Rhode IslandH85062026 Regular SessionHouseWALLET

AN ACT RELATING TO TOWNS AND CITIES -- RELATING TO CENTRAL FALLS PENSION PLAN .

Sponsored By: Joshua J. Giraldo (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Pension value moves with you on transfer

If the Central Falls plan is in critical status and you take a job with another participating city or town that is not in critical status, the system transfers a share of your accrued pension value to your new employer’s account. The transfer equals your total accrued liability multiplied by the Central Falls plan’s funded status.

Local plan closed; new hires join state

The Central Falls local police and fire pension plan is closed to new members as of August 31, 2019. New employees hired on or after September 1, 2019 fall under the state retirement rules once the city adopts them, the union agrees and ratifies, and the retirement board votes to accept entry. The city must pass a resolution or ordinance and send it, with proof of union assent, to the retirement board for review and approval.

Members keep 2019 rules; pay 10%

If you were an active member on August 31, 2019, you keep the retirement ages, limits, and accrual rates from the contracts in place on that date until July 1, 2026. Starting July 1, 2026, the pension rules in the contract then in effect apply to you. If you were hired before September 1, 2019, the retirement board decides disability claims under its standard rules, and approved claims get the disability benefits set in the 2019 contracts. Beginning July 1, 2026, active police and firefighters contribute 10% of pay, down from 11.7%.

City funding and board control rules

The retirement board sets how long to pay down Central Falls’ unpaid pension debt, using the plan actuary’s advice. Future gains and losses are paid over new, closed 20‑year periods. The board pays the cost to evaluate Central Falls’ entry into the state system. The city remains liable to fund its employees’ pensions, and the board can enforce payment. Administration follows the usual state retirement rules, and this law controls if there is a conflict.

Sponsors & Cosponsors

Sponsor

Joshua J. Giraldo
Democratic • House

Cosponsors

Karen Alzate
Democratic • House
Brandon T. Voas
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 72 • No: 0

House vote • 6/10/2026

CENTRAL FALLS PENSION PLAN PASSAGE