Public Officers and Employees

CHAPTER 36-10.3
Defined Contribution Retirement Plan

SECTION 36-10.3-4

§ 36-10.3-4. Member contributions.

(1) Each regular member shall contribute to the member's individual account in the plan an amount equal to five percent (5%) of the member's compensation from July 1 to the following June 30.

(2) Each public safety member not participating in Social Security under the Federal Old Age, Survivors and Disability Income program, shall contribute to the member's individual account an amount equal to three percent (3%) of the member's compensation from July 1 to the following June 30.

(3) Contributions by supplemental members shall be governed by § 36-10.3-6.

(4) The employer shall deduct the contribution from the member's compensation at the end of each payroll period, and shall remit the contributions on the date contributions are withheld but no later than three (3) business days following the pay period ending in which contributions were withheld, and the contribution shall be credited by the plan to the member's individual account. The contributions shall be deducted from the member's compensation before the computation of applicable federal taxes and shall be treated as employer contributions under 26 U.S.C. § 414(h)(2). A member shall not have the option of making the payroll deduction directly in cash instead of having the contribution picked up by the employer.

(5) Contributions of employees shall be made by payroll deductions. Every member shall be considered to consent to payroll deductions. It is of no consequence that a payroll deduction may cause the compensation paid in cash to an employee to be reduced below the minimum required by law. Payment of an employee's compensation, less payroll deductions, is a full and complete discharge and satisfaction of all claims and demands by the employee relating to remuneration of services during the period covered by the payment, except with respect to the benefits provided under the plan.

(6) Additional voluntary member contributions may be permitted in accordance with this section in such manner as determined in the discretion of the commission.

(7) Every employer is required to deduct and withhold member contributions and to transmit same to the retirement system and is hereby made liable for the contribution. In addition, any amount of employee contributions actually deducted and withheld shall be deemed to be a special fund in trust for the benefit of the member and shall be transmitted to the retirement system as set forth herein.

History of Section.
(P.L. 2011, ch. 408, § 9; P.L. 2011, ch. 409, § 9; P.L. 2019, ch. 205, § 7; P.L. 2019, ch. 271, § 7.)