Alabama 2022 Regular Session

Alabama House Bill HB330 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 HB330
2	2	2 217382-1
3	3	3 By Representative Treadaway
4	4	4 RFD: State Government
5	5	5 First Read: 09-FEB-22
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7	7	Page 0 1 217382-1:n:02/09/2022:KMS/cr LSA2022-613
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9	9	3
10	10	4
11	11	5
12	12	6
13	13	7
14	14	8
15	15	9 A BILL
16	16	10 TO BE ENTITLED
17	17	11 AN ACT
18	18	12
19	19	13 Relating to the General Retirement System for
20	20	14 Employees of Jefferson County; to amend Sections 45-37-123.20
21	21	15 and 45-37-123.22, as amended by Act 2021-456, 2021 Regular
22	22	16 Session, Sections 45-37-123.80 and 45-37-123.82, and Sections
23	23	17 45-37-123.100 and 45-37-123.104, as amended by Act 2021-456,
24	24	18 2021 Regular Session, of the Code of Alabama 1975, to
25	25	19 establish an optional 25-year superannuation retirement
26	26	20 benefit for members who commence membership in the retirement
27	27	21 system on or after October 1, 2022, under certain conditions;
28	28	22 to establish the amount of additional employee contributions
29	29	23 required from members who elect to participate in the benefit;
30	30	24 to authorize the pension board to establish rules, procedures,
31	31	25 and forms to implement the benefit; to provide that the
32	32	26 employer contribution related to the benefit shall remain six
33	33	27 percent of the member's compensation each payroll period and
34	34	Page 1 1 that all additional contributions set forth in this act shall
35	35	2 be the obligation of the member and not the obligation of
36	36	3 Jefferson County; to provide that members who elect to
37	37	4 participate in the benefit, upon attaining 25 years of paid
38	38	5 membership time, may elect to terminate their employee
39	39	6 contributions at which time the employer contribution shall
40	40	7 also cease; and to provide for an effective date.
41	41	8 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
42	42	9 Section 1. Sections 45-37-123.20 and 45-37-123.22,
43	43	10 as amended by Act 2021-456, 2021 Regular Session, Sections
44	44	11 45-37-123.80 and 45-37-123.82, and Sections 45-37-123.100 and
45	45	12 45-37-123.104, as amended by Act 2021-456, 2021 Regular
46	46	13 Session, of the Code of Alabama 1975, are amended to read as
47	47	14 follows:
48	48	15 "§45-37-123.20.
49	49	16 "(a) Provisions of records. The county shall provide
50	50	17 all records and documents necessary to determine an employee's
51	51	18 status and eligibility for membership in the plan, upon which
52	52	19 a service record shall be created.
53	53	20 "(b) Contributions. The county shall contribute an
54	54	21 amount equal to six percent of an employee's compensation from
55	55	22 the county's general assets to the trust fund, as provided in
56	56	23 Section 45-37-123.80. The county also shall withhold six
57	57	24 percent of an employee's compensation each pay period as
58	58	25 provided in Section 45-37-123.82. With regard to an employee
59	59	26 who elects to participate in the optional 25-year
60	60	27 superannuation retirement benefit, the county shall also
61	61	Page 2 1 withhold an additional eight percent of the employee's
62	62	2 compensation. The county also shall contribute any amounts
63	63	3 received pursuant to Section 45-37-233, attributable to pistol
64	64	4 permits. Additionally, the county may pay into the trust fund
65	65	5 from the general funds of the county, in such installments or
66	66	6 times as the county may elect, an amount or amounts sufficient
67	67	7 to assure that the system is actuarially sound.
68	68	8 "§45-37-123.22.
69	69	9 "(a) The pension board shall be responsible for the
70	70	10 general administration and proper operation of the plan, and
71	71	11 shall administer the plan for the exclusive benefit of the
72	72	12 members and their beneficiaries, subject to the specific terms
73	73	13 of the plan. The pension board shall administer the plan in
74	74	14 accordance with its terms and shall have the power and
75	75	15 discretion to construe the terms of the plan and the act and
76	76	16 to determine all questions arising in connection with the
77	77	17 administration, interpretation, and application of the plan.
78	78	18 Any such determination by the pension board shall be
79	79	19 conclusive and binding upon all persons. The pension board may
80	80	20 establish procedures, correct any defect, supply any
81	81	21 information, or reconcile any inconsistency in such manner and
82	82	22 to such extent as shall be deemed necessary or advisable to
83	83	23 carry out the purpose of the plan; provided, however, that any
84	84	24 procedure, discretionary act, interpretation, or construction
85	85	25 shall be done in a nondiscriminatory manner based upon uniform
86	86	26 principles consistently applied and shall be consistent with
87	87	27 the intent that the plan shall continue to be deemed a
88	88	Page 3 1 qualified plan under the terms of § 401(a), Internal Revenue
89	89	2 Code, and shall comply with the terms of the act and all
90	90	3 regulations issued pursuant thereto. The pension board shall
91	91	4 have all powers necessary or appropriate to accomplish the
92	92	5 pension board's duties under the plan.
