Participating employers and members shall pay the certified contribution rates to the office to maintain the defined benefit portion of this system on a financially and actuarially sound basis.
Terms Used In Utah Code 49-22-301
Amortization: Paying off a loan by regular installments.
Certified contribution rate: means the board certified percent of salary paid on behalf of an active member to the office to maintain the system on a financially and actuarially sound basis. See Utah Code 49-11-102
Compensation: means the total amount of payments made by a participating employer to a member of this system for services rendered to the participating employer, including:
(i)
bonuses;
(ii)
cost-of-living adjustments;
(iii)
other payments currently includable in gross income and that are subject to social security deductions, including any payments in excess of the maximum amount subject to deduction under social security law;
(iv)
amounts that the member authorizes to be deducted or reduced for salary deferral or other benefits authorized by federal law; and
Employer: means any department, educational institution, or political subdivision of the state eligible to participate in a government-sponsored retirement system under federal law. See Utah Code 49-11-102
Member contributions: means the sum of the contributions paid to a system or the Utah Governors' and Legislators' Retirement Plan, including refund interest if allowed by a system, and which are made by:
(a)
the member; and
(b)
the participating employer on the member's behalf under Section 414(h) of the Internal Revenue Code. See Utah Code 49-11-102
Refund interest: means the amount accrued on member contributions at a rate adopted by the board. See Utah Code 49-11-102
Retirement: means the status of an individual who has become eligible, applies for, and is entitled to receive an allowance under this title. See Utah Code 49-11-102
System: means the New Public Employees' Tier II Contributory Retirement System created under this chapter. See Utah Code 49-22-102
Tier I: means a system or plan under this title for which:
(a)
an employee is eligible to participate if the employee initially enters regular full-time employment before July 1, 2011; or
(b)
a governor or legislator who initially enters office before July 1, 2011. See Utah Code 49-11-102
Tier II: includes :
(i)
the Tier II hybrid system established under:
(A)
3; or
(B)
3; and
(ii)
the Tier II Defined Contribution Plan (Tier II DC Plan) established under:
A participating employer shall pay up to 10% of compensation toward the certified contribution rate to the office for the defined benefit portion of this system.
(b)
A member shall only pay to the office the amount, if any, of the certified contribution rate for the defined benefit portion of this system that exceeds the percent of compensation paid by the participating employer under Subsection (2)(a).
(c)
In addition to the percent specified under Subsection (2)(a), the participating employer shall pay the corresponding Tier I system amortization rate of the employee’s compensation to the office to be applied to the employer’s corresponding Tier I system liability.
(3)
A participating employer may not elect to pay all or part of the required member contributions under Subsection (2)(b), in addition to the required participating employer contributions.
(4)
(a)
A member contribution is credited by the office to the account of the individual member.
(b)
This amount, together with refund interest, is held in trust for the payment of benefits to the member or the member’s beneficiaries.
(c)
A member contribution is vested and nonforfeitable.
(5)
(a)
Each member is considered to consent to payroll deductions of member contributions.
(b)
The payment of compensation less these payroll deductions is considered full payment for services rendered by the member.
(6)
Benefits provided under the defined benefit portion of the Tier II Hybrid RetirementSystem created under this part:
(a)
may not be increased unless the actuarial funded ratios of all systems under this title reach 100%; and
(b)
may be decreased only in accordance with the provisions of Section 49-22-310.
