(a) Prior to July 1, 2012, each member shall contribute an amount equal to six percent (6%) of salary or compensation earned and accruing to the member; provided, that contributions by any member cease when the member has completed the maximum amount of service credit attainable. Special compensation for additional fees shall not be considered as compensation for contribution purposes. Effective July 1, 2012, each member shall contribute an amount equal to one percent (1%) of his or her compensation as his or her share of the cost. Effective July 1, 2015, each member with twenty (20) or more years of total service as of June 30, 2012, shall contribute an amount equal to eight and one-quarter percent (8.25%) of compensation.
(b) Each municipality shall deduct the previously stated rate from the compensation of each member on each and every payroll of the municipality, and the deduction made during the entire time a member is in service subject to termination as stated in the foregoing paragraph.
(c) The deductions provided for in this section shall be made notwithstanding that the minimum compensation provided for by law for any member is reduced by the compensation. Every member is deemed to consent and agree to the deductions made and provided for in this section, and shall receipt for his or her full salary or compensation; and payment of salary or compensation less those deductions are a full and complete discharge and acquittance of all claims and demands for the services rendered by the person during the period covered by the payment except as to the benefits provided under this chapter. Each participating municipality shall certify to the retirement board the amounts deducted from the compensation of members. Each of the amounts, when deducted, shall be credited to an individual account of the member from whose compensation the deduction was made.
History of Section.
P.L. 1951, ch. 2784, § 13; G.L. 1956, § 45-21-41; R.P.L. 1957, ch. 135, § 4; P.L. 1959, ch. 23, § 7; P.L. 1963, ch. 212, § 3; P.L. 1965, ch. 230, § 1; P.L. 1971, ch. 244, § 1; P.L. 2011, ch. 408, § 11; P.L. 2011, ch. 409, § 11; P.L. 2015, ch. 141, art. 21, § 18.