Section 100-A:24 Contributions.
I. Employees who have become members of the retirement system under the provisions of this subdivision shall contribute at the same rates of contribution and on the same basis as state employees.
II. Employers whose employees become members of the retirement system under the provisions of this subdivision shall make contributions in behalf of their employees corresponding to the contributions which the state makes in behalf of state employees, except that each employer shall make a special accrued liability contribution, which shall be determined by an actuarial valuation of the accrued liability on account of the employees of such employer who elect to become members, in the same way as the accrued liability contribution is determined for state employees. The accrued liability contribution, as so determined, shall be payable by each employer in lieu of the accrued liability contribution payable by the state on account of state employees. The expense of making the valuation to determine the accrued liability upon which the annual contribution shall be based shall be assessed against and paid by the employer or employers on whose account the valuation is necessary.
III. The contributions payable by employers whose employees participate in the retirement system shall be certified by the board of trustees to the chief fiscal officer of the employer and shall include a pro rata share of the cost of administration of the retirement system based upon the payroll of the employees of the employer who are members. The amounts so certified shall be a charge against the employer. The chief fiscal officer of each such employer shall pay to the state treasurer the amount certified by the board of trustees as payable under the provisions of this subdivision, and the state treasurer shall credit such amounts to the appropriate funds of the retirement system.
IV. The agreement of any employer to contribute on account of its employees shall be irrevocable, but should an employer for any reason become financially unable to make the contributions payable on account of its employees as set forth in this subdivision, then such employer shall be deemed to be in default. All members of the retirement system who were employees of such employer at the time of default shall thereupon be entitled to discontinue membership and to a refund of their previous contributions upon demand made within 90 days thereafter. As of a date 90 days following the date of such default, the board shall have an actuary determine by actuarial valuation the amount of the reserves held on account of each remaining active member and beneficiary of such employer and shall credit to each such member and beneficiary the amount of reserves so held. The reserves so credited, together with the amount of the accumulated contributions of each such active member, shall be used to provide for him a paid-up deferred annuity beginning at age 65, and the reserve of each beneficiary shall be used in providing such part of his existing retirement allowance as the reserve so held will provide, which retirement allowance shall thereafter be payable to him. The rights and privileges of both active members and beneficiaries of such employer shall thereupon terminate, except as to the payment of the deferred annuity so provided and the retirement allowance, or parts thereof, provided for the beneficiaries.
Source. 1967, 134:1, eff. July 1, 1967.