(a)As used in this Code section, the term:
(1)"401(k)" means the deferred compensation plan offered by the state for public employees pursuant to Article 3 of Chapter 18 of Title 45 utilizing Section 401(k) of the federal Internal Revenue Code.
(2)"Plan" means the employee savings plan created by this article.
(b)Each member shall, at the time of becoming a member, be automatically enrolled in the plan; provided, however, that the member shall have a period of 90 days from the date of enrollment to withdraw from the plan. Such withdrawal shall be made in writing to the board of trustees in such form as the board prescribes and any employee account balance shall be returned to the member. Thereafter, participation in the plan shall be voluntary. The member may not withdraw from the plan
Free access — add to your briefcase to read the full text and ask questions with AI
(a) As used in this Code section, the term: (1) "401(k)" means the deferred compensation plan offered by the state for public employees pursuant to Article 3 of Chapter 18 of Title 45 utilizing Section 401(k) of the federal Internal Revenue Code. (2) "Plan" means the employee savings plan created by this article. (b) Each member shall, at the time of becoming a member, be automatically enrolled in the plan; provided, however, that the member shall have a period of 90 days from the date of enrollment to withdraw from the plan. Such withdrawal shall be made in writing to the board of trustees in such form as the board prescribes and any employee account balance shall be returned to the member. Thereafter, participation in the plan shall be voluntary. The member may not withdraw from the plan so long as he or she remains eligible to participate in the 401(k) plan offered by the state. (c) (1) This paragraph shall apply to persons who became members prior to July 1, 2014. Unless the participating member elects otherwise, the member shall, for each pay period, contribute 1 percent of his or her compensation into his or her 401(k) account. The member may change such level of participation at any time. (2) This paragraph shall apply to persons who become members on or after July 1, 2014. Unless the participating member elects otherwise, the member shall, for each pay period, contribute 5 percent of his or her compensation into his or her 401(k) account. The member may change such level of participation at any time. (d) (1) On and after July 1, 2022, for any participating member who contributes a percentage of his or her salary into the 401(k) plan for a pay period, the employer shall contribute an equal amount into his or her 401(k) account up to a maximum of 5 percent except as otherwise provided in paragraph (2) of this subsection. (2) On and after July 1, 2022, in addition to the amounts provided for in paragraph (1) of this subsection, for any participating member who has attained five years or more of creditable service in the plan and contributes at least 5 percent of his or her salary into his or her 401(k) account, such member's employer shall contribute an additional amount equal to 0.5 percent of the member's compensation for each year of such member's creditable service that exceeds five years; provided, however, that the total rate of any employer's contribution pursuant to this subsection shall not exceed 9 percent of the member's compensation. (3) (A) Notwithstanding the provisions of this subsection, employer contributions shall be subject to the limitations imposed by federal law. (B) The member may make such additional contributions as he or she desires, subject to limitations imposed by federal law. (e) The board of trustees shall apportion the costs of administering the plan among the employers and members on the basis of the normal costs of administration against any special services requested by any member. (f) All contributions by participating members are 100 percent vested and shall be maintained in an account and invested based on the participant's investment allocation choices. All employer contributed amounts credited to a member's account shall be maintained as a matching contribution subaccount and invested based on the participant's investment allocation choices. Any and all amounts credited to a member's matching contribution subaccount, including applicable earnings and investment appreciation or depreciation, shall become vested and nonforfeitable based on the number of employment service years completed and in accordance with the vesting schedule set forth below: Years of Service Employer Nonforfeitable Vested Percentage 1 20 2 40 3 60 4 80 5 100 Upon separation from service for greater than 31 days, the portion of such matching contribution subaccount not so vested shall be transferred from the member's account into a temporary plan forfeiture accumulation account for future disposition as determined by the board of trustees. A break in service less than 32 days shall not affect vesting rights. (g) Members electing to be governed by the provisions of this article pursuant to subsection (b) of Code Section 47-2-351 shall use their date of election as the beginning date for purposes of calculating their vesting service for the employer contribution as provided in subsection (f) of this Code section used to calculate the vesting requirements of subsection (f) of this Code section, except that service as provided under Code Section 47-2-91 shall not constitute creditable service for this purpose.