(1)Subject to the
requirements set forth in subsection (2) of this section and notwithstanding any
other provision of this article 31.5, the board may modify the statewide retirement
plan as follows:
(a)To modify the multiplier, retirement age, or service requirements for
pension benefits set forth in part 4 of this article 31.5 with respect to the members
of the defined benefit components if the modification does not require an increase
in the employer and member contribution rates established pursuant to part 3 of
this article 31.5 and if the board determines that the modification will maintain or
enhance the actuarial soundness, as specified in section 31-31.5-100.3 (1); and
(b)To increase the member contribution rate above the rates established
pursuant to part 3 of this
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(1) Subject to the
requirements set forth in subsection (2) of this section and notwithstanding any
other provision of this article 31.5, the board may modify the statewide retirement
plan as follows:
(a) To modify the multiplier, retirement age, or service requirements for
pension benefits set forth in part 4 of this article 31.5 with respect to the members
of the defined benefit components if the modification does not require an increase
in the employer and member contribution rates established pursuant to part 3 of
this article 31.5 and if the board determines that the modification will maintain or
enhance the actuarial soundness, as specified in section 31-31.5-100.3 (1); and
(b) To increase the member contribution rate above the rates established
pursuant to part 3 of this article 31.5 with respect to the members of the statewide
retirement plan if the increase does not require an increase in the employer
contribution rate established pursuant to part 3 of this article 31.5. Any such
increase in the member contribution rate is not subject to negotiation for payment
by the employer.
(c) To increase the contribution rates above the rates established pursuant
to part 3 of this article 31.5 with respect to the members and employers of the
statewide retirement plan if the rate of increase for the member and for the
employer is equal.
(2) Before modifying the plan pursuant to subsection (1) of this section, the
board must find that:
(a) 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;
(b) The modification has been approved by sixty-five percent of the active
members of the statewide retirement plan who are affected by the modification and
who vote in an election proposing the modification;
(c) The modification has been approved by more than fifty percent of the
employers having active members covered by the statewide retirement plan that
vote in the election proposing the modification, each employer to be assigned one
vote; except that employers having both active police and active fire members in
the plan shall be assigned two votes; and
(d) The modification does not adversely affect the pension benefits of retired
members.
(3) Any increase in the member contribution rate established pursuant to this
section shall be paid from a member's salary and otherwise be treated in the same
manner specified in part 3 of this article 31.5 for required minimum member
contributions for purposes of the federal Internal Revenue Code of 1986, as
amended.
(4) The board may eliminate an increase in the member or the member and
employer contribution rate increases established pursuant to this part 6 so long as
the requirements for an increase set forth in subsection (2) of this section are met.
(5) The board shall not adopt a modification that reduces the statewide
retirement plan's age for normal retirement below that permitted by section 31-31.5-401 (2).
(6) The board shall adopt rules setting forth the procedures for the elections
required by subsections (2)(b) and (2)(c) of this section. Each employer having
members in the statewide retirement 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.
(7) A written copy of the language of any modifications to the statewide
defined benefit plan 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.
(8) If at any time the cost of any modification adopted by the board pursuant
to subsection (1)(a) of this section would require an increase in employer and
member contributions made pursuant to part 3 of this article 31.5 or any higher
member contribution rate established pursuant to subsection (1)(b) of this section,
the board shall revoke the modification as it applies to active members of the
statewide retirement plan pursuant to section 31-31.5-402. The board may
reinstitute the modification at a later date, in its discretion, if reinstituting the
modification would not require an increase in the employer and member
contributions made pursuant to part 3 of this article 31.5.