49-14-301 - Contributions -- Two divisions -- Election by employer to pay employee contributions -- Accounting for and vesting of member contributions -- Deductions.
49-14-301. Contributions -- Two divisions -- Election by employer to pay employeecontributions -- Accounting for and vesting of member contributions -- Deductions.
(1) Participating employers and members shall jointly pay the certified contribution ratesto the office to maintain this system on a financially and actuarially sound basis.
(2) For purposes of determining contribution rates, this system is divided into twodivisions according to Social Security coverage as follows:
(a) members of this system with on-the-job Social Security coverage are in Division A;and
(b) members of this system without on-the-job Social Security coverage are in DivisionB.
(3) In addition to the divisions under Subsection (2) and for the purpose of determiningcontribution rates, each division under Subsection (2) is further divided as follows:
(a) members of this system with a maximum annual cost-of-living adjustment underSubsection 49-14-403(2)(b) are in Divisions A1 and B1; and
(b) members of this system with a maximum annual cost-of-living adjustment underSubsection 49-14-403(2)(a) are in Divisions A2 and B2.
(4) (a) A participating employer may elect to pay all or part of the required membercontributions, in addition to the required participating employer contributions.
(b) Any amount contributed by a participating employer under this section shall vest tothe member's benefit as though the member had made the contribution.
(c) The required member contributions shall be reduced by the amount that is paid by theparticipating employer.
(5) (a) All member contributions are credited by the office to the account of theindividual member.
(b) This amount, plus refund interest, is held in trust for the payment of benefits to themember or the member's beneficiaries.
(c) All member contributions are vested and nonforfeitable.
(6) (a) Each member is considered to consent to payroll deductions of membercontributions.
(b) The payment of compensation less these payroll deductions is considered fullpayment for services rendered by the member.
(7) Contribution rates for a participating employer may be different than for otherparticipating employers based on the participating employer's current funding status and actuarialexperience.
Amended by Chapter 227, 2008 General Session