38-810. Contributions
A. Each member shall contribute to the fund an amount equal to seven per cent of
the member's gross salary. Contributions of members shall be made by payroll
deductions. Every member is deemed to consent to these deductions. Payment of a member's
compensation, less these payroll deductions, constitutes a full and complete discharge
and satisfaction of all claims and demands by the member relating to remuneration for the
member's services rendered during the period covered by the payment, except with respect
to the benefits provided under the plan.
B. The board's office shall be credited monthly with monies collected pursuant to
section 12-119.01, subsection B, paragraph 2, section 12-120.31, subsection D, paragraph
2, section 12-284.03, subsection A, paragraph 6, section 22-281, subsection C, paragraph
3 and section 41-178. The monies credited to the fund pursuant to this subsection shall
be deposited in the fund on a monthly basis, and there shall be a complete accounting of
the determination of these monies deposited in the fund.
C. As determined by actuarial valuations performed by the plan's actuary, each
employer shall make level per cent compensation contributions sufficient under the
actuarial valuation to meet both the normal cost plus the actuarially determined amount
required to amortize the unfunded accrued liability over, beginning July 1, 2005, a
rolling period of at least twenty and not more than thirty years that is established by
the board taking into account the recommendation of the plan's actuary, except that,
beginning with fiscal year 2006-2007, the employer contribution rate shall not be less
than ten per cent of salary. The monies deposited in the fund pursuant to subsection B of
this section shall be used to reduce the contributions required of state and county
employers only. Employers that entered the plan under a joinder agreement shall also
contribute an amount equal to the unfunded accrued liability for that employer. The
unfunded liability for each new employer shall be actuarially determined by the plan's
actuary as of the effective date of participation of each employer and shall be payable
on the effective date of participation. The minimum employer contribution that is paid
and that is in excess of the normal cost plus the actuarially determined amount required
to amortize the unfunded accrued liability as calculated pursuant to this subsection
shall be used to reduce future employer contribution increases and shall not be used to
pay for an increase in benefits that are otherwise payable to members. The board shall
separately account for these monies in the fund. After the close of any fiscal year, if
the plan's actuary determines that the actuarial valuation of the fund contains excess
valuation assets and is more than one hundred per cent funded, the board shall account
for fifty per cent of the excess valuation assets in a stabilization reserve account.
After the close of any fiscal year, if the plan's actuary determines that the actuarial
valuation of the fund has a valuation asset deficiency and an unfunded actuarial accrued
liability, the board shall use any valuation assets in the stabilization reserve account,
to the extent available, to limit the decline in the fund's funding ratio to not more
than two per cent.
D. The department of administration and the treasurer of each county and
participating city and town shall transfer to the board the contributions provided for in
subsections A and C of this section within ten working days after each payroll date. The
state, county treasurers and clerks of the superior court shall transfer the monies
credited under subsection B of this section to the board on or before the fifteenth day
of each calendar month that follows the month in which the court fees were collected.
Contributions and monies credited under subsection B of this section and transferred
after these dates shall include a penalty equal to ten per cent a year, compounded
annually, for each day that the contributions or monies credited under subsection B of
this section are late. Delinquent payments due under this subsection, together with
interest charges as provided in this subsection and court costs, may be recovered by
action in a court of competent jurisdiction against the person or persons responsible for
the payments or, at the request of the board, may be deducted from any other monies,
including excise revenue taxes, payable to a political subdivision by any department or
agency of this state. If requested by the board, the state, county treasurers or clerks
of the superior court shall transfer the monies credited under subsection B of this
section, in an amount determined by the board, directly to the qualified governmental
excess benefit arrangement established pursuant to section 38-803.01.
E. The employer shall pay the member contributions required of members on account
of compensation earned after August 7, 1985. The paid contributions shall be treated as
employer contributions for the purpose of determining tax treatment under the United
States internal revenue code. The effective date of the employer payment shall not be
before the date the retirement plan has received notification from the United States
internal revenue service that pursuant to section 414(h) of the United States internal
revenue code the member contributions paid will not be included in gross income for
income tax purposes until the paid contributions are distributed by refund or pension
payments. The employer shall pay the member contributions from monies established and
available in the retirement deduction account, which monies would otherwise have been
designated as member contributions and paid to the retirement plan. Member contributions
paid pursuant to this subsection shall be treated for all other purposes, in the same
manner and to the same extent, as member contributions made before August 7, 1985.
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