement applicable to said member, by contributing to the fund an
additional percentage of his/her highest year's pay, equal to
the annual contribution rate prevailing at the time of the member's
retirement plus interest, for each year of service purchased. In no
event will a member who has completed less than 20 years of service
be eligible to buy back service.
B.
A member eligible to purchase service under Subsection A of this section has the option to buy up to the number of years' additional service, as provided for in the recognized collective bargaining agreement applicable to said member, in six-month increments, but no more than the number of his/her full years of military service.
A.
Determination of disability.
[Amended 3-12-2012 by Ord. No. 2012-3]
(1)
The determination of disability from any cause, whether service connected
or non-service connected, shall be made upon the basis of reports
on examinations made by three physicians consisting of a physician
selected by the Town, a physician selected by the member, and a third
physician to be selected by the other two physicians. If the Town
and member's physicians cannot agree on a third neutral physician,
the third physician will be selected from a list maintained by a third-party
administrator hired by the Town. The three physicians must each specialize
in the area of medicine related to the member's alleged disability.
(2)
A majority decision by the selected physicians must be reached with
regard to determination of disability. A copy of each of the three
physicians' medical reports shall be provided to the medical
director and the Board within 60 days of the medical examination of
the disability retirement applicant. Based upon its review of the
three physicians' medical reports, the Board shall vote whether
the applicant is entitled to a service-connected or to a non-service-connected
disability pension related to a single incident. The member shall
be provided a written determination of the Board's decision within
60 days after the date that the Board has received all three physicians'
reports.
C.
A member of the Fire Department or Police Department who retires
on a non-service-connected disability shall be required to submit
to an examination at least one time per year by a physician selected
by the Board to establish that the member is incapacitated for service
as a firefighter or police officer and is entitled to continue to
receive a disability pension every year for the first five years following
the member's initial disability determination and every other
year thereafter. The Board may cancel a disability pension upon evidence
that the member is no longer disabled for such service. If such cancellation
occurs and the member does not reenter service, he shall be entitled
to a refund of the excess, if any, of the contributions made by the
member, including interest, over the amounts received by the member
on the disability pension. Should a retiree refuse to submit to such
medical examination, his/her pension may be discontinued until his/her
withdrawal of such refusal, and should his/her refusal continue for
one year, all rights in and to his/her pension may be revoked by the
Board.
[Amended 2-10-2014 by Ord. No. 2014-1]
D.
If a medical examination or an investigation made by the Board discloses
that a member is engaged or is able to engage in any gainful occupation,
payment of the non-service-connected disability pension shall be discontinued
or reduced to an amount which, when added to the member's income
from such gainful occupation, shall not exceed 50% of the rate of
his/her salary in effect at the date of disability. The term "salary"
is defined as a member's base pay as of the date of his/her disability.
[Amended 2-10-2014 by Ord. No. 2014-1]
E.
Earned income report.
(1)
Any member receiving a non-service-connected disability pension shall
be required to submit to the Board at least once each year a sworn
written report of his/her earned income for the preceding 12 months
on a form supplied by the Board, together with supporting data as
may reasonably be required. Any adjustment in a non-service connected
disability pension payments as aforesaid shall be based upon such
statements of income. A non-service-connected disability pension shall
be suspended if such statement discloses income from a gainful occupation
equal to or in excess of the aforesaid amount but shall be resumed
when such condition has changed.
[Amended 2-10-2014 by Ord. No. 2014-1]
(2)
Earned income is defined as amounts received as compensation for
services rendered. The member's pension amount for the following
12 months after the filing of the report of earned income shall be
reduced dollar for dollar by any amount the actual earned income exceeded
the salary paid to a permanent member with the same rank and seniority
on active duty at the time such reports are filed. However, in no
event shall any member on a disability pension receive an annual sum
less than 50% of his/her salary in effect at the date of disability.[2]
[2]
Editor's Note: Former Subsection F concerning return
to work of a retired employee receiving a disability pension, which
immediately followed this subsection, was repealed 2-10-2014 by Ord.
No. 2014-1.
Any amounts paid or payable under the provisions of any workers'
compensation law, or as the result of any action for damages for personal
injuries against a third party on account of death or disability of
a Town employee occurring while in the performance of duty, shall
be offset against and payable in lieu of any benefits payable out
of funds provided by the Town for death or disability payments to
the employee.
[1]
Editor's Note: Former § 47-52, Service-connected
disability, was repealed 2-10-2014 by Ord. No. 2014-1.
F.
