38-749. Employer termination incentive program;
employer payment of actuarial cost; definition
A. If a termination incentive program that is offered by an employer results in an
actuarial unfunded liability to ASRS, the employer shall pay to ASRS the amount of the
unfunded liability. ASRS shall determine the amount of the unfunded liability in
consultation with its actuary.
B. An employer shall notify ASRS if the employer plans to implement a termination
incentive program that may affect ASRS funding.
C. If ASRS determines that an employer has implemented a termination incentive
program that results in an actuarial unfunded liability to ASRS, ASRS shall assess the
cost of the unfunded liability to that employer. If the employer does not remit full
payment of all monies due within ninety days after being notified by ASRS of the amount
due, the unpaid amount accrues interest until the amount is paid in full. The interest
rate is the interest rate assumption that is approved by the board for actuarial
equivalency for the period in question to the date payment is received.
D. For the purposes of this section, "termination incentive program":
1. Means a total increase in compensation of thirty per cent or more that is given
to a member in any one or more years before termination that are used to calculate the
member's average monthly compensation if that increase in compensation is used to
calculate the member's retirement benefit and that increase in compensation is not
attributed to a promotion.
2. Means anything of value, including any monies, credited service or points that
the employer provides to or on behalf of a member that is conditioned on the member's
termination except for payments to an employee for accrued vacation, sick leave or
compensatory time unless the payment is enhanced beyond the employer's customary payment.
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