Election to Participate in the Optional Retirement Program by Persons Exempt From the Fair Labor Standards Act
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Notwithstanding any other law to the contrary and except as otherwise provided in § 8-36-903(c), any person who enters service with a state-supported institution of higher education on or after July 1, 2014, and who is exempt from the Fair Labor Standards Act (29 U.S.C. § 201 et seq.), may elect membership in the optional retirement program established in chapter 25, part 2 of this title in lieu of the hybrid plan. The election shall be made in the manner prescribed by the state treasurer and shall be filed with the state treasurer and with the institution of higher education where the employee is employed. The election shall be made within the time frame described in § 8-25-204. In all cases of doubt, the state treasurer shall determine whether the person is eligible to participate in the optional retirement program.
Any employee participating in the optional retirement program as provided in this part who attains either five (5) or more but less than six (6) years of creditable service in the optional retirement program, or five (5) or more but less than six (6) years of creditable service in the retirement system and the optional retirement program combined, shall have the option of transferring membership from the optional retirement program to the hybrid plan under the terms and conditions prescribed in § 8-25-204. The amount paid by the employee pursuant to § 8-25-204 shall be credited to the individual account of the employee in an amount equal to the employee contributions, if any, that were in the employee's optional retirement accounts immediately before the transfer, plus any difference between the amount paid and the employee's account balance in the optional retirement program immediately before the transfer. All other sums shall be credited to the employer reserve trust account established in § 8-36-920.
Any person who elects to participate in the optional retirement program as provided in subsection (a) shall participate in the program under chapter 25, part 2 of this title except as otherwise provided in subsection (d).
The employer and employee contribution provisions of § 8-25-205(a) shall not apply. Instead, the employer shall make employer contributions on behalf of each such eligible employee at the rate of nine percent (9%) of the employee's earnable compensation, or such alternate amount as may be prescribed in the general appropriations act each year. In addition, each such eligible employee shall contribute five percent (5%) of the employee's earnable compensation to the optional retirement program. The contributions made by such employees shall be treated as employer contributions pursuant to § 8-36-904(b).
The general assembly shall have the right to freeze, suspend, or modify benefits, employee and employer contributions, plan terms, and design of the optional retirement program on a prospective basis through amendments to or repeals of chapter 25 of this title. Nothing under state law may confer to participants in the optional retirement program an implied right to future retirement benefit arrangements and such participants may not assert the indefinite continuation of the retirement formulas, contribution rates and eligibility ages in effect at the time of employment; provided, however, that the actuarial value of accrued benefits earned by participants prior to the effective date of any such amendment or repeal shall remain an enforceable right and may not be reduced or otherwise forfeited except by the consent of the employee.