49-14-301. Contributions — Two divisions — Election by employer to pay employee contributions — Accounting for and vesting of member contributions — Deductions.
- (1) Participating employers and members shall jointly pay the certified contribution rates to 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 two divisions 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 Division B.
- (3) In addition to the divisions under Subsection (2) and for the purpose of determining contribution rates, each division under Subsection (2) is further divided as follows:
- (a) members of this system with a maximum annual cost-of-living adjustment under Subsection 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 under Subsection 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 member contributions, in addition to the required participating employer contributions.
- (b) Any amount contributed by a participating employer under this section shall vest to the 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 the participating employer.
- (5)
- (a) All member contributions are credited by the office to the account of the individual member.
- (b) This amount, plus refund interest, is held in trust for the payment of benefits to the member 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 member contributions.
- (b) The payment of compensation less these payroll deductions is considered full payment for services rendered by the member.
- (7) Contribution rates for a participating employer may be different than for other participating employers based on the participating employer’s current funding status and actuarial experience.
Amended by Chapter 227, 2008 General Session