93	93	6 "(b) The pension board shall be charged with the
94	94	7 duties of the general administration of the plan as set forth
95	95	8 under the terms of the plan, including, but not limited to,
96	96	9 all of the following:
97	97	10 "(1) To determine all questions relating to the
98	98	11 eligibility of employees to participate or remain a member
99	99	12 hereunder and to receive benefits under the plan.
100	100	13 "(2) To compute and certify the amount and the kind
101	101	14 of benefits to which any member shall be entitled hereunder.
102	102	15 "(3) To maintain all necessary records for the
103	103	16 administration of the plan.
104	104	17 "(4) To interpret the provisions of the plan and to
105	105	18 make and publish such rules for regulation of the plan as are
106	106	19 consistent with the act and the terms hereof.
107	107	20 "(5) To establish rules and regulations for the
108	108	21 administration of plan funds and for the transaction of the
109	109	22 plan's business.
110	110	23 "(6) To exercise any investment discretion in a
111	111	24 manner designed to accomplish specific objectives related to
112	112	25 the plan's long-term and short-term liquidity needs.
113	113	Page 4 1 "(7) To prepare and provide active members with an
114	114	2 annual estimated benefit statement notifying them of their
115	115	3 estimated benefits.
116	116	4 "(8) To prepare and provide retired members with a
117	117	5 one-time notification of their benefit payment amounts, and to
118	118	6 provide retired members with periodic notification of cost of
119	119	7 living benefit increases which may be awarded by the pension
120	120	8 board in any form, lump sum, or otherwise.
121	121	9 "(9) To determine the validity of, and take
122	122	10 appropriate action with respect to, any divorce decree, or
123	123	11 other judicial order presented to the pension board.
124	124	12 "(10) To assist any member regarding the member's
125	125	13 rights, benefits, or elections available under the plan.
126	126	14 "(11) To, by written agreement or designation,
127	127	15 appoint at its option an investment manager, qualified under
128	128	16 the Investment Company Act of 1940, as amended, investment
129	129	17 adviser, or other agent to provide direction regarding any or
130	130	18 all of the plan assets. Such appointment shall specifically
131	131	19 identify the plan assets with respect to which the investment
132	132	20 manager or other agent shall have authority to direct the
133	133	21 investment.
134	134	22 "(12) To establish an investment policy.
135	135	23 "(13) To establish a privacy policy for the
136	136	24 protection of a member's personal information, subject to
137	137	25 applicable law.
138	138	26 "(14) To hold an annual meeting of the members at
139	139	27 least once per calendar year and provide at least seven days'
140	140	Page 5 1 written notice of the meeting to all members on the retirement
141	141	2 system website or at either their place of work, last known
142	142	3 address, or by electronic mail.
143	143	4 "(15) To determine appropriate rules and regulations
144	144	5 to determine how much service per calendar year is equivalent
145	145	6 to one year of service, in accordance with Section
146	146	7 45-37-123.84.
147	147	8 "(16) To develop rules and regulations, amend the
148	148	9 plan, subject to the provisions of Section 45-37-123.150, and
149	149	10 provide for increases in benefits, subject to the provisions
150	150	11 of Section 45-37-123.151.
151	151	12 "(17) Notwithstanding any provisions of the plan to
152	152	13 the contrary, to amend the plan in order to comply with
153	153	14 federal law, and any such amendment shall be given full effect
154	154	15 under Alabama law.
155	155	16 "(18) To purchase insurance coverage in such forms
156	156	17 and amounts as may be determined by the pension board.
157	157	18 "(19) To provide employees of the system with
158	158	19 health, dental, vision, and other forms of insurance, paid
159	159	20 vacation, sick leave, tuition reimbursement, and any other
160	160	21 benefits as determined by the pension board.
161	161	22 "(20) To provide members of the system with
162	162	23 voluntary life, disability, and other forms of insurance, the
163	163	24 cost of which is paid by the member.
164	164	25 "(21) To conduct meetings and business by video
165	165	26 conference, telephone conference, or electronic communication.
166	166	Page 6 1 "(22) To participate in emergency relief programs of
167	167	2 the United States, the State of Alabama, and their
168	168	3 departments, agencies, and instrumentalities.
169	169	4 "(23) To recover costs and reasonable attorney's
170	170	5 fees in actions in which the pension board seeks to recover
171	171	6 funds of the retirement system erroneously paid to members,
172	172	7 beneficiaries, and third parties.
173	173	8 "(24) To establish procedures, forms, and rules to
174	174	9 implement the optional 25-year superannuation retirement
175	175	10 benefit.
176	176	11 "(c) Failure of the pension board to follow any
177	177	12 provisions or procedures in the plan shall not constitute a
178	178	13 waiver of any provision or procedure contained herein.
179	179	14 "§45-37-123.80.
180	180	15 "(a) Employer contributions. Each Except for members
181	181	16 who at the commencement of their membership in the retirement
182	182	17 system elect the optional 25-year superannuation retirement
183	183	18 benefit, each payroll period, an amount equal to the total of
184	184	19 all members’ employee contributions that is deducted from the
185	185	20 members’ compensation pursuant to Section 45-37-123.82 shall
186	186	21 be contributed by the county and shall be paid into the trust
187	187	22 fund. County contributions for members who elect the optional
188	188	23 25-year superannuation retirement benefit shall be six percent
189	189	24 of the member's compensation each payroll period.
