(1) Notwithstanding any other provision of this part 4, and in addition to the authority granted in part 2 of this article, the board may modify the pension benefits and the age and service requirements for pension benefits set forth in this part 4 with respect to the members of the statewide defined benefit plan if:
The board determines that such modification will maintain or enhance the actuarialsoundness, as specified in section 31-31-102 (1), of the plan;
The modification does not require an increase in the employer and member contribution rates established as of January 1, 1980, pursuant to section 31-31-402 or such higher member contribution rate established pursuant to paragraph (a) of subsection (1.5) of this section;
The modification does not adversely affect the plan's status as a qualified plan pursuant to the federal "Internal Revenue Code of 1986", as amended;
The modification is approved by sixty-five percent of the active members of the planwho vote in the election proposing the modification;
The modification is approved by more than fifty percent of the employers havingactive members covered by the plan who vote in the election proposing the modification, each employer to be assigned one vote; except that employers having both active police and fire members in the plan shall be assigned two votes; and
The modification does not adversely affect the pension benefits of retired members.
(1.5) (a) Notwithstanding any other provision of this part 4, the board may increase the member contribution rate above the rate established pursuant to section 31-31-402 with respect to the members of the statewide defined benefit plan if the increase:
Does not require an increase in the employer contribution rate established pursuant tosection 31-31-402;
Does not adversely affect the plan's status as a qualified plan pursuant to the federal"Internal Revenue Code of 1986", as amended;
Is approved by sixty-five percent of the active members of the plan who vote in theelection proposing an increase in the member contribution rate; and
Is approved by more than fifty percent of the employers having active memberscovered by the plan who vote in the election proposing an increase in the member contribution rate, each employer to be assigned one vote; except that employers having both active police and fire members in the plan shall be assigned two votes.
The increase in the member contribution rate established pursuant to paragraph (a) ofthis subsection (1.5) shall be paid from a member's salary and otherwise be treated in the same manner specified in section 31-31-402 (1) for other member contributions for purposes of the federal "Internal Revenue Code of 1986", as amended. The increase in the member contribution rate shall not be subject to negotiation for payment by the employer.
The board may eliminate an increase in the member contribution rate establishedpursuant to paragraph (a) of this subsection (1.5) so long as the requirements for an increase set forth in said paragraph (a) are met.
(1.6) (a) Notwithstanding any other provision of this part 4, the board may increase the contribution rate above the rate established pursuant to section 31-31-402 with respect to the members and employers of the statewide defined benefit plan if:
The rate of increase is equal for the member and the employer;
The increase does not adversely affect the plan's status as a qualified plan pursuantto the federal "Internal Revenue Code of 1986", as amended;
The increase is approved by sixty-five percent of the active members of the planwho vote in the election proposing an increase in the member contribution rate; and
The increase is approved by more than fifty percent of the employers having activemembers covered by the plan who vote in the election proposing an increase in the member contribution rate, each employer to be assigned one vote; except that employers having both active police and fire members in the plan shall be assigned two votes.
The increase in the member contribution rate established pursuant to subsection (1.6)(a) of this section shall be paid from a member's salary and otherwise be treated in the same manner specified in section 31-31-402 (1) for other member contributions for purposes of the federal "Internal Revenue Code of 1986", as amended.
The board may eliminate an increase in the member and employer contribution rateestablished pursuant to subsection (1.6)(a) of this section, so long as the requirements for an increase set forth in subsection (1.6)(a) of this section are met.
In no event shall the board adopt a modification that reduces the statewide definedbenefit plan's normal retirement age below that permitted by section 31-31-403 (1)(b).
The board shall adopt rules setting forth the procedures for the member electionsrequired by paragraph (d) of subsection (1) and subparagraph (III) of paragraph (a) of subsection (1.5) of this section. Each employer having members in the statewide defined benefit plan shall comply with the procedures established by the board and shall certify the results of any member election to the board as prescribed by the board's rules.
A written copy of the language of any modifications to the statewide defined benefitplan or an increase in the member contribution rate adopted by the board pursuant to this section shall be kept and maintained by the board at its offices and be made available for copying and inspection by any interested party.
If at any time the cost of any modification adopted by the board pursuant to subsection (1) of this section would require an increase in the eight percent employer and eight percent member contributions made pursuant to section 31-31-402 or such higher member contribution rate established pursuant to paragraph (a) of subsection (1.5) of this section, the board shall revoke the modification as it applies to active members of the plan. The board may reinstitute the modification at a later date, in its discretion, if reinstituting the modification would not require an increase in the eight percent employer and eight percent member contributions made pursuant to section 31-31-402 or such higher member contribution rate established pursuant to paragraph (a) of subsection (1.5) of this section.
Source: L. 96: Entire article added with relocations, p. 911, § 1, effective May 23. L. 2010: (1)(b), (3), (4), and (5) amended and (1.5) added, (SB 10-022), ch. 18, p. 84, § 4, effective August 11. L. 2012: IP(1) amended, (HB 12-1031), ch. 68, p. 236, § 2, effective August 8. L. 2013: (1)(d), (1)(e), (1.5)(a)(III), and (1.5)(a)(IV) amended, (SB 13-240), ch. 273, p. 1434, § 1, effective August 7. L. 2020: (1.6) added, (HB 20-1044), ch. 105, p. 410, § 7, effective September 14.
Editor's note: This section was formerly numbered as § 31-30-1006.5.
Cross references: For the federal "Internal Revenue Code of 1986", see title 26 of the United States Code.