A non-service-connected disability shall begin to accrue upon the
expiration of 90 days following commencement of disability, provided
that the member received salary for a period of more than 90 days,
the disability pension shall begin to accrue from the date salary
ceased. If written application for the disability pension shall not
have been filed with the Board prior to the expiration of 90 days
from date of disability, the disability pension shall begin to accrue
from the date application therefor has been filed, but not in any
event prior to the time when payments to the member on account of
salary have ceased.
The terms provided in this section shall not be effective until
the current recognized collective bargaining agreement negotiated
by the Town and the exclusive bargaining agent for the Fire Department,
or Police Department depending on the member's respective employment
with the Town, has expired. Until said expiration, the terms provided
in said recognized collective bargaining agreement shall apply. After
expiration of said recognized collective bargaining agreement, the
following terms shall apply:
A.
Upon death of a member in the line of duty, which is deemed to qualify
for a benefit pursuant to the federal Public Safety Officers'
Death Benefit Act, regardless of the age or length of service of the
member, a surviving spouse shall be entitled to a pension equal to
50% of the member's rate of salary at the date of his/her death.
The term "salary" is defined as a member's base pay as of the
date of his/her date of death.
B.
If no widow survives, each minor child under 18 years of age shall
be entitled to 15% of such member's salary, subject to a limitation
for the combined payments to children equal to 60% of such salary.
C.
In the event that either of the foregoing limitations is exceeded,
the pensions shall be prorated to conform to the applicable limitation.
D.
If minor children under age 18 survive the member, the widow shall
receive on account of each minor child an additional 10% of the member's
salary. The combined payments to a widow and children shall in no
event exceed 70% of such member's salary.
E.
The pension payment to a widow shall be payable during widowhood.
Minor children shall be eligible for pension payments until their
attainment of 18 years of age, death or marriage, whichever occurs
first.
F.
Any pension payment payable to a beneficiary hereunder shall be reduced
by the Town by the amount of the workers' compensation benefit.
The terms provided in this section shall not be effective until
the current recognized collective bargaining agreement negotiated
by the Town and the exclusive bargaining agent for the Fire Department,
or Police Department depending on the member's respective employment
with the Town, has expired. Until said expiration, the terms provided
in said recognized collective bargaining agreement shall apply. After
expiration of said recognized collective bargaining agreement, the
following terms shall apply:
A.
Upon death of a member due to any cause other than an act of duty
occurring while a member is in service, on sick leave with salary,
on an approved leave of absence extending not more than six months
continuously or while in receipt of a service retirement pension or
non-service-connected disability pension, if such member shall have
at least three years of credited service, his surviving widow shall
be entitled to a pension payment. The pension payment shall be equal
to 30% of the member's final salary, increased one percentage
point for each year of credited service above the three years, up
to a maximum amount equal to 50% of his/her final salary. The term
"final salary" is defined as a member's base pay as of the date
of his/her date of death. Eligibility for such pension payment shall
be subject to the following conditions:
(1)
The widow shall have been married to the member at least one year
prior to the date of death of the member or prior to the date of retirement
on a non-service-connected disability pension; whichever occurs first
and in any event while the member was in service.
(2)
The widow shall be at least 55 years of age, otherwise commencement
of payments on the pension shall be deferred until the widow attains
such age.
(3)
The pension shall terminate in any event upon remarriage, and any
change in marital status thereafter shall create no rights for the
widow to any pension or any other payment from the fund.
(4)
The minimum payment to a widow in any case shall be 30% of average
final salary, and the maximum shall be 50% of such final salary.
(a)
If a widow has an unmarried minor child in her care under 18
years of age, payment of the widow's pension shall begin immediately
regardless of whether the widow shall have attained age 55. In such
a case, the pension for the widow shall be increased 10% of the member's
final salary on account of each such minor child, provided that the
maximum payment on account of a widow and children shall not exceed
60% of final salary. If such limitation is exceeded, all pension benefits
shall be prorated to conform therewith.
(b)
Payments on account of minor children shall terminate upon their
attainment of 18 years of age, death or marriage, whichever first
occurs. If a widow remarries, the pension on account of each minor
child shall be increased to 15% of the member's final salary,
subject to a limitation of 50% of the member's final salary to
all minor children.
(c)
Should payments on account of minor children terminate before
the widow attains age 55, the pension to the widow shall be suspended
until the widow attains age 55.
(d)
Minor children shall include children of the blood and adopted
children, provided that the proceedings for adoption shall have been
initiated at least one year prior to the date of death of the member.
The terms provided in this section shall not be effective until
the current recognized collective bargaining agreement negotiated
by the Town and the exclusive bargaining agent for the Fire Department,
or Police Department depending on the member's respective employment
with the Town, has expired. Until said expiration, the terms provided
in said recognized collective bargaining agreement shall apply. After
expiration of said recognized collective bargaining agreement, the
following terms shall apply:
A.