190	190	25 "(b) Employer contributions upon reinstatement from
191	191	26 qualified military service. If any member leaves the service
192	192	27 of the county for the purposes of performing qualified
193	193	Page 7 1 military service and shall have been reinstated to the service
194	194	2 of the county within 90 days after such member’s separation
195	195	3 from such qualified military service, then the county shall
196	196	4 promptly pay into the trust fund an amount equal to twice the
197	197	5 employee contribution which the employee would have made if he
198	198	6 or she had not been absent on such leave, and if his or her
199	199	7 compensation had continued to be the same as he or she was
200	200	8 earning at the time of the commencement of the leave;
201	201	9 provided, however, that no part of such payment by the county
202	202	10 shall be refundable to the employee pursuant to Section
203	203	11 45-37-123.104.
204	204	12 "§45-37-123.82.
205	205	13 "(a) Employee contributions generally. As a
206	206	14 condition of employment and of accruing benefits under the
207	207	15 plan, each member shall contribute six percent of such
208	208	16 member's compensation to the plan. A member, who at the
209	209	17 commencement of his or her membership in the retirement system
210	210	18 elects the optional 25-year superannuation retirement benefit
211	211	19 pursuant to Section 45-37-123.100(a)(2), shall contribute an
212	212	20 additional eight percent of the member's compensation. The
213	213	21 employee contributions shall be after tax, or if approved by
214	214	22 the pension board such employee contributions shall be pre-tax
215	215	23 and treated as "picked-up" and contributed by the county to
216	216	24 the plan pursuant to Section 414(h)(2) of the Internal Revenue
217	217	25 Code. The county shall process such employee contributions
218	218	26 each payroll period and the aggregate amount shall be
219	219	27 deposited in the trust fund. Employee contributions shall
220	220	Page 8 1 begin on the member's first paycheck after a member becomes
221	221	2 eligible for membership in the system as provided for in
222	222	3 Section 45-37-123.50. In the event that the county fails to
223	223	4 withhold any employee contributions, the county may withhold
224	224	5 such amounts, whether treated by the county as after-tax
225	225	6 contributions or treated as "picked-up" contributions, from
226	226	7 future paychecks as are necessary to restore the amounts not
227	227	8 withheld.
228	228	9 "(b) Withdrawal or refunds of employee
229	229	10 contributions. Employee contributions may be withdrawn or
230	230	11 refunded only as provided in Section 45-37-123.104.
231	231	12 "(c) Cessation of employee contributions. A member
232	232	13 may terminate employee contributions when the member's service
233	233	14 entitles him or her to receive the maximum benefit available
234	234	15 after 30 years of paid service, as further provided in Section
235	235	16 45-37-123.104(3).
236	236	17 "§45-37-123.100.
237	237	18 "(a) Superannuation retirement benefit benefits.
238	238	19 "(1) Thirty-year superannuation retirement benefit.
239	239	20 "(1)a. ELIGIBILITY. A member shall be eligible for a
240	240	21 superannuation retirement benefit if:
241	241	22 "a.1. The member has 30 or more years of paid
242	242	23 membership time, regardless of age;
243	243	24 "b.2. The member has 10 or more years of paid
244	244	25 membership time and has attained the age of 60; or
245	245	Page 9 1 "c.3. The member has 30 years of service, 20 years
246	246	2 of which are paid membership time, and has attained the age of
247	247	3 55.
248	248	4 "(2)b. CALCULATION OF BENEFIT. If a member meets the
249	249	5 foregoing eligibility criteria, then the member shall be
250	250	6 eligible to retire and receive a monthly benefit for the
251	251	7 remainder of his or her life to be determined by the following
252	252	8 formula:
253	253	9 "a.1. Two and one-half percent multiplied by the
254	254	10 basic average salary multiplied by the number of years of paid
255	255	11 membership time; plus
256	256	12 "b.2. Five-eighths of one percent multiplied by the
257	257	13 basic average salary multiplied by the number of years of
258	258	14 unpaid membership time, if applicable.
259	259	15 "(2) Optional 25-year superannuation retirement
260	260	16 benefit.
261	261	17 "a. ELIGIBILITY. A member who commences membership
262	262	18 in the retirement system on or after October 1, 2022, and who
263	263	19 elected in writing to participate in the optional 25-year
264	264	20 superannuation retirement benefit at the time of commencement
265	265	21 and made all additional contributions required by this part,
266	266	22 shall be eligible for a superannuation retirement benefit,
267	267	23 calculated pursuant to paragraph b., if the member has 25
268	268	24 years of paid membership time, regardless of age.
269	269	25 "b. CALCULATION OF BENEFIT. If a member meets the
270	270	26 eligibility criteria set forth in paragraph a., the member
271	271	27 shall be eligible to retire and receive a monthly benefit for
272	272	Page 10 1 the remainder of his or her life, as determined by the
273	273	2 following formula: Two and one-half percent multiplied by the
274	274	3 basic average salary multiplied by the number of years of paid
275	275	4 membership time.
