(1) The board is authorized to develop, maintain, and amend a social security supplemental plan document, as a component of the defined benefit system, that offers a defined benefit and that is intended to comply with the qualification requirements specified in section 401 of the federal
"Internal Revenue Code of 1986", as amended, that are applicable to governmental plans. The plan shall cover the members of those employers that have elected coverage under the plan pursuant to section 31-31-704.5.
(2) (a) Contributions and earnings of the social security supplemental plan shall be held in trust as part of the defined benefit system trust fund.
(b) The social security supplemental plan document created by the board pursuant to subsection (1) of this section shall govern the accrual of service credit, vesting, the benefits to be offered based on age and service, the establishment and payment of contributions, the allocation of contributions towards funding the defined benefit, amendment of the plan, and such other matters as may be necessary to the board's administration and management of the plan.
Upon the effective date of coverage under the social security supplemental plan, eachmember covered by the plan shall pay one-half of the member contribution rate established in part 4 of this article into the defined benefit plan trust fund. The payment shall be made by the employer by deduction from the salary paid to the member. For each member, the employer shall pay one-half of the employer contribution rate established in part 4 of this article into the defined benefit plan trust fund. Payments are due no later than ten days following the date of payment of salary to the member, unless the salary is paid more than once monthly, in which event the payments are due no later than the tenth day of the month following the month the salary is paid to the member. The payments required by this section are subject to interest if not submitted when due.
Each employer shall pay the employee contributions required for all salaries, and thecontributions so paid shall be treated as employer contributions pursuant to section 414 (h)(2) of the federal "Internal Revenue Code of 1986", as amended, in determining tax treatment under the code. The employer shall pay the employee contributions directly to the retirement association, instead of paying the amounts to employees, and the contributions shall be paid from the same funds that are used in paying salaries to the employees. The contributions, although designated as employee contributions, shall be paid by the employer in lieu of contributions by employees. Employees may not elect to choose to receive the contributions directly instead of having them paid by the employer to the pension plan. Employee contributions so paid shall be treated for all purposes of this article, other than federal tax, in the same manner as employee contributions made before the date paid. Payment shall be made by one voucher for the aggregate amount deducted and shall be made no later than the tenth day after the end of each pay period.
Benefits payable under the social security supplemental plan shall be equivalent toone half of the benefits paid under the statewide defined benefit plan.
Source: L. 2006: Entire section added, p. 102, § 3, effective March 27. L. 2015: (3) amended, (SB 15-027), ch. 9, p. 21, § 3, effective August 5.
Cross references: For the "Internal Revenue Code of 1986", see title 26 of the United States Code.