38-729

38-729. Political subdivision plans

A. The governing body of any political subdivision may adopt, by appropriate
legislation, a supplemental retirement plan for employees and officers of the political
subdivision who are included within agreements entered into between the governing body
and the state agency providing for the extension of federal old age and survivors
insurance benefits to the officers and employees. The supplemental retirement plan shall
provide the same retirement benefits and require the same obligations for entitlement as
are provided for other members under this article, except that:

1. The supplemental retirement plan shall specify the date of commencement of the
supplemental retirement plan as the first day of the month following board approval of
the supplemental plan of the political subdivision as provided in this section.

2. Employer and employee obligations shall be paid to ASRS in accordance with that
date.

B. The governing body of the political subdivision shall submit the supplemental
retirement plan to the board in the form of an agreement. The agreement shall state the
terms of the supplemental retirement plan as provided in this section. The board shall
either approve or disapprove the supplemental retirement plan submitted by the governing
body of the political subdivision.

C. On approval, the board shall administer the supplemental plan of the political
subdivision.

D. The employer's share of contributions and payments in excess of those required
of the employer under section 38-737 shall be paid from monies of the political
subdivision.

E. On establishment of the supplemental retirement plan the governing body of the
political subdivision shall deduct member contributions in the same amounts and in the
same manner as provided in this article for state employees and shall pay those
contributions, together with the employer contributions for the political subdivision, to
ASRS for deposit in the ASRS depository. The governing body of the political subdivision
shall reimburse ASRS in a similar manner for its pro rata share of administrative costs
attributable to coverage of employees of the political subdivision.

F. In addition to the employer contributions required under section 38-737, on
establishment of the supplemental retirement plan the governing body of the political
subdivision shall pay to ASRS the amounts, as determined by the board, required to fund
additional costs of benefits attributable to service for the political subdivision before
the effective date of the supplemental retirement plan. The board may authorize payments
to be made at such times as the board requires and in amounts that are less than the
amount required for fully funding the additional costs.

G. If the supplemental retirement plan is authorized by a political subdivision,
then on or after the effective date of the supplemental retirement plan the governing
body of the political subdivision and the board may sign an agreement to waive the
provisions of subsection F of this section and to authorize benefits under the
supplemental retirement plan only for service with the political subdivision after the
effective date of the supplemental retirement plan. In lieu of waiving benefits for all
service before the effective date of the supplemental retirement plan, the governing body
of the political subdivision may elect to waive benefits for a portion of that
service. Amendments to the agreement may increase but shall not reduce the service for
which a member is entitled to benefits. The governing body of the political subdivision
shall certify for each member the years of service before the effective date of the
supplemental retirement plan for which the member is entitled to benefits. In addition
to the employer contributions required in section 38-737, the governing body of the
political subdivision shall pay to ASRS the amount, as determined by the board, required
to fund the cost of the benefits attributable to service before the effective date of the
supplemental retirement plan for which members are entitled to benefits.

H. The new political subdivision shall designate the classification of employees
that is eligible for membership in ASRS and shall make contributions each year as
provided in this section.

I. The liability of the political subdivision providing a supplemental retirement
plan within ASRS arises in consideration of the officer's or employee's retention in or
entrance into service for the political subdivision.