Developing a Plan to Fund Annual Pension Costs

Legal Requirements

Rhode Island General Laws Section 45-10-15 requires the following:

For any audit year in which a municipality contributes materially less than 100% of the actuarially determined contribution (previously annual required contribution) to its pension plan(s) as reported in accordance with GASB Statement Number 27 Accounting for Pensions by State and Local Governmental Employers or any successor statement, the municipality shall submit to the Auditor General and the state Director of Revenue:

• the municipality's most recent actuarial study of the plan(s), and
• management's recommendations for assuring future payments equal to the annual pension cost (APC).

This information must be submitted within three (3) months of completion of the audited financial statement.