276	276	5 "(3) Additional provisions applicable to
277	277	6 superannuation retirement benefits:
278	278	7 "(3)a. SEVENTY-FIVE PERCENT LIMITATION.
279	279	8 Notwithstanding the foregoing, no member shall receive any
280	280	9 retirement benefit in excess of 75 percent of his or her basic
281	281	10 average salary. This 75 percent limitation shall only be
282	282	11 applied at the time that the beginning retirement benefit is
283	283	12 determined and shall not limit increases granted to retired
284	284	13 members subsequent to their retirement. Additionally, this 75
285	285	14 percent limitation shall be applied before applying any
286	286	15 actuarial adjustments to reflect an election of a joint
287	287	16 survivorship pension.
288	288	17 "(4)b. SECTION 401(a)(17), INTERNAL REVENUE CODE,
289	289	18 LIMITATION. Notwithstanding the foregoing provisions of this
290	290	19 subsection, after applying the § 401(a)(17), Internal Revenue
291	291	20 Code, compensation limit set forth in subdivision (11) of
292	292	21 Section 45-37-123.01, the pension board, with the assistance
293	293	22 of an actuary, shall determine the adjustments to any or all
294	294	23 of the components or factors of the benefit formula, other
295	295	24 than paid membership time, unpaid membership time, and/or the
296	296	25 basic average salary as limited by the compensation limit that
297	297	26 would be necessary to yield the maximum benefit specified
298	298	27 under this part, without regard to § 401(a)(17), Internal
299	299	Page 11 1 Revenue Code; the pension board shall then use such adjusted
300	300	2 benefit formula to determine the maximum benefit due from the
301	301	3 plan, subject, however, to Subpart 6, Internal Revenue Code,
302	302	4 Section 415 limitations.
303	303	5 "(5)c. ELIGIBILITY FOR JOINT SURVIVORSHIP PENSION. A
304	304	6 member that is entitled to a superannuation retirement benefit
305	305	7 shall be entitled to instead elect a joint survivorship
306	306	8 pension, as provided for under Section 45-37-123.101.
307	307	9 "(6)d. DEATH. If a member dies while receiving
308	308	10 payment of a superannuation retirement benefit, the return of
309	309	11 any remaining portion of his or her employee contributions
310	310	12 shall be governed by Section 45-37-123.104(5)d
311	311	13 45-37-123.104(4)d. If the member has received payments in an
312	312	14 amount at least equal to the amount of employee contributions
313	313	15 he or she made to the plan at the time of death, then no
314	314	16 further payments shall be made upon the member's death.
315	315	17 "(b) Early retirement benefits.
316	316	18 "(1) REGULAR EARLY RETIREMENT. A member may elect,
317	317	19 but is not required, to retire prior to age 60 if the member
318	318	20 has completed 30 or more years of service, 10 of which, but
319	319	21 not the total 30, are paid membership time. In the event that
320	320	22 a member makes such an election, such member shall be entitled
321	321	23 to receive an early retirement benefit equal to the member's
322	322	24 benefit that would be payable pursuant to subsection (a), but
323	323	25 with an actuarial equivalent reduction for each year less than
324	324	26 60 years of age, as follows:
325	325	Page 12 "Age of Member on1
326	326	2 Last Birthday Pre-
327	327	3 ceding Retirement
328	328	Reduced Retirement Benefit on
329	329	Account of Retirement before
330	330	Age 60 Expressed as a Percent-
331	331	age of the Applicable Superan-
332	332	nuation Retirement Benefit un-
333	333	der subsection (a)
334	334	"594 93%
335	335	"585 87%
336	336	"576 82%
337	337	"567 77%
338	338	"558 72%
339	339	"549 68%
340	340	"5310 64%
341	341	"5211 60%
342	342	"5112 57%
343	343	"5013 54%
344	344	"4914 51%
345	345	"4815 48%
346	346	"(2) TWENTY-FIVE YEAR EARLY RETIREMENT BENEFIT. On16
347	347	17 and after April 24, 2003, a member with at least 25 years of
348	348	18 paid membership time, but less than 30 years of paid
349	349	19 membership time, who is not eligible for a superannuation
350	350	20 retirement benefit may elect to retire early, but is not
351	351	Page 13 1 required to do so. In the event that a member makes such an
352	352	2 election, such member shall be entitled to receive a 25-year
353	353	3 early retirement benefit equal to the member's benefit that
354	354	4 would be payable under the applicable superannuation
355	355	5 retirement benefit pursuant to subsection (a), but with an
356	356	6 actuarial equivalent reduction of seven percent for each whole
357	357	7 year less than 30 years. For purposes of the seven percent
358	358	8 reduction, months are not counted.
359	359	9 "(3) ELIGIBILITY FOR JOINT SURVIVORSHIP PENSION. A
360	360	10 member that is entitled to an early retirement benefit shall
361	361	11 be entitled to instead elect a joint survivorship pension, as
362	362	12 provided for under Section 45-37-123.101.
