Bill Sponsors
Acosta, Burke, and DiPalma
Committee
Senate Finance
Summary
Select
This bill updates the retirement plan rules for police officers and firefighters in Central Falls. Specifically, it lowers the amount these active employees must contribute to their pension plan from 11.7% to 10% of their salary, starting July 1, 2026. It also states that after July 1, 2026, the pension benefits for members who were active as of August 31, 2019, will be determined by the new collective bargaining agreements in effect at that time, rather than the older 2019 agreements.
Sponsor
Analysis
Pros for Progressives
- Reduces the mandatory pension contribution rate for police and firefighters, increasing their take-home pay and easing financial burdens on these public servants.
- Respects and empowers the collective bargaining process by tying future pension benefits to updated union contracts rather than locking workers into older 2019 agreements.
- Supports the long-term financial stability of municipal workers who provide essential public safety services to the community.
Cons for Progressives
- Lowers pension contributions from police officers, potentially requiring the municipality to cover the shortfall, which could divert funds away from other vital public services and social safety nets.
- Exclusively benefits police and firefighters, rather than expanding pension relief or benefits for all municipal employees or lower-income residents.
- Continues to invest public resources into traditional policing structures without tying the financial benefits to systemic police reform or accountability measures.
Pros for Conservatives
- Provides financial relief to police officers and firefighters, demonstrating support for law enforcement and first responders who uphold public safety and traditional community values.
- Adheres to the principles of local control by allowing the municipality of Central Falls to determine its own pension agreements and contribution rates with its employees.
- Honors the sanctity of contract law by ensuring that pension benefits are strictly governed by mutually agreed-upon collective bargaining agreements.
Cons for Conservatives
- Reduces the employee contribution rate to the pension plan, which may increase the unfunded liability of the pension system and ultimately burden taxpayers with covering the shortfall.
- Strengthens the power of public sector labor unions by allowing future pension benefits to be dictated by new collective bargaining agreements rather than statutory caps.
- Creates special financial carve-outs for specific public sector employees, rather than promoting broad fiscal restraint and reducing the overall cost of government.
Constitutional Concerns
None Likely. This legislation solely addresses municipal pension contributions and collective bargaining terms for specific public employees, which falls well within standard legislative authority over municipal finance and labor agreements. It does not implicate free speech, due process, or protection from unreasonable searches and seizures.
Impact Overview
Groups Affected
- Police officers
- Firefighters
- Municipal government of Central Falls
- Taxpayers of Central Falls
- Labor organizations
Towns Affected
Central Falls
Cost to Taxpayers
Amount unknown
Revenue Generated
None
BillBuddy Impact Ratings
Importance
Measures population affected and overall level of impact.
Freedom Impact
Level of individual freedom impacted by the bill.
Public Services
How much the bill is likely to impact one or more public services.
Regulatory
Estimated regulatory burden imposed on the subject(s) of the bill.
Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
Impact the bill will have on the environment, positive or negative.
Privacy Impact
Impact the bill is likely to have on the privacy of individuals.
Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 05/05/2026 Introduced, referred to Senate Finance
• 05/08/2026 Scheduled for hearing and/or consideration (05/14/2026)
• 05/08/2026 Scheduled for hearing and/or consideration (05/14/2026)
Bill Text
SECTION 1. Section 45-21.4-2 of the General Laws in Chapter 45-21.4 entitled "Relating to Central Falls Pension Plan" is hereby amended to read as follows:
45-21.4-2. Alternative acceptance by the city of Central Falls of optional retirement for police and firefighters.
(a) The provisions of this section shall apply only to locally administered plans within the city of Central Falls hereinafter referred collectively as the “Central Falls plan.”
(b) On or after July 16, 2019, Central Falls may accept the provisions of this chapter, by resolution or an ordinance of its governing body, stating the group or groups of employees to be included as provided in § 45-21-4; provided that, any and all labor organizations representing active employees of the municipality to be included have assented to such participation of their respective memberships through a collective bargaining agreement and ratification of the decision by a majority vote of those members of any such labor organization present and voting. A copy of the resolution or ordinance and proof of assent from the applicable labor organization shall be immediately forwarded to the retirement board for review. A vote of the retirement board to accept the entry of the group or groups of employees into the system shall be required.
(c) Effective August 31, 2019, the Central Falls plan shall be closed to new members.
(d)(1) Prior to July 1, 2026,Members members of the Central Falls plan in active service as of August 31, 2019, shall continue to be subject to the applicable retirement ages and restrictions, and accrue benefits on total service at the rates of the Central Falls plan pursuant to the collective bargaining agreements in effect on August 31, 2019, between Central Falls and the labor organizations representing members of the Central Falls plan.
(2) On and after July 1, 2026, members of the Central Falls plan in active service as of August 31, 2019, shall be subject to the pension plan provisions set forth in the respective collective bargaining agreements in effect on July 1, 2026, between Central Falls and the labor organizations representing members of the Central Falls plan.
(e) Disability determinations shall be made by the retirement board, subject to the procedures and standards of §§ 45-21.2-7 and 45-21.2-9 as applicable, for members hired prior to September 1, 2019. If a disability retirement pension is granted, the member shall receive benefits provided by the Central Falls pension plan pursuant to the collective bargaining agreements in effect on August 31, 2019.
(f) BeginningSeptember 1, 2019 July 1, 2026, firefighters and police officers in active service that are members of the Central Falls plan in active service shall contribute an amount equal to eleven and seven-tenths percent (11.7%) ten percent (10%) of the salary or compensation earned or accruing to the member.
