(1)
The board shall develop, maintain, and amend a statewide money purchase plan
document that is intended to comply with the qualification requirements specified
in section 401 of the internal revenue code, as applicable to governmental plans. As
used in this subsection (1), internal revenue code shall have that meaning set forth
in section 31-31-204 (3). The plan shall cover the members of those employers that
have withdrawn from the statewide retirement plan pursuant to section 31-31-501.
(2) (a) There is hereby created the fire and police members' statewide money
purchase plan benefit trust fund, which shall consist of moneys of employers that
have withdrawn from the statewide retirement plan pursuant to section 31-31-501,
including member and employer contributions and such amounts as are transferred
pursuant to section 31-31-501. The board shall keep an accurate account of the
fund and of each member's separate account in the fund.
(b) The plan document created by the board pursuant to subsection (1) of this
section shall govern the calculation and allocation of earnings and losses under the
various investment alternatives which the board may offer, the transfer of assets
between funds under each alternative, the allocation of a member's account
between investment alternatives, and such other matters as may be necessary to
the board's administration and management of the fund created pursuant to this
section.
(c) In its administration, investment, and management of the fire and police
members' statewide money purchase plan benefit trust fund, the board shall be
subject to the provisions of section 31-31-303.
(3) Each member's member contributions transferred to the fund pursuant to
section 31-31-501 (5)(b) shall be allocated to the member's separate account within
the fund. In addition, each member's separate account will be credited with a
portion of any excess employer reserve that is transferred to the fund, such amount
to be calculated by multiplying the excess employer reserve times the proportion
that the member's transferred member contributions bears to the total member
contributions transferred.
(4) (a) Except as provided in subsection (4)(b) of this section, upon the
effective date of an employer's withdrawal from the statewide retirement plan and
election to participate in the statewide money purchase plan, each member covered
by the statewide money purchase plan shall pay into the fund eight percent of
salary paid. The payment shall be made by the employer by deduction from the
salary paid such member. Except as provided in subsection (4)(b) of this section, for
each such member, the employer shall pay into the fund eight percent of the salary
paid to such member. All such payments shall be made by one voucher for the
aggregate amount and shall be made no later than ten days following the date of
payment of salary to the member. All such payments shall be credited to the fund.
Late payments are subject to the penalty set forth in section 31-31.5-309.
(b) (I) Upon the request of an employer, the board shall permit a higher
mandatory employer contribution rate, mandatory employee contribution rate, or
both, than is set forth in subsection (4)(a) of this section if the board determines
that:
(A) A local resolution or ordinance setting forth the higher mandatory
contribution rate or rates was enacted and is in effect; and
(B) An employee election was conducted and the higher mandatory
contribution rate or rates was approved by sixty-five percent of the employer's
active members of the plan who vote in the election proposing the higher rate.
(II) Any active member and any employer may make voluntary contributions
to the plan by payroll deduction. Voluntary member contributions are not subject to
the employer pickup provisions of section 414 (h) of the federal Internal Revenue
Code of 1986, as amended.
(III) In no event shall increased contributions resulting from a higher
contribution rate or rates cause a member to exceed the limit on annual additions
under the federal Internal Revenue Code of 1986, as amended, as applicable to
government plans.
(5) The board may amend the pension benefits provided under the statewide
money purchase plan document created pursuant to subsection (1) of this section
only upon the approval of at least sixty-five percent of the active members of the
plan who vote in the election proposing the plan amendment and more than fifty
percent of the employers who vote in the election proposing the plan amendment
and who have active members covered by the plan, 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 except that the board may amend the plan
document, without further approval, as it deems prudent and necessary to comply
with state and federal law or as it deems necessary to efficiently administer
benefits under the plan.
(6) (a) Any employer who has established a local money purchase plan
pursuant to part 6 of this article or article 30.5 may apply to the board to cover the
members of its local money purchase plan under the statewide money purchase
plan. An application may be initiated by filing with the board a resolution adopted
by the employer pursuant to paragraph (b) of this subsection (6) no less than six
months prior to the proposed effective date of coverage under the statewide money
purchase plan, unless a shorter waiting period is approved by the board. The
effective date of coverage shall be the first day of the month following the waiting
period.
(b) The employer's resolution applying for coverage under the statewide
money purchase plan shall be adopted by the governing body of the employer and
shall state the employer's intent to cover the members of its local money purchase
plan under the statewide money purchase plan.
(c) Any application for coverage under the statewide money purchase plan
shall be approved by at least sixty-five percent of all active members employed by
the employer who are participating in the local money purchase plan at the time of
the application and who vote in the election proposing the coverage under the
statewide money purchase plan.
(d) The board shall promulgate rules relating to standards for disclosure of
all ramifications and procedures for obtaining the member approval described in
paragraph (c) of this subsection (6). The board shall also promulgate rules relating
to standards for granting an employer's application for participation in the
statewide money purchase plan and for the submission of information to the board
by the employer.
(e) An application for coverage under the statewide money purchase plan
shall not be complete until the employer certifies to the board that:
(I) The employer's local money purchase plan meets the qualification
requirements of section 401 (a) of the Internal Revenue Code of 1986 that are
applicable to governmental plans;
(II) In connection with the employer's resolution pursuant to paragraph (b) of
this subsection (6), the employer's governing body has adopted a resolution for
complete or partial termination of the local money purchase plan in accordance
with the terms of that plan and that:
(A) The termination resolution does not adversely affect the qualified status
of the local money purchase plan; and
(B) The rights of all participants in the local money purchase plan who are
affected by the termination to benefits accrued to the date of termination are
nonforfeitable;
(III) All active and retired fire and police participants in the local money
purchase plan will become participants in the statewide money purchase plan;
(IV) As directed by the board, the employer will transfer or cause to be
transferred to the statewide money purchase plan all assets of the local money
purchase plan that are attributable to the accrued benefits of the transferred
participants;
(V) All employer and employee contributions required to be made to the
local money purchase plan as of the date of termination have been paid;
(VI) Participants in the local money purchase plan will not incur a reduction
in their respective accrued benefits, determined as of the date of transfer, as a
result of their transfer to the statewide money purchase plan; and
(VII) The employer agrees to participate in the statewide money purchase
plan and to be bound by the terms of the plan and the decisions and actions of the
board with respect to the plan.