363	363	13 "(4) DEATH. If a member dies while receiving payment
364	364	14 of an early retirement benefit, the return of any remaining
365	365	15 portion of his or her employee contributions shall be governed
366	366	16 by Section 45-37-123.104(5)d 45-37-123.104(4)d. If the member
367	367	17 has received payments in an amount at least equal to the
368	368	18 amount of employee contributions he or she made to the plan at
369	369	19 the time of death, then no further payments shall be made upon
370	370	20 the member's death.
371	371	21 "(c) Deferred retirement benefits.
372	372	22 "(1) GENERAL RULES FOR DEFERRED RETIREMENT BENEFITS.
373	373	23 "a. Ineligibility for Deferred Retirement Benefit if
374	374	24 Eligible for Superannuation Retirement Benefit. If a member is
375	375	25 eligible for a superannuation retirement benefit, then he or
376	376	26 she is not eligible for a deferred retirement benefit.
377	377	Page 14 1 "b. Withdrawal of Employee Contributions. A member
378	378	2 who has elected a deferred retirement benefit may at any time
379	379	3 before payment of such benefit commences withdraw in full his
380	380	4 or her employee contributions, without interest. However, no
381	381	5 deferred retirement benefit shall be paid to a member who
382	382	6 withdraws such employee contributions.
383	383	7 "c. Eligibility for Joint Survivorship Pension. A
384	384	8 member that is entitled to a deferred retirement benefit shall
385	385	9 be entitled to instead elect a postretirement joint
386	386	10 survivorship pension provided for under Section 45-37-123.101.
387	387	11 "d. Death. If a member dies before or after payment
388	388	12 of his or her deferred retirement benefit commences, the
389	389	13 return of his or her employee contributions to the plan shall
390	390	14 be governed by Section 45-37-123.104(5)b. 45-37-123.104(4)b.
391	391	15 or d., respectively.
392	392	16 "(2) REGULAR DEFERRED RETIREMENT BENEFIT.
393	393	17 "a. Eligibility. Subject to the general eligibility
394	394	18 requirements stated in subdivision (1), a member may elect a
395	395	19 regular deferred retirement benefit if he or she has at least
396	396	20 10 years of paid membership time.
397	397	21 "b. Calculation of Benefit/Vesting. The regular
398	398	22 deferred retirement benefit shall be calculated by multiplying
399	399	23 the superannuation retirement benefit that the member would
400	400	24 have been entitled to had he or she been 60 years of age when
401	401	25 he or she terminated employment, times a percentage, which
402	402	26 percentage shall be determined based upon the member's paid
403	403	27 membership time, as follows:
404	404	Page 15 1 "1. Ten years of paid membership time: 50 percent.
405	405	2 "2. Eleven years of paid membership time: 60
406	406	3 percent.
407	407	4 "3. Twelve years of paid membership time: 70
408	408	5 percent.
409	409	6 "4. Thirteen years of paid membership time: 80
410	410	7 percent.
411	411	8 "5. Fourteen years of paid membership time: 90
412	412	9 percent.
413	413	10 "6. Fifteen or more years of paid membership time:
414	414	11 100 percent.
415	415	12 "c. Commencement of Payment. Payment of a member's
416	416	13 regular deferred retirement benefit shall commence upon the
417	417	14 date that the member reaches the age of 60 and shall continue
418	418	15 for the life of the member, regardless of whether the member
419	419	16 is employed with another employer at the time payment is to
420	420	17 commence.
421	421	18 "(3) INVOLUNTARY DEFERRED RETIREMENT BENEFIT.
422	422	19 "a. 20/55 Provisions. Subject to the general
423	423	20 eligibility requirements stated in subdivision (1), a member
424	424	21 who is not entitled to voluntarily retire pursuant to
425	425	22 subsection (a), superannuation retirement benefit benefits, or
426	426	23 subdivision (1) of subsection (b), regular early retirement
427	427	24 benefit, but who is involuntarily retired after accumulating
428	428	25 20 years of service with the county, at least 10 of which is
429	429	26 paid membership time, shall be entitled to receive a monthly
430	430	27 benefit computed in accordance with the applicable formula set
431	431	Page 16 1 forth in subsection (a), superannuation retirement benefit
432	432	2 benefits, the payment of which shall commence upon his or her
433	433	3 retirement if he or she has attained the age of 55; if the
434	434	4 member has not attained the age of 55, payment shall be
435	435	5 delayed until the member's attainment of age 55.
436	436	6 "b. 18/60 Provisions. Subject to the general
437	437	7 eligibility requirements stated in subdivision (1) and to this
438	438	8 paragraph, a member who is not entitled to voluntarily retire
439	439	9 pursuant to subsection (a), superannuation retirement benefit
440	440	10 benefits, or subdivision (1) of subsection (b), regular early
441	441	11 retirement benefit, but who is involuntarily retired after
442	442	12 accumulating 18 years of service with the county, at least 10
443	443	13 of which is paid membership time, shall be entitled to receive
444	444	14 a monthly benefit computed in accordance with the applicable
445	445	15 formula set forth in subsection (a), superannuation retirement
446	446	16 benefit benefits, the payment of which shall commence as set
447	447	17 forth below.
