Skip to main content
H 8506Cities & Towns

Towns and Cities - Relating to Central Falls Pension Plan

This bill lowers pension contributions for Central Falls police and firefighters from 11.7% to 10% starting in July 2026.

Signed into law72 Yea0 Nay3 Not voting
Population
Affected
8
Email Legislator
Introduced May 1, 2026Committee House Finance

Plain-English Summary

This bill updates the retirement rules for police officers and firefighters in the Central Falls pension plan. Starting July 1, 2026, active members will follow the pension rules outlined in their new collective bargaining agreements that are in effect on that date, rather than the older 2019 agreements. Additionally, the bill reduces the amount these active police officers and firefighters must contribute to their pension plan from 11.7% of their salary down to 10%, starting on July 1, 2026.

For younger readers

When police officers and firefighters get older and stop working, they get money called a pension to help them pay for things. To get this money later, they have to give a little bit of their paycheck to the city right now. This bill changes the rules for police officers and firefighters in a city called Central Falls. Starting in the year 2026, they won't have to give as much of their paycheck to the city. They will give 10 percent instead of almost 12 percent, meaning they get to keep more of their money in their pockets today.

Who & Where It Applies

Impacted groups
Central Falls police officersCentral Falls firefightersCentral Falls taxpayers
Impacted communities
Central Falls

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Reduces the financial burden on public servants (police and firefighters) by lowering their mandatory pension contributions from 11.7% to 10%, effectively increasing their take-home pay.
  • Respects and upholds the power of collective bargaining by tying future pension provisions directly to the union agreements in effect on July 1, 2026.
  • Supports a strong social safety net by ensuring locally administered, union-negotiated pension plans are honored and maintained for municipal workers.
  • Focuses exclusively on police and firefighters, potentially neglecting other municipal workers and public servants who might also need pension or financial relief.
  • By lowering employee contributions, the bill could put more strain on the city's budget to fund the pension system, potentially diverting funds from other community welfare programs.
  • Financially benefits law enforcement personnel, which may conflict with some progressive priorities aimed at redirecting municipal funding from policing to alternative social services.
For Conservatives
  • Allows municipal employees to keep more of their earned income by lowering mandatory pension fees, aligning with conservative principles of lower taxation and government withholding.
  • Supports law enforcement and first responders by increasing their effective take-home pay, reinforcing a strong "law and order" stance.
  • Maintains local control over pension systems by allowing the city of Central Falls to determine the appropriate contribution rates and agreements for its workers.
  • Empowers public sector labor unions by officially tying state pension law to future collective bargaining agreements, potentially increasing costs for taxpayers.
  • Decreasing the employee contribution from 11.7% to 10% shifts more of the unfunded liability and financial burden onto local taxpayers.
  • Central Falls has a history of financial distress and bankruptcy; reducing employee pension contributions could jeopardize fiscal responsibility and require future state bailouts.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 12 additions · 3 deletions

SECTION 1. Section 45-21.4-2 of the General Laws in Chapter 45-21.4 entitled "Relating to Central Falls Pension Plan" is hereby amended to read as follows: 45-21.4-2. Alternative acceptance by the city of Central Falls of optional retirement for police and firefighters.

(a) The provisions of this section shall apply only to locally administered plans within the city of Central Falls hereinafter referred collectively as the “Central Falls plan.”

(b) On or after July 16, 2019, Central Falls may accept the provisions of this chapter, by resolution or an ordinance of its governing body, stating the group or groups of employees to be included as provided in § 45-21-4; provided that, any and all labor organizations representing active employees of the municipality to be included have assented to such participation of their respective memberships through a collective bargaining agreement and ratification of the decision by a majority vote of those members of any such labor organization present and voting. A copy of the resolution or ordinance and proof of assent from the applicable labor organization shall be immediately forwarded to the retirement board for review. A vote of the retirement board to accept the entry of the group or groups of employees into the system shall be required.

(c) Effective August 31, 2019, the Central Falls plan shall be closed to new members. (d)(1) Prior to July 1, 2026, Members members of the Central Falls plan in active service as of August 31, 2019, shall continue to be subject to the applicable retirement ages and restrictions, and accrue benefits on total service at the rates of the Central Falls plan pursuant to the collective bargaining agreements in effect on August 31, 2019, between Central Falls and the labor organizations representing members of the Central Falls plan.

(2) On and after July 1, 2026, members of the Central Falls plan in active service as of August 31, 2019, shall be subject to the pension plan provisions set forth in the respective collective bargaining agreements in effect on July 1, 2026, between Central Falls and the labor organizations representing members of the Central Falls plan.

(e) Disability determinations shall be made by the retirement board, subject to the procedures and standards of §§ 45-21.2-7 and 45-21.2-9 as applicable, for members hired prior to September 1, 2019. If a disability retirement pension is granted, the member shall receive benefits provided by the Central Falls pension plan pursuant to the collective bargaining agreements in effect on August 31, 2019.

(f) Beginning September 1, 2019 July 1, 2026, firefighters and police officers in active service that are members of the Central Falls plan in active service shall contribute an amount equal to eleven and seven-tenths percent (11.7%) ten percent (10%) of the salary or compensation earned or accruing to the member.

(g) Subject to the provisions of subsection (b) of this section being met, new employees hired on or after September 1, 2019, shall be subject to all of the provisions of § 45-21.2, including all applicable disability provisions and benefits provided by §§ 36-10.3-4 and 45-21-52.

(h) Notwithstanding anything in § 45-21-42.2 to the contrary, the cost to evaluate Central Falls prospective membership in the retirement system pursuant to this section or § 45-21.4-3, shall be borne by the retirement board.

(i) Notwithstanding anything in § 45-21-43.1 to the contrary, determination of the employer contribution rate of the closed Central Falls pension plan pursuant to this section shall be computed using an amortization period for the unfunded actuarial accrued liability as determined by the board, based upon the recommendation of the plan’s actuary. Future actuarial gains and losses accruing within a plan year will be amortized over individual new twenty-year (20) closed periods consistent with § 45-21-43.1(c).

(j) Notwithstanding anything in § 45-21-56 to the contrary, if a Central Falls pension plan pursuant to this section is in critical status as defined in § 45-65-4, and an employee of the Central Falls pension plan leaves employment and is hired by another participating municipality that is not in critical status as defined in § 45-65-4, then the retirement system shall transfer the amount of the member’s total accrued liability with the Central Falls pension plan, multiplied by the funded status of the Central Falls pension plan, to the account of the current employing municipality.

(k) Upon the conditions of subsection (b) of this section being met, the city of Central Falls shall remain liable to the retirement system for the cost of funding a retirement system for its employees who are members of the system as provided herein, and the retirement board maintains the right to enforce payment of any liability as provided in chapter 21 of this title.

(l) Subject to the provisions of subsection (b) of this section being met, the Central Falls plan and the provisions of this section shall be administered in the same manner provided in chapter 21 of this title; credits for prior service and collection of contributions are determined through reference to that chapter; provided, that where the provisions of that chapter conflict with this chapter, then the provisions of this chapter control. Liability of contributions is enforced in the same manner as stated in chapter 21 of this title.

SECTION 2. This act shall take effect upon passage.