169.350. Assets held in two funds--source and disbursement--deductions--contributions, employer may elect to pay part or all of employee's contribution, procedure.
Assets held in two funds--source anddisbursement--deductions--contributions, employer may elect topay part or all of employee's contribution, procedure.
169.350. 1. All of the assets of the retirement system (other thantangible real or personal property owned by the retirement system for usein carrying out its duties, such as office supplies and furniture) shall becredited, according to the purpose for which they are held, in either theemployees' contribution fund or the general reserve fund.
(1) The employees' contribution fund shall be the fund in which shallbe accumulated the contributions of the members. The employer shall,except as provided in subdivision (5) of this subsection, cause to bededucted from the compensation of each member on each and every payroll,for each and every payroll period, the pro rata portion of five andnine-tenths percent of his annualized compensation. Effective January 1,1999, the employer shall deduct an additional one and six-tenths percent ofthe member's annualized compensation.
(2) The employer shall pay all such deductions and any amount it mayelect to pay pursuant to subdivision (5) of this subsection to theretirement system at once. The retirement system shall credit suchdeductions and such amounts to the individual account of each member fromwhose compensation the deduction was made or with respect to whosecompensation the amount was paid pursuant to subdivision (5) of thissubsection. In determining the deduction for a member in any payrollperiod, the board of trustees may consider the rate of compensation payableto such member on the first day of the payroll period as continuingthroughout such period.
(3) The deductions provided for herein are declared to be a part ofthe compensation of the member and the making of such deductions shallconstitute payments by the member out of the person's compensation and suchdeductions shall be made notwithstanding that the amount actually paid tothe member after such deductions is less than the minimum compensationprovided by law for any member. Every member shall be deemed to consent tothe deductions made and provided for herein, and shall receipt for theperson's full compensation, and the making of the deduction and the paymentof compensation less the deduction shall be a full and complete dischargeand acquittance of all claims and demands whatsoever for services renderedduring the period covered by the payment except as to benefits provided bysections 169.270 to 169.400.
(4) The accumulated contributions with interest of a member withdrawnby the person or paid to the person's estate or designated beneficiary inthe event of the person's death before retirement shall be paid from theemployees' contribution fund. Upon retirement of a member the member'saccumulated contributions with interest shall be transferred from theemployees' contribution fund to the general reserve fund.
(5) The employer may elect to pay on behalf of all members all orpart of the amount that the members would otherwise be required tocontribute to the employees' contribution fund pursuant to subdivision (1)of this subsection. Such amounts paid by the employer shall be in lieu ofmembers' contributions and shall be treated for all purposes of sections169.270 to 169.400 as contributions made by members. Notwithstanding anyother provision of this chapter to the contrary, no member shall beentitled to receive such amounts directly. The election shall be made by aduly adopted resolution of the employer's board and shall remain in effectfor at least one year from the effective date thereof. The election may bethereafter terminated only by an affirmative act of the employer's boardnotwithstanding any limitation in the term thereof in the adoptingresolution. Any such termination resolution shall be adopted at leastsixty days prior to the effective date thereof, and the effective datethereof shall coincide with a fiscal year-end of the employer. In theabsence of such a termination resolution, the election shall remain ineffect from fiscal year to fiscal year.
2. The general reserve fund shall be the fund in which shall beaccumulated all reserves for the payment of all benefit expenses and otherdemands whatsoever upon the retirement system except those items heretoforeallocated to the employees' contribution fund.
(1) All contributions by the employer, except those the employerelects to make on behalf of the members pursuant to subdivision (5) ofsubsection 1 of this section, shall be credited to the general reservefund.
(2) Should a retirant be restored to active service and again becomea member of the retirement system, the excess, if any, of the person'saccumulated contributions over benefits received by the retirant shall betransferred from the general reserve fund to the employees' contributionfund and credited to the person's account.
3. Gifts, devises, bequests and legacies may be accepted by the boardof trustees and deposited in the general reserve fund to be held, investedand used at its discretion for the benefit of the retirement system exceptwhere specific direction for the use of a gift is made by a donor.
(L. 1943 p. 787 § 9, A.L. 1951 p. 477, A.L. 1957 p. 396, A.L. 1961 p. 369, A.L. 1965 p. 291, A.L. 1967 lst Ex. Sess. p. 885, A.L. 1971 S.B. 140, A.L. 1973 H.B. 375, A.L. 1974 S.B. 574, A.L. 1978 H.B. 1503, A.L. 1982 H.B. 1522, A.L. 1989 S.B. 146, A.L. 1990 H.B. 1347, et al., A.L. 1993 S.B. 126, A.L. 1994 S.B. 575, A.L. 1998 S.B. 761)