448	448	18 "1. Member contributions. In order to receive a
449	449	19 benefit under paragraph b., a member shall contribute to the
450	450	20 plan from the date of the member's involuntary retirement to
451	451	21 the date that the benefit commences, by the last day of each
452	452	22 calendar month: (i) the amount of employee contributions that
453	453	23 he or she would have made if he or she had continued to be
454	454	24 employed by the county at the same salary as he or she was
455	455	25 receiving at the time of his or her termination of employment,
456	456	26 plus (ii) the amount which the county would have contributed
457	457	27 to the plan on the member's behalf if he or she had continued
458	458	Page 17 1 to be employed by the county at the same salary as he or she
459	459	2 was receiving at the time of his or her termination of
460	460	3 employment.
461	461	4 "2. Commencement of payment. Payment of a member's
462	462	5 involuntary deferred retirement benefit under paragraph b.
463	463	6 shall commence upon the earlier of: (i) the date on which the
464	464	7 member attains the age of 60; or (ii) the date on which the
465	465	8 member would have completed 30 years of service with the
466	466	9 county, if he or she had continued employment with the county,
467	467	10 regardless of whether the member is employed with another
468	468	11 employer at the time payment is to commence; provided however,
469	469	12 that if at the time payment of the deferred retirement benefit
470	470	13 commences, he or she has not attained the age of 60, the
471	471	14 amount of his or her monthly benefit computed in accordance
472	472	15 with the applicable subdivision of subsection (a),
473	473	16 superannuation retirement benefit benefits, shall be reduced
474	474	17 in the same manner as the early retirement benefit benefits is
475	475	18 reduced under subdivision (1) of subsection (b).
476	476	19 "(d) Offset for payment of hospital, surgical, and
477	477	20 medical benefits. To the extent that the county, with
478	478	21 sufficient advance written notice, so directs the system, the
479	479	22 system shall offset the monthly benefit amount payable to a
480	480	23 retired member by an amount, determined by the county, needed
481	481	24 to pay for the member's premiums for certain hospital,
482	482	25 surgical, and/or medical benefits sponsored by the county. The
483	483	26 system shall pay such withheld amounts to the county on a
484	484	27 monthly basis. In the event that the county makes an error in
485	485	Page 18 1 its written direction to the system, the system shall not be
486	486	2 required to correct such error by adjusting its withholdings;
487	487	3 rather, such error shall be corrected between the county and
488	488	4 the member. At any time a written opinion from a competent
489	489	5 actuary selected by the commission is made indicating that the
490	490	6 funds and assets of the system are not actuarially sound, then
491	491	7 the benefits of this subsection shall cease to be in effect
492	492	8 until such time as an actuary appointed by the commission
493	493	9 gives a written opinion that the system is financially sound.
494	494	10 Any such actuarial services shall be paid for by the system.
495	495	11 "§45-37-123.104.
496	496	12 "The following provisions generally govern a
497	497	13 member's withdrawal and refund of employee contributions under
498	498	14 the plan. Any member who fails to make application for the
499	499	15 amount of his or her employee contributions pursuant to this
500	500	16 section within five years after his or her separation from the
501	501	17 service of the county, except as otherwise provided herein or
502	502	18 otherwise determined by the pension board, shall be deemed to
503	503	19 have forfeited and donated such employee contributions to the
504	504	20 trust fund pursuant to Section 45-37-123.83. The foregoing
505	505	21 five year rule only applies to a member; in the case of a
506	506	22 beneficiary, the pension board may only forfeit employee
507	507	23 contributions after it has exhausted reasonable efforts to
508	508	24 locate the beneficiary.
509	509	25 "(1) WITHDRAWAL OF EMPLOYEE CONTRIBUTIONS BY MEMBERS
510	510	26 NOT ENTITLED TO A DEFERRED RETIREMENT BENEFIT. In the event
511	511	27 that a member ceases to be an employee of the county for
512	512	Page 19 1 reasons other than retirement, death, or disability before he
513	513	2 or she is eligible for a deferred retirement benefit, such
514	514	3 member, upon written application therefore to the pension
515	515	4 board, shall be paid the full amount of his or her employee
516	516	5 contributions, without interest.
517	517	6 "(2) WITHDRAWAL OF EMPLOYEE CONTRIBUTIONS BY MEMBERS
518	518	7 ENTITLED TO A DEFERRED RETIREMENT BENEFIT.
519	519	8 "a. General Rule. Subject to the limitations stated
520	520	9 in paragraph b., in the event that a member ceases to be an
521	521	10 employee of the county for reasons other than retirement,
522	522	11 death, or disability when he or she is eligible for a deferred
523	523	12 retirement benefit, but has not elected a deferred retirement
524	524	13 benefit, such member, upon written application therefore to
525	525	14 the pension board, shall be paid the full amount of his or her
526	526	15 employee contributions, with interest. The provisions of
527	527	16 Section 45-37-123.100(c)(1)b. shall govern the withdrawal of
528	528	17 employee contributions for any member who has elected a
529	529	18 deferred retirement benefit, but has not yet been paid.
