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SB 3252

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

2026 Regular Session Introduced by Jonathon Acosta and 2 co-sponsors

Central Falls will transition its pension for current police/fire members to align with future collective bargaining agreements, including lowering employee contributions from 11.7

06/26/2026 Effective without Governor's signature
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Bill Summary · SB 3252

Summary of SB 3252 (Rhode Island, 2026) – Central Falls Pension Plan

Overview

  • Bill: SB 3252
  • Session: 2026
  • Jurisdiction: Rhode Island
  • Committee: Senate Finance
  • Purpose: To modify the Central Falls pension plan by aligning certain terms with ongoing collective bargaining agreements, redefine eligibility for new members, and adjust contribution rates for active police officers and firefighters.

What the bill seeks to change (Key Provisions)

  1. Scope and Acceptance Process

    • Applies to the locally administered Central Falls pension plan.
    • Central Falls may opt into the pension provisions after July 16, 2019 via resolution/ordinance, with assent from labor organizations representing active employees (via collective bargaining agreement and ratification).
    • Retirement Board must approve the entry of the designated employee groups into the system.
    • Any assent and related documents must be forwarded to the retirement board for review.

  2. Plan Closed to New Members

    • Effective August 31, 2019, the Central Falls plan would be closed to new members.

  3. Transition of Active Members (Pre- and Post-2019 Conditions)

    • Before July 1, 2026:
      • Active members as of August 31, 2019 remain subject to the benefit terms and retirement ages/restrictions in effect under the Central Falls plan and under the collective bargaining agreements in place on August 31, 2019.
      • Benefits accrue based on total service at the rates specified in those agreements.
    • On and after July 1, 2026:
      • Active members as of August 31, 2019 would be subject to pension provisions contained in prospective collective bargaining agreements in effect on July 1, 2026.

  4. Disability and Other Retirement Provisions

    • Disability determinations for members hired before September 1, 2019 follow existing retirement board procedures and standards.
    • If a disability retirement is granted, benefits are provided under the Central Falls pension plan per the 2019 CBAs.

  5. Employer and Employee Contributions

    • Beginning September 1, 2019 through July 1, 2026, active firefighters and police officers in the Central Falls plan shall contribute 11.7% of salary (to be reduced to 10% under the bill’s adjustment).

  6. New Employees

    • New hires on or after September 1, 2019 would be subject to all provisions of the general pension law (including disability and other benefits) under § 45-21.2 and related sections, provided the labor assents required by subsection (b) are met.

  7. Costs of Membership Evaluation

    • The retirement board bears the cost to evaluate prospective Central Falls membership under this section or related sections.

  8. Funding and Amortization

    • The calculation of the employer contribution rate for the closed Central Falls plan would use an amortization period for unfunded actuarial accrued liability as determined by the plan’s actuary and board.
    • Future actuarial gains/losses within a year would be amortized over twenty-year, closed periods consistent with existing law.

  9. Transfer of Accrued Liability

    • If a member leaves Central Falls in a critical-status plan and moves to a participating municipality not in critical status, the member’s total accrued liability multiplied by the Central Falls plan’s funded status would transfer to the new employer.

  10. Liability and Administration

    • Central Falls remains responsible for funding costs for its employees in the system as provided and the retirement board retains enforcement rights to collect liabilities.
    • The Central Falls plan and its provisions would be administered in the same manner as Chapter 21 of Title 45, with conflict resolution favoring the new chapter’s provisions when applicable.

Affected Parties

  • Local Government & Plan Sponsor: City of Central Falls
  • Employees: Police officers and firefighters in the Central Falls plan (active members as of August 31, 2019; new hires after September 1, 2019)
  • Labor Organizations: Representation groups for active employees, whose assent is required for participation
  • Rhode Island Retirement Board: Reviews participation, administers benefits, and enforces contributions
  • Taxpayers/Employer: Responsible for funding liabilities and ensuring plan solvency

Timeline and Practical Implications

  • July 16, 2019: Window for Central Falls to accept the section with proper process.
  • August 31, 2019: Plan closed to new members.
  • September 1, 2019 – July 1, 2026: Existing active members continue under 2019 CBAs; employee contributions set at 11.7% of salary.
  • July 1, 2026: Transition point to apply provisions of newer CBAs for active members as of August 31, 2019.
  • Ongoing: Funding, amortization, and liability enforcement per the outlined rules; potential transfer of accrued liability if a member moves to a non-critical-status municipality.

Summary Assessment

SB 3252 formalizes a transition path for Central Falls to align its pension plan with collective bargaining agreements and Rhode Island pension law, moving from a plan closed to new members to a framework where active members’ benefits and contributions will evolve based on CBAs in effect as of 2026. It preserves the city’s liability for funding while standardizing governance, disability determinations, and actuarial treatment through the retirement board. The key near-term change is the reduction of employee contribution from 11.7% to 10% starting in the 2026 transition period, subject to CBAs and actuarial considerations. The act takes effect upon passage.

Compiled from official sources — confirm details with the bill’s official record.

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