38-851

38-851. Participation of new employers

A. This state, any municipality, county or other political subdivision of the
state, any Indian tribe or any public or quasi-public organization created wholly or
partly by, or deriving its powers from, the legislature, may request to become a
participating employer in the system on behalf of a designated eligible employee
group. Such a request shall be made by the state departmental director or after a proper
resolution has been adopted by the governing body of the political subdivision, Indian
tribe or public organization, and after such resolution has been approved by any other
party or officer required by law to approve the resolution. A certified copy of such
resolution shall be filed with the board. This state or the political subdivision,
Indian tribe or public organization shall be considered as a participating employer on
proper execution of a joinder agreement in which the employer unconditionally accepts the
provisions of the system and binds the employer's designated eligible employees to those
provisions. All members of an eligible group shall be designated for membership, unless
written consent to the contrary is obtained from the board. A member shall be qualified
for participation in order to obtain written consent to the contrary from the board.

B. The effective date of participation in the system by this state or a political
subdivision, Indian tribe or public organization shall be the July 1 next succeeding the
approval of its participation, unless the board consents to another date, as shall be
specifically stipulated in the joinder agreement.

C. The new employer shall designate the departments, groups or other
classifications of public safety employees that are eligible to participate in the system
and shall agree to make contributions each year that are sufficient to meet both the
normal cost on a level cost method attributable to inclusion of its employees and the
prescribed interest on the past service cost for its employees.

D. This state or any political subdivision, Indian tribe or public organization
that is contemplating participation in the system shall request a preliminary actuarial
survey to determine the estimated cost of participation, the benefits to be derived and
such other information as may be deemed appropriate. The cost of such a survey shall be
paid by this state or the political subdivision, Indian tribe or public organization
requesting it.

E. As a condition to participation in the system an Indian tribe employer, by
resolution of the governing body, shall:

1. Agree that all disputes involving interpretation of state statutes involving the
system, and any amendments to such statutes, will be resolved through the court system of
this state.

2. Agree to be bound by state statutes and laws that regulate and interpret the
provisions of the system, including eligibility to membership in the system, service
credits and the rights of any claimant to benefits and the amount of such benefits.

3. Agree to meet any requirement that the board may prescribe to ensure timely
payment of member and employer contributions and any other amounts due from the employer
to the system.

4. Include in the joinder agreement any other provision deemed necessary by the
board for the administration or enforcement of the agreement.

F. Assets under any existing public employee defined benefit retirement program,
except a military retirement program, necessary to equal the actuarial present value of
projected benefits to the extent funded on a market value basis as of the most recent
actuarial valuation attributable to the employer's designated employee group, calculated
using the actuarial methods and assumptions adopted by the existing public employee
retirement program, shall be transferred from such program to this fund no later than
sixty days after the employer's effective date. That portion of the transferred assets
that is attributable to employee contributions, including interest credits thereon, shall
be properly allocated to each affected employee of the employer and credited to the
employee's initial accumulated contributions, in accordance with a schedule furnished by
the employer to the board.