§ 36-7-33.1. FICA Alternative Retirement Income Security Program.
(a) For FARP eligible employees, the state shall establish the FICA Alternative Retirement
Income Security Program. The FARP shall be administered in accordance with the following
provisions:
(1) IRC compliance. The FARP shall be administered as a defined contribution plan under section 401(a) of the IRC, and shall provide retirement benefits as required under section 3121(b)(7)(F) of the IRC.
(2) Employee participation in the FARP— One-Time Opt-Out Exception. With the one exception described in (b) below, FARP-eligible employee
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§ 36-7-33.1. FICA Alternative Retirement Income Security Program.
(a) For FARP eligible employees, the state shall establish the FICA Alternative Retirement
Income Security Program. The FARP shall be administered in accordance with the following
provisions:
(1) IRC compliance. The FARP shall be administered as a defined contribution plan under section 401(a) of the IRC, and shall provide retirement benefits as required under section 3121(b)(7)(F) of the IRC.
(2) Employee participation in the FARP— One-Time Opt-Out Exception. With the one exception described in (b) below, FARP-eligible employee participation
in the FARP shall be mandatory. Each participant shall make mandatory payroll deduction
contributions to the FARP equal to a minimum of seven and five tenths percent (7.5%)
of the employee's gross wages for each pay period. Any payroll deduction contributions
made pursuant to the FARP shall not be included in the computation of federal income
taxes withheld on behalf of any participant. Once implemented, the participants, and
the state on behalf of the participants, shall not continue to make FICA contributions.
The FARP shall be administered by the financial institution currently administering
the 401(a) plan for the state employee retirement plan, as described in Title 36 Chapter
10.3.
(b) An otherwise FARP-eligible employee, who is employed by the state at the time this
section takes effect, may opt to not participate in the FARP. An employee who opts
to not participate in the FARP will continue to make FICA contributions and the state
shall continue to make FICA contributions on behalf of the employee. An employee who
opts to not participate in the FARP may subsequently, without penalty, choose to participate
in the FARP; provided, however, such employee must continue to participate in the
FARP for as long as he or she is a FARP-eligible employee.
(c) Review by state investment commission. The state investment commission shall, from time to time, review and evaluate the
reasonableness of the selected financial institution's fees and the performance of
the selected financial institution's funds.