§ 36-10-1.1 - Department payment of member contributions. - Rhode Island Statutes

SECTION 36-10-1.1

   § 36-10-1.1  Department payment of membercontributions. – (a) Each department, pursuant to the provisions of § 414(h)(2) of theUnited States Internal Revenue Code, 26 U.S.C. § 414(h)(2), shall pick upand pay the contributions which would be payable by the employees as membersunder §§ 36-10-1, 8-3-16, 8-8-10.1, 8-8.2-7, 28-30-18.1, and42-28-22.1. The contributions so picked up shall be treated as employercontributions in determining tax treatment under the United States InternalRevenue Code; and shall not be included as gross income of the employee untilsuch time as they are distributed. Employee contributions which are picked uppursuant to this section shall be treated and identified as membercontributions for all purposes of the retirement system except as specificallyprovided to the contrary in this section.

   (b) Member contributions picked up by a department shall bepaid from the same source of funds used for the payment of compensation to amember. A deduction shall be made from a member's compensation equal to theamount of his or her contributions picked up by his or her departmentalemployer. This deduction, however, shall not reduce his or her compensation forpurposes of computing benefits under the applicable retirement system. Pickedup contributions shall be transmitted to the retirement system in accordancewith the provisions of § 36-10-1.