2009 Rhode Island Code
Title 16 - Education
CHAPTER 16-16 - Teachers' Retirement
§ 16-16-22.1 - City or town payment of teacher member contributions.

SECTION 16-16-22.1

   § 16-16-22.1  City or town payment of teacher member contributions. – (a) Each city or town, pursuant to the provisions of § 414(h)(2) of the United States Internal Revenue Code, 26 U.S.C. § 414(h)(2), may, pursuant to appropriate local action by the city or town, pick up and pay the contributions which would be payable by the employees as teacher members under § 16-16-22. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code; however, each city or town shall continue to withhold federal and state income taxes based upon these contributions until the internal revenue service rules that pursuant to 26 U.S.C. § 414(h)(2) these contributions shall not be included as gross income of the employee until the time they are distributed. Employee contributions picked up pursuant to this section shall be treated and identified as teacher member contributions for all purposes of the retirement system except as specifically provided to the contrary in this section.

   (b) Teacher member contributions picked up by a city or town shall be paid from the same source of funds used for the payment of compensation to a teacher member. A deduction shall be made from a teacher member's compensation equal to the amount of his or her contributions picked up by his or her city or town employer. This deduction, however, shall not reduce his or her compensation for purposes of computing benefits under the retirement system pursuant to this chapter or chapter 10 of title 36. Picked up contributions shall be transmitted to the retirement system in accordance with the provisions of § 16-16-22 and § 36-10-1.