(g) Subject to the provisions of subsection (b) of this section being met, new employees hired on or after September 1, 2019, shall be subject to all of the provisions of § 45-21.2, including all applicable disability provisions and benefits provided by §§ 36-10.3-4 and 45-21-52.
(h) Notwithstanding anything in § 45-21-42.2 to the contrary, the cost to evaluate Central Falls prospective membership in the retirement system pursuant to this section or § 45-21.4-3, shall be borne by the retirement board.
(i) Notwithstanding anything in § 45-21-43.1 to the contrary, determination of the employer contribution rate of the closed Central Falls pension plan pursuant to this section shall be computed using an amortization period for the unfunded actuarial accrued liability as determined by the board, based upon the recommendation of the plan’s actuary. Future actuarial gains and losses accruing within a plan year will be amortized over individual new twenty-year (20) closed periods consistent with § 45-21-43.1(c).
(j) Notwithstanding anything in § 45-21-56 to the contrary, if a Central Falls pension plan pursuant to this section is in critical status as defined in § 45-65-4, and an employee of the Central Falls pension plan leaves employment and is hired by another participating municipality that is not in critical status as defined in § 45-65-4, then the retirement system shall transfer the amount of the member’s total accrued liability with the Central Falls pension plan, multiplied by the funded status of the Central Falls pension plan, to the account of the current employing municipality. LC006348 - Page 2 of 4
(k) Upon the conditions of subsection (b) of this section being met, the city of Central Falls shall remain liable to the retirement system for the cost of funding a retirement system for its employees who are members of the system as provided herein, and the retirement board maintains the right to enforce payment of any liability as provided in chapter 21 of this title.
(l) Subject to the provisions of subsection (b) of this section being met, the Central Falls plan and the provisions of this section shall be administered in the same manner provided in chapter 21 of this title; credits for prior service and collection of contributions are determined through reference to that chapter; provided, that where the provisions of that chapter conflict with this chapter, then the provisions of this chapter control. Liability of contributions is enforced in the same manner as stated in chapter 21 of this title.
SECTION 2. This act shall take effect upon passage.
45-21.4-2. Alternative acceptance by the city of Central Falls of optional retirement for police and firefighters.
(a) The provisions of this section shall apply only to locally administered plans within the city of Central Falls hereinafter referred collectively as the “Central Falls plan.”
(b) On or after July 16, 2019, Central Falls may accept the provisions of this chapter, by resolution or an ordinance of its governing body, stating the group or groups of employees to be included as provided in § 45-21-4; provided that, any and all labor organizations representing active employees of the municipality to be included have assented to such participation of their respective memberships through a collective bargaining agreement and ratification of the decision by a majority vote of those members of any such labor organization present and voting. A copy of the resolution or ordinance and proof of assent from the applicable labor organization shall be immediately forwarded to the retirement board for review. A vote of the retirement board to accept the entry of the group or groups of employees into the system shall be required.
(c) Effective August 31, 2019, the Central Falls plan shall be closed to new members.
(d)(1) Prior to July 1, 2026,
(2) On and after July 1, 2026, members of the Central Falls plan in active service as of August 31, 2019, shall be subject to the pension plan provisions set forth in the respective collective bargaining agreements in effect on July 1, 2026, between Central Falls and the labor organizations representing members of the Central Falls plan.
(e) Disability determinations shall be made by the retirement board, subject to the procedures and standards of §§ 45-21.2-7 and 45-21.2-9 as applicable, for members hired prior to September 1, 2019. If a disability retirement pension is granted, the member shall receive benefits provided by the Central Falls pension plan pursuant to the collective bargaining agreements in effect on August 31, 2019.
(f) Beginning
(g) Subject to the provisions of subsection (b) of this section being met, new employees hired on or after September 1, 2019, shall be subject to all of the provisions of § 45-21.2, including all applicable disability provisions and benefits provided by §§ 36-10.3-4 and 45-21-52.
(h) Notwithstanding anything in § 45-21-42.2 to the contrary, the cost to evaluate Central Falls prospective membership in the retirement system pursuant to this section or § 45-21.4-3, shall be borne by the retirement board.
(i) Notwithstanding anything in § 45-21-43.1 to the contrary, determination of the employer contribution rate of the closed Central Falls pension plan pursuant to this section shall be computed using an amortization period for the unfunded actuarial accrued liability as determined by the board, based upon the recommendation of the plan’s actuary. Future actuarial gains and losses accruing within a plan year will be amortized over individual new twenty-year (20) closed periods consistent with § 45-21-43.1(c).
(j) Notwithstanding anything in § 45-21-56 to the contrary, if a Central Falls pension plan pursuant to this section is in critical status as defined in § 45-65-4, and an employee of the Central Falls pension plan leaves employment and is hired by another participating municipality that is not in critical status as defined in § 45-65-4, then the retirement system shall transfer the amount of the member’s total accrued liability with the Central Falls pension plan, multiplied by the funded status of the Central Falls pension plan, to the account of the current employing municipality. LC006348 - Page 2 of 4
(k) Upon the conditions of subsection (b) of this section being met, the city of Central Falls shall remain liable to the retirement system for the cost of funding a retirement system for its employees who are members of the system as provided herein, and the retirement board maintains the right to enforce payment of any liability as provided in chapter 21 of this title.
(l) Subject to the provisions of subsection (b) of this section being met, the Central Falls plan and the provisions of this section shall be administered in the same manner provided in chapter 21 of this title; credits for prior service and collection of contributions are determined through reference to that chapter; provided, that where the provisions of that chapter conflict with this chapter, then the provisions of this chapter control. Liability of contributions is enforced in the same manner as stated in chapter 21 of this title.
SECTION 2. This act shall take effect upon passage.