(1) There shall be a defined benefit system that shall consist of the following plans:
The statewide defined benefit plan established pursuant to part 4 of this article;
The statewide hybrid plan established pursuant to part 11 of this article;
Any exempt plan that is incorporated into the defined benefit system, pursuant to anagreement established under section 31-31-706 (2);
Any health care benefit plan established in association with the included plans; and
Any other plan authorized to be incorporated into the statewide defined benefit system.
The board may create plan documents for the plans within the defined benefit systemthat shall be in substantial conformance with the statutory provisions for each plan and that may include modifications and plan amendments as authorized under law.
(2.5) Notwithstanding section 31-31-408 or 31-31-1102 (5) or the terms of an agreement entered into pursuant to section 31-31-706 (2), the board may modify or amend the plan provisions contained in part 4 of this article or a plan document or rules of a plan within the defined benefit system as the board deems prudent and necessary to administer benefits under the plan consistently and uniformly across the defined benefit system in a manner that does not result in an actuarial cost to the plan. Such modifications or amendments may include changes to the options for the distribution of benefits. This subsection (2.5) shall not be construed to authorize modification to the amount of a normal benefit.
Qualification requirements - internal revenue code - definitions. (a) As used in this subsection (3), "internal revenue code" means the federal "Internal Revenue Code of 1986", as amended.
The defined benefit system and each of the plans established by part 2, 4, 7, or 11 ofthis article included within the system shall satisfy the qualification requirements specified in section 401 of the internal revenue code, as applicable to governmental plans.
The board may adopt any provision for a plan established by part 2, 4, 7, or 11 of thisarticle that is necessary to comply with the internal revenue code.
(4) Trust fund. (a) There is hereby created the defined benefit system trust fund. All assets held in connection with the defined benefit system, including all contributions to the plans in the system, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property, or rights, shall be held in trust for the exclusive benefit of members and their designated beneficiaries under the plans. Such assets shall constitute the trust fund. No part of the assets and income of the trust fund shall be used for, or diverted to, purposes other than for the exclusive benefit of members and their designated beneficiaries and for defraying reasonable expenses of the system.
All amounts of compensation contributed pursuant to the plans, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property, or rights held as part of the defined benefit system, including member contributions, employer contributions, any state contributions, fees collected, gifts received, unclaimed deposits, and investment income, shall be transferred to the board to be held, managed, invested, and distributed as part of the trust fund in accordance with the provisions of the documents governing the system. All contributions to the plans shall be transferred by the employers to the trust fund. All benefits under the plans shall be distributed solely from the trust fund pursuant to the documents governing the system.
The board is the trustee of the defined benefit system trust fund.
The following accounts shall be established within the trust fund:
A new hire benefits account for the statewide defined benefit plan, into which contributions shall be deposited. The benefits provided by the statewide defined benefit plan shall be paid from such account.
Accounts for the statewide hybrid plan as may be required under the statewide hybrid plan document;
Accounts for exempt plans incorporated into the statewide defined benefit plan asmay be required under the plan documents; and
Accounts for health care benefit plans as may be required under the health care plandocuments.
Source: L. 2006: Entire section added, p. 183, § 10, effective March 31. L. 2009: (3) amended, (HB 09-1030), ch. 16, p. 90, § 4, effective August 5. L. 2012: (2.5) added, (HB 121031), ch. 68, p. 236, § 1, effective August 8.