530	530	19 "b. Rules and Regulations. The pension board shall
531	531	20 establish rules and regulations setting forth the amount of
532	532	21 interest payable to members under this subdivision. In
533	533	22 establishing such rules and regulations, the pension board
534	534	23 shall take into consideration the interest the system has
535	535	24 earned on the employee contributions paid into the trust fund
536	536	25 on account of the member withdrawing such employee
537	537	26 contributions. The pension board may amend such rules and
538	538	27 regulations at any time in its sole discretion.
539	539	Page 20 1 "(3) PARTIAL REFUND OF EMPLOYEE CONTRIBUTIONS AND
540	540	2 CESSATION OF EMPLOYEE CONTRIBUTIONS AND EMPLOYER
541	541	3 CONTRIBUTIONS. When a member, who at the commencement of his
542	542	4 or her membership in the retirement system does not elect to
543	543	5 participate in the optional 25-year superannuation retirement
544	544	6 benefit, attains 30 years of paid membership time, the member
545	545	7 may elect to terminate his or her employee contributions by
546	546	8 filing with the pension board a statement signed by the member
547	547	9 stating that he or she elects to terminate his or her employee
548	548	10 contributions; in such case, the employer contribution to the
549	549	11 trust fund on the member's behalf shall cease. When a member,
550	550	12 who at the commencement of his or her membership in the
551	551	13 retirement system elects to participate in the optional
552	552	14 25-year superannuation retirement benefit, attains 25 years of
553	553	15 paid membership time, the member may elect to terminate his or
554	554	16 her employee contributions by filing with the pension board a
555	555	17 statement, signed by the member, stating that he or she elects
556	556	18 to terminate his or her employee contributions. Upon filing,
557	557	19 the employer contribution to the trust fund on the member's
558	558	20 behalf shall cease. As soon as practicable after a member
559	559	21 files such statement, the pension board shall refund to him or
560	560	22 her all employee contributions, without interest, made by him
561	561	23 or her to the trust fund subsequent to the date on which the
562	562	24 member accumulated sufficient service to entitle him or her to
563	563	25 the maximum benefit that can be provided under the plan;
564	564	26 additionally the pension board shall refund to the county any
565	565	27 associated employer contributions, without interest.
566	566	Page 21 1 "(4) REFUNDS UPON DEATH OF A MEMBER.
567	567	2 "a. Refund of Employee Contributions for Deceased,
568	568	3 Nonvested Active Members Not Entitled to Deferred Retirement
569	569	4 Benefits. If a nonvested active member dies, then an amount
570	570	5 equal to the total amount of such member's employee
571	571	6 contributions, without interest, may be refunded to the
572	572	7 member's beneficiary in lump sum form.
573	573	8 "b. Refund of Employee Contributions for Deceased,
574	574	9 Vested Members Entitled to Deferred Retirement Benefits, but
575	575	10 No Payments Have Commenced.
576	576	11 "1. Eligibility. Unless an election has been made in
577	577	12 accordance with Section 45-37-123.103 to receive a
578	578	13 preretirement joint survivorship pension, if a vested member
579	579	14 dies, before payments have commenced, then an amount equal to
580	580	15 the total amount of such member's employee contributions, with
581	581	16 interest, shall be refunded to the member's beneficiary in
582	582	17 lump sum form. This rule shall apply regardless of whether the
583	583	18 member dies while active, or after a deferred retirement
584	584	19 election has been made, so long as payments have not
585	585	20 commenced.
586	586	21 "2. Rules and regulations. The pension board is
587	587	22 authorized to adopt interest rules and regulations providing
588	588	23 for the pension board to pay to a beneficiary interest at the
589	589	24 rate prescribed in such rules on the member's employee
590	590	25 contributions that are to be refunded to the beneficiary. The
591	591	26 interest rules and regulations established shall prescribe the
592	592	27 terms and conditions on which such interest shall be payable
593	593	Page 22 1 and may impose such limitations on the payment of interest as
594	594	2 the pension board deems appropriate.
595	595	3 "c. Refund of Employee Contributions for Deceased
596	596	4 Members Who Previously Elected a Postretirement Joint
597	597	5 Survivorship Pension.
598	598	6 "1. Eligibility - Retired member. Subject to items
599	599	7 (i) to (iii), inclusive, of subparagraph 2., if a retired
600	600	8 member dies after a postretirement joint survivorship pension
601	601	9 has been elected, then a refund may be paid in lump sum form
602	602	10 only as set forth in subparagraph 2.
