§ 36-8-1 - Definition of terms.
SECTION 36-8-1
§ 36-8-1 Definition of terms. – The following words and phrases as used in chapters 8 to 10 of this titleunless a different meaning is plainly required by the context, shall have thefollowing meanings:
(1) "Accumulated contributions" shall mean the sum of all theamounts deducted from the compensation of a member and credited to his or herindividual account together with regular interest thereon.
(2) "Actuarial equivalent" shall mean an allowance or benefitof equal value to any other allowance or benefit when computed upon the basisof the actuarial tables in use by the system.
(3) "Annuity reserve" shall mean the present value of allpayments to be made on account of any annuity, benefit, or retirement allowancegranted under the provisions of chapter 10 of this title computed upon thebasis of such mortality tables as shall be adopted from time to time by theretirement board with regular interest.
(4) "Average compensation" for members eligible to retire asof September 30, 2009 shall mean the average of the highest three (3)consecutive years of compensation, within the total service when the averagecompensation was the highest. For members eligible to retire on or afterOctober 1, 2009, "Average compensation" shall mean the average of the highestfive (5) consecutive years of compensation within the total service when theaverage compensation was the highest.
(5) "Beneficiary" shall mean any person in receipt of apension, an annuity, a retirement allowance, or other benefit as provided bychapter 10 of this title.
(6) "Casual employee" shall mean those persons hired for anoccasional period to perform special jobs or functions not necessarily relatedto the work of regular employees.
(7) "Compensation" as used in chapters 8 – 10 of thistitle, chapters 16 and 17 of title 16, and chapter 21 of title 45 shall meansalary or wages earned and paid for the performance of duties for coveredemployment, including regular longevity or incentive plans approved by theboard, but shall not include payments made for overtime or reasons other thanperformance of duties or activities, including but not limited to the types ofpayments listed below:
(i) Payments contingent on the employee having terminated ordied;
(ii) Payments made at termination for unused sick leave,vacation leave, or compensatory time;
(iii) Payments contingent on the employee terminatingemployment at a specified time in the future to secure voluntary retirement orto secure release of an unexpired contract of employment;
(iv) Individual salary adjustments which are grantedprimarily in anticipation of the employee's retirement;
(v) Additional payments for performing temporary or extraduties beyond the normal or regular work day or work year.
(8) "Employee" shall mean any officer or employee of thestate of Rhode Island whose business time is devoted exclusively to theservices of the state, but shall not include one whose duties are of a casualor seasonal nature. The retirement board shall determine who are employeeswithin the meaning of this chapter. The governor of the state, the lieutenantgovernor, the secretary of state, the attorney general, the general treasurer,and the members of the general assembly, ex officio, shall not be deemed to beemployees within the meaning of that term unless and until they elect to becomemembers of the system as provided in § 36-9-6, but in no case shall itdeem as an employee, for the purposes of this chapter, any individual whodevotes less than twenty (20) business hours per week to the service of thestate, and who receives less than the equivalent of minimum wage compensationon an hourly basis for his or her services, except as provided in §36-9-24. Any commissioner of a municipal housing authority or any member of apart-time state board, commission, committee or other public authority shallnot be deemed to be an employee within the meaning of this chapter.
(9) "Full actuarial costs" or "full actuarial value" shallmean the lump sum payable by a member claiming service credit for certainemployment for which that payment is required which is determined according tothe age of the member and the employee's annual rate of compensation at thetime he or she applies for service credit and which is expressed as a ratepercent of the employee's annual rate of compensation to be multiplied by thenumber of years for which he or she claims service credit as prescribed in aschedule adopted by the retirement board from time to time on the basis ofcomputation by the actuary. All service credit purchases requested after June16, 2009, except military credit as provided by §§ 36-9-31 and16-16-7.1, shall be at full actuarial value.
(10) "Inactive member" shall mean a member who has withdrawnfrom service as an employee but who has not received a refund of contributions.
(11) "Members" shall mean any person included in themembership of the retirement system as provided in §§ 36-9-1 –36-9-7.
(12) "Prior service" shall mean service as a member renderedbefore July 1, 1936, certified on his or her prior service certificate andallowable as provided in § 36-9-28.
(13) "Regular interest" shall mean interest at the rate oftwo percent (2%) per annum, compounded annually, or at such other ratedetermined from the actual experience of the system as may be prescribed fromtime to time by the board.
(14) "Retirement allowance" shall mean annual payments forlife made after retirement under and in accordance with chapters 8 to 10 ofthis title. All allowances shall be paid in equal monthly installmentsbeginning as of the effective date thereof; provided, that a smaller pro rataamount may be paid for part of a month where separation from service occursduring the month in which the application was filed, and when the allowanceceases before the last day of the month.
(15) "Retirement board" shall mean the board provided in§ 36-8-3 to administer the retirement system.
(16) "Retirement system" shall mean the employees' retirementsystem of the state of Rhode Island as defined in § 36-8-2.
(17) "Service" shall mean service as an employee of the stateof Rhode Island as described in subdivision (8) of this section.
(18) "Total service" shall mean prior service as definedabove, plus service rendered as a member on or after July 1, 1936.
(19) "Active member" shall mean any employee of the state ofRhode Island as defined in this section for whom the retirement system iscurrently receiving regular contributions pursuant to §§ 36-10-1 and36-10-1.1.