Any member withdrawing from service prior to retirement shall be
entitled to a refund, in a single sum, of the amount of his/her contributions
to the system, without interest. The payment of a refund under the
provisions hereof shall automatically effect a waiver and forfeiture
of all accrued rights and benefits in the system on the part of any
member. The Board may, in its discretion and regardless of cause,
withhold payments of a refund for a period not to exceed one year
after receipt of an application therefor.
B.
Any member who has received a refund shall be considered a new member
upon subsequent reemployment, provided that if such member shall render
at least three years of service following his/her latest reentry into
service, he/she shall be entitled to regain his/her previously forfeited
service credits upon repayment of all amount received as refunds,
including regular interest from dates of refunds to date of repayment.
The time and manner of making such repayments shall be fixed by the
Board.
C.
Upon death of a member leaving no survivors eligible for pension
from the system, his/her accumulated contributions in the system,
without interest, shall be paid in a single sum to such person as
he/she shall nominate by written designation duly executed and filed
with the Board. If no such designation shall have been made, payment
shall be made to the legal representative.
Any person who knowingly makes any false statement or falsifies
or permits to be falsified any record of this system in any attempt
to defraud the fund is guilty of a misdemeanor. The fund and the Town
shall have the right to recover by setoff or otherwise any payments
made under false representations. If any such person shall be a member
of the fund or the beneficiary of a member, he or she shall forfeit
all rights to further participation in any of the benefits hereunder.
A.
General provisions.
(1)
Payment of an employee's pension benefit or other benefits or
payments as provided for herein shall be for honorable service only.
(2)
For purposes of this section, "crime related to his/her employment"
shall mean any of the following:
(a)
The committing, aiding or abetting of an embezzlement of a public
fund;
(b)
The committing, aiding or abetting of any felonious theft by
an employee from his/her employer;
(c)
Bribery in connection with employment of a public employee;
and
(d)
The committing of any felony by an employee who willfully, and
with the intent to defraud, realizes or obtains, or attempts to realize
or obtain, a profit, gain, or advantage for himself or herself or
for some other person through the use or attempted use of the power,
rights, privileges, duties, or position of his/her office or employment.
(3)
For purposes of this section, "pleads guilty or nolo contendere"
shall include all pleas of guilty or nolo contendere.
(4)
For purposes of this section, "employee" shall mean any current or
former member of the Fire Department or Police Department.
B.
Revocation or reduction authorized. Notwithstanding any other provision
of law, any pension benefit or other benefits or payments to which
an employee is otherwise entitled to under this chapter shall be revoked
or reduced in accordance with the provisions of this section if such
employee is convicted of or pleads guilty or nolo contendere to any
crime related to his or her employment. Any such conviction or plea
shall be deemed to be a breach of the employee's collective bargaining
agreement with his/her employer.
C.
Hearing; civil action. Whenever any employee is convicted of or pleads
guilty or nolo contendere to any crime related to his/her employment,
the Board shall conduct a meeting, with the employee having the opportunity
to be heard, to determine if a recommendation of revocation or reduction
of pension benefit or other benefits or payments of any kind to which
the employee is otherwise entitled to under this chapter is warranted.
If the Board determines that revocation or reduction of any pension
benefit or other benefits or payments of any kind to which the employee
is otherwise entitled under this chapter is warranted, the Board shall
initiate a civil action in the Superior Court for the revocation or
reduction of same.
D.
Return of payroll-deducted contributions when benefits are revoked.
Any employee whose pension benefit or other benefits or payments of
any kind are revoked pursuant to this section shall be entitled to
a return of his/her payroll-deducted contribution, without interest.
E.
Return of payroll-deducted contributions when benefits are reduced.
Any employee whose pension benefit or other benefits or payments of
any kind are reduced pursuant to this section shall be entitled to
a pro rata return of a portion of his/her payroll-deducted contribution,
in an amount proportionate to the amount of any such reduction, without
interest.
All records relating to the fund and the membership therein
shall be deemed public records and available for review upon the filing
of a written public records request to the Board.
If any provision of this article is determined to be unconstitutional
or otherwise invalid, the remaining provisions of this article shall
not be affected thereby.
[Added 12-12-2011 by Ord. No. 2011-32]
Appeals of decisions of the Board shall be taken in accordance
with the Administrative Procedures Act of the Rhode Island General
Laws.[1]
[1]
Editor's Note: See R.I.G.L. § 42-35-1 et seq.
[1]
Editor’s Note: Former Article VIII, Other Post-Employment
Benefits Trust Fund, added 4-8-2013 by Ord. No. 2013-6, which immediately
followed this section, was repealed 11-9-2015 by Ord. No. 2015-14.