603	603	11 "2. Rules and regulations. The pension board is
604	604	12 authorized to adopt rules and regulations providing for the
605	605	13 pension board to refund a member's employee contributions
606	606	14 after such member dies with a postretirement joint
607	607	15 survivorship pension election in place and to pay interest on
608	608	16 any such refund, subject to the conditions and limitations
609	609	17 stated below:
610	610	18 "(i) Such postretirement joint survivorship pension
611	611	19 election shall not be repealed or rescinded but shall be in
612	612	20 effect at the time of the refund, and the member shall have
613	613	21 enough service at the time of his or her death to be entitled
614	614	22 to a deferred retirement benefit if a refund were not made;
615	615	23 and
616	616	24 "(ii) Both the member and the member's primary
617	617	25 beneficiary shall be deceased, thus, no refund is payable in
618	618	26 the event that only the member dies while receiving payment of
619	619	27 a postretirement joint survivorship pension; and
620	620	Page 23 1 "(iii) The member's employee contributions shall
621	621	2 exceed the sum of all monthly retirement benefits the plan has
622	622	3 paid to the member and/or the member's beneficiary.
623	623	4 "3. Amount of refund. If each of the requirements in
624	624	5 subparagraph 1. and subparagraph 2. are met, and the pension
625	625	6 board has adopted rules and regulations in accordance with
626	626	7 subparagraph 2., then the amount of the refund shall be equal
627	627	8 to the amount by which the member's employee contributions
628	628	9 exceed the sum of all monthly retirement benefits the plan has
629	629	10 paid to such member and/or such member's beneficiary, with
630	630	11 interest as provided by rules and regulations adopted by the
631	631	12 pension board.
632	632	13 "4. Payment made to contingent beneficiary. A refund
633	633	14 pursuant to this paragraph shall be paid to the member's
634	634	15 designated contingent beneficiary, or, to the member's estate
635	635	16 if the contingent beneficiary also is deceased or there is no
636	636	17 other properly designated contingent beneficiary.
637	637	18 "5. Death while active member. In the event that an
638	638	19 active member dies after a postretirement joint survivorship
639	639	20 pension has been elected, such election shall be deemed void
640	640	21 and the provisions of Section 45-37-123.103(a), preretirement
641	641	22 death benefits, shall apply.
642	642	23 "d. Refund of Employee Contributions for Deceased
643	643	24 Members Who Were Receiving Superannuation, Early, Disability,
644	644	25 or Deferred Retirement Benefit Payments. In the event that a
645	645	26 member dies while receiving a superannuation retirement
646	646	27 benefit, an early retirement benefit, a disability retirement
647	647	Page 24 1 benefit, or a deferred retirement benefit, then his or her
648	648	2 beneficiary shall be entitled to receive a refund in an amount
649	649	3 equal to the amount by which the member's employee
650	650	4 contributions exceed the sum of all monthly retirement
651	651	5 benefits the plan has paid to such member, with interest.
652	652	6 "e. Proof of Death and Marriage. The pension board
653	653	7 may require proper proof of death or marriage in accordance
654	654	8 with Section 45-37-123.103(f).
655	655	9 "(5) EMPLOYER CONTRIBUTIONS REMAIN IN TRUST FUND.
656	656	10 Employer contributions are never refunded to the member or the
657	657	11 member's beneficiary. All associated employer contributions
658	658	12 shall remain in the trust fund, except such employer
659	659	13 contributions that are returned to the county pursuant to
660	660	14 subdivision (7).
661	661	15 "(6) CESSATION OF EMPLOYMENT. Unless otherwise
662	662	16 specifically provided in the plan, such as, pursuant to
663	663	17 subdivision (7), a member shall cease to be an employee of the
664	664	18 county in order to receive a refund of employee contributions.
665	665	19 "(7) REFUNDS TO CORRECT ERRORS. The pension board,
666	666	20 in its sole discretion, may refund employee contributions and
667	667	21 associated employer contributions to the county to correct
668	668	22 various errors, such as, inclusion in the plan of an
669	669	23 ineligible individual or overpayment of employee
670	670	24 contributions, in accordance with Section 45-37-123.23(b).
671	671	25 "(8) NO REFUNDS FOR QUALIFIED MILITARY SERVICE.
672	672	26 There shall be no refund of any contributions attributable to
673	673	Page 25 1 amounts that the county restores pursuant to Section
674	674	2 45-37-123.80(b) due to a member's qualified military service.
675	675	3 "(9) TIMING OF REFUND PAYMENTS. In the event that a
676	676	4 refund is to be paid, such payment shall be made as soon as
677	677	5 administratively practical following the date upon which
678	678	6 entitlement to the refund occurs.
679	679	7 "(10) REFUND TO INCLUDE AMOUNTS TRANSFERRED FROM
680	680	8 457(b) PLAN. In the event that any member transfers amounts
681	681	9 from a § 457(b), Internal Revenue Code, plan in accordance
682	682	10 with Section 45-37-123.190(b), a refund shall include such
683	683	11 transferred amounts, with interest if the member is vested."
684	684	12 Section 2. The amendatory provisions of this act
685	685	13 shall apply only to individuals who commence membership in the
686	686	14 General Retirement System for Employees of Jefferson County
687	687	15 after October 1, 2022.
688	688	16 Section 3. All laws or parts of laws which conflict
689	689	17 with this act are repealed.
690	690	18 Section 4. This act shall become effective October
691	691	19 1, 2022, following its passage and approval by the Governor,
692	692	20 or its otherwise becoming law.
693	693	Page 26