Rhode Island General Laws Title 45. Towns and Cities § 45-21-59. Effect of deferral and/or reduction of salary

(a) If subsequent to January 1, 1991, a member sustains a loss of salary due to a deferral of salary or a reduction of salary in order to avoid shutdowns or layoffs, or because of a retrenchment of state or local finances, then in calculating the service retirement allowance of the member, the amount of salary deferred and/or the amount of the reduction of salary shall not reduce the amount of annual compensation of the member for the purpose of establishing his or her highest three (3) consecutive years of compensation. This provision is subject to subsection (c).

(c) An employee who has sustained a reduction in salary in accordance with subsection (a) shall pay, prior to retirement, to the retirement board an amount equal to the difference between the amount of contribution the employee would have paid on his or her salary prior to the reduction in salary and the amount that the employee actually contributed plus interest.